Exam 2: Refresher on Cost Terms Road Map

Presented below is incomplete manufacturing cost data for Cadence Company. Solve for the missing amounts.

If Midwest Plastics has a Gross Margin of $68,000, Finished Goods Inventory (beginning)of $26,000, Sales Revenues of $193,000, Operating Expenses of $52,000, and Finished Goods Inventory (ending) of $38,000. What is Midwest Plastics' Cost of Goods Sold?

Jingle Jewelry makes customized holiday jewelry. It has the following cost data for the current month. From this information, determine the total amount of (a) Manufacturing overhead, (b) Product costs and (c) Period costs.

Ringold Retailers reports the following information at the end of the current year: What is Ringold's net income at year-end?

Tristate Table Manufacturers incurred the following costs for the current month: Identify the costs shown above as either variable costs or fixed costs.

Given the following items listed below, identify on which type(s) of business financial statements these items would normally appear , More than one selection may be included in an answer. -Raw Materials Inventory

Discuss the purposes of a traditional income statement versus a contribution margin income statement.

When comparing the financial reporting for service providers and merchandisers, which of the following statements is correct regarding these two business entities?

Ferguson Fasteners, Inc. manufactures hook-and-eye closures. For the month of July, it incurred direct labor of $65,300, direct materials of $32,400, and manufacturing overhead of $44,800. Included in these costs are direct costs of $97,700 and indirect costs of $44,800. Respectively, the conversion costs and prime costs for Ferguson Fasteners, Inc. for July are

Carnival Cruises breaks down its revenue and cost information for the year ended 2022 as follows: Perform vertical analysis for the income statement for Carnival Cruises. (Round to nearest whole percentage)

If an asset is consumed, used up, or has no future benefit, it

Wonder Wares has the following transactions related to its production for the month of May: There were zero beginning balances in all of the Inventory accounts at May 1. Determine the balances in Raw Materials Inventory, Work-In-Process Inventory, Finished Goods Inventory and Cost of Goods Sold at the end of May. (Hint: Use T-accounts)

Explain the difference in the organization of costs in a traditional income statement versus a contribution margin income statement.

You have been presented with the following 3-year comparative financial information for The Coca Cola Company: You have been asked to prepare a vertical analysis for the income statement for the 3- years of comparative data.

Explain the similarities and differences between the income statements for a service provider and a manufacturer.

Country Cookers has the following information for the current fiscal year: Determine the gross margin for County Cookers.

At a sales level of $100,000, Bonita's Baskets' gross margin of $55,000 is $20,000 less than its contribution margin. If its operating income is $25,000, and total SG&A expenses are $30,000, what are the variable and fixed costs for Bonita's Baskets?

CMG Construction purchased a truck 6 years ago at a cost of $68,000. Because the old truck required an overhaul of $4,000 last year, and repairs of $2,000 are needed in the current year, the company is now planning to purchase a new truck to replace the old one. The old truck has a trade-in value of $5,000. The cost of the new truck is $82,000. What amount of these costs represent sunk costs?

Astro Manufacturing had the following production data for the week ended July 31, 20XX, with zero beginning balances in all of its inventory accounts: Monday: Purchased $137,000 of raw materials on account. Tuesday: Requisitioned $83,000 of direct materials into production and assigned $39,000 of direct labor to production. Wednesday: Added $24,000 of manufacturing overhead to production related to utilities. Thursday: Completed production on 60% of the production and transferred the completed units to finished goods inventory. Friday: Sold 50% of the goods that were transferred to Finished Goods Inventory for $65,000 cash. a) Prepare the necessary journal entries to record the production of units for July. b) Compute the ending balances in the Raw Materials Inventory, Work-In-Process Inventory, and Finished Goods Inventory at the end of July.

Palm Furniture makes beach-themed furniture. In the prior-year, the unit selling price for a dining set was $1,000 with a unit variable cost of $400 and a unit fixed cost of $200 based on prior production and sales of 5,000 dining sets. For the current year, Palm Furniture is planning to increase the unit selling price to $1,100 since the unit variable cost is increasing 20%. Assuming that at the higher selling price, the company feels that sales may decrease to 4,500 dining sets, what profit will Palm Furniture expect to recognize in the current year?