94. Sludge, Inc. has an ending work in process inventory of
$180 and an ending finished goods inventory of $300. Cost of
goods manufactured was $630, and cost of goods sold $540.
Production costs incurred during the period were $620. What
are the beginning inventories for work in process and finished
goods, respectively?
a) $170 and $390
b) $190 and $210
c) $270 and $390
d) $170 and $210
Answer: b
Difficulty: Medium
Learning Objective: Explain product costs and cost flows
through the manufacturing process.
Learning Objective: Describe how costs are assigned to
customized goods and services.
CPA: Management Accounting
Bloomcode: Application
95. Tern's Toys incurred $1,500 in production costs for the
week. Work in process decreased by $100, and finished
goods inventory increased by $500.
What was the cost of jobs completed?
a) $1,100
b) $1,400
c) $1,500
d) $1,600
Answer: d
Difficulty: Medium
Learning Objective: Explain product costs and cost flows
through the manufacturing process.
Learning Objective: Describe how costs are assigned to
customized goods and services.
CPA: Management Accounting
Bloomcode: Application
96. Tern's Toys incurred $1,500 in production costs for the
week. Work in process decreased by $100, and finished
goods inventory increased by $500.
What was the cost of goods sold?
a) $1,100
b) $1,400
c) $1,500
d) $1,800
