Exam 3: Basic Cost Management Concepts

A manufacturer of machinery currently produces equipment for a single client. The client supplies all required raw material on a no-cost basis. The manufacturer contracts to complete the desired units from this raw material. The total production costs incurred by the manufacturer are correctly identified as:

What should be the amount of total manufacturing cost?

Variable costs within the relevant range for a firm are assumed:

Furniture Co. incurred the following costs during 2013: What was the amount of direct materials and direct labor used for the year?

If the volume of production is increased over the level planned, the cost per unit would be expected to:

The cost of goods that were finished and transferred out of work-in-process during the current period is:

Barnes Co. incurred the following costs during July: What was the amount of direct materials used and direct labor for July?

If finished goods inventory has increased during the period, which of the following is always true?

The income statement for a manufacturing company includes:

What should be the amount in the finished goods inventory at December 31, 2013?

What is the amount of net sales?

There is no convenient or economical way to trace a(n) _______ from the cost to the cost pool or from the cost pool to the cost object.

Which of the following is not a product cost?

Dave's Lighting Inc. produces lamps for the construction industry. During the year, the company incurred the following costs: Inventories for the year were: Required: Prepare a statement of cost of goods manufactured and cost of goods sold.

Which one of the following would not be found in a merchandising company?

Any product, service, or organizational unit to which costs are assigned for some management purpose is a (n):

What is the amount of direct materials used?

The income statement for a merchandising company includes: