Exam 2: Systems Design: Job-Order Costing

The beginning balance of the Raw Materials inventory account for May was $27,500.The ending balance for May was $28,750 and $128,900 of raw materials were used during the month.The materials purchased during the month cost:

The cost of goods manufactured was:

Manufacturing overhead cost for the year was:

Logan Products,a small manufacturer,has submitted the items below concerning last year's operations.The president's secretary,trying to be helpful,has alphabetized the list.

All the following costs should be considered direct costs of providing delivery room services to a particular mother and her baby: the costs of drugs administered in the operating room,the attending physician's fees,and a portion of the liability insurance carried by the hospital to cover the delivery room.

Bill Pope has developed a new device that is so exciting he is considering quitting his job in order to produce and market it on a large-scale basis.Bill will rent a garage for $300 per month for production purposes.Utilities will cost $40 per month.Bill has already taken an industrial design course at the local community college to help prepare for this venture.The course cost $300.Bill will rent production equipment at a monthly cost of $800.He estimates the material cost per unit will be $5,and the labour cost will be $3.He will hire workers and spend his time promoting the product.To do this he will quit his job,which pays $3,000 per month.Advertising and promotion will cost $900 per month. Required: Complete the chart below by placing an "X" under each heading that helps to identify the cost involved.There can be "Xs" placed under more than one heading for a single cost,e.g. ,a cost might be a sunk cost,an overhead cost and a product cost;there would be an "X" placed under each of these headings opposite the cost.

A list of accounts for a manufacturing company for an accounting period is given below.Find the unknown amounts indicated by question marks.

Each of the following would be a period cost except:

On a per unit basis,a fixed cost varies inversely with the level of activity.

The corporate controller's salary would be considered a(n):

An accounting course is taught in two classes per week for one hour and fifty minutes each.The classes are held in a building with 36 classrooms that are used for a variety of courses.The building has an advanced monitoring system which allows electricity costs to be determined for each classroom and for each course.If the cost object is the accounting course,which of the following is an indirect cost?

If CD Company were to sell 43,000 units,the total expected cost would be?

The term differential cost refers to:

The following data (in thousands of dollars)have been taken from the accounting records of Larsen Corporation for the just completed year.

The ending finished goods inventory was:

Haack Inc.is a merchandising company.Last month the company's cost of goods sold was $84,000.The company's beginning merchandise inventory was $20,000 and its ending merchandise inventory was $18,000.What was the total amount of the company's merchandise purchases for the month?

Which of the following would be considered a product cost for external financial reporting purposes?

The following data (in thousands of dollars)have been taken from the accounting records of Larner Corporation for the just completed year.

Boardman Company's total conversion cost for January was:

The net income for the year (in thousands of dollars)was: