Question 1

Which of the following formulas determine cost of goods sold in a manufacturing entity?

Accepted Answer

A)  Beginning work-in-process inventory + Cost of goods manufactured - Ending work-in-process inventory = Cost of goods sold 
B)  Beginning work-in-process inventory + Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold 
C)  Cost of goods manufactured - Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold 
D)  Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold 
E)  Beginning work-in-process inventory - Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold 
A)  Beginning work-in-process inventory + Cost of goods manufactured - Ending work-in-process inventory = Cost of goods sold 
B)  Beginning work-in-process inventory + Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold 
C)  Cost of goods manufactured - Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold 
D)  Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold 
E)  Beginning work-in-process inventory - Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold

Question 2

Use the information below to answer the following question(s).
Consider the following data of the Vancouver Company for the year 2016:
  
-What is the unit cost for the plant leasing cost for 2016 assuming plant leasing costs are for the production of 2,000,000 units?

Accepted Answer

A)  0.35 
B)  0.18 
C)  0.12 
D)  0.06 
E)  0.04 
A)  0.35 
B)  0.18 
C)  0.12 
D)  0.06 
E)  0.04

Question 3

The following information is taken from the records of Britton Company for March:

* Of these costs, 60 percent are assigned to manufacturing and 40 percent to selling and administration.
Required:
a. Prepare a schedule of cost of goods manufactured.
b. Prepare an income statement for the month.
c. Compute the prime costs using a two-part production costing system, conversion costs, and indirect manufacturing costs.

Accepted Answer

@#IMG-DLM& 
c.
Prime costs $11,800,000
C

Question 4

Sheen Manufacturing has four manufacturing cost pools and many types of costs, some of which ar e listed below. Match the type of cost with the most appropriate cost pool or as a period cost.
-factory supervisor's salaries

Accepted Answer

A)  Cost pool - indirect factory operating costs 
B)  Cost pool - direct factory labour 
C)  Cost pool - indirect factory labour 
D)  Period cost 
A)  Cost pool - indirect factory operating costs 
B)  Cost pool - direct factory labour 
C)  Cost pool - indirect factory labour 
D)  Period cost

Question 5

A manufacturing company contracts with the labour union to guarantee full employment for all employees with at least 10 years seniority. The Company expects to be working at capacity for the next 2 years (the life of the contract), so this was seen as a bargaining concession without any cost to the company. On average, an employee earns $30 per hour, including benefits. The work force consists of 800 employees, with seniority ranging from 1 year to 18 years.
Required:
Analyze the direct labour cost in term of variable costs, fixed costs, and the relevant range.

Accepted Answer

Usually, we think of direct labour as a

Question 6

Use the information below to answer the following question(s).
Ontario Industries Inc. had the following activities during the year:
  
-What is the amount of the manufacturing overhead incurred at Ontario Industries Inc.?

Accepted Answer

A)  $16,000 
B)  $41,000 
C)  $35,000 
D)  $23,000 
E)  $29,000 
A)  $16,000 
B)  $41,000 
C)  $35,000 
D)  $23,000 
E)  $29,000

Question 7

Use the information below to answer the following question(s).
Consider the following data of the Vancouver Company for the year 2016:
  
-What is the unit cost for the direct materials for 2016 assuming direct materials costs are for the production of 1,014,000 units?

Accepted Answer

A)  $0.80 
B)  $0.95 
C)  $1.00 
D)  $1.08 
E)  $1.11 
A)  $0.80 
B)  $0.95 
C)  $1.00 
D)  $1.08 
E)  $1.11

Question 8

Answer the following question(s) using the information below.
The following information pertains to Alleigh's Mannequins:
  
-What is the amount of ending finished goods inventory?

Accepted Answer

A)  $42,500 
B)  $24,750 
C)  $25,000 
D)  $25,425 
E)  $42,500. 
A)  $42,500 
B)  $24,750 
C)  $25,000 
D)  $25,425 
E)  $42,500.

Question 9

Use the information below to answer the following question(s).
Big Island Coffee Co. produced and sold 120,000 units last year. Per unit revenue and costs were as follows:
   
Fixed manufacturing overhead and administrative salaries are fixed costs. The per unit amounts are based on last year's production.
-Calculate last year's operating income when the company produced and sold 120,000 units.

Accepted Answer

A)  $0 
B)  $ 
C)  $ 
D)  $ 
E)  $ 
A)  $0 
B)  $ 
C)  $ 
D)  $ 
E)  $

Question 10

Use the information below to answer the following question(s).
Montreal Industries Inc. had the following activities during the year:
  
-What is Montreal's cost of goods manufactured during the year?

Accepted Answer

A)  $268,000 
B)  $248,000 
C)  $240,000 
D)  $238,000 
E)  $260,000 
A)  $268,000 
B)  $248,000 
C)  $240,000 
D)  $238,000 
E)  $260,000

Question 11

Sheen Manufacturing has four manufacturing cost pools and many types of costs, some of which ar e listed below. Match the type of cost with the most appropriate cost pool or as a period cost.
-safety hats and shoes

Accepted Answer

A)  Cost pool - indirect factory operating costs 
B)  Cost pool - direct factory labour 
C)  Cost pool - indirect factory labour 
D)  Period cost 
A)  Cost pool - indirect factory operating costs 
B)  Cost pool - direct factory labour 
C)  Cost pool - indirect factory labour 
D)  Period cost

Question 12

Answer the following question(s) using the information below.
The following information pertains to Alleigh's Mannequins:
  
-What is the average manufacturing cost per unit?

Accepted Answer

A)  $50.00 
B)  $50.85 
C)  $17.65 
D)  $85.00 
E)  $49.50 
A)  $50.00 
B)  $50.85 
C)  $17.65 
D)  $85.00 
E)  $49.50

Question 13

Use the information below to answer the following question(s).
The following information pertains to Payton's Shoe Manufacturing:
   
99,500 pairs of shoes are sold during the year for $18.
-What is Payton's manufacturing cost per pair of shoes?

Accepted Answer

A)  $10.00 
B)  $10.05 
C)  $100.00 
D)  $18.00 
E)  $9.95 
A)  $10.00 
B)  $10.05 
C)  $100.00 
D)  $18.00 
E)  $9.95

Question 14

Use the information below to answer the following question(s).
Macadamia Co. produced and sold 40,000 units last year. Per unit revenue and costs were as follows:
   
Fixed manufacturing overhead and administrative salaries are fixed costs. The per unit amounts are based on last year's production.
-Calculate this year's operating income if the company plans to produce and sell 60,000 units.

Accepted Answer

A)  $150,000 
B)  $0 
C)  $ 
D)  $ 
E)  $300,000 
A)  $150,000 
B)  $0 
C)  $ 
D)  $ 
E)  $300,000

Question 15

Sheen Manufacturing has four manufacturing cost pools and many types of costs, some of which ar e listed below. Match the type of cost with the most appropriate cost pool or as a period cost.
-fringe benefits for factory workers

Accepted Answer

A)  Cost pool - indirect factory operating costs 
B)  Cost pool - direct factory labour 
C)  Cost pool - indirect factory labour 
D)  Period cost 
A)  Cost pool - indirect factory operating costs 
B)  Cost pool - direct factory labour 
C)  Cost pool - indirect factory labour 
D)  Period cost

Question 16

The following information pertains to Tom's Country Wood Shop:
 
What is the cost of goods manufactured for 2015?

Accepted Answer

A)  $56,500 
B)  $31,500 
C)  $50,500 
D)  $61,500 
E)  $66,500 
A)  $56,500 
B)  $31,500 
C)  $50,500 
D)  $61,500 
E)  $66,500

Question 17

Use the information below to answer the following question(s).
Consider the following data of the Vancouver Company for the year 2016:
  
-What is the unit cost for the direct materials for 2016 assuming direct materials are for the production of 507,000 units?

Accepted Answer

A)  $0.80 
B)  $0.95 
C)  $2.00 
D)  $1.08 
E)  $1.10 
A)  $0.80 
B)  $0.95 
C)  $2.00 
D)  $1.08 
E)  $1.10

Question 18

Gimble Manufacturing Inc. makes vibration control springs for heating, ventilating, and air conditioning (HVAC) equipment. Materials cost $52 per spring set, and the machinists are paid $44 per hour. A machinist can produce four sets of springs per hour. Fixed manufacturing costs for springs are $5,000 per period. Non-manufacturing spring set costs are fixed at $11,000 per period. Each spring set sells for $75 and Gimble sells on average 4,000 spring sets per period.
Required:
a. Competition has entered the market and is selling spring sets for an introductory price of $66. Can Gimble Manufacturing Inc.meet this price and still make a profit?
b. How would your answer to requirement a. change if Gimble sells on average 8,000 spring sets per period.
c. What should Gimble Manufacturing Inc.'s management do in the short-run and for the long-term if it appears that $66 is going to be the new market price for the future.

Accepted Answer

? @#IMG-DLM& 
c. The spring sets have a unit contr

Question 19

Whippany manufacturing wants to estimate costs for each product they produce at its Troy plant. The Troy plant produces three products at this plant, and runs two flexible assembly lines. Each assembly line can produce all three products. 
Required:
a. Classify each of the following costs as either direct or indirect for each product.
b. Classify each of the following costs as either fixed or variable with respect to the number of units produced of each product.

Accepted Answer

The answer of Whippany manufacturing wants to estimate costs for...

Question 20

Answer the following question using the information below.
Pederson Company reported the following:
  
-What is the amount of finished goods inventory?

Accepted Answer

A)  $2,000,000 
B)  $12,000 
C)  $225,000 
D)  $127,659 
E)  $120,000 
A)  $2,000,000 
B)  $12,000 
C)  $225,000 
D)  $127,659 
E)  $120,000

Which of the following formulas determine cost of goods sold in a manufacturing entity?

Use the information below to answer the following question(s). Consider the following data of the Vancouver Company for the year 2016: -What is the unit cost for the plant leasing cost for 2016 assuming plant leasing costs are for the production of 2,000,000 units?

Sheen Manufacturing has four manufacturing cost pools and many types of costs, some of which ar e listed below. Match the type of cost with the most appropriate cost pool or as a period cost. -factory supervisor's salaries

Use the information below to answer the following question(s). Ontario Industries Inc. had the following activities during the year: -What is the amount of the manufacturing overhead incurred at Ontario Industries Inc.?

Use the information below to answer the following question(s). Consider the following data of the Vancouver Company for the year 2016: -What is the unit cost for the direct materials for 2016 assuming direct materials costs are for the production of 1,014,000 units?

Answer the following question(s) using the information below. The following information pertains to Alleigh's Mannequins: -What is the amount of ending finished goods inventory?

Use the information below to answer the following question(s). Montreal Industries Inc. had the following activities during the year: -What is Montreal's cost of goods manufactured during the year?

Sheen Manufacturing has four manufacturing cost pools and many types of costs, some of which ar e listed below. Match the type of cost with the most appropriate cost pool or as a period cost. -safety hats and shoes

Answer the following question(s) using the information below. The following information pertains to Alleigh's Mannequins: -What is the average manufacturing cost per unit?

Use the information below to answer the following question(s). The following information pertains to Payton's Shoe Manufacturing: 99,500 pairs of shoes are sold during the year for $18. -What is Payton's manufacturing cost per pair of shoes?

Sheen Manufacturing has four manufacturing cost pools and many types of costs, some of which ar e listed below. Match the type of cost with the most appropriate cost pool or as a period cost. -fringe benefits for factory workers

The following information pertains to Tom's Country Wood Shop: What is the cost of goods manufactured for 2015?

Use the information below to answer the following question(s). Consider the following data of the Vancouver Company for the year 2016: -What is the unit cost for the direct materials for 2016 assuming direct materials are for the production of 507,000 units?

Answer the following question using the information below. Pederson Company reported the following: -What is the amount of finished goods inventory?

The Accountants Vital Role in Decision Making

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Analysis of Cost Behaviour

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, Rework, and Scrap

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters

Exam 2: An Introduction to Cost Terms and Purposes

Which of the following formulas determine cost of goods sold in a manufacturing entity?

Use the information below to answer the following question(s). Consider the following data of the Vancouver Company for the year 2016: -What is the unit cost for the plant leasing cost for 2016 assuming plant leasing costs are for the production of 2,000,000 units?

Sheen Manufacturing has four manufacturing cost pools and many types of costs, some of which ar e listed below. Match the type of cost with the most appropriate cost pool or as a period cost. -factory supervisor's salaries

Use the information below to answer the following question(s). Ontario Industries Inc. had the following activities during the year: -What is the amount of the manufacturing overhead incurred at Ontario Industries Inc.?

Use the information below to answer the following question(s). Consider the following data of the Vancouver Company for the year 2016: -What is the unit cost for the direct materials for 2016 assuming direct materials costs are for the production of 1,014,000 units?

Answer the following question(s) using the information below. The following information pertains to Alleigh's Mannequins: -What is the amount of ending finished goods inventory?

Use the information below to answer the following question(s). Montreal Industries Inc. had the following activities during the year: -What is Montreal's cost of goods manufactured during the year?

Sheen Manufacturing has four manufacturing cost pools and many types of costs, some of which ar e listed below. Match the type of cost with the most appropriate cost pool or as a period cost. -safety hats and shoes

Answer the following question(s) using the information below. The following information pertains to Alleigh's Mannequins: -What is the average manufacturing cost per unit?

Use the information below to answer the following question(s). The following information pertains to Payton's Shoe Manufacturing: 99,500 pairs of shoes are sold during the year for $18. -What is Payton's manufacturing cost per pair of shoes?

Sheen Manufacturing has four manufacturing cost pools and many types of costs, some of which ar e listed below. Match the type of cost with the most appropriate cost pool or as a period cost. -fringe benefits for factory workers

The following information pertains to Tom's Country Wood Shop: What is the cost of goods manufactured for 2015?

Use the information below to answer the following question(s). Consider the following data of the Vancouver Company for the year 2016: -What is the unit cost for the direct materials for 2016 assuming direct materials are for the production of 507,000 units?

Answer the following question using the information below. Pederson Company reported the following: -What is the amount of finished goods inventory?

The Accountants Vital Role in Decision Making

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Analysis of Cost Behaviour

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, Rework, and Scrap

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters