Exam 16: Cost Concepts and Cost Allocation

Use the information below for the year ended December 31,20xx,to prepare the statement of cost of goods manufactured. Inventories Beginning Ending Materials inventory \ 41,000 \ 51,000 Work in process inventory 62,000 78,000 Direct materials purchased 258,000 Total direct labor costs 372,000 Total indirect labor costs 67,000 Utilities 41,000 Depreciation 54,000 Small tools 5,000 Factory insurance 3,000 Factory supervision 66,000 Miscellaneous overhead costs 11,000

The following information was taken from the cost records of the Krameer Company: Estimated overhead \ 180,000 Actual overhead \ 178,000 Estimated direct labor hours 24,000 Actual direct labor hours 25,000 If overhead is applied based on direct labor hours,the company's overapplied or underapplied overhead was

The product costs that appear in the financial statements are actual product costs.

Both direct labor and indirect labor are recorded in the Work in Process Inventory account as the product is being manufactured.

Salaries of supervisory production personnel should be classified as direct labor costs.

The three costs in every product are

Which of the following is an activity that causes changes in the amount of a cost pool?

The two primary types of cost behavior are fixed and variable.

Accounting personnel utilize estimates when deriving product unit costs in order to determine product pricing.

Which of the following is a typical example of a variable cost?

Which of the following is not a product cost?

Use the information below for the year ended December 31,20xx,to prepare the statement of cost of goods manufactured. Inventories Beginning Ending Materials inventory \ 32,300 \ 33,900 Work in process inventory 40,500 41,900 Direct materials purchased 158,300 Total direct labor costs 231,300 Total indirect labor costs 45,200 Utilities 27,100 Depreciation 36,200 Small tools 73,100 Factory insurance 1,800 Factory supervision 39,500 Miscellaneous overhead costs 6,200

Costs that are identified with and traced to one product or a batch of products are called

Which of the following would not be included in the cost of a manufactured product?

When the amount of underapplied or overapplied overhead is small,it usually is written off to

When the activity base used in calculating the predetermined overhead rate is units of output,which of the following also must be known before overhead can be applied to a particular job?

Equipment depreciation is an example of a direct product cost in a manufacturing company.

Total fixed costs remain constant within a defined time period or range of activity.

Product costs could be found on both the balance sheet and the income statement.

Which of the following types of product costs appear in the financial statements?