Reference no: EM132971045
Questions -
Q1) Ariel Corp. manufactures plastic coated metal clips. The following were among Ariel's 2020 manufacturing costs:
WAGES:
Machine operators: 200,000
Maintenance workers: 30,000
Factory foreman: 90,000
MATERIALS USED
Metal wire: 500,000
Lubricant for oiling machinery: 10,000
Plastic coating: 380,000
During the year, how much is Ariel's direct labor and direct materials, respectively?
a. 230,000 ; 510,000
b. 220,000 ; 500,000
c. 320,000 ; 880,000
d. 200,000 ; 880,000
Q2) The following information was taken from Love Company's accounting records for the year ended December 31, 2020:
Increase in materials inventory: 15,000
Decrease in finished goods inventory: 35,000
Raw materials purchased: 430,000
Direct labor payroll: 200,000
Factory overhead: 300,000
Freight-out: 45,000
There was no work in process inventory at the beginning or end of the year. Love's cost of goods sold for the year is:
a. 950,000
b. 965,000
c. 975,000
d. 995,000