Question 1

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

Accepted Answer

a.Direct materials used $14,000 + $96,000 - $28,000 = $82,000
b.Beginning balance of finished goods inventory
$40,000 + $122,000 - $124,000 = $38,000
c.Current manufacturing costs $42,000 + $44,000 - $16,000 = $70,000
d.Ending balance of merchandise inventory
$82,000 + $420,000 - $446,000 = $56,000

Question 2

Unit costs are considered to be an average cost per unit.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following is a fixed cost for an automobile manufacturing plant?

Accepted Answer

A) straight-line amortization on factory equipment 
B) electricity used by assembly-line machines 
C) sales commissions 
D) windows for each car produced 
E) labour cost of assembly line workers 
A) straight-line amortization on factory equipment 
B) electricity used by assembly-line machines 
C) sales commissions 
D) windows for each car produced 
E) labour cost of assembly line workers A

Question 4

When a manager is making a decision based on cost figures,it is preferable that he (she)thinks in terms of unit costs.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements about cost management is TRUE?

Accepted Answer

A) It requires that managers actively strive to increase revenues. 
B) It only focuses on inventoriable costs. 
C) It is not affected by the organization's customers. 
D) It only applies to period costs. 
E) It requires efficient management of the use of the cost drivers in the value-added activities. 
A) It requires that managers actively strive to increase revenues. 
B) It only focuses on inventoriable costs. 
C) It is not affected by the organization's customers. 
D) It only applies to period costs. 
E) It requires efficient management of the use of the cost drivers in the value-added activities.

Question 6

Use the information below to answer the following question(s).
Macadamia Co.produced and sold 40,000 units last year.Per unit revenue and costs were as follows:
   Fixed manufacturing overhead and administrative salaries are fixed costs.The per unit amounts are based on last year's production.
-Calculate this year's operating income if the company plans to produce and sell 50,000 units.

Accepted Answer

A) $50,000 
B) $0 
C) $ 
D) $ 
E) $250,000 
A) $50,000 
B) $0 
C) $ 
D) $ 
E) $250,000

Question 7

Manufacturing-sector companies report on the balance sheet

Accepted Answer

A) only merchandise inventory. 
B) only finished goods inventory. 
C) direct materials inventory,work-in-process inventory,and finished goods inventory accounts. 
D) no inventory accounts. 
E) only work in progress inventory. 
A) only merchandise inventory. 
B) only finished goods inventory. 
C) direct materials inventory,work-in-process inventory,and finished goods inventory accounts. 
D) no inventory accounts. 
E) only work in progress inventory.

Question 8

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

Accepted Answer

A) $1,475,000 
B) $1,500,000 
C) $1,047,250 
D) $1,032,500 
E) $1,007,425 
A) $1,475,000 
B) $1,500,000 
C) $1,047,250 
D) $1,032,500 
E) $1,007,425

Question 9

Which one of the following examples could be classified as a direct cost?

Accepted Answer

A) The costs of an entire factory's electricity related to a product;the product line is the cost object. 
B) The printing costs incurred for payroll cheque processing;the payroll cheque processing is the cost object. 
C) The salary of a maintenance supervisor in the manufacturing plant;Product A is the cost object. 
D) The costs incurred for electricity in the office;the accounting office is the cost object. 
E) The cost of advertising the products. 
A) The costs of an entire factory's electricity related to a product;the product line is the cost object. 
B) The printing costs incurred for payroll cheque processing;the payroll cheque processing is the cost object. 
C) The salary of a maintenance supervisor in the manufacturing plant;Product A is the cost object. 
D) The costs incurred for electricity in the office;the accounting office is the cost object. 
E) The cost of advertising the products.

Question 10

Boone Hospital wants to determine,to the extent possible,the actual cost for each patient stay.It is a general health care facility with all basic services but does not perform specialized services such as organ transplants.
Required:
Complete the following table by
a.Classifying each cost as a direct or indirect cost with respect to each patient.
b.Classifying each item as fixed or variable with respect to the number of patient days (sum of days each patient was in hospital)the hospital incurs.

Accepted Answer

The answer of Boone Hospital wants to determine,to the extent...

Question 11

If a worker is paid for 8 hours,but is idle for 1 of those 8 hours,the 1 hour of idle time would be considered a component of direct labour.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) store manager's salary 
B) electricity 
C) sales commissions 
D) inventory 
E) paper for the cash register 
A) store manager's salary 
B) electricity 
C) sales commissions 
D) inventory 
E) paper for the cash register

Question 13

Use the information below to answer the following question(s).
The following information pertains to Payton's Shoe Manufacturing:
   99,500 pairs of shoes are sold during the year for $18.
-What is Payton's manufacturing cost per pair of shoes?

Accepted Answer

A) $10.00 
B) $10.05 
C) $100.00 
D) $18.00 
E) $9.95 
A) $10.00 
B) $10.05 
C) $100.00 
D) $18.00 
E) $9.95

Question 14

The relevant range is important because

Accepted Answer

A) it specifies which costs should be used for a given decision. 
B) it provides a basis for determining a range of acceptable cost alternatives. 
C) it is required to determine inventoriable costs under Canadian GAAP. 
D) it specifies the limits beyond which the relationship of cost to cost drivers may not be valid. 
E) it determines the time horizon. 
A) it specifies which costs should be used for a given decision. 
B) it provides a basis for determining a range of acceptable cost alternatives. 
C) it is required to determine inventoriable costs under Canadian GAAP. 
D) it specifies the limits beyond which the relationship of cost to cost drivers may not be valid. 
E) it determines the time horizon.

Question 15

For purposes of calculating inventory costs under GAAP,only production costs can be used.

Accepted Answer

A) True 
 B)False

Question 16

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 fixed costs per unit associated with Product ICT101?

Accepted Answer

A) $102 
B) $48 
C) $52 
D) $32 
E) $36 
A) $102 
B) $48 
C) $52 
D) $32 
E) $36

Question 17

The plant supervisor's salary is a direct labour cost.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an indirect production cost?

Accepted Answer

A) materials placed into production 
B) calibrating factory equipment 
C) labour placed into production 
D) cost of shipping a product to the customer 
E) advertising 
A) materials placed into production 
B) calibrating factory equipment 
C) labour placed into production 
D) cost of shipping a product to the customer 
E) advertising

Question 19

Use the information below to answer the following question(s).
Ontario Industries Inc.had the following activities during the year:
  
-What is the amount of direct materials used by Ontario Industries Inc.?

Accepted Answer

A) $168,000 
B) $165,000 
C) $173,000 
D) $205,000 
E) $170,000 
A) $168,000 
B) $165,000 
C) $173,000 
D) $205,000 
E) $170,000

Question 20

Evans Inc. ,had the following activities during 2015:
Direct materials:
   
Required:
a.What is the cost of direct materials used during 2015?
b.What is cost of goods manufactured for 2015?
c.What is cost of goods sold for 2015?
Assume that Evans uses a two-part classification system for prime and conversion costs.
d.What amount of prime costs was added to production during 2015?
e.What amount of conversion costs was added to production during 2015?

Accepted Answer

The answer of Evans Inc. ,had the following activities during...

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

Unit costs are considered to be an average cost per unit.

Which of the following is a fixed cost for an automobile manufacturing plant?

When a manager is making a decision based on cost figures,it is preferable that he (she)thinks in terms of unit costs.

Which of the following statements about cost management is TRUE?

Manufacturing-sector companies report on the balance sheet

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

Which one of the following examples could be classified as a direct cost?

If a worker is paid for 8 hours,but is idle for 1 of those 8 hours,the 1 hour of idle time would be considered a component of direct labour.

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

Use the information below to answer the following question(s). The following information pertains to Payton's Shoe Manufacturing: 99,500 pairs of shoes are sold during the year for $18. -What is Payton's manufacturing cost per pair of shoes?

The relevant range is important because

For purposes of calculating inventory costs under GAAP,only production costs can be used.

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 fixed costs per unit associated with Product ICT101?

The plant supervisor's salary is a direct labour cost.

Which of the following is an indirect production cost?

Use the information below to answer the following question(s). Ontario Industries Inc.had the following activities during the year: -What is the amount of direct materials used by Ontario Industries Inc.?

The Accountants Vital Role in Decision Making

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets,variances,and Management Control: I

Flexible Budgets,variances,and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Analysis of Cost Behaviour

Decision Making and Relevant Information

Pricing Decisions, product Profitability Decisions, and Cost Management

Strategy,balanced Scorecard,and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, rework, and Scrap

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters

Exam 2: An Introduction to Cost Terms and Purposes

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

Unit costs are considered to be an average cost per unit.

Which of the following is a fixed cost for an automobile manufacturing plant?

When a manager is making a decision based on cost figures,it is preferable that he (she)thinks in terms of unit costs.

Which of the following statements about cost management is TRUE?

Manufacturing-sector companies report on the balance sheet

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

Which one of the following examples could be classified as a direct cost?

If a worker is paid for 8 hours,but is idle for 1 of those 8 hours,the 1 hour of idle time would be considered a component of direct labour.

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

Use the information below to answer the following question(s). The following information pertains to Payton's Shoe Manufacturing: 99,500 pairs of shoes are sold during the year for $18. -What is Payton's manufacturing cost per pair of shoes?

The relevant range is important because

For purposes of calculating inventory costs under GAAP,only production costs can be used.

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 fixed costs per unit associated with Product ICT101?

The plant supervisor's salary is a direct labour cost.

Which of the following is an indirect production cost?

Use the information below to answer the following question(s). Ontario Industries Inc.had the following activities during the year: -What is the amount of direct materials used by Ontario Industries Inc.?

The Accountants Vital Role in Decision Making

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets,variances,and Management Control: I

Flexible Budgets,variances,and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Analysis of Cost Behaviour

Decision Making and Relevant Information

Pricing Decisions, product Profitability Decisions, and Cost Management

Strategy,balanced Scorecard,and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, rework, and Scrap

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters