Exam 3: Basic Cost Management Concepts

Which of the following would not be considered a cost pool?

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

Which of the following is not a correct pair between the activity and the potential cost driver?

Which of the following is normally considered to be a product cost?

Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting information remained in the office files: Cost of goods sold \ 80,000 Work in process inventory, January 1, 2016 18,500 Work in process inventory, December 31, 2016 14,500 Selling and Administrative Expenses 16,000 Net Income 30,000 Factory overhead 20,000 Direct materials inventory, January 1, 2016 26,000 Direct materials inventory, December 31, 2016 14,000 Cost of goods manufactured 98,000 Finished goods inventory, January 1, 2016 31,000 Direct labor cost incurred during the period amounted to 2.5 times the factory overhead. The CFO of Tierney Construction, Inc. has asked you to recalculate the following accounts and to report to him by the end of tomorrow. What should be the amount of direct materials used?

The total manufacturing cost consists of the costs for materials used, labor, and ________.

Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. Cost of Goods Sold \ 65,000 Work-in-Process Inventory, Beginning 10,500 Work-in-Process Inventory, Ending 9,000 Selling and Administrative Expense 15,000 Finished Goods Inventory, Ending 15,000 Finished Goods Inventory, Beginning ? Direct Materials Used ? Factory Overhead Applied 12,000 Operating Income 14,000 Direct Materials Inventory, Beginning 11,000 Direct Materials Inventory, Ending 6,000 Cost of Goods Manufactured 60,000 Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The CFO of Conrad, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount of direct materials used?

Prime cost and conversion cost share what common element of total cost?

The following data pertains to Lam Co.'s manufacturing operations: Inventories 4/1 4/30 Direct Materials \ 18,000 \ 15,000 Work in Process 9,000 6,000 Finished Goods 27,000 36,000 $\text { Additional information for the month of April: }$ Direct materials purchased \3 2,000 Direct labor 30,000 Direct labor rate per hour 10.00 Factor overhead incurred 40,000 $\text { Overhead is applied at } \$ 12 \text { per direct labor hour. }$ For the month of April, conversion cost incurred was:

The following information was taken from the accounting records of Elliott Manufacturing Corp. Unfortunately, some of the data were destroyed by a computer malfunction. Sales Revenue \ 58,000 Finished Goods Inventory, Beginning 9,000 Finished Goods Inventory, Ending 6,000 Cost of Goods Sold ? Gross Margin 25,000 Direct Materials Used 10,000 Selling and Administrative Expense ? Operating Income 14,000 Work-in-Process Inventory, Beginning ? Work-in-Process Inventory, Ending 5,000 Direct Labor Used 9,000 Factory Overhead 12,000 Total Manufacturing Cost ? Cost of Goods Manufactured ? Cost of goods sold is calculated to be:

The following information applies to the McAdoo Company for the year. Required: Prepare a statement of cost of goods manufactured and an income statement for the year.

Factory overhead costs for a given period were 2 times as much as the direct material costs.Prime costs totaled $8,000.Conversion costs totaled $11,350.What are the direct labor costs for the period?

The following information applies to the Johnson Tools Company for the year. Factory Rent \ 330,000 Direct Materials Inventory, Beginning 96,000 Direct Materials Inventory, Ending 87,000 Direct Materials Purchases 654,000 Direct Labor-Wages 425,000 Indirect Labor-Wages 28,000 Finished Goods Inventory, Beginning 25,000 Finished Goods Inventory, Ending 44,000 Indirect Materials 66,000 Plant Utilities 40,000 General and Administrative 101,350 Work-in-Process Inventory, Beginning 27,000 Work-in-Process Inventory, Ending 33,000 Marketing Expenses 225,000 Sales Revenue 2,550,000 Required: Prepare a statement of cost of goods manufactured and an income statement for the year.

A group of related products may be referenced as:

The main objective(s) of internal accounting controls is/are:

The income statement for a merchandising company includes:

Structural cost drivers are to executional cost drivers as:

Jeffrey's Bottling Co.incurred the following costs during November: Conversion costs Prime costs \ 220,000 Manufacturing overhead \ 175,000 If direct materials cost was $140,000 in November, what was the conversion cost for November?

The following information was taken from the accounting records of Elliott Manufacturing Corp. Unfortunately, some of the data were destroyed by a computer malfunction. Sales Revenue \ 58,000 Finished Goods Inventory, Beginning 9,000 Finished Goods Inventory, Ending 6,000 Cost of Goods Sold ? Gross Margin 25,000 Direct Materials Used 10,000 Selling and Administrative Expense ? Operating Income 14,000 Work-in-Process Inventory, Beginning ? Work-in-Process Inventory, Ending 5,000 Direct Labor Used 9,000 Factory Overhead 12,000 Total Manufacturing Cost ? Cost of Goods Manufactured ? Work in process inventory, beginning, is calculated to be:

Direct materials and direct labor costs total $70,000 and factory overhead costs total $100 per machine hour.If 200 machine hours were used for Job #333, what is the total manufacturing cost for Job #333?