Exam 2: Managerial Accounting and Cost Concepts

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year. -The cost of goods sold for the year (in thousands of dollars) was:

Lavell Corporation reported the following data for the month of February: -The cost of goods sold for February was:

Beauchesne Corporation, a manufacturing company, has provided the following data for the month of May: Raw materials purchased during May totaled $69,000 and the cost of goods manufactured totaled $146,000. Required: a. What was the cost of raw materials used in production during May? Show your work. b. What was the cost of goods sold for May? Show your work.

Tart Corporation reported the following data for the month of September: -The prime cost for September was:

The following data pertain to Harriman Company's operations during July: -The beginning work in process inventory was:

Machowski Corporation has provided the following partial listing of costs incurred during November: Required: a. What is the total amount of product cost listed above? Show your work. b. What is the total amount of period cost listed above? Show your work.

Each of the following would be classified as variable in terms of cost behavior except:

The following inventory balances relate to Lequin Manufacturing Corporation at the beginning and end of the year: Lequin's total manufacturing cost was $543,000. What was Lequin's cost of goods sold?

The cost of napkins put on each person's tray at a fast food restaurant is a fixed cost.

Corcetti Company manufactures and sells prewashed denim jeans. Large rolls of denim cloth are purchased and are first washed in a giant washing machine. After the cloth is dried, it is cut up into jean pattern shapes and then sewn together. The completed jeans are sold to various retail chains. -Which of the following terms could be used to correctly describe the cost of the thread used to sew the jeans together?

Derflinger Corporation reported the following data for the month of January: -The cost of goods sold for January was:

At a sales volume of 36,000 units, Quale Corporation's sales commissions (a cost that is variable with respect to sales volume) total $187,200. -To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 36,400 units? (Assume that this sales volume is within the relevant range.)

Lucena Corporation purchased a machine 7 years ago for $339,000 when it launched product X05K. Unfortunately, this machine has broken down and cannot be repaired. The machine could be replaced by a new model 360 machine costing $353,000 or by a new model 280 machine costing $332,000. Management has decided to buy the model 280 machine. It has less capacity than the model 360 machine, but its capacity is sufficient to continue making product X05K. Management also considered, but rejected, the alternative of dropping product X05K and not replacing the old machine. If that were done, the $332,000 invested in the new machine could instead have been invested in a project that would have returned a total of $426,000. 130. In making the decision to buy the model 280 machine rather than the model 360 machine, the differential cost was: <underLine>A.</underLine> $21,000 B. $87,000 C. $7,000 D. $14,000 -In making the decision to buy the model 280 machine rather than the model 360 machine, the sunk cost was:

Manufacturing overhead:

Lavell Corporation reported the following data for the month of February: -The cost of goods manufactured for February was:

Cost of goods manufactured will usually include:

Cromuel Corporation has provided the following data for January. The beginning balance in the raw materials inventory account was $27,000. During the month, the company made raw materials purchases amounting to $50,000. At the end of the month, the balance in the raw materials inventory account was $24,000. Direct labor cost was $53,000 and manufacturing overhead was $70,000. The beginning balance in the work in process account was $14,000 and the ending balance was $12,000. The beginning balance in the finished goods account was $33,000 and the ending balance was $51,000. Sales totaled $270,000. Selling expense was $21,000 and administrative expense was $48,000. -The total manufacturing cost for January was:

Corcetti Company manufactures and sells prewashed denim jeans. Large rolls of denim cloth are purchased and are first washed in a giant washing machine. After the cloth is dried, it is cut up into jean pattern shapes and then sewn together. The completed jeans are sold to various retail chains. -Which of the following terms could be used to correctly describe the cost of the soap used to wash the denim cloth?

The cost of goods manufactured for a period is the amount transferred from work in process inventory to finished goods inventory during the period.

Mire Corporation staffs a helpline to answer questions from customers. The costs of operating the helpline are variable with respect to the number of calls in a month. At a volume of 29,000 calls in a month, the costs of operating the helpline total $171,100. -To the nearest whole dollar, what should be the total cost of operating the helpline costs at a volume of 31,200 calls in a month? (Assume that this call volume is within the relevant range.)