ACCOUNTING 221 Quiz 2- ACCT 221 Quiz 2 Questions and Answers: University of Maryland Global Campus
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Course
Accounting
Institution
Accounting
ACCT 221 Quiz 2
University of Maryland Global Campus
Professor Susan Sharp
Fall 2019
1. Baltimore Manufacturing Company just completed its year ended December 31, 2018. Depreciation for the year amounted to $180,000: 20% relates to sales, 20% relates to administrative facilities, and the rem...
ACCT 221 Quiz 2
University of Maryland Global Campus
Professor Susan Sharp
Fall 2019
1. Baltimore Manufacturing Company just completed its year ended December 31,
2018. Depreciation for the year amounted to $180,000: 20% relates to sales, 20% re-
lates to administrative facilities, and the remainder relates to the factory. Of the total
units produced during FY 2016: 75% were sold in 2018 and the rest remained in fin-
ished good inventory. Use this information to determine the dollar amount of the total
depreciation that will be contained in Cost of Goods Sold. (Round dollar values & enter
as whole dollars only.)
Answer: $81,000
How to do #1:
$180,000 x 60% = $108,000 Product Costs
$108,000 x 75% = $81,000
Depreciation amount X % charged to factory X % sold.
2. Baltimore Manufacturing had a Work in Process balance of $89,000 on January 1,
2018. The year end balance of Work in Process was $99,000 and the Cost of Goods
Manufactured was $790,000. Use this information to determine the total manufacturing
costs incurred during the fiscal year 2018. (Round dollar values & enter as whole dollars
only.)
Answer: $800,000
How to do #2:
Beg. inv. + total manuf. costs - end. inv. = Cost of Goods Manuf. or
$89,000 + total manuf. costs - 99,000 = $790,000
Total manuf. costs = $800,000
Cost of goods manufactured + ending WIP - beginning WIP.
, Item Amount
Sales $200,000
Cost of Goods Manufactured 41,000
Direct Material Purchased 80,000
Factory Overhead 20,000
Work in Process - January 1 60,000
Work in Process - December 31 30,000
Direct Material - December 31 20,000
Finished Goods Inventory - December 31 56,000
Net Income 30,000
Direct Materials used 60,000
Cost of Goods Sold 63,000
3. Annapolis Clothing Company manufactures quality boating attire. The following se-
lected financial information for the fiscal year 2018 is provided:Use this information to
determine the dollar amount of Annapolis Clothing's Finished Goods Inventory for Janu-
ary 1, 2018. (Round dollar values & enter as whole dollars only.)
Answer: 78,000
How to do #3:
Cost of goods sold + ending finished goods - cost of goods manufactured.
4. During FY 2018 Bay Manufacturing had total manufacturing costs are $450,000.
Their cost of goods manufactured for the year was $495,000. The January 1, 2019 bal-
ance of Work-in-Process Inventory is $40,000. Use this information to determine the
dollar amount of the FY 2018 beginning Work-in-Process Inventory. (Round dollar val-
ues & enter as whole dollars only.)
Answer: 85,000
How to do #4:
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