Exam 2: An Introduction to Cost Terms and Purposes

Archambeau Products Company manufactures office furniture. Recently, the company decided to develop a formal cost accounting system and classify all costs into three categories. Categorize each of the following items as being appropriate for (1) cost tracing to the finished furniture, (2) cost allocation of an indirect manufacturing cost to the finished furniture, or (3) as a nonmanufacturing item. -Factory washroom supplies

Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales to regular customers: Required: a. What is the total cost of producing 1,000 axles? b. What is the total cost of producing 1,500 axles? c. What is the per unit cost when producing 1,500 axles?

Uzma Manufacturing wants to estimate costs for each product they produce at its Riyadh plant. The Riyadh 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. -Wages of security personnel for the factory

Which of the following companies is part of the service sector?

Archambeau Products Company manufactures office furniture. Recently, the company decided to develop a formal cost accounting system and classify all costs into three categories. Categorize each of the following items as being appropriate for (1) cost tracing to the finished furniture, (2) cost allocation of an indirect manufacturing cost to the finished furniture, or (3) as a nonmanufacturing item. -Lathe depreciation

Wer the following questions using the information below: -What is cost of goods manufactured for 2013?

Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers: The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per unit cost of producing 2,000 bicycles?

Butler Hospital wants to estimate the cost for each patient stay. It is a general health care facility offering only basic services and not specialized services such as organ transplants. Required: a. Classify each of the following costs as either direct or indirect with respect to each patient. b. Classify each of the following costs as either fixed or variable with respect to hospital costs per day. -Security

Answer the following questions using the information below: The following information pertains to Ali's Mannequins: -What is the amount of ending finished goods inventory?

During 2014, Favata Corporation incurred manufacturing expenses of $20,000,000 to produce 400,000 finished units. At year-end, it was determined that 370,000 units were sold while 30,000 units remained in ending inventory. Required: a. What is the cost of producing one unit? b. What is the amount that will be reported on the income statement for cost of goods sold? c. What is the amount that will be reported on the balance sheet for ending inventory?

Archambeau Products Company manufactures office furniture. Recently, the company decided to develop a formal cost accounting system and classify all costs into three categories. Categorize each of the following items as being appropriate for (1) cost tracing to the finished furniture, (2) cost allocation of an indirect manufacturing cost to the finished furniture, or (3) as a nonmanufacturing item. -Depreciation - office building

Answer the following questions using the information below: Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales to regular customers: -What is the per unit cost when producing 3,000 axles?

The following information pertains to the Red Sea Corporation: What is cost of goods sold?

Archambeau Products Company manufactures office furniture. Recently, the company decided to develop a formal cost accounting system and classify all costs into three categories. Categorize each of the following items as being appropriate for (1) cost tracing to the finished furniture, (2) cost allocation of an indirect manufacturing cost to the finished furniture, or (3) as a nonmanufacturing item. -Carpenter wages

Uzma Manufacturing wants to estimate costs for each product they produce at its Riyadh plant. The Riyadh 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. -Plant manager's wages

The distinction between direct and indirect costs is clearly set forth in international financial reporting standards (IFRS).

Butler Hospital wants to estimate the cost for each patient stay. It is a general health care facility offering only basic services and not specialized services such as organ transplants. Required: a. Classify each of the following costs as either direct or indirect with respect to each patient. b. Classify each of the following costs as either fixed or variable with respect to hospital costs per day. -Meals for patients

Answer the following questions using the information below: Hamour Company reported the following: -What is the amount of gross margin?

Wer the following questions using the information below: -What is operating income for 2013?

Uzma Manufacturing wants to estimate costs for each product they produce at its Riyadh plant. The Riyadh 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. -Depreciation on the assembly line equipment