Exam 2: An Introduction to Cost Terms and Purposes

Answer the following questions using the information below: Pederson Company reported the following: -________ - sector companies purchase materials and components and convert them into finished goods.

Direct material costs are the acquisition costs of all materials that eventually become part of the cost object and CANNOT be traced to the cost object in an economically feasible way.

Which one of the following items is a direct cost?

Answer the following questions using the information below: The Singer Company manufactures several different products. Unit costs associated with Product ICT101 are as follows: -What are the inventoriable costs per unit associated with Product ICT101?

Answer the following questions using the information below: -What is cost of goods manufactured for 20X5?

Whippany manufacturing wants to estimate costs for each product they produce at its Troy plant. The Troy plant produces three products at this plant, and runs two flexible assembly lines. Each assembly line can produce all three products. Required: a. Classify each of the following costs as either direct or indirect for each product. b. Classify each of the following costs as either fixed or variable with respect to the number of units produced of each product. Depreciation on the assembly Wages of security personnel for the

Which of the following statements is FALSE?

Total manufacturing costs equal:

A unit cost is computed by:

During 2011, Favata Corporation incurred manufacturing expenses of $20,000,000 to produce 400,000 finished units. At year-end, it was determined that 370,000 units were sold while 30,000 units remained in ending inventory. Required: a. What is the cost of producing one unit? b. What is the amount that will be reported on the income statement for cost of goods sold? c. What is the amount that will be reported on the balance sheet for ending inventory?

Answer the following questions using the information below: The following information pertains to Alleigh's Mannequins: -What is the amount of gross margin?

For external reporting purposes, indirect manufacturing costs must be allocated to individual units.

Depreciation on a factory can be classified as a period cost.

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

Direct materials inventory would normally include:

Which of the following would be LEAST likely to be a cost driver for a company's human resource costs?

An appropriate cost driver for shipping costs might be the number of units shipped.

Cost behavior refers to:

For merchandising companies, inventoriable costs include all of the following EXCEPT:

Answer the following questions using the information below: The following information pertains to Alleigh's Mannequins: -Which of the following companies is part of the manufacturing sector of our economy?