Exam 2: Managerial Accounting and Cost Concepts

The CFO of Stoffer Corporation has provided the following data for October.The beginning balance in the raw materials inventory account was $39,000.During the month,the company made raw materials purchases amounting to $68,000.At the end of the month,the balance in the raw materials inventory account was $28,000.Direct labor cost was $29,000 and manufacturing overhead was $78,000.The beginning balance in the work in process account was $11,000 and the ending balance was $13,000.The beginning balance in the finished goods account was $37,000 and the ending balance was $47,000.Sales totaled $240,000.Selling expense was $21,000 and administrative expense was $27,000. -The net operating income for October was:

Manufacturing overhead:

Lavell Corporation reported the following data for the month of February: -The net operating income for February was:

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: -Manufacturing overhead for the year was:

Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?

Wages paid to production supervisors would be considered direct labor.

Which of the following IS a characteristic of financial accounting?

A number of costs and measures of activity are listed below. Required: For each item above,indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it.

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 direct costs of the Shoe Department?

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: -The balance of the finished goods inventory at the end of the year was:

Walton Manufacturing Company gathered the following data for the month. How much net operating income will be reported for the period?

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 cost of goods manufactured for August 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 direct costs of the Cosmetics Department?

The variable cost per unit is constant and does not depend on how many units are produced.

Direct material cost combined with manufacturing overhead cost is known as conversion 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 wages paid to the workers that cut up the cloth into the jean pattern shapes?

The costs of direct materials are classified as:

The following costs were incurred in August: Conversion costs during the month totaled:

The cost of shipping parts from a supplier is considered a product cost.

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