Exam 2: Cost Terms, Concepts, and Classifications

The following data (in thousands of dollars) have been taken from the accounting records of Karlist Corporation for the just completed year. Sales \ 800 Raw materials inventory, beginning \ 60 Raw materials inventory, ending \ 70 Purchases of raw materials \ 180 Direct labour \ 100 Manufacturing overhead \ 190 Administrative expenses \ 110 Selling expenses \ 150 Work-in-process inventory, beginning \ 70 Work-in-process inventory, ending \ 80 Finished goods inventory, beginning \ 120 Finished goods inventory, ending \ 160 -What was the cost of the raw materials used in production (in thousands of dollars)during the year?

The Zellers store in your home town is one of many Zeller's department stores across the province.Some of the costs associated with the store in your home town last month appear below: Shoe Department Cost of Sales \ 80,000 Other Department Salaries 62,000 Store Managers Salary 14,000 Shoe Department Sales Commissions 8,000 Store Utilities 13,000 Shoe Department Manager's Salary 9,000 Store Lease Cost 11,000 Store Janitorial Costs 11,000 Other Store Costs 98,000 The Shoe Department is one of many departments in the home town store.The direct costs of the Shoe Department total:

Bergeron Inc. reported the following data for last year: Work-in-process inventory, beginning \ 100 Work-in-process inventory, ending \ 150 Finished goods inventory, beginning \ 180 Finished goods inventory, ending \ 200 Direct labour cost \ 300 Direct materials cost \ 500 Manufacturing overhead cost \ 400 -Which of the following is the cost of goods manufactured?

When a decision is made among a number of alternatives,the benefit that is lost by choosing one alternative over another is called what?

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

Bergeron Inc. reported the following data for last year: Work-in-process inventory, beginning \ 100 Work-in-process inventory, ending \ 150 Finished goods inventory, beginning \ 180 Finished goods inventory, ending \ 200 Direct labour cost \ 300 Direct materials cost \ 500 Manufacturing overhead cost \ 400 -Which of the following is the conversion cost?

You have the following data: Cost of goods sold Direct labour Direct materials Cost of goods manufactured Work-in-process ending Finished goods ending Manufacturing overhead \ 70 \ 20 \ 15 \ 80 \ 10 \ 15 \ 30 Which of the following represents the beginning work-in-process inventory?

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.

Within the relevant range,what is the difference between variable costs and fixed costs?

Prime costs consist of:

How would the wages of factory maintenance personnel usually be classified?

Assume,as discussed in the chapter,actual manufacturing costs (that is,direct material used,direct labour,and manufacturing overhead)are charged to products in calculating the cost of goods manufactured. Required: As a manager,explain some of the potential problems such a system may give you.

The following data (in thousands of dollars) have been taken from the accounting records of Karling Corporation for the year just ended. Sales \ 990 Raw materials inventory, beginning \ 40 Raw materials inventory, ending \ 70 Purchases of raw materials \ 120 Direct labour \ 200 Manufacturing overhead \ 230 Administrative expenses \ 150 Selling expenses \ 140 Work-in-process inventory, beginning \ 70 Work-in-process inventory, ending \ 50 Finished goods inventory, beginning \ 120 Finished goods inventory, ending \ 160 -What was the net income (in thousands of dollars)for the year?

For a manufacturing company,which of the following is an example of a period rather than a product cost?

Micro Computer Company has set up a toll-free telephone line for customer inquiries regarding computer hardware produced by the company.How would the cost of this toll-free line be classified?

Boardman Company reported the following data for the month of January: Inventories: Raw materials \ 32,000 \ 31,000 Work in process \ 18,000 \ 12,000 Finished goods \ 30,000 \ 35,000 Additional information: Sales revenue \ 210,000 Direct labour costs \ 40,000 Manufacturing overhead costs \ 70,000 Selling expenses \ 25,000 Administrative expenses \ 35,000 -Assuming that cost of goods sold for Boardman Company for January was $140,000,what was the cost of goods manufactured for the month?

Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead.

Prime cost consists of direct materials and what?

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the year just ended. Sales \ 910 Raw materials inventory, beginning \ 80 Raw materials inventory, ending \ 20 Purchases of raw materials \ 100 Direct labour \ 130 Manufacturing overhead \ 200 Administrative expenses \ 160 Selling expenses \ 140 Work-in-process inventory, beginning \ 40 Work-in-process inventory, ending \ 10 Finished goods inventory, beginning \ 130 Finished goods inventory, ending \ 150 -What was the cost of goods manufactured (finished)for the year (in thousands of dollars)?

Boardman Company reported the following data for the month of January: Inventories: Raw materials \ 32,000 \ 31,000 Work in process \ 18,000 \ 12,000 Finished goods \ 30,000 \ 35,000 Additional information: Sales revenue \ 210,000 Direct labour costs \ 40,000 Manufacturing overhead costs \ 70,000 Selling expenses \ 25,000 Administrative expenses \ 35,000 -Assuming that cost of goods sold for January was $124,000,what was the net income for January?