Answer the following questions using the information below: Healesville Animates produces and sells a luxury animal pillow for $40.00 per unit.In the first month of operation,3000 units were produced and 2250 units were sold.Actual fixed costs are the same as the amount budgeted for the month.Other information for the month includes: $\begin{array}{ll} \text { Variable manufacturing costs } & \$ 19 \text { per unit } \\ \text { Variable marketing costs } & \$ 1 \text { per unit } \\ \text { Fixed manufacturing costs } & \$ 30000 \text { per month } \\ \text { Administrative expenses, all fixed } & \$ 6000 \text { per month } \\ \text { Ending inventories: } &\\text { Direct materials } & -0- \\ \text { WIP } & -0- \\ \text { Finished goods } & 750 \text { units } \end{array}$ -When comparing the operating profits between absorption costing and variable costing,and beginning finished inventory exceeds ending finished inventory,it may be assumed that:

A) variable costing operating profit exceeds absorption costing operating profit B) variable cost per unit is less than fixed cost per unit C) there is an unfavourable production-volume variance D) sales increased during the period A) variable costing operating profit exceeds absorption costing operating profit B) variable cost per unit is less than fixed cost per unit C) there is an unfavourable production-volume variance D) sales increased during the period

Answer the following questions using the information below: The Mt Tambourine Company manufactures several different products.Unit costs associated with Product SK2040 are as follows: \[\begin{array} { l r } \text { Direct materials } & \$ 60 \\ \text { Direct manufacturing labour } & 10 \\ \text { Variable manufacturing overhead } & 18 \\ \text { Fixed manufacturing overhead } & 32 \\ \text { Sales commissions (2\% of sales) } & 4 \\ \text { Administrative salaries } & \underline { 16 } \\ \quad \text { Total } & \$ 140 \end{array}\] -What are the variable costs per unit associated with Product SK2040?

A) $88 B) $22 C) $18 D) $92 A) $88 B) $22 C) $18 D) $92

For last year,Lewisburn Manufacturing reported the following: $\begin{array}{|l|r|} \hline\text { Revenue } & \$ 420000 \\ \hline \text { Beginning inventory of direct materials, January 1 } & 22000 \\ \hline \text { Purchases of direct materials } & 146000 \\ \hline \text { Ending inventory of direct materials, December 31 } & 16000 \\ \hline \text { Direct manufacturing labour } & 40000 \\ \hline \text { Indirect manufacturing costs } & 35000 \\ \hline \text { Beginning inventory of finished goods, January 1 } & 104000 \\ \hline \text { Cost of goods manufactured } & 36000 \\ \hline \text { Ending inventory of finished goods, December 31 } & 140000\\\hline \end{array}$ What was Lewisburn's operating profit?

A) $280 000 B) $76 000 C) $177 000 D) $128 000 A) $280 000 B) $76 000 C) $177 000 D) $128 000

Answer the following questions using the information below: The Mt Tambourine Company manufactures several different products.Unit costs associated with Product SK2040 are as follows: \[\begin{array} { l r } \text { Direct materials } & \$ 60 \\ \text { Direct manufacturing labour } & 10 \\ \text { Variable manufacturing overhead } & 18 \\ \text { Fixed manufacturing overhead } & 32 \\ \text { Sales commissions (2\% of sales) } & 4 \\ \text { Administrative salaries } & \underline { 16 } \\ \quad \text { Total } & \$ 140 \end{array}\] -What are the fixed costs per unit associated with Product SK2040?

A) $32 B) $48 C) $52 D) $102 A) $32 B) $48 C) $52 D) $102

Answer the following questions using the information below: $\begin{array}{|lr|} \hline \text { Beginning finished goods, } 1 / 1 / 2018 & \$ 40,000 \\ \hline \text { Ending finished goods, } 12 / 31 / 2018 & 33,000 \\ \hline \text { Cost of goods sold } & 250000 \\ \hline \text { Sales revenue } & 600,000 \\ \hline \text { Operating expenses } & 120,000 \\ \hline \end{array}$ -What is cost of goods manufactured for 2018?

A) $257 000 B) $250 000 C) $243 000 D) $350 000 A) $257 000 B) $250 000 C) $243 000 D) $350 000

Answer the following questions using the information below: The following information pertains to Bondi Creations: $\begin{array}{ll} \hline & \\ \hline \text { Manufacturing costs } & \$ 1,500,000 \\ \hline \text { Units manufactured } & 30,000 \\ \hline \text { Units sold } & 29,500 \text { units sold for } \$ 85 \text { per unit } \\ \hline \text { Beginning inventory } & 0 \text { units } \\ \hline\\\hline \end{array}$ -What is the average manufacturing cost per unit?

A) $50.00 B) $17.65 C) $85.00 D) $50.85 A) $50.00 B) $17.65 C) $85.00 D) $50.85

Answer the following questions using the information below: $\begin{array}{|lr|} \hline \text { Beginning finished goods, } 1 / 1 / 2018 & \$ 40,000 \\ \hline \text { Ending finished goods, } 12 / 31 / 2018 & 33,000 \\ \hline \text { Cost of goods sold } & 250000 \\ \hline \text { Sales revenue } & 600,000 \\ \hline \text { Operating expenses } & 120,000 \\ \hline \end{array}$ -What is gross margin for 2018?

A) $527 000 B) $243 000 C) $357 000 D) $350 000 A) $527 000 B) $243 000 C) $357 000 D) $350 000

Exam 2: Different Costs for Different Purposes

SBW Corporation planned to be in operation for three years. ∙ During the first year,2016,it had no sales but incurred $120 000 in variable manufacturing expenses and $40 000 in fixed manufacturing expenses. ∙ In 2017,it sold half of the finished goods inventory from 2016 for $100 000 but it had no manufacturing costs. ∙ In 2018,it sold the remainder of the inventory for $120 000,had no manufacturing expenses and went out of business. ∙ Marketing and administrative expenses were fixed and totalled $20 000 each year. Required: a.Prepare an income statement for each year using absorption costing. b.Prepare an income statement for each year using variable costing. _ _

(Essay)

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Question 101

Overtime premium is normally considered as a component of direct labour.

(True/False)

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Question 102

The collection of accounting data in some organised way is:

(Multiple Choice)

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Question 103

What does classifying a cost as either direct or indirect depend upon?

(Multiple Choice)

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Question 104

Which of the following does NOT affect the direct/indirect classification of a cost?

(Multiple Choice)

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Question 105

________ sector companies provide intangible products.

(Multiple Choice)

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Question 106

Answer the following questions using the information below: Healesville Animates produces and sells a luxury animal pillow for $40.00 per unit.In the first month of operation,3000 units were produced and 2250 units were sold.Actual fixed costs are the same as the amount budgeted for the month.Other information for the month includes: Variable manufacturing costs \ 19 per unit Variable marketing costs \ 1 per unit Fixed manufacturing costs \ 30000 per month Administrative expenses, all fixed \ 6000 per month Ending inventories: text Directmaterials -0- WIP -0- Finished goods 750 units -When comparing the operating profits between absorption costing and variable costing,and beginning finished inventory exceeds ending finished inventory,it may be assumed that:

(Multiple Choice)

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Question 107

Answer the following questions using the information below: The Mt Tambourine Company manufactures several different products.Unit costs associated with Product SK2040 are as follows: Direct materials \ 60 Direct manufacturing labour 10 Variable manufacturing overhead 18 Fixed manufacturing overhead 32 Sales commissions (2\% of sales) 4 Administrative salaries Total \ 140 -What are the variable costs per unit associated with Product SK2040?

(Multiple Choice)

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Question 108

For last year,Lewisburn Manufacturing reported the following: Revenue \ 420000 Beginning inventory of direct materials, January 1 22000 Purchases of direct materials 146000 Ending inventory of direct materials, December 31 16000 Direct manufacturing labour 40000 Indirect manufacturing costs 35000 Beginning inventory of finished goods, January 1 104000 Cost of goods manufactured 36000 Ending inventory of finished goods, December 31 140000 What was Lewisburn's operating profit?

(Multiple Choice)

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Question 109

On the assembly floor,Vicky Wilson is paid $20 an hour for straight-time and $30 an hour for overtime.One week she worked 43 hours,which included 3 hours of overtime. Required: a.What is Vicky's total compensation for the week? b.What amount of compensation would be reported as direct manufacturing labour? c.What amount of compensation would be reported as manufacturing overhead? _ _

(Essay)

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Question 110

The only difference between variable and absorption costing is the expensing of:

(Multiple Choice)

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Question 111

________ sector companies purchase materials and components and convert them into various finished goods.

(Multiple Choice)

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Question 112

Fixed costs vary with the level of production or sales volume.

(True/False)

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Question 113

Answer the following questions using the information below: The Mt Tambourine Company manufactures several different products.Unit costs associated with Product SK2040 are as follows: Direct materials \ 60 Direct manufacturing labour 10 Variable manufacturing overhead 18 Fixed manufacturing overhead 32 Sales commissions (2\% of sales) 4 Administrative salaries Total \ 140 -What are the fixed costs per unit associated with Product SK2040?

(Multiple Choice)

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Question 114

Answer the following questions using the information below: Beginning finished goods, 1/1/2018 \ 40,000 Ending finished goods, 12/31/2018 33,000 Cost of goods sold 250000 Sales revenue 600,000 Operating expenses 120,000 -What is cost of goods manufactured for 2018?

(Multiple Choice)

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Question 115

Answer the following questions using the information below: The following information pertains to Bondi Creations: Manufacturing costs \ 1,500,000 Units manufactured 30,000 Units sold 29,500 units sold for \ 85 per unit Beginning inventory 0 units -What is the average manufacturing cost per unit?

(Multiple Choice)

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Question 116

Product cost for pricing and product-mix decisions may include all costs EXCEPT:

(Multiple Choice)

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Question 117

Prime costs are all direct manufacturing costs.

(True/False)

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Question 118

A cost system determines the cost of a cost object by:

(Multiple Choice)

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Question 119

Answer the following questions using the information below: Beginning finished goods, 1/1/2018 \ 40,000 Ending finished goods, 12/31/2018 33,000 Cost of goods sold 250000 Sales revenue 600,000 Operating expenses 120,000 -What is gross margin for 2018?

(Multiple Choice)

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Question 120

Overtime premium is normally considered as a component of direct labour.

The collection of accounting data in some organised way is:

What does classifying a cost as either direct or indirect depend upon?

Which of the following does NOT affect the direct/indirect classification of a cost?

________ sector companies provide intangible products.

The only difference between variable and absorption costing is the expensing of:

________ sector companies purchase materials and components and convert them into various finished goods.

Fixed costs vary with the level of production or sales volume.

Answer the following questions using the information below: Beginning finished goods, 1/1/2018 \ 40,000 Ending finished goods, 12/31/2018 33,000 Cost of goods sold 250000 Sales revenue 600,000 Operating expenses 120,000 -What is cost of goods manufactured for 2018?

Answer the following questions using the information below: The following information pertains to Bondi Creations: Manufacturing costs \ 1,500,000 Units manufactured 30,000 Units sold 29,500 units sold for \ 85 per unit Beginning inventory 0 units -What is the average manufacturing cost per unit?

Product cost for pricing and product-mix decisions may include all costs EXCEPT:

Prime costs are all direct manufacturing costs.

A cost system determines the cost of a cost object by:

Answer the following questions using the information below: Beginning finished goods, 1/1/2018 \ 40,000 Ending finished goods, 12/31/2018 33,000 Cost of goods sold 250000 Sales revenue 600,000 Operating expenses 120,000 -What is gross margin for 2018?

Management Accounting in Context

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

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