Exam 2: Cost Concepts and Behavior

If the cost of goods manufactured during the period exceeds the cost of goods sold, the ending balance of Finished Goods Inventory account increased.

Grover Company has the following data for the production and sale of 2,000 units. Sales price per unit \ 800per unit Fixed costs: Marketing and adrinistrative \ 400,000 per period Marufacturing overhead \ 200,000 per period Variable costs: Marketing and adrinistrative \ 50 per unit Marnufacturing overhead \ 80 per unit Direct labor \ 100 perunit Direct Materials \ 200 per unit - What is the conversion cost per unit?

Ryan's Lazer Lighting Inc. produces lamps. During 2019, the company incurred the following costs: Factory rent \ 80,000 Direct labor used 425,000 Factory utilities 50,000 Direct materials purchases 600,000 Indirect materials 150,000 Indirect labor 90,000 Inventories for the year were: January 1 December 3 Direct materials \ 100,000 \ 75,000 Work in process 20,000 10,000 Finished goods 250,000 215,000 Required: Prepare a cost of goods manufactured and sold statement.

In July, Mountain Life, Inc., a merchandising company, had sales of $295,000, selling expenses of $24,000, and administrative expenses of $29,000. The cost of merchandise purchased during the month was $215,000. The beginning balance in the merchandise inventory account was $25,000 and the ending balance was $30,000. Required: Prepare an Income Statement in good form for July.

The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods inventory in units 0 Units produced 4,800 Units sold 4,000 Sales \4 00,000 Materials cost \9 6,000 Variable conversion cost used \4 8,000 Fixed manufacturing cost \7 2,000 Indirect operating costs (fixed) \8 0,000 - The absorption costing ending inventory is:

The following information applies to the Jamison Tools Company for the year ended December 31, 2019: Factory Rent \ 330,000 Direct Materials Inventory, Beginning 96,000 Direct Materials Inventory, Ending 87,000 Direct Materials Purchases 654,000 Direct Labor-Wages 425,000 Indirect Labor-Wages 28,000 Finished Goods Inventory, Beginning 25,000 Finished Goods Inventory, Ending 44,000 Indirect Materials 66,000 Plant Utilities 40,000 General and Administrative 101,350 Work-in-Process Inventory, Beginning 27,000 Work-in-Process Inventory, Ending 33,000 Marketing Expenses 225,000 Sales Revenue 2,550,000 Required: Prepare a statement of cost of goods manufactured and an income statement for the year ended December 31, 2019.

How would a 5% sales commission paid to sales personnel be classified in a manufacturing company?

Vegas Company has the following unit costs: Variable manufacturing overhead \2 5 Direct materials 20 Direct labor 19 Fixed manufacturing overhead 12 Fixed marketing and administrative 7 - Vegas produced and sold 10,000 units. If the product sells for $100, what is the contribution margin?

Vegas Company has the following unit costs: Variable manufacturing overhead \2 5 Direct materials 20 Direct labor 19 Fixed manufacturing overhead 12 Fixed marketing and administrative 7 - Vegas produced and sold 10,000 units. If the product sells for $100, what is the operating profit under full absorption costing?

The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods inventory in units 0 Units produced 4,800 Units sold 4,000 Sales \4 00,000 Materials cost \9 6,000 Variable conversion cost used \4 8,000 Fixed manufacturing cost \7 2,000 Indirect operating costs (fixed) \8 0,000 - The variable costing ending inventory is:

Mobile Device Retail has collected the following information for May: Sales revenue \ 1,650,000 Store rent 84,000 Utilities 57,200 Sales commissions 247,500 Merchandise inventory, May 1 118,200 Merchandise inventory, May 31 124,600 Freight-in 54,600 Administrative costs 115,100 Merchandise purchases 1,091,000 Required: Prepare a gross margin income statement for the month of May.

The cost of an item is the sacrifice of resources made to acquire it.

The following information is available for the Cherryville Enterprises, Inc. for the fiscal year ended December 31. Reverulus \ 900,000 Gross margin \ 315,000 Operating profit 85,000 Income tax rate 32\% Required: (a) Compute the cost of goods sold. (b) Compute the total marketing and administrative costs. (c) Compute net income.

Ramos Company has the following unit costs: Variable manufacturing overhead \1 3 Direct materials 12 Direct labor 17 Fixed manufacturing overhead 10 Fixed marketing and administrative 8 - What cost per unit would be used for product costs under full absorption costing?

Which of the following is not a product cost under full-absorption costing?

During the month of June, Bolder Corporation, a manufacturing company, purchased raw materials costing $76,000. The cost of goods manufactured for the month was $129,000. The beginning balance in the raw materials inventory account was $26,000 and the ending balance was $21,000. The beginning balance in the finished goods inventory account was $52,000 and the ending balance was $35,000. Required: (a) What was the cost of raw materials used in production during June? Show your work. (b) What was the cost of goods sold for June? Show your work.

The term full cost refers to the cost of manufacturing and selling a unit of product and includes both fixed and variable costs.

How would miscellaneous supplies used in assembling a product be classified for a manufacturing company?

The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows: Estimated Cost Item Unit Cost Direct material \3 2 Direct labor 20 Variable manfacturing overhead 15 Fixed manfacturing overhead 6 Variable selling expenses 3 Fixed selling expenses 4 - What are the estimated prime costs per unit?

Marketing costs include all of the following except: