Exam 2: An Introduction to Cost Terms and Purposes

Each of the following items pertains to one of these companies: Bedell Electronics (a manufacturing company), Gregory Food Retailers (a merchandising company), and Larson Real Estate (a service sector company).Match each item with either an inventoriable cost or a period cost. A)inventoriable B)period -depreciation on Bedell Electronics assembly equipment

Newfoundland Industries Inc.had the following account balances at the end of the current year: Required: Determine the amounts for direct material ending inventory, manufacturing costs incurred, ending work-in-process inventory, and ending finished goods inventory.

Eschliman Manufacturing Company had the following account balances for the quarter ending September 30, unless otherwise noted: Required: a.Prepare a cost of goods manufactured schedule for the quarter. b.Prepare a cost of goods sold schedule for the quarter.

Service-sector companies provide services or intangible products to their customers.

Saskatchewan Industries Inc.had the following account balances at the end of the current year: Required: Determine the amounts for direct materials beginning inventory, manufacturing overhead, beginning work-in-process inventory, and ending finished goods inventory.

Why is it possible that a raw material such as glue might be considered as an indirect material for one furniture manufacturer and as a direct material for another furniture manufacture?

Use the information below to answer the following question(s).Consider the following data of the Vancouver Company for the year 2019: -What is the unit cost for the plant leasing costs for 2019 assuming plant leasing costs are for the production of 1,014,000 units?

Factors affecting direct/indirect cost classifications are the materiality of the cost in question, the information-gathering technology used, and the operations.

Which of the following is a fixed cost in a clothing store?

Use the information below to answer the following question(s).Ontario Industries Inc.had the following activities during the year: -What is the amount of the beginning work-in-process inventory at Ontario Industries Inc.?

Use the information below to answer the following question(s).Frazer Inc.had the following activities in the year: -What is Frazer's cost of direct materials used during the year?

Manufacturing firms have three types of inventory: direct materials, work in process, and merchandise.

Merchandising companies purchase products and sell them to customers without changing their basic form.

Which of the following is TRUE of period costs?

Which of the following statements about cost management is TRUE?

The variable cost per unit of a product should stay the same throughout the relevant range of production.

Each of the following items pertains to one of these companies: Bedell Electronics (a manufacturing company), Gregory Food Retailers (a merchandising company), and Larson Real Estate (a service sector company).Match each item with either an inventoriable cost or a period cost. A)inventoriable B)period -salary of Bedell Electronics president

Use the information below to answer the following question(s).Consider the following data of the Vancouver Company for the year 2019: -What is the unit cost for the direct materials for 2019 assuming direct materials costs are for the production of 1,014,000 units?

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

Cost tracing assigns indirect costs to the chosen cost object.