141. During May, Claremore sold 500 portable CD players for $50 each. Each CD player cost Claremore $25 to purchase and carried a one-year warranty. If 10 percent typically need to be replaced over the warranty period, what amount should Claremore debit Product Warranty Expense for in May?
A. $2,500
B. $1,250
C. $250
D. $1,000
E. $3,000
142. During June, SoundHouse sold 800 portable CD players for $50 each. Each CD player cost SoundHouse $25 to purchase and carried a one-year warranty. If 10 percent typically need to be replaced over the warranty period, what amount should SoundHouse debit Product Warranty Expense for in June?
A. $4,000
B. $400
C. $2,000
D. $1,000
E. $200
143. Solve for the missing piece of information for each of the following independent situations:
Account
|
|
|
|
|
Raw materials
|
$1,000
|
$ 400
|
$300
|
$ 200
|
Cost of completed units
|
3,200
|
2,200
|
C
|
1,500
|
Manufacturing overhead
|
400
|
B
|
300
|
100
|
Ending work in process
|
1,200
|
800
|
400
|
D
|
Direct labor costs
|
2,200
|
1,000
|
100
|
1,000
|
Beginning work in process
|
A
|
750
|
700
|
400
|
|
|
|
|
|
144. The following data relate to the manufacturing activities of Friends Industries for the month of March:
|
|
|
Raw Materials Inventory
|
$ 42,300
|
$ 40,600
|
Factory Supplies Inventory
|
9,600
|
9,800
|
Work-In-Process Inventory
|
102,200
|
103,100
|
Finished Goods Inventory
|
48,700
|
47,300
|
|
|
|
Friends incurred the following manufacturing costs during March:
Raw materials purchased
|
83,500
|
Supplies purchased
|
14,300
|
Wages
|
186,800
|
Utilities
|
1,250
|
Insurance
|
550
|
Depreciation
|
3,100
|
Rent
|
4,400
|
|
|
(Note: Friends Industries treats all raw materials used in production, as well as all wages incurred for production, as direct in nature and such costs are not included in manufacturing overhead.)
Compute Friends’ cost of goods sold for March.
Friends Industries
Schedule of Cost of Goods Sold
For the Month Ended March 31, Year 1
|
|
|
|
Beginning finished goods inventory
|
$ 48,700
|
Add: Cost of goods manufactured
|
|
Goods available for sale
|
$343,200
|
Less: Ending finished goods inventory
|
|
Cost of goods sold
|
|
|
|
|
|