COGM-Multiple Choice

What types of costs are included in cost of goods manufactured? a. only direct costs b. only indirect costs c. direct costs plus manufacturing overhead d. direct material used, beginning work in process and ending work in process

c. direct costs plus manufacturing overhead

Direct materials used a. is the same thing as direct materials purchased b. is not a part of cogs c. is included in the cost of making products d. is not included in the cost of making products

c. is included in the cost of making products

COGM is a. expensed in the period it is incurred b. the cost of inventory that is not available to the customer c. reported on the IS and the BS d. only reported on the IS

c. reported on the IS and the BS

Which of the following items would not be reported on the BS? a. the cost of unsold FG b. the cost of RM that are in the warehouse c. the cost of products sold to the customer d. the cost of products that are not yet complete

c. the cost of products sold to the customer

Cost of goods manufactured represents a. cost of goods sold during the period b. cost of all products that were started during the period c. total cost to manufacture completed finished goods during the period d. total cost for everything paid for at the manufacturing plant during the period

c. total cost to manufacture completed finished goods during the period

If ending WIP is overstated a. manufacturing overhead will be incorrect b. COGS will be overstated c. COGM will be overstated d. COGM will be understated

d. COGM will be understated

Which of the following is included when calculating COGM? a. FG b. selling expenses c. administrated expenses d. beginning WIP

d. beginning WIP

The formula to calculate cost of goods sold is a. beginning finished goods plus ending finished goods plus cost of goods manufactured b. beginning work in process less ending work in process plus cost of goods manufactured c. beginning raw materials purchased plus cost of goods manufactured less ending raw materials d. beginning finished goods plus cost of goods manufactured less ending finished goods

d. beginning finished goods plus cost of goods manufactured less ending finished goods

A manufacturing company incurred $50,000, $60,000, and $75,000 respectively for direct materials used, direct labor, and MOH. COGM is $195,000 and beginning WIP is $10,000. What is ending WIP? a. $0 b. $20,000 c. ($10,000) d. $160,000

a. $0

A manufacturing company reported the following during the first year of operations: 1) Sales $500,000 2) GP $200,000 3) Ending FG $15,000 What was the COGM during the first year? a. $315,000 b. $285,000 c. $300,000 d. not enough information to calculate COGM

a. $315,000

Which of the following would not be a part of COGM? a. FG inventory b. RM purchased c. depreciation of factory machines d. beginning WIP

a. FG inventory

Direct labor would include a. a worker who put the product together b. a worker who inspects the product after it is complete c. a worker who cleans the manufacturing facility d. a worker who supervises assembly workers

a. a worker who put the product together

COGM includes a. direct materials, indirect materials, and direct labor b. direct labor, indirect labor, and salesperson commission c. plant manager's salary and executive management salary d. rent on manufacturing facility and rent on corporate headquarters

a. direct materials, indirect materials, and direct labor

A manufacturing company has beginning FG of $60,000, RM purchased of $20,000, COGM of $98,000 and ending FG inventory of $35,000. Sales are $120,000 and selling expenses are $32,000. COGS is a. $106,000 b. $123,000 c. $88,000 d. ($10,000)

b. $123,000

The formula to calculate cost of goods manufactured is a. beginning finished goods plus ending finished goods plus cost of goods manufactured b. beginning work in process less ending work in process plus all costs this period to manufacture products c. beginning raw materials purchased plus cost of good manufactured less ending raw materials d. beginning finished goods plus cost of goods manufactured less ending finished goods

b. beginning work in process less ending work in process plus all costs this period to manufacture products

COGM is a. expensed in the period it is incurred b. expensed in the period it is sold to the customer c. always reported as inventory on the balance sheet d. all the costs of a manufacturing company

b. expensed in the period it is sold to the customer

Ending work in process is subtracted from total manufacturing costs to get COGM because a. beginning work in process is added b. it is not complete and cost of goods manufactured is completed products only c. cost of goods sold can include unfinished products d. manufacturing overhead would be counted twice if it was not taken out

b. it is not complete and cost of goods manufactured is completed products only

Which of the following costs would not be part of COGS on the IS? a. labor incurred to assemble the product b. marketing costs c. manufacturing supplies d. material that is part of the product

b. marketing costs

COGM means the same thing as a. inventory costs b. product costs of completed goods c. MOH costs d. period costs

b. product costs of completed goods

A manufacturing company has COGM of $200,000. Inventory was as follows: Ending RM: $100,000; Beginning RM: $125,000; Ending FG: $75,000; Beginning FG: $85,000. COGS is: a. $190,000 b. $225,000 c. $210,000 d. $175,000

c. $210,000

The cost of goods that is moved from WIP to FG is also called a. COGS b. inventory costs c. COGM d. ending WIP

c. COGM

Which of the following inventory accounts is not used when calculating COGM? a. RM b. WIP c. FG d. all of the above are included

c. FG

Indirect material and indirect labor a. are not included in COGM b. are included as part of material used and labor used in COGM c. are included in COGM as MOH d. are never a part of work in process

c. are included in COGM as MOH

Which of the following is the calculation for COGM? a. beginning FG plus COGS less ending FG b. ending FG plus COGS less ending WIP c. beginning WIP plus product costs less ending WIP d. beginning FG plus product costs less ending WIP

c. beginning WIP plus product costs less ending WIP

Which of the following would not be considered part of the cost of inventory? a. WIP b. all MOH c. cost of warehousing inventory d. indirect materials that are too small to teach to each individual product

c. cost of warehousing inventory

The three major components of COGM are a. direct materials purchased, direct labor, MOH b. direct materials used, WIP, FG c. direct materials used, direct labor, FG d. direct materials used, direct labor, MOH

d. direct materials used, direct labor, MOH

Manufacturing overhead would not include a. rent for the manufacturing facility b. utilities at the manufacturing facility c. quality inspectors at the manufacturing facility d. human resources at the corporate office

d. human resources at the corporate office

A manufacturing company incurred the following costs: 1) $15,000 for insurance and property tax on the manufacturing building 2) $39,000 for salary to the quality inspectors at the manufacturing plant 3) $10,000 for shipping to the customer 4) $32,000 for rent on corporate headquarters building What is the total cost of MOH that will be included in the COGM? a. $54,000 b. $64,000 c. $96,000 d. $86,000

a. $54,000