Cost Accounting Questions and Answers

Product costs are also called: A. overhead costs B. inventoriable costs C. direct costs D. capitalizable costs

Baltimore Manufacturing Company just completed its year ended on December 31, 2018. Depreciation for the year amounted to $130,000: 25% relates to sales, 20% relates to administrative facilities, a...

Organizations use estimated overhead rates, instead of actual costs, to apply overhead costs to work-in-process because that method is: A. More timely. B. Easier to calculate. C. More precise. D. M...

Determine whether the following is a product cost or a period cost for an automobile manufacturer: Wages of employees that operate painting equipment.

Determine whether the following is a product cost or a period cost for an automobile manufacturer: Steel.

Determine whether the following is a product cost or a period cost for an automobile manufacturer: Rent on office building.

Determine whether the following is a product cost or a period cost for an automobile manufacturer: Sales staff salaries.

If the cost of direct materials is not a significant portion of the total product cost, it may be classified as _____. A. direct labor costs B. selling and administrative costs C. miscellaneous cos...

What are Veblen goods in economics and the examples?

Information about the cost of a product is given below. Direct materials = $1,000 Direct labor = $400 Factory overhead = $200 Selling expenses = $100 Administrative expenses = $50 What is the cost...

Salaries of plant supervisor. a. Direct Labor b. Factory Overhead c. Direct Materials d. Selling, General, and Administrative Expenses

Harms Shoe Company applies manufacturing overhead based on the number of units as the cost driver. Information concerning costs for July follows: Direct Labor costs 800 hours @ $14 Salary paid to m...

Annapolis Company manufactures quality boating apparel. The following selected financial information for the fiscal year 2018 is provided: Item Amount Sales $850,000 Beginning Raw Material Inventor...

The accounting records of Tacoma Company revealed the following costs: Direct materials used $170,000 Direct labor $350,000 Manufacturing overhead $400,000 Selling and administrative expenses $220,...

Classify the following cost incurred by an automobile manufacturer as direct materials, direct labor, manufacturing overhead, or period cost: Windshield on the automobile.

Classify the following cost incurred by an automobile manufacturer as direct materials, direct labor, manufacturing overhead, or period cost: Property insurance paid on the main office building.

Classify the following cost incurred by an automobile manufacturer as direct materials, direct labor, manufacturing overhead, or period cost: Utilities paid for the factory.

Classify the following cost incurred by an automobile manufacturer as direct materials, direct labor, manufacturing overhead, or period cost: Selling expenses.

Classify the following cost incurred by an automobile manufacturer as direct materials, direct labor, manufacturing overhead, or period cost: Depreciation on factory equipment.

The following information pertains to Rio Enterprises for December 2017: Factory Overhead: Indirect materials $25,000 Indirect labor 26,000 Utilities in factory building 42,000 Depreciation on fact...

Classify the following cost as variable, fixed, mixed, or step. Sales volume is the cost driver. | | Classification | Keyboards purchased from a subcontract supplier in a computer assembly plant |

Classify the following cost as variable, fixed, mixed, or step. Sales volume is the cost driver. | | Classification | Salary of machine operator who is paid based on the number of units produced...

Classify the following cost as variable, fixed, mixed, or step. Sales volume is the cost driver. | | Classification | Annual salary for the vice president of manufacturing |

A local merchandiser purchases inventory that it subsequently sells to customers. During the month of May, the following costs (in dollars) were incurred. Cost of inventory purchased and sold $20,0...

Classify the following cost as variable, fixed, mixed, or step. Sales volume is the cost driver. | | Classification | Water consumed by the plant, which is based on a flat fee plus actual consum...

Classify the following cost as variable, fixed, mixed, or step. Sales volume is the cost driver. | | Classification | Raw materials used in production |

Alpha Company had the following information for FY 2017: Work in Process-1/1/17 100,000 units Units Started into Production 575,000 units Work in Process-12/31/17 75,000 units Direct Material put i...

Alpha Company, on March 1, 2017, has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inv...

Consider the information given in the table below. If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? | | Amount...

Consider the following cost and classify it as either variable or fixed, with respect to the volume or level of activity: Cost of metal cans used in a dog food factory.

Jack has provided you with the following cost information: | Item (supply) | Cost | Cash register | $10/month (3-year contract) Classify the given cost by behavior (fixed or variable), traceabi...

What are the two examples of product costs? (Choose two.) A) Period expenses B) Selling and administrative expenses C) Manufacturing overhead D) Direct materials

Jack has provided you with the following cost information: | Item (Labor) | Cost | Accountant | $150 month Classify the given cost by behavior (fixed or variable), traceability (direct or indir...

Jack has provided you with the following cost information: | Item | Cost | Phone | $5/month Classify the given cost by behavior (fixed or variable), traceability (direct or indirect), and finan...

Jack has provided you with the following cost information: | Item (Labor) | Cost | Salary - 2 Employees | $600 each/month Classify the given cost by behavior (fixed or variable), traceability (...

Jack has provided you with the following cost information: | Item (supply) | Cost | Refrigerator and other appliances | $0 (already included in rented space) Classify the given cost by behavior...

The primary purpose for carrying on cost Accounting activities is: A. To set asset values. B. To measure in cost or core. C. To plan operation. D. To control operation.

1,500 meals were sold last period at a local restaurant at a variable cost per meal of $8. Total fixed costs are $5,000 per period. What is their total cost per meal? a. $8.30 per meal b. $11 per m...

A manufacturer incurs the following costs in dollars during the month. Direct materials costs - $7,000 Direct labor costs - $10,000 Manufacturing overhead costs - $6,000 Selling costs - $2,000...

What is a cost incurred as part of the production process? A. A period cost B. An opportunity cost C. A sunk cost D. A product cost

Coffee Mugs, Inc., currently manufactures ceramic coffee mugs. Management is interested in outsourcing production to a reputable manufacturing company that can supply the cups for $2 per unit. Coff...

A specified part can be obtained by either of two methods. Method 1 will have fixed costs of $75,000 per year and a variable cost of $25 per unit. Method 2 will have fixed costs of $90,000 per year...

Fixed costs for manufacturing a certain product are $100,000 per year. Variable costs are $25 per unit. The product can be purchased from another manufacturer for a flat rate of $48 per unit. The n...

The plant manager's salary would be considered ____ to the product. a. direct b. indirect

Classify the following cost of a paper manufacturer as either a product cost or a period cost: Depreciation on the manufacturing plant.

The salaries of sales people are normally considered a ____ cost. a. period b. product

Classify the following cost of a paper manufacturer as either a product cost or a period cost: Life insurance on the CEO.

Direct labor costs combined with factory overhead costs are called ____ costs. a. prime b. conversion

Classify the following cost of a paper manufacturer as either a product cost or a period cost: Salaries of scientists studying ways to speed forest growth.

Classify the following cost of a paper manufacturer as either a product cost or a period cost: Cost to purchase wood pulp.

Classify the following cost of a paper manufacturer as either a product cost or a period cost: Cost of computer software to track WIP Inventory.

Classify the following cost of a paper manufacturer as either a product cost or a period cost: Salaries of the company's top executives.

Classify the following cost of a paper manufacturer as either a product cost or a period cost: Cost of chemicals to treat the paper.

Classify the following cost of a paper manufacturer as either a product cost or a period cost: Cost of TV ads.

CPL Company reported a cost of goods manufactured of $520,000, with the firm's year-end balance sheet revealing work in process and finished goods of $70,000 and $134,000, respectively. If suppleme...

Putney Company reports the following information: a. Compute product costs. b. Compute period costs.

Why does management need to know the cost of a job? Explain.

Which is not a type of period cost? a. Factory depreciation. b. Advertising expense. c. Sales commissions. d. Secretarial wages.

Determine the term being defined or described by the following statement: Changing tooling when preparing for a new product. a. Engineering change order b. Variable cost concept c. Setup d. Norm...

On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses job order costing and applies overhead to each job (dress) at the rate of 51% of direct materials cost...

Determine the term being defined or described by the following statement: Only includes the costs of manufacturing in product cost per unit. a. Competition-based concept b. Target costing c. Dem...

Determine the term being defined or described by the following statement: Evaluation of how income will change based on an alternative course of action. a. Differential analysis b. Opportunity co...

Product A has revenue of $194,300, a variable cost of goods sold of $115,800, variable selling expenses of $33,700, and fixed costs of $60,000, creating a loss from operations of $15,200. a. Prepar...

Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit Direct mate...

A specified part can be obtained by either of two methods. Method A will have fixed costs of $40,000 per year and a variable cost of $20 per unit. Method B will have fixed costs of $60,000 per year...

Parmitan Corporation has provided the following data concerning last month's manufacturing operations. Purchase of raw material 53,000 Indirect material included in manufacturing overhead 8,000 Dir...

Bjorklund Manufacturing reports the following costs and expenses in May. Direct labor - 15,500 euros Depreciation on factory equipment - 12,650 euros Depreciation on delivery trucks - 3,800 eur...

Job 123 in Aliffah Sukree Sdn Bhd required 30 kgs of raw materials which cost RM20 per kg. 50 hours labour was spend on this job and direct worker were paid at RM12 per hour. Overhead are absorbed...

Glide Ride Tire and Rubber Company have the capacity to produce 170,000 tires. Glide Ride presently produces and sells 130,000 tires for the North American market at a price of $100 per tire. Glide...

The management of Nova Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in o...

Period costs are associated with: a. the ordering materials for production. b. producing products. c. the administration of the business. d. general factory overhead.

Which of the following items would least likely be classified as part of direct materials for an automobile manufacturer? a. Steel. b. Paint. c. Tires. d. Screws.

The more costs that are allocated to a cost plus contract, the more the supplier will be paid under the contract. True or false?

D'Amato Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $315,000. The freight and installation costs for the equipment are $15,000. If purchas...

Determine whether following item is a period cost or a product cost: Salaries of distribution center personnel.

Determine whether following item is a period cost or a product cost: Salary of production quality control supervisor.

Determine whether following item is a period cost or a product cost: Repairs and maintenance costs for sewing machines.

Determine whether following item is a period cost or a product cost: Depreciation on office equipment.

Tchaikovsky Manufacturing Company can make 100 units of a necessary component part with the following costs. Direct Materials $80,000 Direct Labor 13,000 Variable Manufacturing Overhead 40,000 Fixe...

Tchaikovsky Manufacturing Company can make 100 units of a necessary component part with the following costs. Direct Materials 80,000 Direct Labor 13,000 Variable Manufacturing Overhead 40,000 Fixed...

Elin Saunders, of Lawn Pro Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the province. Each job is different, requiring different mater...

Utility costs at Service. Inc is a mixture of fixed and variable components. Records indicate that utility costs are an average of $0.40 per hour at an activity level of 9,000 machine hours and $0....

Jeffrey's Bottling Co. incurred the following costs during November: Conversion costs $_____ Prime costs 257,500 Manufacturing overhead 205,000 If the direct materials cost was $162,500 in November...

Sunland Sportswear manufactures a line of specialty T-shirts using a job order costing system. In March the company incurred the following costs to complete Job ICU2: direct materials, $13,100, and...

Conversion cost per equivalent unit equals total conversion costs for the period divided by total equivalent units of conversion costs. a. True b. False

Determine whether the following statement is true or false: Costs that are the same under all alternative courses of action sometimes affect the decision. If false, indicate how to correct the stat...

Classify the following cost or expense incurred in a factory of Nu-Way Corporation, a manufacturer of recreational vehicles, as manufacturing overhead, direct materials, or direct labor: Cabinet ma...

Buddy Pets has recently started to manufacture talking toy pets. The cost structure to manufacture 13,500 of these toy pets is as follows: Direct materials ($35 per pet) $472,500 Direct labor ($29...

Manson Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 10,000 of the assembly part at $6 per unit. If th...

The production process is in which a minimum of inventory is kept and parts, supplies, and other needs are delivered right when needed to go on the assembly line. This process is called? a. Just-in...

Striker Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: Direct materials 86...

Variable costs: a. do not vary with the price. b. do not vary with output. c. vary with the price. d. vary with output.

Fixed costs: a. do not vary with output. b. vary with output. c. do not vary with the price. d. vary with the price.

Apple Valley Corporation produces widgets. It uses a job order cost system and has two production departments, A and B. Budgeted manufacturing information for the year is: Department A Department B...

Find the solution of y'' + 4y' = 288 sin (4t) + 288 cos (4t) with y(0) = 8 and y' (0) = 6.

Solomon Manufacturing Company began operations on January 1. During the year, it started and completed 1,790 units of product. The financial statements are prepared in accordance with GAAP. The com...

Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helme...

Hindenburger, Inc., began operations on January 1. It made 5,000 burgers and sold 4,000 of them. Hindenburger incurred the following costs: Raw materials $1,000 Wagos of production workers 7,000 Re...

Indicate if the cost of the given below would most likely be determined using a job order costing system or a process costing system. Chocolate candy bars

Sell a product for $25,000 with a historical cost of $20,000. What is the final amount in Retained Earnings?

Electricity costs that were incurred by a company's production processes should be debited to Utility Expenses. a. True b. False

Another term for Product cost is the Cost of goods sold. a. True. b. False.

For each of the following costs, identify the cost behavior as variable, mixed, or fixed. 1. Wages of assembly line workers 2. President's salary 3. Plant utilities 4. Sales force commissions...

If the level of activity increases within the relevant range, _____. a. variable cost per unit and total fixed costs also increase b. fixed cost per unit and total variable cost also increase c....

What are variable costs, fixed costs, and mixed costs?

Corona Corporation has provided the following partial listing of costs incurred during August: Marketing salaries $49,000 Property taxes, factory $7,000 Administrative travel $104,000 Sales commiss...

Supply costs at Coulthard Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,654 $28,435 April 11,450 $28,344 May 11,982 $28,583 June 12,700 $28,906 July 11,714 $28,46...

Ashland Company, a maker of kitchen cabinets, incurred the following costs during the current year: Required: Classify each cost as either a product or period cost. 1. Depreciation on automobiles u...

Rusty Inc. manufactures watches. The following information was obtained from the company's production and cost records last year: Units produced 10,000 Freight-in to factory $22,600 Raw materials u...

Kostelnik Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current y...

Direct costs can be traced to specific units. a. True. b. False.

If a company wants to determine a product's cost, it must assign both direct and indirect costs. a. True. b. False.

Which one of the following would NOT be classified as service overhead? a. indirect labor. b. direct materials. c. insurance on hospital building. d. indirect materials.

When production increases, variable manufacturing costs: Total Variable Cost Unit Variable Cost a. decreases decreases b. increases remains same c. decreases remains same d. increases increases

In March, the pre-operating room (PRE-OP) and operating room (OR) had budgeted allocation bases of 4,000 nursing hours and 2,000 nursing hours, respectively. The budgeted nursing overhead charges f...

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...

Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $452 each. Costs: 1. Plastic for the casing - $19,000. 2. Wages of...

When a job is completed in a service organization, the job costs are transferred to the: a. work in process account. b. cost of services account. c. finished goods account. d. cost of goods sold ac...

Super-Tees Company plans to sell 10,000 T-shirts at $18 each in the coming year. Product costs include: Direct materials per T-shirt - $6.30 Direct labor per T-shirt - $1.26 Variable overhead pe...

Determine whether the following statement is true or false: Within the relevant range, a change in activity results in a change in variable cost per unit and total fixed cost.

A normal job-order costing system is a system that uses: a. actual costs for direct materials and estimated costs for direct labor and overhead. b. actual costs for direct materials and direct labo...

During March, Hart Company incurred the following costs on Job 122 for the manufacture of 200 motors: Original cost accumulation: Direct materials $2,600 Direct labor 900 Factory overhead 1,350 $4,...

Widmer Watercraft's predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company's production activities during May 2017 follows. Purchased raw materials on cre...

Watson Inc. is a manufacturing company operating in the southeastern United States. The company has three primary product lines, as well as several "secondary" lines. The company's controller is in...

Solve the given differential equation. d^3x over dt^3 - 5d^2x over dt^2 + 25dx over dt - 125x = 0

Which of the following statements describes the treatment of period costs? 1) They will never constitute part of the cost of goods manufactured statement but will always be part of the income state...

Crandall Company manufactures a variety of products. The controller is considering how to account for labour fringe benefits. Which of the following methods provides the best measure of the relativ...

Which of the following statements is incorrect with regard to a manufacturing firm? 1) Inventoriable costs include only prime costs. 2) Inventoriable costs include prime costs and manufacturing ove...

The following cost data pertain to ABC Company for the month of December: Direct material used in production $210,000 Depreciation for factory building 11,500 Direct labor wages 58,000 Cost of fini...

During the month of February, Madison Company incurred a prime cost of $80,000. The company's manufacturing overhead cost is 40% of its prime cost. Also, the company spent $2,000 on wages paid to f...

The following information pertains to Roe Co.'s Year 1 manufacturing operations: Standard direct labor hours per unit 2 Actual direct labor hours 10,500 Number of units produced 5,000 Standard v...

MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $4 per pound and 0.7 direct labor hours at a rate of $12 per hour. Variable manufacturing over...

For the following product cost related to the production of lawn furnitures, indicate whether it is a variable or a fixed cost, and a direct or an indirect cost: Annual salary of plant manager that...

For the following product cost related to the production of lawn furnitures, indicate whether it is a variable or a fixed cost, and a direct or an indirect cost: Cushions for lawn chairs.

Shandy manufacturing produces cartons of beer sold internationally. The company reveals the following budgetary information relating to its standard direct material and direct labor costs for a car...

The cost of the next best alternative among a person's choices-the time, money, or resources that are given up or sacrificed to make the final choice is in general referred to as?

Suppose you are charged a $10 per month base charge for your electrical service. You are also charged an additional $0.08 for every kWh of electricity you use. Which one of the following statements...

A product cost is composed of the following: Direct materials $15 Direct labor $3 Manufacturing overhead $7 The product sells for $90 and a 5% commission is paid to a salesperson for every unit sol...

Chirko & Partners, a Quebec-based public accounting partnership, specializes in audit services. Its job-costing system has a single direct-cost category (professional labor) and a single indirect-c...

Company X produces audio equipment in its factory. The raw materials cost for an audio system is TL87 per unit. Workers on the production lines are paid TL13 per hour. An audio system takes 6 hours...

Annapolis Company manufactures quality boating apparel. The following selected financial information for the fiscal year 2018 is provided: Item Amount Sales $850,000 Beginning Raw Material Inventor...

In applying the high-low method of cost estimation to mixed costs, how is the total fixed cost estimated?

What is a job cost sheet?

Which type of cost system, process, or job order, would be best suited for each of the following: (a) TV assembler, (b) building contractor, (c) automobile repair shop, (d) paper manufacturer, (e)...

Describe how a job order cost system can be used for professional service businesses.

From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: a. The phase of the management process that uses process information to elimin...

Product K is produced for $155 per pound. Product K can be sold without additional processing for $220 per pound or processed further into Product L at an additional cost of $28 per pound. Product...

For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost: a. Cost of information technology support for the corporate headq...

Identify the following costs as a product cost or a period cost for a magazine publisher: a. Sales salaries b. Paper used for the magazine c. Maintenance of printing machines d. Depreciation expens...

Identify the following costs as a product cost or a period cost for an automobile manufacturer: a. Steel b. Wages of employees that operate painting equipment c. Rent on office building d. Sales st...

A restaurant bakes its own bread for a cost of $230 per unit (100 loaves), including fixed costs of $47 per unit. A proposal is offered to purchase bread from an outside source for $180 per unit, p...

Identify the following costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for an automobile manufacturer: a. Wages of employees that operate painting equipment. b. Wages of...

Indicate whether the following costs of Procter & Gamble, a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost: a. Resins for body...

Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income.

Find the General solution of the following differential equation: y"(x) + 2y'(x) +10y(x) = 0

Begin by preparing the schedule of the cost of goods manufactured (in thousands). Start with the direct materials and labor costs, then indirect manufacturing costs, and complete the schedule by ca...

Here is some data for two months: Total Costs Units January $14,400 1,800 February $12,800 1,600 What type of cost is this?

The Converting Department of Soft Touch Towel and Tissue Company had 1,200 units in work in process at the beginning of the period, which was 25% complete. During the period, 16,000 units were comp...

The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $20,000. The conversion cost for the period in the Filling Department is $4,560. The total equivalen...

Apex Industries accumulates the following data concerning a mixed cost, using units produced as the activity level. Units Produced Total Cost January 2,000 $3,000 February 3,500 4,900 March 4,300 6...

The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solution's job cost sheets show the following total costs a...

Gold Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product RST. Dire...

Determine whether the following statement is true or false: Cost accounting concepts and procedures are only useful in product manufacturing entities.

How is job-order costing different from process costing?

Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes a $612,000 payroll for 7,400 direct labor hours. Listed below is cost...

Altex Inc manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assigning to each product line, the controller, Robert Hermann, has developed the following...

Classify the following cost as either unit-level, batch-level, product-level, or facility-level: Direct labor.

Riverwood Accounting Company has the following account in its cost records: Work in Process-Jones Audit Direct labor 120,000 Services completed 253,518 Project overhead 162,000 Riverwood applies ov...

Consider the following cost item: Steering wheels installed in BMWs. Determine whether the cost is fixed or variable with respect to the number of units produced and sold. Also, determine whether t...

Consider the following cost item: Depreciation of factory lunchroom facilities at a General Electric plant. Determine whether the cost is fixed or variable with respect to the number of units produ...

Consider the following cost item: Salary of a supervisor overseeing production of printers at Hewlett-Packard. Determine whether the cost is fixed or variable with respect to the number of units pr...

Consider the following cost item: Insurance on IBM's corporate headquarters. Determine whether the cost is fixed or variable with respect to the number of units produced and sold. Also, determine w...

Consider the following cost item: Shipping canned apples from a Del Monte plant to customers. Determine whether the cost is fixed or variable with respect to the number of units produced and sold....

Consider the following cost item: Apples processed and canned by Del Monte. Determine whether the cost is fixed or variable with respect to the number of units produced and sold. Also, determine wh...

Marcelino Co.'s March 31 inventory of raw materials is $87,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: i...

Product costs pertaining to the units that are not sold yet are reported as ____. a. inventory on the balance sheet b. selling expenses on the income statement c. costs of goods sold on the balance...

London Ceramics makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 2,800 tiles; each tile sells for $15. The company's records show the follow...

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $76,000 Direct labor $38,500 Variable...

Bret Inc. manufactures mobiles. Last month, direct materials, electronic components, etc., costing $600,000 were put into production. Direct labor of $900,000 was incurred, manufacturing overhead e...

The following refers to units processed in Sunflower Printing's binding department in March. Units of Product Percent of Conversion Beginning work in process 186,000 80% Goods started 400,000 100...

Manufacturing overhead is a direct cost. a. True b. False

Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labo...

Product cost for financial statement purposes may include: \\ a. all costs allowed by government agencies b. all costs included for pricing and product-mix decisions c. production costs d. all...

Which of the following statements is true with regard to product costs versus general, selling, and administrative costs? a. Product costs associated with unsold units appear on the income stateme...

Knight Company reports the following costs and expenses in May. Factory utilities $16,800 Direct labor $72,600 Depreciation on factory equipment 14,350 Sales salaries 46,700 Depreciation on deliver...

Knight Company reports the following costs and expenses in May. Factory utilities $16,800 Direct labor $72,600 Depreciation on factory equipment $14,350 Sales salaries $46,700 Depreciation on deliv...

Manufacturing cost data for Copa Company are presented below. Indicate the missing amount for each letter (a) through (i). Case A Case B Case C Direct materials used (a) $74,150 $134,500 Direct lab...

Rachael's Restaurant, a fast-food restaurant company, operates a chain of restaurants across the nation. Each restaurant employs eight people; one is a manager paid a salary plus a bonus equal to 4...

Benson Corporation reported the following costs for the period: Materials used to manufacture product $120,000 Wages for assembly line workers $62,800 Property taxes for factory $14,000 Rent & util...

The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card manufacturer: Direct material $2,300,000 Advertising expense 99,000 Depreciation on factory building 115...

Which of the following is normally considered to be a product cost? a. Insurance on a factory building b. Selling expenses c. President's salary d. Miscellaneous office expense

During the current month, a company that uses a job order costing purchases $52,000 in raw materials for cash. It then uses $22,000 of raw materials indirectly as factory supplies and uses $18,900...

National Express reports the following costs and expenses in June 2017 for its delivery service. Indirect materials $6,400 Drivers' salaries $16,000 Depreciation on delivery equipment 11,200 Advert...

Caboose Company manufactures locomotive engines. The company is attempting to predict its maintenance costs more accurately. Maintenance costs are a mixed cost. Maintenance costs and machine hours...

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,850 and is paid at the beginning of the first year. Seventy percent of the prem...

The manufacturing costs of Rosenthal Industries for the first three months of the year follow: Total Costs Units Produced January $1,890,000 22,500 units February $2,800,000 35,000 March $4,230,000...

Which of the following is a product cost? A. Salesperson's salaries B. Advertising costs C. Indirect labor D. Office salaries

If the total warehousing cost for the year is $350,000, 60% of warehousing activity is associated with finished goods, and 40% is associated with direct materials, how much of the charge would be c...

The following data relating to units shipped and total shipping expenses have been assembled by Archer Company, a manufacturer of large, custom-built air-conditioning units for commercial buildings...

National Express reports the following costs and expenses in June 2020 for its delivery service. Indirect materials $7,100 Drivers' salaries $16,200 Depreciation on delivery equipment 12,300 Advert...

Munoz Company's cost and production data for two recent months are shown in the table. Identify which cost is variable and which is fixed. | | March | April | Production (units) | 900 | 1,100 |...

Kankakee Cosmetics Company is planning a one-month campaign for December to promote sales of one of its two cosmetics products. A total of $150,000 has been budgeted for advertising, contests, rede...

Cartwell Inc. makes picture frames which are sold in a local retail store and through various websites. $ Wood for frames 19,000 Rent for retail store 4,800 Depreciation on office equipment 760 Ass...

Kellog Corporation manufactures washing machines, they provided the following partial listing of costs incurred during the last month: Depreciation on company President's car $5,000 Metal parts use...

The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets show the following total costs...

Knight Company reports the following costs and expenses in May. Factory utilities $17,000 Direct labor $70,400 Depreciation on factory equipment 13,550 Sales salaries 50,700 Depreciation on deliver...

Jackman company produces die-cast metal bulldozers for toy shops. Jackman estimated the following average cost per bulldozer. Direct materials $8.65 Direct labor 1.10 Manufacturing overhead 0.95 Pr...

A builder's merchant supplied materials to a builder for a house extension. Materials to be supplied are: \\ - 250 kg of compound at $0.81 per kg - 14 meters of guttering at $5.00 per meter - 4....

Northwest Hospital is a full-service hospital that provides everything - from major surgery and emergency room care to outpatient clinics. For the following cost incurred, determine whether it woul...

Consider the following cost incurred by a company that makes tires: An amount of $20,000 per month for the salary of the president of the company. Indicate whether the item is a product cost or a p...

Consider the following cost incurred by a company that makes tires: The cost of oil to lubricate the machines in the factory. Indicate whether the item is a product cost or a period cost. If it is...

Consider the following cost incurred by a company that makes tires: The cost of paying $15 per hour to the workers who make the tires. The more tires that are made, the more hours the workers work....

Consider the following cost incurred by a company that makes tires: Depreciation cost of $12,000 per year for cars used by the company's salespeople. Indicate whether the item is a product cost or...

Consider the following cost incurred by a company that makes tires: Depreciation cost of $10,000 per year for equipment used by the company's top management. Indicate whether the item is a product...

Consider the following cost incurred by a company that makes tires: The cost of the rubber that goes into the tire. Indicate whether the item is a product cost or a period cost. If it is a product...

Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy's costs for the most recent month. Depreciation on factory equipment...

Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: If 6,000 units are produced, wh...

Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: For financial reporting purpose...

Which of the following costs would not be classified as a product cost for a golf club manufacturer? A) Metal used in golf clubs B) The salary of the plant manager C) Wages paid to employees who...

Which of the following statements is correct? A) Prime costs are those costs that are expensed in the accounting period in which they are incurred. B) Conversion costs include the costs of raw ma...

Product costs are expensed on the income statement in the period incurred. a. True. b. False.

For financial accounting purposes, product costs include direct materials, direct labor, and manufacturing overhead. a. True. b. False.

The use of acquisition cost as a valuation method is justified on the basis that acquisition cost is: A. timely. B. relevant. C. subjective. D. objective.

Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor hours. The company based its predetermined overhead rate for the current...

Kubin Company's relevant range of production is 14,000 to 20,500 units. When it produces and sells 17,250 units, its average costs per unit are as follows: [TABLE] For financial accounting purposes...

Use the data given below. Beginning inventory 0 Units produced 49,000 Units sold 44,000 Selling price per unit $81 Selling and administrative expenses: Variable per unit $2 Fixed (total) $562,000 M...

Distinguish between product costing and service costing.

Kubin Company s relevant range of production is 30,000 to 35,000 units. When it produces and sells 32,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $...

The differential analysis involves the comparison of one or more alternative courses of action with the status quo. a. True b. False

The cost of a choice is: A. all of the opportunities given up. B. the price of the product selected. C. the next best opportunity. D. the price of the product not selected.

High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to a...

Let the fixed cost for production of a good (F) be equal to $1000, the labor requirement to produce one unit, a, be equal to 10 hrs and the wage rate, w, be $10 per hr. Let Q stand for the number o...

Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $25 per direct labor hour and $21 per dir...

The term "full cost" refers to the cost of manufacturing and selling a unit of product and includes both fixed and variable costs. a. True. b. False.

A patient listing of costs incurred at Jala Enterprise during January appears below. Direct materials RM 107,000 Utilities, factory RM 11,000 Sales commissions RM 35,000 Administrative salaries RM...

Full Belly Farm grows organic vegetables and sells them to distributors and local restaurants after processing. Assume the farm s leading product for restaurant customers is a mixture of organic g...

Foto Company makes 50,000 units per year of a part it uses in the products it manufactures. The cost per unit of this part is shown below: Direct materials $13 Direct labor $10.10 Variable overhead...

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: [TABLE] With respect to cost classifications for manu...

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: [TABLE] With respect to cost classifications for prepa...

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $75,000 Direct labor $38,000 Variable...

Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $8...

The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 4,000 sets per ye...

Consider the information given in the table below. If 22,000 units are produced and sold, what is the average fixed manufacturing cost per unit produced? | | Amount per unit | Direct materials |...

Consider the information given in the table below. If 18,000 units are produced and sold, what is the average fixed manufacturing cost per unit produced? | | Amount per unit | Direct materials |...

Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.07 direct labor hours. The direct labor rate is $8.70 per direct labor hour. The pro...

Munoz Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during year 1. All purchases and sales were made with cash. 1. Acquired $...

Bike Inc. is a small company that builds bicycles on orders with customer specifications and carries out its operations in a small store that was a warehouse. The parts and parts of the bicycles ar...

What are the two basic types of costing systems? A) Job costing and process costing B) Periodic costing and perpetual costing C) Product costing and materials inventory costing D) Perio...

A company's total sales in a year were $2,710,000. The cost price of goods sold was $2,040,000. Given below are the overheads paid during the year. | Wages | $198,500 | Electricity and gas | 15,...

If product costs are misclassified as selling costs, the average cost per unit will be understated. a. True b. False

Cash paid to production workers should be recovered as Wages Expense in the income statement for the period incurred. a. True b. False

At an activity level of 4,000 machine-hours in a month, Curt Corporation's total variable production engineering cost is $154,200, and its total fixed production engineering cost is $129,000. What...

Farwell Company acquired 30% of the outstanding common stock of Ingold Inc. on January 1, 2014, by paying $1,786,400 for 61,600 shares. Ingold declared and paid a $0.30 per share cash dividend on J...

What do we call the increase in the total cost which results from carrying out one additional unit of an activity?

The unfavorable volume variance may be due to all but the following factors: a. failure to maintain an even flow of work. b. machine breakdowns. c. unexpected increases in the cost of utilities....

The management of Fannin Corporation is considering dropping product H58S. Data from the company's accounting system appear below: Sales $950,000 Variable expenses $391,000 Fixed manufacturing expe...

Should a firm shut down if its weekly revenue is $1,000; its variable cost is $500; and, its fixed cost is $800, of which $600 is avoidable if it shuts down? Why?

When can a corporation use the cost method of accounting for the outstanding common stock of another corporation?

Which of the following costs changes in direct proportion to a change in the activity level? a. variable cost. b. fixed cost. c. semi-variable cost. d. step-variable cost. e. step-fixed cost.

In an income statement prepared as an internal report using the variable costing method, fixed selling and administrative expenses are: a. Used in the computation of the contribution margin. b. U...

How are liquidating dividends treated on the books of an investor, assuming the investor uses the cost method? Assuming the investor uses the equity method?

Which of the following statements is true? A. Product costs affect only the balance sheet. B. Product costs affect only the income statement. C. Period costs affect only the balance sheet. D. N...

Noth Company's manufacturing costs for 2010 are as follows: Direct materials $86,000 Direct labor $102,000 Depreciation of factory equipment $41,000 Other fixed manufacturing overhead $72,000 What...

A cost that can be traced to a cost object is known as a(n): A. period cost. B. direct cost. C. inventoriable product cost. D. indirect cost.

The following information describes a company's usage of direct labor in a recent period. The direct labor rate variance is: Actual hours worked 48,000 Actual rate per hour $15 Standard rate per ho...

Logan Company uses a job order costing system. A predetermined overhead rate of $7 per machine hour in Department A and 220 percent per direct labor dollar in Department B has been established base...

Brrrr, Inc. manufactures beverage coolers; related information appears below: Item Total Cost Salaries for Administrative Staff $264,000 Salary for Factory Manager $14,800 Rent on Factory and Equip...

In January, Knox Company requisitions raw materials for production as follows: Job 1 $912, Job 2 $1,320, Job 3 $746, and general factory use $647. During January, time tickets show that the factory...

What is the best way to handle manufacturing overhead costs in order to get the timeliest job cost information? a. The company should account for only the direct production costs. b. The company...

The Coronado Company's total costs amounted to $40,000 for direct materials, direct labor, and manufacturing overhead in producing 10,000 headphones during the year. Selling costs were $6,000 and a...

Job 231 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $45,000 Direct labor hours 660 labor-hours Direct labor wage rate $12 per labor-hour Ma...

Use the following data to find the total direct labor cost variance if the company produced 3,300 units during the period. Direct labor standard (6 hrs. @ $8/hr.) $48 Actual hours worked 3,300 Actu...

Maital argues that there are two major sins linked to hidden costs. One sin is that ignoring hidden costs when they are real. The second sin is the opposite, treating costs as if they were real and...

Nesmith Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below: Alternative A Alternative B Materials costs $42,000 $55,000 Processing costs $...

The price of processors used in the manufacturing of smartphones has fallen. What would be the likely effect of this on the smartphone market?

DEFINE THE FOLLOWING TERMS: AVERAGE FIXED COST AVERAGE TOTAL COST AVERAGE VARIABLE COST TOTAL COST TOTAL FIXED COST TOTAL VARIABLE COST.

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $5,490 and is paid at the beginning of the first year. Seventy percent of the prem...

Steffan bakery makes and sells gourmet muffins. The fixed weekly expense of the bakery is $1,500 and the variable cost per muffin is $0.25. What is the average cost per muffin if the bakery sells 2...

Which of the following labor costs would be included in direct labor? a. Maintenance workers b. Machine operators c. Managers and supervisors d. Materials storeroom custodian

Wilson Company's fixed manufacturing overhead costs totaled $400,000 and variable selling costs totaled $250,000. Under full costing, how should these costs be classified? Period Costs: $400,000...

SL Stewart Industries makes tennis balls. It can produce up to 1,700,000 cans of tennis balls per year. Current production is 1,200,000 cans. Annual manufacturing selling and administrative fixed c...

During December, the production department of a process operations system completed and transferred to finished goods a total of 65,000 units of product. At the end of March, 15,000 additional unit...

Lone Star has computed the following unit costs for the year just ended: $ Direct material used 10 Direct labor 18 Variable manufacturing overhead 30 Fixed manufacturing overhead 27 Variable sellin...

Win Inc. is considering disposing of a machine with a book value of $24,851.00 and an estimated remaining life of three years. The old machine can be sold for $5,924.00. A new machine with a purcha...

D&B Ice Cream budgeted sales of 136,288 units of flavor C, assuming that the company would have 16 percent of 851,800 units sold in a particular market. The actual results were 126,630 units, based...

Activity-based costing allocates selling and administrative expenses: a. based on how each product consumes activities. b. based on sales volume in dollars. c. based on sales volume in units. d....

Product X Sales value as unfinished product: $128,000 Costs to finish: $16,000 Sales value as finished product: $140,000 Product Y Sales value as unfinished product: $50,000 Costs to finish: $26,...

Describe the term Scrap In Accounting.

A company incurred the following costs for a new delivery truck: Purchase price $130,000 Sales tax $7,300 Delivery charge from seller's location $1,500 Special racks for storage $3,000 Normal repai...

Identify the term being defined or described by the following statement: A payment of cash (or a commitment to pay cash in the future) for the purpose of generating revenues.

Dobles Corporation has provided the following data from its activity-based costing system: Activities Estimated Overhead Cost Expected Activity Assembly $979,200 68,000 machine hours Processing ord...

Which variance is directly impacted if the employees who build the product go on strike and temporary workers who are slower and not as skilled are hired? A. Direct labor efficiency variance B. Dir...

What is the overhead rate by applying the direct material cost method to the company budget? A. 44% B. 33% C. 11% D. 55% 20x4 BUDGET BY PROFIT CENTER COMPANY NEW WORK REPAIRS OVER THE COUNTER SALES...

Roy Corporation produces a single product. During July, Roy produced 19,100 units. Costs incurred during the month were as follows: Direct materials $38,200 Direct labor $57,300 Variable manufactur...

How does the change in the cost of production factors impact the firm's cost and revenue?

Backpakers, Inc. plan to manufacture packs for hiking and camping. Match each cost with one of the following four classifications. Costs: 1. Salary of the vice president of sales 2. Cost of thre...

China Express purchased land for $140,000. Prior to construction on the new building, the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed be...

700 hours are required to produce a batch of toys manually in the first shift of training. Only 450 hours are required to produce the same batch of toys in the fourth shifts because employees would...

Assume that Win Co. is considering disposing of equipment that cost $74,582.00 and has $52,207.40 of accumulated depreciation to date. Win Co. can sell the equipment through a broker for $30,681.00...

Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $136 Units in beginning inventory 0 Units produced 1,...

Identify the three typical categories of restructuring costs and their effects on the balance sheet and the income statement. Explain the concept of a big bath and why restructuring costs are often...

Which of the following statements is true? a) Absorption costing treats fixed overhead as an expense in the period it is incurred. b) Managers can manipulate earnings more easily under variable c...

X Company incurred the following costs in 2015 (see chart). What were the total period costs in 2015?

Which of the following would be debited to assign the costs of indirect labor? a. Manufacturing overhead b. Indirect labor wages expense c. Finished goods inventory d. Work in process inventory

Which of the following is most likely to be accounted for as a by-product? A. Heating oil resulting from processing crude oil at a refinery. B. Cream resulting from processing raw milk at a dairy...

Carlton Corporation produces and sells faux-leather handbags. In the current year, the company budgeted for the production and sale of 1,000 handbags; however, 900 handbags were actually produced a...

Edeen Corp has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume 5,000 units 6,000 units Di...

POD Incasements manufactures protective cases for MP3 players. During November, the company's workers docked 600 more direct labor hours than the flexible budget amount of 25,400 hours to complete...

If a product cost $500, how much will 1,000 units of such product cost?

A restaurant bakes its own bread for $164 per unit (100 loaves), including fixed costs of $32 per unit. A proposal is offered to purchase bread from an outside source for $102 per unit, plus $9 per...

Theron industries has the following financial data related to its quality control program. Initial raw material inspection $150,000 Product inspection $300,000 Product warranty $1,575,000 Other thi...

Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity is indicated by the: A. factory overhead cost volume variance B. direc...

Which of the following costs should not be recorded as an expense, and why? A. Insurance on factory building B. Sales commissions C. Product shipping costs D. Product advertising

Jackson Company manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials $150,000 Direct labor $120,000 Variable overhead $80,00...

Seasonal Delights manufactures a wide variety of holiday and seasonal decorative items. Seasonal's activity-based costing overhead rates are: Purchasing $350 per order Storing $2 per square foot/da...

Job 593 was recently completed. The following data have been recorded on its job cost sheet: (Table). The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined...

Which of the following would be classified as a variable manufacturing cost? A. Sales commissions B. Depreciation C. Property taxes D. Lubricants for machinery

Costs flow through a process costing system in the same sequence as actual products move through the assembly process. True or false?

Balboa Technologies Company has been purchasing carrying cases for its portable computers at a delivered cost of $20 per unit. The company, which is currently operating below full capacity, charges...

The following information was extracted from the first-year absorption-based accounting records of Ellis Corporation. Total fixed costs incurred $100,000 Total variable costs incurred $50,000 Total...

RooPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,000 units of cellular phones are as follows: Variable costs:...

Austen Educational Services had budgeted its training service charge at $84 per hour. The company planned to provide 37,000 hours of training services during 2015. By lowering the service charge to...

A CV of positive $4,500 means that a project is: A) Under planned costs B) Over planned costs C) On schedule D) Ahead of schedule

The total factory overhead for Big Light Company is budgeted for the year at $640,000. Big Light manufactures two different products — Night lights and Desk lamps. Night lights is budgeted fo...

An updated costing system should: a. be installed even if the costs outweigh the additional benefits. b. be tailored to fit the underlying operations and cost flows. c. provide actual costs to s...

Classify the following cost incurred by a manufacturer of golf clubs as either product cost or period cost: Overtime premium paid to assembly line workers. If it is a product cost, classify as dire...

Classify the following cost incurred by a manufacturer of golf clubs as either product cost or period cost: National sales meeting in Orlando. If it is a product cost, classify as direct material c...

Classify the following cost incurred by a manufacturer of golf clubs as either product cost or period cost: Wages paid to assembly line production workers. If it is a product cost, classify as dire...

Classify the following cost incurred by a manufacturer of golf clubs as either product cost or period cost: Wages paid to assembly line maintenance workers. If it is a product cost, classify as dir...

Classify the following cost incurred by a manufacturer of golf clubs as either product cost or period cost: Golf club heads. If it is a product cost, classify as direct material cost or conversion...

Classify the following cost incurred by a manufacturer of golf clubs as either product cost or period cost: Rubber grips. If it is a product cost, classify as direct material cost or conversion cost.

Classify the following cost incurred by a manufacturer of golf clubs as either product cost or period cost: Electricity for the corporate office. If it is a product cost, classify as direct materia...

Classify the following cost incurred by a manufacturer of golf clubs as either product cost or period cost: Plant security department. If it is a product cost, classify as direct material cost or c...

Classify the following cost incurred by a manufacturer of golf clubs as either product cost or period cost: Graphite shafts. If it is a product cost, classify as direct material cost or conversion...

Classify the following cost incurred by a manufacturer of golf clubs as either product cost or period cost: Salaries of legal staff. If it is a product cost, classify as direct material cost or con...

Classify the following cost incurred by a manufacturer of golf clubs as either product cost or period cost: Depreciation on computer in president's office. If it is a product cost, classify as dire...

Koszyk Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor hours (DLHs)....

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3,090 and is paid at the beginning of the first year. Ninety percent of the premi...

Webster Corporation's budgeted sales for February are $317,000. Webster pays sales representatives a commission of 6% of sales dollars. The company pays a sales manager a monthly salary of $3,600 a...

The following information is available for completed Job No. 402 Direct materials, $80,000; direct labor, $102,000; manufacturing overhead applied, $60,000; units produced, 5,000 units; units sold,...

A business received an offer from an exporter for 30,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data...

Full costs of a product are the sum of ____. a. fixed costs and sunk costs in all the business functions of the value chain b. variable costs and sunk costs in all the business functions of the v...

Which of the following is often not a differential cost? a. Direct labor. b. Direct material. c. Variable manufacturing overhead. d. Fixed manufacturing overhead.

Following is a list of costs for a furniture manufacturer that specializes in wood tables. Classify each cost as a variable, fixed, or mixed relative to tables produced and sold. 1. Wood that is u...

Costs associated with two alternatives, code-named 2 and 22, being considered by Dodson Corporation are listed below: Alternative 2 Alternative 22 Supplies costs $62,000 $46,000 Power costs $27,000...

Cost accounting systems are used _____. a. by stockholders for decision-making purposes b. by manufacturing companies, not service companies c. to accumulate and assign period costs to products d...

The Bayou Company makes crab pots. During the current month, direct materials costing $126,000 were put into production. Direct labor of $78,000 was incurred and overhead equaled $84,000. Selling a...

Indirect materials are period costs. a. True b. False

Which of the following costs are expensed in the period incurred instead of being charged to the product? A. Direct materials B. Prime costs C Period costs D. Direct labor

What is the accounting cost function for this business?

A company's prime costs total $5,300,000 and its conversion costs total $9,300,000. If direct materials are $2,150,000 and factory overhead is $6,150,000, then direct labor is: a. $4,000,000. b. $1...

Identify each of Van's costs in the following table as either an implicit cost or an explicit cost of selling guitars. The wages and utility bills that Van pays The wholesale cost for the guitars t...

On June 1, Job 17 had a beginning balance of $100. During June, direct materials of $250 and direct labor of $300 were added to the job. Overhead is applied to production at the rate of 70 percent...

Thistle Ltd are preparing a Job Cost Statement for the forthcoming contract. Two departments -- Assembly and Finishing -- work on this job. Details of the estimated costs are as follows: Material...

Which of the following statements is true? A. All product costs are fixed costs. B. All period costs are variable costs. C. Some period costs are variable costs, and some period costs are fixed cos...

Marshall Corporation incurred costs for materials and labor needed to manufacture its products. These costs are an example of: A. Period costs. B. Product costs. C. General costs. D. Balance sh...

If a solar panel manufacturer wants to look at its total costs of production in the short run, which if the following would provide a useful starting point? a) divide the total cost of production b...

Which of the following is a result of cost distortion? A. Overcosting of all products B. Undercosting of all products C. Accurate costing of all products D. Overcosting of some products and und...

Which of the following is not a way in which management can use job cost information? A. Assessing and comparing the profitability of each product type B. Using the cost information in determinin...

LCI currently sells the B-13 model for $1,925 and the F-32 model for $982. Manufacturing costs and activity usage for the two products are as follows: | |B-13 |F-32 |Direct materials |$188.50 |$1...

Lens Care Inc. (LCI) manufactures specialized equipment for polishing optical lenses. There are two models - one mainly used for fine eyewear (F-32) and another for lenses used in binoculars, camer...

Period costs are not directly traceable to products. True or false?

Dull Corporation produces a single product and has the following cost structure: Number of units produced each year = 6,000 Variable costs per unit: Direct materials: $43 Direct labor: $13 Variabl...

Dazzle Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this blanket: Data Table |Direct materials (fabric)|2.0 yards per blanket at $7.00 per yard...

Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and a...

The TooToo Company manufactures components for use in producing one of its finished products. When 12,000 units are produced, the full cost per unit is $35, separated as follows. | Direct materia...

If a company incorrectly classified $5,000 of manufacturing overhead costs as period costs instead of product costs, which of the following statements is true, assuming that there were no product s...

Your company is deciding whether to outsource a component or make it in-house. You need 15,000 parts per year. You have a quote to buy it for $9.00. You can make it in-house for a raw material cost...

Given the following data. Beginning Inventory in Units - 0 Units produced - 4,800 Units Sold - 4,000 Sales - $400,000 Material Cost (unit level/variable) - $96,000 Variable Conversion Cost Use...

Gammaro Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine hour. The following data are available for 2014: Budgeted manufacturing overhead cos...

Select the correct statement from the following, assuming Carmichael Company had a favorable direct materials price variance of $3,000 and an unfavorable direct materials usage variance of $2,000....

The following costs were incurred in April: Direct materials $45,500 Direct labor $35,000 Manufacturing overhead $29,300 Selling expenses $21,200 Administrative expenses $35,800 Conversion costs du...

The following costs were incurred in September: | Direct materials | $40,100 | Direct labor | $29,700 | Manufacturing overhead | $21,200 | Selling expenses | $25,600 | Administrative expenses |...

Tip Top Corp. produces a product that requires 2 standard hours per unit at a standard hourly rate of $9 per hour. If 4,700 units required 9,700 hours at an hourly rate of $8.64 per hour, what is t...

A job cost sheet is used to accumulate the three product costs: direct material, direct labor, and factory overhead. Discuss the source documents for determining these amounts (that is, where do we...

What is a cost accounting system? What are the two basic types of cost accounting systems?

What are the four steps involved in the preparation of a production cost report.

Given the following: Advertising Expense $9,000 Delivery Expense 2,500 Depreciation Expense - Company Headquarters Office Equipment 700 Depreciation Expense - Factory Equipment 1,500 Direct Labor...

Kaycom Inc. reports the following information: Units produced 500 units Units sold 500 units Sale price $110 per unit Direct materials $20 per unit Direct labor $15 per unit Variable manufacturing...

The XYZ Co. estimates its factory overhead for the year to be $58,000. They further estimate they will produce 38,000 units at a material cost of $48,000. Production will require 20,000 direct labo...

A company wishes to produce a rectangular box with volume 4 m . Suppose that the length, breadth, and height in meters of the box are given by x, y, and z respectively and that the cost of material...

In process cost accounting, the costs of direct materials and direct labor are charged directly to: a) Processing departments. b) Service departments. c) Job orders. d) Customer accounts recei...

A single product manufacturer has provided the following data concerning its most recent month of operations: Selling price = $99 Units in beginning inventory = 0 Units produced = 6,300 Units s...

Indicate whether the statement is true or false. One reason managers use the full cost of products as the cost base in their pricing decisions is to promote price stability.

Hushovd Iron Works has collected the following data for its Thunderbolt line of products: Direct materials standard 12 pounds per unit Direct materials standard cost $0.56 per pound Actual material...