Exam 2: Refresher on Cost Terms Road Map

Miriad Manufacturers has the following information for the month of September: Determine the Cost of Goods Manufactured for Miriad Manufacturers for September.

The following contribution margin income statement represents the operations of Peroux Company, a small manufacturer, at a level of production of 10,000 units (assuming all units produced are sold): The relevant rage for Peroux Company is 4,000 to 12,000 units. If production and sales were to decrease to 5,000 units, which of the following would likely occur?

For financial statement reporting, Inventories are reported as a(n)

Which of the following is a non-manufacturing cost?

Information for Hans Gruber, Inc. for the current and prior months is provided below: How would the costs for "Rent Expense" and "Factory Labor" be classified?

Marcus Manufacturers reports the following information at the end of the current year: What is the amount of total current assets reported for Marcus Manufacturers at year-end?

At year-end, Xenon Manufacturers had Sales Revenue of $987,000. Its Cost of Goods Sold was 30% of Sales Revenue. Operating expenses for the year included $205,000 of Selling Expenses and $56,000 of General and Administrative Expenses. The balance in the Prepaid Expenses was $22,000 at the end of the year. What was the net income for Xenon Manufacturers at the end of the year?

Which of the following statements is true regarding the use of different types of income statements?

Mystique Manufacturing had sales revenue last year of $450,000, variable manufacturing costs of $135,000, and fixed manufacturing costs of $60,000. a) If Mystique expects sales revenues to increase by 20% for the upcoming year, with variable manufacturing costs maintaining the same percentage relationship to sales revenue as in the previous year, with the same fixed manufacturing costs, what will the expected net income (profit) be for Mystique in the upcoming year? b) If Mystique expects sales revenues to decrease by 20% for the upcoming year, with variable manufacturing costs maintaining the same percentage relationship to sales revenue as in the previous year, with the same fixed manufacturing costs, what will the expected net income (profit) be for Mystique in the upcoming year?

Compute the missing amounts in the table below:

Zebra Zingers has the following information for the current fiscal year: Determine the contribution margin for Zebra Zingers.

Zoom Robotics produces robotic vacuum cleaners. For the current month, Zoom has the following information and business transactions: Beginning Balances: Raw Materials Inventory, $13,500; Work-In-Process Inventory, $16,000; and Finished Goods Inventory, $22,000. Production data for the month: Direct materials, direct labor and manufacturing overhead costs totaling $73,000 were incurred in producing 4,000 robotic vacuums. Ending Balances: Raw Materials Inventory, $15,000; Work-In-Process Inventory, $34,000; and Finished Goods Inventory, $13,000. What is the cost of the goods completed and transferred to the Finished Goods Inventory at the end of the current month?

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 Income

Eastern Electronics has the following per unit amounts for the production of electronic components for automobiles: At its current production and sales of 10,000 units, it incurs $60,000 of fixed costs for cost of goods sold and SG&A costs. Unfortunately, Eastern Electronics has fallen on hard times, and since sales have been declining, production has also been deceased significantly for the current year. If Eastern Electronics is only able to produce and sell 6,000 units, is it still profitable? Compute the operating income for Eastern Electronics.

A & M Retailers has compiled the following information from its accounting records for the current year: What is the gross margin and operating income for A & Retailers' for the current year?

Dogs-Are-Us, Inc. has the following information available at the end of last year: Due to recent events, the company has moved all production from labor-based to automation so that it would not need to shut down the factory. By doing this, the variable costs have decreased by 30%, and the fixed costs have increased by 20%. Based on these changes, with no change in sales for the upcoming year, what is the expected contribution margin and operating income based on these changes? Is the company more profitable by making this change? Why?

Identify the following statements as correct or incorrect regarding cost behavior. 1) Variable costs change in total and per unit when a given level of activity level changes. 2) Fixed costs remain the same in total but change inversely with a given change in an activity level. 3) The relevant range relates to all levels of activity even if it extends beyond the current capacity of the company. 4) Variable costs and fixed costs will always change on a per unit basis when the activity level changes.

Estrella Corporation has a unit selling price of $400, unit variable cost of $250, and total fixed costs of $200,000. The company is currently operating at full capacity, producing and selling 5,000 units annually. The company is considering the following alternatives, both of which will allow the company to continue to produce and sell at full capacity. Alternative 1: Decrease the unit selling price by 5% while embarking on a cost reduction plan to also decrease unit variable costs by 10% and the fixed costs by $25,000. Alternative 2: Decrease the unit selling price by 3% while decreasing the unit variable cost by 12%, but incurring an increase in the fixed costs of 3%. Determine the profitability of each alternative using the contribution margin income statement format and identify the alternative that is most profitable to management.

Compute the missing amounts in the table below:

Nyco Corp. had the following financial information at the end of its first month of operations: In performing vertical analysis, the payroll and related expenses would be expressed as