Exam 2: Managerial Accounting and Cost Concepts

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 dollar,what should be the total sales commissions at a sales volume of 38,300 units? (Assume that this sales volume is within the relevant range. )

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

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. -In making the decision to buy the model 280 machine rather than the model 360 machine,the sunk cost was:

A partial listing of costs incurred at Peggs Corporation during September appears below: -The total of the product costs listed above for September is:

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. )

Gluth Corporation has provided the following data for the month of July.The beginning balance in the finished goods inventory account was $56,000 and the ending balance was $49,000.Sales totaled $290,000.Cost of goods manufactured was $147,000,selling expense was $17,000,and administrative expense was $68,000. -The net operating income for July was:

Management of Parrent Corporation has asked your help as an intern in preparing some key reports for April.The company started the month with raw materials inventories of $32,000.During the month,the company made raw materials purchases amounting to $68,000.At the end of the month,raw materials inventories totaled $35,000.Direct labor cost was $43,000 and manufacturing overhead was $62,000.The beginning balance in the work in process account was $19,000 and the ending balance was $12,000.The beginning balance in the finished goods account was $35,000 and the ending balance was $58,000.Sales totaled $240,000.Selling expense was $18,000 and administrative expense was $42,000. -The cost of goods manufactured for April was:

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.

Last month a manufacturing company had the following operating results: What was the cost of goods manufactured for the month?

Although depreciation is always a period cost in a merchandising firm,it can be a product cost in a manufacturing firm.

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

Which two terms below describe the wages paid to security guards that monitor a factory 24 hours a day?

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?

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. -In making the decision to buy the model 280 machine rather than the model 360 machine,the differential cost was:

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. -In making the decision to invest in the model 280 machine,the opportunity cost was:

If the finished goods inventory increases between the beginning and the end of a period,then the cost of goods manufactured for the period is larger than the cost of goods sold.

During the month of January,Fisher Corporation,a manufacturing company,purchased raw materials costing $76,000.The cost of goods manufactured for the month was $129,000.The beginning balance in the raw materials account was $26,000 and the ending balance was $21,000.The beginning balance in the finished goods account was $52,000 and the ending balance was $35,000. Required: a.What was the cost of raw materials used in production during January? Show your work. b.What was the cost of goods sold for January? Show your work.

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.

The corporate controller's salary would be considered a(n):

The following data (in thousands of dollars) have been taken from the accounting records of Larsen Corporation for the just completed year. Required: a.Prepare a Schedule of Cost of Goods Manufactured in good form. b.Compute the Cost of Goods Sold. c.Using data from your answers above as needed,prepare an Income Statement in good form.