Exam 2: Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows

Jones Manufacturing Inc. Jones Manufacturing Inc. incurred the following costs in November: In addition, the following information is also available: Refer to the Jones Manufacturing Inc. information above. The product cost per unit in November is:

Clapton Inc. would like to prepare an income statement for March. Their production department records show that total product costs in March were $225,000 when 50,000 units were produced. Their sales department records show that 46,000 units were sold for $16 each. Monthly administrative and marketing expenses totaled $60,000. What should be net operating income for March? (Ignore taxes)

Which of the following statements is true regarding period costs?

Classify each of the following as either a direct material (DM), indirect material (IM), or period cost (P).

Chancellor Industries, a manufacturing company, prepays its insurance coverage for a two-year period. The premium for two-year's worth of coverage is $14,400 and is paid at the beginning of the first year. Two-thirds of the premium relates to factory operations and one-third relates to selling and administrative activities. The amount of premium that should be recorded as a product cost for the first year is:

Pearce Manufacturing Inc. incurred the following costs in February: In addition, the following information is also available: Required:

Hudson Inc. Hudson Inc. has the following information available for September: Refer to the Hudson Inc. information above. Sales revenue for September totaled $400,000. Net operating income for September is: (Ignore taxes)

Which of the following statements is false regarding nonmanufacturing costs?

Nate's Novelties, Inc. Nate's Novelties, Inc. has the following information available for July: Refer to the Nate's Novelties, Inc. information above. Cost of goods manufactured for July is:

Scott Products Scott Products manufactures high-quality running shoes. The following information is available for 2011: In addition, 42,400 pairs were produced in 2011 out of which 40,900 pairs were sold for $70 each. Refer to the Scott Products information above. What is net operating income for 2011? (ignore taxes)

Which of the following is not an example of manufacturing overhead costs?

Which of the following types of organizations is most likely to have a raw materials inventory account?

Which of the following statements is true regarding the lean production and just-in-time (JIT) manufacturing systems?

Hudson Inc. Hudson Inc. has the following information available for September: Refer to the Hudson Inc. information above. Total nonmanufacturing costs for September are:

Describe the cost accumulation process in a traditional manufacturing environment versus a just-in-time (JIT) environment.

Which of the following statements is true regarding manufacturing costs?

Michael's Manufacturing, Inc. Michael's Manufacturing, Inc. has the following information available for the month of July: Refer to the Michael's Manufacturing, Inc. information above. Raw materials used for July is:

Briefly compare a traditional manufacturing environment with a lean production and just-in-time (JIT) manufacturing environment.

Which of the following types of companies would not have the following cost pattern? Raw materials ® Work-in-process ® Finished goods ® Cost of goods sold

Materials that can be directly traced to a particular product and become an integral part of the finished product are called: