Question 1

What was the cost of goods sold (in thousands of dollars)for the year?

Accepted Answer

A)  $610. 
B)  $410. 
C)  $490. 
D)  $570. 
A)  $610. 
B)  $410. 
C)  $490. 
D)  $570.

Question 2

What was the cost (in thousands of dollars)of the raw materials used in production during the year?

Accepted Answer

A)  $190. 
B)  $90. 
C)  $150. 
D)  $160. 
A)  $190. 
B)  $90. 
C)  $150. 
D)  $160.

Question 3

What was the cost of the raw materials used in production (in thousands of dollars)during the year?

Accepted Answer

A)  $180. 
B)  $40. 
C)  $120. 
D)  $160. 
A)  $180. 
B)  $40. 
C)  $120. 
D)  $160.

Question 4

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 will be $5 per unit,and the labour cost will be $3 per unit.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.You can place an "X" under more than one heading for a single cost: for example,a cost may be a sunk cost,an overhead cost,and a product cost;you would place an "X" under each of these headings opposite the cost.
* Between the alternatives of going into business to make the device or not going into business to make the device.See column heading "Differential Cost".

Accepted Answer

@#IMG-DLM& * Between the alternatives of

Question 5

Use the following information to determine the gross margin for Pacific States Manufacturing for the year just ended (all amounts are in thousands of dollars):

Accepted Answer

@#IMG-DLM& 
Direct materials used = $6,000 + $7,00

Question 6

A brewery produces many variety of beer.If the cost object is a particular brand of beer the factory supervisor salary is classified a/an _____________ cost of the brand of beer and a _____________ cost of the entire division.

Accepted Answer

A)  Direct,Common 
B)  Indirect,Common 
C)  Direct,Prime 
D)  Fixed,Period 
A)  Direct,Common 
B)  Indirect,Common 
C)  Direct,Prime 
D)  Fixed,Period

Question 7

Fred Adams is employed by the Cedar Manufacturing Company on their assembly line.Fred is paid $15 per hour for regular time,and time-and-a-half for all work in excess of 40 hours per week.During the two weeks of the pay period just completed,Fred reported the following:   
Required:
Compute Fred's wages for each week and allocate Fred's wages for each week between direct labour cost and manufacturing overhead.

Accepted Answer

@#IMG-DLM& Fred's wages would

Question 8

Last month,a manufacturing company had the following operating results:  
What was the cost of goods manufactured for the month?

Accepted Answer

A)  $413,000 
B)  $411,000 
C)  $412,000 
D)  $463,000= (464,000 - 52,000)+ 73,000 - 74,000 = $411,000 
A)  $413,000 
B)  $411,000 
C)  $412,000 
D)  $463,000= (464,000 - 52,000)+ 73,000 - 74,000 = $411,000

Question 9

The following data (in thousands of dollars)have been taken from the accounting records of Larner Corporation for the year just completed:   
Required:
(a. )Prepare a schedule of cost of goods manufactured in good form.
(b. )Compute the cost of goods sold.
(c. )Using data from your answers above as needed,prepare an income statement in good form.

Accepted Answer

(a. )Schedule of cost of goods

Question 10

The following data (in thousands of dollars)have been taken from the accounting records of Larsen Corporation for the year just ended:   
Required:
(a. )Prepare a schedule of cost of goods manufactured in good form.
(b. )Compute the cost of goods sold.
(c. )Using data from your answers above as needed,prepare an income statement in good form.

Accepted Answer

(a. )Schedule of cost of goods

Question 11

Which of the following would NOT be treated as a product cost for external financial reporting purposes?

Accepted Answer

A)  Depreciation on a factory building. 
B)  Salaries of factory workers. 
C)  Indirect labour in the factory. 
D)  Advertising expenses. 
A)  Depreciation on a factory building. 
B)  Salaries of factory workers. 
C)  Indirect labour in the factory. 
D)  Advertising expenses.

Question 12

If CD Company sells 50,000 units,what is the total expected cost per unit? (Do not round intermediate computations).Round final answer to the nearest cent.

Accepted Answer

A)  $3.20. 
B)  $2.48. 
C)  $3.88. 
D)  $3.16.TC = VC + FC = 50,000 * 1.875 + 64,000 = $157,750 
A)  $3.20. 
B)  $2.48. 
C)  $3.88. 
D)  $3.16.TC = VC + FC = 50,000 * 1.875 + 64,000 = $157,750

Question 13

If raw materials costing $35,000 were purchased during January,what were the total manufacturing costs for the month?

Accepted Answer

A)  $145,000. 
B)  $144,000. 
C)  $151,000. 
D)  $146,000.= (32,000 + 35,000 - 31,000)+ 40,000 + 70,000 = $146,000 
A)  $145,000. 
B)  $144,000. 
C)  $151,000. 
D)  $146,000.= (32,000 + 35,000 - 31,000)+ 40,000 + 70,000 = $146,000

Question 14

Variable costs are costs whose per unit costs vary as the activity level rises and falls.

Accepted Answer

A) True 
 B)False

Question 15

What does manufacturing overhead cost consist of?

Accepted Answer

A)  All manufacturing costs. 
B)  All manufacturing costs,EXCEPT direct materials and direct labour. 
C)  Indirect materials but NOT indirect labour. 
D)  Indirect labour but NOT indirect materials. 
A)  All manufacturing costs. 
B)  All manufacturing costs,EXCEPT direct materials and direct labour. 
C)  Indirect materials but NOT indirect labour. 
D)  Indirect labour but NOT indirect materials.

Question 16

The following inventory and cost data for the just completed year are taken from the accounting records of Sankar Company:   
Required:
(a. )Calculate the cost of goods manufactured.
(b. )Calculate the cost of goods sold

Accepted Answer

The answer of The following inventory and cost data for...

Question 17

If the ending inventory of finished goods is understated,net income will be overstated.

Accepted Answer

A) True 
 B)False

Question 18

What does conversion cost consist of?

Accepted Answer

A)  Manufacturing overhead cost. 
B)  Direct materials and direct labour cost. 
C)  Direct labour cost. 
D)  Direct labour and manufacturing overhead cost. 
A)  Manufacturing overhead cost. 
B)  Direct materials and direct labour cost. 
C)  Direct labour cost. 
D)  Direct labour and manufacturing overhead cost.

Question 19

How would the cost of rent for a manufacturing plant generally be classified?

Accepted Answer

A)  A product cost but not a prime cost. 
B)  Neither a product nor prime Cost. 
C)  A prime cost but not a product cost. 
D)  Both a prime cost and product cost. 
A)  A product cost but not a prime cost. 
B)  Neither a product nor prime Cost. 
C)  A prime cost but not a product cost. 
D)  Both a prime cost and product cost.

Question 20

The following selected account balances for the year ended December 31 are provided for Amita Company:   
In addition,you have the following information about inventories during the year:   
Cleaning supplies are in the factory.
Assume the company uses FIFO.
Required:
(a. )Calculate the cost of the 27,600 equivalent units that were produced during the year.
(b. )Calculate the cost of the ending finished goods inventory.
(c. )Calculate the cost of goods sold.

Accepted Answer

(a. )This is the same as calculating the

What was the cost of goods sold (in thousands of dollars)for the year?

What was the cost (in thousands of dollars)of the raw materials used in production during the year?

What was the cost of the raw materials used in production (in thousands of dollars)during the year?

Use the following information to determine the gross margin for Pacific States Manufacturing for the year just ended (all amounts are in thousands of dollars):

A brewery produces many variety of beer.If the cost object is a particular brand of beer the factory supervisor salary is classified a/an _ cost of the brand of beer and a _ cost of the entire division.

Last month,a manufacturing company had the following operating results: What was the cost of goods manufactured for the month?

Which of the following would NOT be treated as a product cost for external financial reporting purposes?

If CD Company sells 50,000 units,what is the total expected cost per unit? (Do not round intermediate computations).Round final answer to the nearest cent.

If raw materials costing $35,000 were purchased during January,what were the total manufacturing costs for the month?

Variable costs are costs whose per unit costs vary as the activity level rises and falls.

What does manufacturing overhead cost consist of?

The following inventory and cost data for the just completed year are taken from the accounting records of Sankar Company: Required: (a. )Calculate the cost of goods manufactured. (b. )Calculate the cost of goods sold

If the ending inventory of finished goods is understated,net income will be overstated.

What does conversion cost consist of?

How would the cost of rent for a manufacturing plant generally be classified?

Managerial Accounting and the Business Environment

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

Filters

Exam 2: Cost Terms, Concepts, and Classifications

What was the cost of goods sold (in thousands of dollars)for the year?

What was the cost (in thousands of dollars)of the raw materials used in production during the year?

What was the cost of the raw materials used in production (in thousands of dollars)during the year?

Use the following information to determine the gross margin for Pacific States Manufacturing for the year just ended (all amounts are in thousands of dollars):

A brewery produces many variety of beer.If the cost object is a particular brand of beer the factory supervisor salary is classified a/an _____________ cost of the brand of beer and a _____________ cost of the entire division.

Last month,a manufacturing company had the following operating results: What was the cost of goods manufactured for the month?

Which of the following would NOT be treated as a product cost for external financial reporting purposes?

If CD Company sells 50,000 units,what is the total expected cost per unit? (Do not round intermediate computations).Round final answer to the nearest cent.

If raw materials costing $35,000 were purchased during January,what were the total manufacturing costs for the month?

Variable costs are costs whose per unit costs vary as the activity level rises and falls.

What does manufacturing overhead cost consist of?

The following inventory and cost data for the just completed year are taken from the accounting records of Sankar Company: Required: (a. )Calculate the cost of goods manufactured. (b. )Calculate the cost of goods sold

If the ending inventory of finished goods is understated,net income will be overstated.

What does conversion cost consist of?

How would the cost of rent for a manufacturing plant generally be classified?

Managerial Accounting and the Business Environment

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

Filters

A brewery produces many variety of beer.If the cost object is a particular brand of beer the factory supervisor salary is classified a/an _ cost of the brand of beer and a _ cost of the entire division.