Classify each cost of a furniture manufacturer as either a product cost (PR) or a period cost (PE). \[\begin{array} { | l | l | } \hline{ \text { Cost } } & \text { PR or PE } \\ \hline \text { Vice president of marketing's salary } & \\ \hline \text { Delivery expense } & \\ \hline \text { Wood used to make dining tables } & \\ \hline \text { Depreciation on office equipment } & \\ \hline \text { Production supervisor's salary } & \\ \hline \text { Factory insurance } & \\ \hline \text { Corporate office rent } & \\ \hline \end{array}\]

\[\begin{array} { | l | c | } \hline{ \

Silver Crafts, Inc. purchases and sells bracelets. The following information summarizes the company's operating activities for the year: \[\begin{array} { | l | r | } \hline \text { Selling and Administrative Expenses } & \$ 5300 \\ \hline \text { Purchases } & 157,000 \\ \hline \text { Sales Revenue } & 785,000 \\ \hline \text { Merchandise Inventory, January 1 } & 2350 \\ \hline \text { Merchandise Inventory, December 31 } & 38,350 \\ \hline \end{array}\] If the company sold 7900 units of bracelets during the year, how much is the cost for one bracelet? (Round your answer to the nearest cent.)

A) $19.87 B) $15.32 C) $20.17 D) $5.15 A) $19.87 B) $15.32 C) $20.17 D) $5.15

Garrett Corporation provided the following information for the year: \[\begin{array} { | l | r | } \hline \text { Beginning Balance - Work-in-Process Inventory } & \$ 27,000 \\ \hline \text { Ending Balance - Work-in-Process Inventory } & 56,000 \\ \hline \text { Beginning Balance - Direct Materials } & 83,000 \\ \hline \text { Ending Balance - Direct Materials } & 60,000 \\ \hline \text { Purchases - Direct Materials } & 360,000 \\ \hline \text { Direct Labor } & 471,000 \\ \hline \text { Indirect Labor } & 18,000 \\ \hline \text { Depreciation on Factory Plant and Equipment } & 25,000 \\ \hline \text { Plant Utilities and Insurance } & 271,000 \\ \hline \end{array}\] What was the amount of direct materials used in production during the year?

A) $66,000 B) $360,000 C) $383,000 D) $831,000 A) $66,000 B) $360,000 C) $383,000 D) $831,000

Belstone, Inc. is a merchandiser of stone ornaments. It sold 15,000 units during the year. The company has provided the following information: \[\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 525,000 \\ \hline \text { Purchases (excluding Freight In) } & 347,000 \\ \hline \text { Selling and Administrative Expenses } & 36,500 \\ \hline \text { Freight In } & 15,500 \\ \hline \text { Beginning Merchandise Inventory } & 42,000 \\ \hline \text { Ending Merchandise Inventory } & 55,500 \\ \hline \end{array}\] How much is the gross profit for the year?

A) $212,500 B) $349,000 C) $176,000 D) $178,000 A) $212,500 B) $349,000 C) $176,000 D) $178,000

The following information was obtained from Moreau Manufacturing, Inc.: \[\begin{array} { | l | r | } \hline \text { Advertising Costs } & \$ 9900 \\ \hline \text { Indirect Labor } & 53,000 \\ \hline \text { CEO's Salary } & 620,000 \\ \hline \text { Direct Labor } & 40,000 \\ \hline \text { Indirect Materials Used } & 7500 \\ \hline \text { Direct Materials Used } & 65,000 \\ \hline \text { Factory Utilities } & 760 \\ \hline \text { Factory Janitorial Costs } & 1200 \\ \hline \text { Manufacturing Equipment Depreciation } & 3100 \\ \hline \text { Delivery Vehicle Depreciation } & 1000 \\ \hline \text { Administrative Wages and Salaries } & 24,000 \\ \hline \end{array}\] Calculate Moreau Manufacturing's total product costs.

A) $170,560 B) $654,900 C) $105,000 D) $165,500 A) $170,560 B) $654,900 C) $105,000 D) $165,500

Beckett, Inc. reports the following cost information for March: \[\begin{array} { | l | r | } \hline \text { Cost of Goods Manufactured } & \$ 75,000 \\ \hline \text { Manufacturing Overhead } & 19,000 \\ \hline \text { Finished Goods Inventory, March 1 } & 5000 \\ \hline \text { Finished Goods Inventory, March 31 } & 2000 \\ \hline \text { Work-in-Process Inventory, March 1 } & 9980 \\ \hline \text { Work-in-Process Inventory, March 31 } & 1160 \\ \hline \text { Direct Materials Used } & 25,400 \\ \hline \end{array}\] What is the amount of direct labor incurred by Beckett, Inc. in March?

A) $66,180 B) $6400 C) $75,000 D) $21,780 A) $66,180 B) $6400 C) $75,000 D) $21,780

Exam 16: Introduction to Managerial Accounting

A manufacturer produced 7,500 total units. The cost of goods manufactured is $88,000 and the cost of goods sold is $71,000. The unit product cost is $9.47.

(True/False)

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Question 41

Classify each cost of a furniture manufacturer as either a product cost (PR) or a period cost (PE). Cost PR or PE Vice president of marketing's salary Delivery expense Wood used to make dining tables Depreciation on office equipment Production supervisor's salary Factory insurance Corporate office rent

(Essay)

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Question 42

Service companies sell their time, skills, and knowledge.

(True/False)

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Question 43

Manufacturing companies produce their own products, but merchandising companies do not.

(True/False)

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Question 44

Identify each cost as a period cost or a product cost. -Materials used in making products

(Multiple Choice)

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Question 45

Total manufacturing costs to account for during the year minus the ending Work-in-Process Inventory equals the cost of goods manufactured.

(True/False)

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Question 46

Silver Crafts, Inc. purchases and sells bracelets. The following information summarizes the company's operating activities for the year: Selling and Administrative Expenses \ 5300 Purchases 157,000 Sales Revenue 785,000 Merchandise Inventory, January 1 2350 Merchandise Inventory, December 31 38,350 If the company sold 7900 units of bracelets during the year, how much is the cost for one bracelet? (Round your answer to the nearest cent.)

(Multiple Choice)

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Question 47

The wages of factory janitors are considered to be direct labor costs because they are directly related to the manufacturing process.

(True/False)

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Question 48

Companies that provide healthcare, communication, banking and other benefits to society are called ________.

(Multiple Choice)

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Question 49

Garrett Corporation provided the following information for the year: Beginning Balance - Work-in-Process Inventory \ 27,000 Ending Balance - Work-in-Process Inventory 56,000 Beginning Balance - Direct Materials 83,000 Ending Balance - Direct Materials 60,000 Purchases - Direct Materials 360,000 Direct Labor 471,000 Indirect Labor 18,000 Depreciation on Factory Plant and Equipment 25,000 Plant Utilities and Insurance 271,000 What was the amount of direct materials used in production during the year?

(Multiple Choice)

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Question 50

Belstone, Inc. is a merchandiser of stone ornaments. It sold 15,000 units during the year. The company has provided the following information: Sales Revenue \ 525,000 Purchases (excluding Freight In) 347,000 Selling and Administrative Expenses 36,500 Freight In 15,500 Beginning Merchandise Inventory 42,000 Ending Merchandise Inventory 55,500 How much is the gross profit for the year?

(Multiple Choice)

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Question 51

Define period cost. Give three examples of period costs of a merchandising company.

(Essay)

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Question 52

Vermont State, Inc. used $153,000 of direct materials and incurred $63,000 of direct labor costs during the year. Indirect labor amounted to $270,000, while indirect materials used totaled $53,000. Other operating costs pertaining to the factory included utilities of $135,500; maintenance of $70,260; repairs of $53,400; depreciation of $133,000; and property taxes of $74,640. There was no beginning or ending finished goods inventory, but Work-in-Process inventory began the year with a $5000 balance and ended the year with a $7400 balance. How much is the cost of goods manufactured?

(Multiple Choice)

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Question 53

Manufacturing overhead includes indirect manufacturing costs, such as insurance and depreciation on the factory building.

(True/False)

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Question 54

Which of the following describes the cost of goods manufactured?

(Multiple Choice)

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Question 55

________ is a philosophy of continuous improvement of products and processes.

(Multiple Choice)

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Question 56

The following information was obtained from Moreau Manufacturing, Inc.: Advertising Costs \ 9900 Indirect Labor 53,000 CEO's Salary 620,000 Direct Labor 40,000 Indirect Materials Used 7500 Direct Materials Used 65,000 Factory Utilities 760 Factory Janitorial Costs 1200 Manufacturing Equipment Depreciation 3100 Delivery Vehicle Depreciation 1000 Administrative Wages and Salaries 24,000 Calculate Moreau Manufacturing's total product costs.

(Multiple Choice)

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Question 57

Beckett, Inc. reports the following cost information for March: Cost of Goods Manufactured \ 75,000 Manufacturing Overhead 19,000 Finished Goods Inventory, March 1 5000 Finished Goods Inventory, March 31 2000 Work-in-Process Inventory, March 1 9980 Work-in-Process Inventory, March 31 1160 Direct Materials Used 25,400 What is the amount of direct labor incurred by Beckett, Inc. in March?

(Multiple Choice)

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Question 58

Nurix, Inc. is a business consulting firm. During the month of February, Nurix earned $55,600 of revenues by providing services to 47 clients. Operating costs for February were $8500 and non-operating costs were $6000. What is the unit cost per service? (Round your answer to the nearest cent.)

(Multiple Choice)

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Question 59

Which of the following is the primary focus of financial accounting?

(Multiple Choice)

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Question 60

A manufacturer produced 7,500 total units. The cost of goods manufactured is $88,000 and the cost of goods sold is $71,000. The unit product cost is $9.47.

Service companies sell their time, skills, and knowledge.

Manufacturing companies produce their own products, but merchandising companies do not.

Identify each cost as a period cost or a product cost. -Materials used in making products

Total manufacturing costs to account for during the year minus the ending Work-in-Process Inventory equals the cost of goods manufactured.

The wages of factory janitors are considered to be direct labor costs because they are directly related to the manufacturing process.

Companies that provide healthcare, communication, banking and other benefits to society are called ________.

Define period cost. Give three examples of period costs of a merchandising company.

Manufacturing overhead includes indirect manufacturing costs, such as insurance and depreciation on the factory building.

Which of the following describes the cost of goods manufactured?

________ is a philosophy of continuous improvement of products and processes.

Nurix, Inc. is a business consulting firm. During the month of February, Nurix earned $55,600 of revenues by providing services to 47 clients. Operating costs for February were $8500 and non-operating costs were $6000. What is the unit cost per service? (Round your answer to the nearest cent.)

Which of the following is the primary focus of financial accounting?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Investments

Current Liabilities and Payroll

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based Just-In-Time

Cost Volume Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Understanding Accounting Information Systems and their Components

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