Exam 2: Basic Cost Management Concepts

Guaranteed Appliance Co. produces washers and dryers in an assembly-line process. Labor costs incurred during a recent period were: corporate executives, $500,000; assembly-line workers, $180,000; security guards, $45,000; and plant supervisor, $110,000. The total of Guaranteed's direct labor cost was:

The true statement about cost behavior is that:

The accounting records of Dixon Company revealed the following costs: direct materials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000; and selling and administrative expenses, $220,000. Dixon's product costs total:

Which of the following inventories would a discount retailer report as an asset?

Conversion costs are:

Dorsett Technologies had finished goods inventory on January 1, 20X8 of $29,300 and finished goods inventory on December 31, 20X8 of $24,100. -If the cost of goods sold for the year was $427,500, what was the cost of goods manufactured for the year?

Harrison Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $56,000 and the cost of goods sold during the month was $125,000. The cost of goods manufactured during July was:

Rainier Industries has Raw materials inventory on January 1, 20x8 of $32,500 and Raw materials inventory on December 31, 20x8 of $26,700. If purchases of raw materials were $135,000 during the year, what was the amount of raw materials used during the year?

The salary that is sacrificed by a college student who pursues a degree full time is a(n):

A job shop is generally associated with high production volume.

Collins Company, which pays a 10% commission to its salespeople, reported sales revenues of $210,000 for the period just ended. If fixed and variable sales expenses totaled $56,000, what would these expenses total at sales of $168,000?

Amaz-a-nation reported the following data for the year just ended: sales revenue, $1,750,000; cost of goods sold, $980,000; cost of goods manufactured, $560,000; and selling and administrative expenses, $170,000. Amaz-a-nation's gross margin would be:

Which type of production process is likely used for custom yachts built by Hargrave?

Variable costs are costs that:

Portland Manufacturing had the following data for the period just ended: Required: A. Calculate Portland's cost of goods manufactured. B. Calculate Portland's cost of goods sold.

Texas Plating Company reported a cost of goods manufactured of $520,000, with the firm's year-end balance sheet revealing work in process and finished goods of $70,000 and $134,000, respectively. If supplemental information disclosed raw materials used in production of $80,000, direct labor of $140,000, and manufacturing overhead of $240,000, the company's beginning work in process must have been:

Which of the following employees of a commercial printer/publisher would be classified as direct labor?

Which of the following is not an example of a variable cost?

Which of the following entities would most likely have raw materials, work in process, and finished goods?

What would the cost of fire insurance for a manufacturing plant generally be categorized as?