Exam 2: An Introduction to Cost Terms and Purposes

Which of the following is a manufacturing overhead cost?

Which of the following statements about the direct/indirect cost classification is true?

Answer the following questions using the information below: Beginning finished goods, 1/1/2015 \ 46,000 Ending finished goods, 12/31/2015 38,000 Cost of goods sold 250,000 Sales revenue 488,000 Operating expenses 112,000 -What is operating income for 2015?

Answer the following questions using the information below: Beginning finished goods, 1/1/2015 \ 46,000 Ending finished goods, 12/31/2015 38,000 Cost of goods sold 250,000 Sales revenue 488,000 Operating expenses 112,000 -What is the cost of goods manufactured for 2015?

Messinger Manufacturing Company had the following account balances for the quarter ending March 31,unless otherwise noted: Work-in-process inventory (January 1) \ 140,400 Work-in-process inventory (March 31) 17,000 Finished goods inventory (January 1) 540,000 Finished goods inventory (March 31) 510,000 Direct materials used 378,000 Indirect materials used 84,000 Direct manuufacturing labor 480,000 Indirect manufacturing labor 186,000 Property taxes on manufacturing plant building 28,800 Salespersons' company vehicle costs 12,000 Depreciation of manufacturing equipment 264,000 Depreciation of office equipment 123,600 Miscellaneous plant overhead 135,000 Plant utilities 92,400 General office expenses 305,400 Marketing distribution costs 30,000 Required: a.Prepare a cost of goods manufactured schedule for the quarter. b.Prepare a cost of goods sold schedule for the quarter.

Using the following information find the unknown amounts.Assume each set of information is an independent case. a. Merchandise Inventory Purchases \ 210,000 Cost of goods sold 223,000 Beginuing balance 41,000 Ending balance ? b. Direct Materials Beginuing balance \ 7,000 Ending balance 14,000 Purchases 48,000 Direct materials used ? c.Work-in-process Inventory Ending balance \ 22,000 Cost of goods manufactured 21,000 Beginning balance 8,000 Current manufacturing costs ? d. Finished Goods Inventory Cost of goods manufactured \ 62,000 Ending balance 20,000 Cost of goods sold 61,000 Eeginuing balance ?

For external reporting ________.

Explain the difference between an inventoriable cost and a period cost.What potential problems does an inaccurate classification of product and period costs cause?

Answer the following questions using the information below: The East Company manufactures several different products. Unit costs associated with Product ORD210 are as follows: Direct materials \ 54 Direct manufacturing labor 8 Variable manufacturing overhead 11 Fixed manufacturing overhead 25 Sales commissions ( \% of sales) 5 Administrative salaries 12 Total \ 115 -What is the percentage of the total variable costs per unit associated with Product ORD105 with respect to total cost?

Which of the following is a direct manufacturing cost?

Period costs are included in the cost of goods sold.

Merchandising companies hold only one type of inventory: direct material.

Which of the following is a cost driver for a company's human resource costs?

Merchandising-sectors ________.

When should an overtime premium of direct manufacturing labor be considered an indirect manufacturing cost? A direct manufacturing cost?

Leslie Manufacturing reported the following: Revenue \ 450,000 Beginning inventory of direct materials, January 1, 2015 20,000 Purchases of direct materials 156,000 Ending inventory of direct materials, December 31, 2015 18,000 Direct manufacturing labor 21,000 Indirect manufacturing costs 42,000 Beginning inventory of finished goods, January 1, 2015 40,000 Cost of goods manufactured 114,000 Ending inventory of finished goods, December 31, 2015 45,000 Operating costs 150,000 How much of the above would be considered period costs for Leslie Manufacturing?

Manufacturing overhead costs are also referred to as ________.

Which of the following statements is true?

Which of the following is true if the production volume decreases?

Inventoriable costs are reported as a liability in balance sheet when incurred and expensed on the income statement when the product is sold.