Exam 2: An Introduction to Cost Terms and Purposes

Farley Muffler Inc. received the following monthly report from its newly hired accountant, who quit after only a week on the job. Required: a. Prepare a cost of goods manufactured schedule. b. Prepare an income statement in good form.

Actual costs are defined as

Which of the following is a cost object?

When producing for a government contract, all costs allowed by the producer will be paid by the government.

Answer the following question(s) using the information below. The following information pertains to Alleigh's Mannequins: -What is Frazer's cost of goods sold?

A relevant range is the range of the cost driver in which a specific relationship between cost and driver is valid.

Which of the following formulae would determine costs of goods sold in a merchandising entity?

The following information is taken from the records of Britton Company for March: * Of these costs, 60 percent are assigned to manufacturing and 40 percent to selling and administration. Required: a. Prepare a schedule of cost of goods manufactured. b. Prepare an income statement for the month. c. Compute the prime costs using a two-part production costing system, conversion costs, and indirect manufacturing costs.

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

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

Eichhorn Company's Process Engineering department has the responsibility of rearranging the individual work tasks for each assembly line worker, with the goal of utilizing each worker as much as possible. Currently, on average, each assembly line worker only has tasks that require 47 minutes per hour, and the plant manager wants this increased by at least 10 %. The company builds the Eichhorn Rocket Roadster, which is selling out of dealers' showrooms faster than the company's assembly plants can produce them. If production can't be increased, then sales will soon suffer. Required: Explain the effect on total costs of production, using the number of engineering changes (from Process Engineering) and at least two other cost drivers. Choose the cost driver that you think is most logical in the circumstances, and begin your answer with a brief explanation of a cost driver.

Indirect costs cannot be economically traced directly to the cost objective.

A mixed cost is

The components of prime costs in the three-part classification include

Wages paid to machine operators on an assembly line are an example of which type of cost?

Use the information below to answer the following question(s). Consider the following data of the Vancouver Company for the year 20X4: -What is the unit cost for the plant leasing costs for 20x4 assuming plant leasing costs are for the production of 1,014,000 units?

Answer the following question(s) using the information below. The following information pertains to Alleigh's Mannequins: -What is Frazer's cost of goods manufactured?

Which of the following is an indirect production cost?

Find the required amounts, assuming each is an independent case.

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