Exam 13: Cost Accounting and Reporting

The following table summarizes the beginning and ending inventories of Ariel Co.for the month of October: Sept. 30 Oct. 31 Raw materials \ 29,700 \ 31,000 Work-in-process 65,800 61,000 Finished process 52,700 46,200 Raw materials purchased during the month of October totaled $112,300.Direct labor costs incurred totaled $234,800 for the month.Actual and applied manufacturing overhead costs for October totaled $145,100 and $149,400, respectively. (a)Calculate the cost of goods manufactured for October. (b)Calculate the cost of goods sold for October (Ignore under/overapplied overhead). (c)Given the fact that 25,000 units were produced, what is the cost per unit for October?

On the statement of cost of goods manufactured, which of the following items would not be reported?

Indirect costs pertain to costs that:

Product costs are inventoried and treated as assets until:

Which of the following costs are included in the "for product costing purposes" in the big-picture cost classification model?

PlayCraft Co.manufactures toy boats.During 2019, total costs incurred in making 54,000 toy boats included $189,000 of fixed manufacturing overhead.The total absorption cost per toy boat was $28.50. (a.)Calculate the variable cost per toy boat. (b.)The ending inventory of toy boats was 11,600 units higher at the end of 2019 than at the beginning of the year.By how much and in what direction (higher or lower)would cost of goods sold for 2019 be different under direct costing than under variable costing? (c.)Express the toy boat cost in a cost formula.What does this formula suggest the total cost of making an additional 5,800 toy boats would be?

Liberty Company estimates total overhead costs to be $900,000 and will apply overhead to units produced based on 200,000 estimated machine hours.During the year Liberty Company incurred actual overhead costs of $925,000 and achieved 220,000 machine hours.Liberty Company's predetermined overhead rate is:

Cost accounting is a subset of:

The value chain of an organization refers to:

For each of the following costs, check the columns that most likely apply.

Direct costs pertain to costs that:

Absorption costing and direct costing differ in the treatment of:

The inventory accounts for a manufacturing company would not include:

AAA Plumbing Co.incurred the following costs during August: Raw materials \ 90,000 Direct labor 230,000 Manufacturing overhead 112,000 Selling expenses 70,800 Administrative expenses 45,200 Interest expense 25,000 During the month, 9,000 units of product were manufactured and 8,500 units of product were sold.On August 1, AAA Plumbing carried no inventories. (a.)Calculate the cost of goods manufactured during August and the average cost per unit of product manufactured. (b.)Calculate the cost of goods sold during August. (c.)Where in the financial statements will the difference between cost of goods manufactured and cost of goods sold be classified?

Costs may be allocated to a product or activity for many purposes, but care must be exercised when using allocated costs because:

Lakeside Machining, Inc., has the following inventory account balances and related manufacturing cost information for the month of August: Raw Materials, August 1 \ 65,000 Raw Materials, August 31 \ 72,000 Raw materials purchased \ 286,000 In Lakeside's Statement of Cost of Goods Manufactured for August, raw materials used will be reported as:

An excess of cost of goods manufactured over cost of goods sold for the period represents:

An example of a cost likely to have an indirect relationship with products being manufactured is:

A debit balance in the manufacturing overhead account at the end of the period indicates that:

An activity-based costing system involves identifying the activity that causes the incurrence of a cost; this activity is known as a: