Reference no: EM13862291

The manufacturing cost accounts of Varsity Manufacturing Co. provide the following information for the year ended December 31, 2011:

Direct materials used $500,000
Direct materials purchased $520,000
Direct labor cost assigned to production $130,000
Wages paid to direct workers $120,000
Manufacturing overhead costs applied to production $190,000
Cost of finished goods manufactured $850,000

Inventories at the beginning and end of the year were as follows:

                                                                                                                   Dec. 31              Jan. 1 

Materials...............................................................                 $65,000               $?

Work in Process.....................................................                  $15,000           $10,000

Finished Goods.....................................................                    $35,000          $65,000

Answer the following questions. If you select answer d, indicate the correct amount.

1 Refer to the above data. The total amount of inventory that should appear in the company's balance sheet at December 31, 2011 is:
a $115,000. c $85,000.
b $860,000. d Some other amount. $____________

2 Refer to the above data. The total manufacturing costs charged to the Work in Process Inventory account during 2011 amounted to:
a $850,000. c $810,000.
b $820,000. d Some other amount. $____________

3 Refer to the above data. The total manufacturing costs deducted from revenue in 2011: amounted to:
a $890,000. c $845,000.
b $880,000. d Some other amount. $____________

4 Refer to the above data. The balance in the Materials Inventory account at the beginning of 2011: was:
a $65,000. c $45,000.
b $85,000. d Some other amount. $____________