Exam 2: Basic Cost Management Concepts

Miao Manufacturing, which began operations on January 1 of the current year, produces an industrial scraper that sells for $325 per unit. Information related to the current year's activities follows. Miao carries its finished-goods inventory at the average unit cost of production. There was no work in process at year-end. Required: A. Compute the company's average unit cost of production. B. Determine the cost of the December 31 finished-goods inventory. C. Compute the company's cost of goods sold. D. If next year's production increases to 23,000 units and general cost behavior patterns do not change, what is the likely effect on: 1. The direct-labor cost of $35 per unit? Why? 2. The fixed manufacturing overhead cost of $400,000? Why?

Which of the following is a product cost?

The Enrique Company recorded the following transactions for February 20x1: Sales were $560,000, with sales prices determined by adding a 40% markup to the firm's manufacturing cost. The total cost of direct materials used, direct labor, and manufacturing overhead during the month was $285,000. Note: The materials account includes both direct materials and indirect materials. Required: Calculate the missing values.

The accounting records of Falcon Company revealed the following information: Falcon's cost of goods manufactured is:

Which of the following would not be characterized as a cost object?

Briefly define and discuss the terms in each of the pairs that follow. A. Direct and indirect costs B. Direct materials and indirect materials C. Manufacturing overhead and direct labor

The accounting records of Upton Company revealed the following information: Upton's cost of goods sold is:

Which one of the following costs would not be considered an indirect cost of serving a customer at a fast food restaurant?

For the year just ended, Porter Corporation's manufacturing costs (raw materials used, direct labor, and manufacturing overhead) totaled $1,500,000. Beginning and ending work-in-process inventories were $60,000 and $90,000, respectively. Porter's balance sheet also revealed respective beginning and ending finished-goods inventories of $250,000 and $180,000. On the basis of this information, how much would the company report as cost of goods manufactured (CGM) and cost of goods sold (CGS)?

Use the following information to answer the following Questions Play Time is a nursery school for pre-kindergarten children. The school has determined that the following biweekly revenues and costs occur at different levels of enrollment: -The average cost per student when 16 students enroll in the school is:

Which of the following equations is used to calculate cost of goods sold during the period?

Use the following information to answer the following Questions Play Time is a nursery school for pre-kindergarten children. The school has determined that the following biweekly revenues and costs occur at different levels of enrollment: -The marginal cost when the twenty-first student enrolls in the school is:

Which type of production process is likely used by a paint manufacturer to produce paint?

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 raw materials used during the year were $135,000 what was the amount of raw materials purchased during the year?

Tempest Enterprises began operations on January 1, 20x1, with all of its activities conducted from a single facility. The company's accountant concluded that the year's building depreciation should be allocated as follows: selling activities, 20%; administrative activities, 35%; and manufacturing activities, 45%. If Tempest sold 60% of 20x1 production during that year, what percentage of the depreciation would appear (either directly or indirectly) on the 20x1 income statement?