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

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. Cost of goods manufactured for 2011 is:

In a traditional manufacturing environment, as the cost of goods sold account increases, which account is most likely decreasing?

Product costs that are transferred into finished goods inventory are called:

Franklin Street Manufacturing Franklin Street Manufacturing has the following cost information available for 2011: 20,000 units were produced during the year out of which 19,000 units were sold for $10 each. Refer to the Franklin Street Manufacturing information above. What is cost of goods sold for 2011?

Jasper Corporation Jasper Corporation incurred the following costs which includes salaries and wages in April: Refer to the Jasper Corporation information above. Total product costs are:

Johnson Manufacturing has the following selected information available for the year: In addition, the cost of the finished goods inventory increased by $10,000 from the beginning to the end of the year. Cost of goods sold for the year is:

Which of the following statements about manufacturing in a traditional environment is true?

Identify at least two characteristics of a lean production and just-in-time (JIT) manufacturing environment.

Which of the following is an advantage of lean production and just-in-time (JIT) manufacturing systems?

Which of the following increases the work in process account?

Describe each of the following as either a product or period cost.

Which of the following types of employees would most likely have their wage be classified as direct labor?

Hillsborough Street Manufacturing Inc. Hillsborough Street Manufacturing Inc. incurred the following costs in 2011: 45,000 units were produced during the year out of which 38,000 units were sold for $10 each. There was no beginning or ending raw materials or work in process inventory. Refer to the Hillsborough Street Manufacturing Inc. information above. What is cost of goods sold for the year?

Which of the following is a characteristic of a lean production and just-in-time (JIT) manufacturing environment but not of a traditional manufacturing environment?

Which of the following is a disadvantage of lean production and just-in-time (JIT) manufacturing systems?

Which of the following statements accurately describes manufacturing cost flows in a just-in-time (JIT) environment?

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 sold for July is:

Product costs that are transferred out of finished goods are called:

Hudson Inc. Hudson Inc. has the following information available for September: Refer to the Hudson Inc. information above. Cost of goods manufactured for September is:

Companies that operate in a lean production and just-in-time manufacturing environment are more likely to experience which of the following?