Reference no: EM13510191

For last year, Lewisburn Manufacturing reported the following:

Revenue	$420,000
Beginning inventory of direct materials, January 1	22,000
Purchases of direct materials	146,000
Ending inventory of direct materials, December 31	16,000
Direct manufacturing labor	18,000
Indirect manufacturing costs	40,000
Beginning inventory of finished goods, January 1	35,000
Cost of goods manufactured	104,000
Ending inventory of finished goods, December 31	36,000
Operating costs	140,000

 

What was Lewisburn's operating income?

A) $76,000 B) $177,000 C) $128,000 D) $280,000

9) For last year, Lewisburn Manufacturing reported the following:

Revenue	$420,000
Beginning inventory of direct materials, January 1	22,000
Purchases of direct materials	146,000
Ending inventory of direct materials, December 31	16,000
Direct manufacturing labor	18,000
Indirect manufacturing costs	40,000
Beginning inventory of finished goods, January 1	35,000
Cost of goods manufactured	104,000
Ending inventory of finished goods, December 31	36,000
Operating costs	140,000

 

How much of the above would be considered period costs for Lewisburn Manufacturing?

A) $140,000 B) $246,000 C) $104,000 D) $390,000

10) Rodney Worsham is paid $10 an hour for straight-time and $15 an hour for overtime. One week he worked 45 hours, which included 5 hours of overtime, and 3 hours of idle time caused by material shortages. Compensation would be reported as:

A) $450 of direct labor and $25 of manufacturing overhead

B) $445 of direct labor and $30 of manufacturing overhead

C) $420 of direct labor and $55 of manufacturing overhead

D) $370 of direct labor and $105 of manufacturing overhead