Porches, Inc., sells lawn furniture. Selected financial information for the most recent year follows.

196) Porches, Inc., sells lawn furniture. Selected financial information for the most recent year follows.

Beginning merchandise inventory on January 1 was $33,000.
Ending merchandise inventory on December 31 was $35,000.
Purchases during the year were $92,000.
Selling and administrative expenses were $75,000.
Sales for year were $262,000.

What was cost of goods sold?
A) $160,000
B) $ 94,000
C) $ 90,000
D) $ 95,000
Answer:  C
Explanation:  C) Calculations: $ 92,000 + 33,000 = 125,000 - 35,000 = $90,000
Diff: 2
LO:  2-5
EOC:  E2-26A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits


197) Porches, Inc., sells lawn furniture. Selected financial information for the most recent year follows.

Beginning merchandise inventory on January 1 was $33,000.
Ending merchandise inventory on December 31 was $35,000.
Purchases during the year were $92,000.
Selling and administrative expenses were $75,000.
Sales for year were $262,000.

What was gross profit?
A) $(165,000)
B) $170,000
C) $187,000
D) $172,000
Answer:  D
Explanation:  D) Calculations: $ 92,000 + 33,000 = 125,000 - 35,000 = $90,000. Next $ 262,000 - 90,000 = $172,000
Diff: 2
LO:  2-5
EOC:  E2-26A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits
198) Porches, Inc., sells lawn furniture. Selected financial information for the most recent year follows:

Beginning merchandise inventory on January 1 was $33,000.
Ending merchandise inventory on December 31 was $35,000.
Purchases during the year were $92,000.
Selling and administrative expenses were $75,000.
Sales for year were $262,000.

What was operating income for the year?
A) $90,000
B) $97,000
C) $95,000
D) $93,000
Answer:  B
Explanation:  B) Calculations: $ 92,000 + 33,000 = 125,000 - 35,000 = $90,000. Next $ 262,000 - 90,000 = $172,000 - 75,000 = $97,000
Diff: 2
LO:  2-5
EOC:  E2-26A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits


199) Porches, Inc., sells lawn furniture. Selected financial information for the most recent year follows.

Beginning merchandise inventory on January 1 was $33,000.
Ending merchandise inventory on December 31 was $35,000.
Purchases during the year were $92,000.
Selling and administrative expenses were $75,000.
Sales for year were $262,000.

What was the value of goods available for sale?
A) $125,000
B) $127,000
C) $170,000
D) $ 90,000
Answer:  A
Explanation:  A) Calculations: $ 92,000 + 33,000 = $125,000
Diff: 2
LO:  2-5
EOC:  E2-26A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

200) Selected financial information for Brookeville Manufacturing is presented in the following table (000s omitted).

Sales revenue     $ 4,000
Purchases of direct materials     $    400
Direct labor     $    450
Manufacturing overhead     $    620
Operating expenses     $    650
Beginning raw materials inventory     $    200
Ending raw materials inventory     $    180
Beginning work in process inventory     $    320
Ending work in process inventory     $    410
Beginning finished goods inventory     $    250
Ending finished goods inventory     $    200

What was direct materials used?
A) $600
B) $380
C) $420
D) $400
Answer:  C
Explanation:  C) Calculations: $ 200 + 400 = 600 - 180 = $420
Diff: 2
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

201) Selected financial information for Brookeville Manufacturing is presented in the following table (000s omitted).

Sales revenue     $ 4,000
Purchases of direct materials     $    400
Direct labor     $    450
Manufacturing overhead     $    620
Operating expenses     $    650
Beginning raw materials inventory     $    200
Ending raw materials inventory     $    180
Beginning work in process inventory     $    320
Ending work in process inventory     $    410
Beginning finished goods inventory     $    250
Ending finished goods inventory     $    200

What was cost of goods manufactured?
A) $1,580
B) $1,380
C) $1,400
D) $1,490
Answer:  C
Explanation:  C) Calculations: $ 420 + 450 + 620 = 1,490 + 320 - 410 = $ 1,400
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

202) Selected financial information for Brookeville Manufacturing is presented in the following table (000s omitted).

Sales revenue     $ 4,000
Purchases of direct materials     $    400
Direct labor     $    450
Manufacturing overhead     $    620
Operating expenses     $    650
Beginning raw materials inventory     $    200
Ending raw materials inventory     $    180
Beginning work in process inventory     $    320
Ending work in process inventory     $    410
Beginning finished goods inventory     $    250
Ending finished goods inventory     $    200

What was cost of goods sold?
A) $1,450
B) $1,350
C) $1,470
D) $ 790
Answer:  A
Explanation:  A) Calculations: $ 250 + 1,400 - 200 = $1,450
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

203) Selected financial information for Brookeville Manufacturing is presented in the following table (000s omitted).

Sales revenue     $ 4,000
Purchases of direct materials     $    400
Direct labor     $    450
Manufacturing overhead     $    620
Operating expenses     $    650
Beginning raw materials inventory     $    200
Ending raw materials inventory     $    180
Beginning work in process inventory     $    320
Ending work in process inventory     $    410
Beginning finished goods inventory     $    250
Ending finished goods inventory     $    200

What was operating income?
A) $2,530
B) $4,000
C) $3,350
D) $1,900
Answer:  D
Explanation:  D) Calculations: $ 4,000 - 1,450 = 2,550 - 650 = $ 1,900
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

204) Selected financial information for Greek Food Producers is presented in the following table (000s omitted).

Beginning raw materials inventory     $   300
Ending raw materials inventory    $   180
Direct labor     $   250
Operating expenses     $   650
Purchases of direct materials     $   350
Beginning work in process inventory     $   320
Ending work in process inventory     $   600
Sales revenue     $ 4,500
Manufacturing overhead     $   720
Beginning finished goods inventory     $   250
Ending finished goods inventory     $   250

What was direct materials used?
A) $650
B) $470
C) $230
D) $350
Answer:  B
Explanation:  B) Calculations: $ 300 + 350 = 650 - 180 = $470
Diff: 2
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

205) Selected financial information for Greek Food Producers is presented in the following table (000s omitted).

Beginning raw materials inventory     $   300
Ending raw materials inventory    $   180
Direct labor     $   250
Operating expenses     $   650
Purchases of direct materials     $   350
Beginning work in process inventory     $   320
Ending work in process inventory     $   600
Sales revenue     $ 4,500
Manufacturing overhead     $   720
Beginning finished goods inventory     $   250
Ending finished goods inventory     $   250

What was cost of goods manufactured?
A) $1,440
B) $1,040
C) $1,720
D) $1,160
Answer:  D
Explanation:  D) Calculations: $300 + 350 - 180 = $470 + 320 + 250 + 720 - 600 = $ 1,160
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

206) Selected financial information for Greek Food Producers is presented in the following table (000s omitted).

Beginning raw materials inventory     $   300
Ending raw materials inventory    $   180
Direct labor     $   250
Operating expenses     $   650
Purchases of direct materials     $   350
Beginning work in process inventory     $   320
Ending work in process inventory     $   600
Sales revenue     $ 4,500
Manufacturing overhead     $   720
Beginning finished goods inventory     $   250
Ending finished goods inventory     $   250

What was cost of goods sold?
A) $1,030
B) $1,160
C) $ 790
D) $1,320
Answer:  B
Explanation:  B) Calculations: $ 250 + 1,160 - 250 = $1,160
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

207) Selected financial information for Greek Food Producers is presented in the following table (000s omitted).

Beginning raw materials inventory     $   300
Ending raw materials inventory    $   180
Direct labor     $   250
Operating expenses     $   650
Purchases of direct materials     $   350
Beginning work in process inventory     $   320
Ending work in process inventory     $   600
Sales revenue     $ 4,500
Manufacturing overhead     $   720
Beginning finished goods inventory     $   250
Ending finished goods inventory     $   250

What was operating income?
A) $3,850
B) $4,500
C) $3,180
D) $2,690
Answer:  D
Explanation:  D) Calculations: $ 4,500 - 1,160 = 3,340 - 650 = $ 2,690
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

208) Selected information regarding a company's most recent quarter follows (all data in thousands).

Beginning work in process inventory     $ 240
Cost of goods manufactured     $ 400
Direct materials used     $ 170
Direct labor     $   90
Ending work in process inventory     $ 140

What was manufacturing overhead for the quarter?
A) $260
B) $ 40
C) $500
D) $140
Answer:  B
Explanation:  B) Calculations: $400 + 140 = 540 - 240 - 90 - 170 = 40
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

209) Selected information regarding a company's most recent quarter follows (all data in thousands).

Direct labor     $    500
Beginning work in process inventory     $    320
Ending work in process inventory     $    330
Cost of goods manufactured     $ 1,560
Manufacturing overhead     $    820

What was direct materials used for the quarter?
A) $ 250
B) $ 490
C) $ 1,550
D) $ 820
Answer:  A
Explanation:  A) Calculations: $ 1,560 + 330 - 320 = 1,570 - 500 - 820 = $250
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

210) Selected information regarding a company's most recent quarter follows (all data in thousands).

Operating expenses     $    600
Gross profit     $ 2,390
Sales revenue     $ 3,000
Ending finished goods inventory     $    200
Cost of goods manufactured     $ 1,560

What was cost of goods sold?
A) $ 1,160
B) $ 610
C) $ 960
D) $ 840
Answer:  B
Explanation:  B) Calculations: $ 3,000 - 2,390 = $610
Diff: 2
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

211) Selected information regarding a company's most recent quarter follows (all data in thousands).

Operating expenses     $    700
Gross profit     $ 2,390
Sales revenue     $ 4,000
Ending finished goods inventory     $    300
Cost of goods manufactured     $ 1,200

What was the beginning finished goods inventory?
A) $ 2,100
B) $ 500
C) $ 710
D) $ 800
Answer:  C
Explanation:  C) Calculations: $ 4,000 - 2,390 = $ 1,610 + 300 = 1,910 - 1200 = $710
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

212) Selected information regarding a company's most recent quarter follows (all data in thousands).

Sales revenue     $ 4,000
Beginning raw materials inventory     $    200
Direct materials used     $    400
Purchases of direct materials     $    350
Direct labor     $    450
Manufacturing overhead     $    620

What was the ending raw materials inventory?
A) $ 400
B) $ 770
C) $ 150
D) $ 750
Answer:  C
Explanation:  C) Calculations: $ 200 + 350 = 550 - 400 = 150
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

213) Selected information regarding a company's most recent quarter follows (all data in thousands).

Ending work in process inventory     $ 650
Cost of goods manufactured     $ 800
Direct labor     $ 400
Direct materials used     $ 170
Beginning work in process inventory     $ 300

What was manufacturing overhead for the quarter?
A) $230
B) $450
C) $570
D) $580
Answer:  D
Explanation:  D) Calculations: $800 + 650 = 1,450 - 300 - 400 - 170 = 580
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

214) Selected information regarding a company's most recent quarter follows (all data in thousands).

Ending work in process inventory     $   400
Manufacturing overhead     $   800
Cost of goods manufactured     $1,350
Beginning work in process inventory     $   330
Direct labor     $   460

What was direct materials used for the quarter?
A) $790
B) $1,280
C) $390
D) $140
Answer:  D
Explanation:  D) Calculations: $ 1,350 + 400 - 330 = 1420 - 460 - 820 = $140
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

215) Selected information regarding a company's most recent quarter follows (all data in thousands).

Cost of goods manufactured     $ 1,600
Gross profit     $ 3,000
Operating expenses     $    500
Ending finished goods inventory     $    350
Sales revenue     $ 4,000

What was cost of goods sold?
A) $1,100
B) $1,900
C) $1,450
D) $1,000
Answer:  D
Explanation:  D) Calculations: $ 4,000 - 3,000 = $1,000
Diff: 2
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

216) Selected information regarding a company's most recent quarter follows (all data in thousands).

Cost of goods manufactured     $ 1,500
Gross profit     $ 2,600
Operating expenses     $ 4,000
Ending finished goods inventory     $    400
Sales revenue     $ 6,000

What was the beginning finished goods inventory?
A) $2,300
B) $500
C) $2,100
D) $2,500
Answer:  A
Explanation:  A) Calculations: $6,000 - 2,600 = $ 3,400 + 400 = 3,800 - 1,500 = $2,300
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

217) Selected information regarding a company's most recent quarter follows (all data in thousands).

Purchases of direct materials     $    250
Sales revenue     $ 3,500
Manufacturing overhead     $    430
Direct materials used     $    350
Direct labor     $    200
Beginning raw materials inventory     $    190

What was the ending raw materials inventory?
A) $600
B) $350
C) $90
D) $490
Answer:  C
Explanation:  C) Calculations: $ 190 + 250 = 440 - 350 = 90
Diff: 3
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits