Exam 2: Refresher on Cost Terms Road Map

When accounting for the sale of completed goods, which of the following entries would be correct in recording the sale?

Using vertical analysis for the balance sheet, the base, set at 100%, is

CarQuest Automotive Parts incurred the following costs for the last month: Compute total prime costs and the conversion costs for CarQuest Automotive Parts for last month.

Lennox Manufacturing had the following production data for the week ended January 31,20XX, with no beginning balance in the Work-In-Process Inventory account: Monday: Requisitioned $22,000 of direct materials into production and assigned $39,000 of direct labor to production. Wednesday: Added $17,000 of manufacturing overhead to production. Friday: Completed production on 60% of the production and transferred the completed units to finished goods inventory. The balance in the Work-in-Process Inventory at the end of the week would be

When goods are completed in the production process, they are transferred from

A resource sacrificed to bring benefit in the current period, leaving no remaining future benefit is a(n)

Vision-Right Eyewear manufactures discount eyeglasses. The company is trying to determine the amount of plastic material used in production during the current year. The inventory manager has in his records that the beginning inventory for the plastic material was $28,000 and that the ending inventory for the plastic material is $33,000, both based on a physical count. After contacting the purchasing department, it was determined that three separate purchases were made during the year as follows: How much of the plastic material was used to produce glasses during the current year?

The following information is included below for Golden Gadgets: Compute the Gross Margin for Golden Gadgets.

Retro Rockers makes vintage rocking chairs. It has the following sales and cost data per unit at current production of 100,000 units: If Retro Rockers was able to increase production by 20% without having to add extra capacity, what amount of profit will the company recognize?

Willow Hearth Winery makes local wines. The prior-year, unit selling price for a bottle of its red wine was $30 with a unit variable cost of $14 and a unit fixed cost of $10 based on prior production and sales of 5,000 bottles. For the current year, Willow Hearth Winery is planning to increase the unit selling price to $34 since the unit variable cost increased by 20%. a) Assuming that at the higher unit selling price, the company is still able to sell 5,000 bottles, what profit will Willow Hearth Winery expect to recognize for the current year? b) Assuming that at the unit higher selling price, the company feels that sales may decrease to 4,500 bottles, what profit will Willow Hearth Winery expect to recognize for the current year?

Gross margin equals

In computing the cost to manufacture a product, the total prime cost will always be

Yum Yum Bakery Shop has the following information for the current fiscal year: The contribution margin for Yum Yum Bakery Shop is

Creative-Closets Manufacturers reports the following information at December 31: Compute the amount of total current assets reported for Creative-Closets Manufacturers at year-end by preparing a partial balance sheet?

Janus Manufacturing had sales revenue last year of $200,000, variable manufacturing costs of $120,000, and fixed manufacturing costs of $40,000. If Janus expects sales revenue to increase by 10% for the upcoming year, with variable manufacturing costs maintaining the same percentage relationship to sales revenue as in the previous year, and fixed manufacturing costs remaining the same, what will the expected profit be for Janus in the upcoming year?

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. -Operating Expenses

At year-end, KC Consulting had Service Revenue of $365,000. Other pertinent data is as follows: What is the net income for KC Consulting at year-end?

Buford is interested in raising money for charity by opening his own custom lemonade shop. Instead of buying the lemonade premixed, he plans to make his lemonade from scratch in the shop. He has questions about the reporting of the following costs and expenses, as to whether they are product costs or period costs so that he can properly identify the costs to make one eight-ounce cup of lemonade and then, properly price the cup of lemonade to make a profit. Identify each of the costs as either a "product" cost or a "period" cost to help Buford.

Alpine Athletics is trying to determine the amount of direct materials used in production during the current month. Records indicate that the beginning inventory for the direct materials was $67,000 and that, based on a physical count, the ending inventory for the direct materials is $43,000. After contacting the purchasing department, it was noted that three separate purchases of direct materials were made during the month as follows: a) How much of the direct materials were used in production during the current month? b) If the beginning inventory for materials was $72,000 and the ending inventory for direct materials was $55,000, what amount of materials was used in production during the month?

At year-end, Hercules, Inc. had Sales Revenue was $1,235,000. Its Cost of Goods Sold was 45% of Sales Revenue. Operating expenses for the year included $345,000 of Selling Expense and $142,000 of General and Administrative Expenses. Hercules, Inc. also had balances in Work-In-Process Inventory of $56,000, Finished Goods Inventory of $69,000, and Prepaid Expenses of $13,000 at year-end. What was the gross margin for Hercules, Inc. at year-end?