Exam 2: Managerial Accounting and Cost Concepts

The following cost data pertain to the operations of Lefthand Department Stores, Inc., for the month of December. The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company's stores. -What is the total amount of the costs listed above that are NOT direct costs of the Brentwood Store?

The following cost data pertain to the operations of Polek Department Stores, Inc., for the month of March. The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. -What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

Green Company's costs for the month of August were as follows: direct materials, $27,000; direct labor, $34,000; selling, $14,000; administrative, $12,000; and manufacturing overhead, $44,000. The beginning work in process inventory was $16,000 and the ending work in process inventory was $9,000. What was the cost of goods manufactured for the month?

The following data pertain to Harriman Company's operations during July: -The ending finished goods inventory was:

Wages paid to production supervisors would be considered direct labor.

Dagg Corporation reported the following data for the month of October: -The cost of goods manufactured for October was:

Weygandt Corporation reported the following data for the month of February: -The total manufacturing cost for February was:

The following cost data pertain to the operations of Polek Department Stores, Inc., for the month of March. The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. -What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store?

The inventory of finished goods on hand at the end of a period is considered an asset, but inventories of raw materials and work-in-process are not considered assets until production is completed.

At a sales volume of 37,000 units, Bonham Corporation's property taxes (a cost that is fixed with respect to sales volume) total $555,000. -To the nearest whole cent, what should be the average property tax per unit at a sales volume of 38,600 units? (Assume that this sales volume is within the relevant range.)

Geneva Steel Corporation produces large sheets of heavy gauge steel. The company showed the following amounts relating to its production for the year just completed: -Cost of goods manufactured for the year was:

Walton Manufacturing Company gathered the following data for the month. How much net operating income will be reported for 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 cent, what should be the average cost of operating the helpline per call at a volume of 27,500 calls in a month? (Assume that this call volume is within the relevant range.)

Managerial accounting places less emphasis on nonmonetary data than financial accounting.

Management of Berndt Corporation has asked your help as an intern in preparing some key reports for August. The beginning balance in the raw materials inventory account was $33,000. During the month, the company made raw materials purchases amounting to $62,000. At the end of the month, the balance in the raw materials inventory account was $30,000. Direct labor cost was $46,000 and manufacturing overhead was $74,000. The beginning balance in the work in process account was $13,000 and the ending balance was $19,000. The beginning balance in the finished goods account was $54,000 and the ending balance was $50,000. Sales totaled $270,000. Selling expense was $18,000 and administrative expense was $49,000. -The total manufacturing cost for August was:

Derflinger Corporation reported the following data for the month of January: -The net operating income for January was:

The plans of management are expressed formally in:

Dodridge Corporation has provided the following data for February. The beginning balance in the raw materials inventory account was $23,000. During the month, the company made raw materials purchases amounting to $59,000. At the end of the month, the balance in the raw materials inventory account was $33,000. Direct labor cost was $28,000 and manufacturing overhead was $74,000. The beginning balance in the work in process account was $12,000 and the ending balance was $17,000. The beginning balance in the finished goods account was $48,000 and the ending balance was $54,000. -The cost of goods manufactured for February was:

Haan Inc. is a merchandising company. Last month the company's cost of goods sold was $66,000. The company's beginning merchandise inventory was $14,000 and its ending merchandise inventory was $16,000. What was the total amount of the company's merchandise purchases for the month?

Joe Ringworth, factory supervisor at Winger Enterprises, had been attending night classes to earn a degree in business. He was particularly puzzled by what one of his accounting professors had said in class the previous evening. The professor, who knew that Joe worked as a factory supervisor, had said that some of Joe's salary could end up on the company's balance sheet at the end of the month. This didn't make any sense to Joe since he gets the salary, not the company. Required: Explain to Joe why some of his salary could end up on the company's balance sheet at the end of the month.