Exam 2: Cost Concepts

Reference: Frosting Corp. has provided the following relating to the most recent month (August 31, 2016) of operations, for their main product, cupcakes Baker's salaries 20,000 Finished goods inventory, beginning 18,000 Finished goods inventory, ending 20,000 General \& administrative expenses 20,000 Indirect materials 17,500 Production Supervisor, Salary 21,000 Purchases of raw materials 28,000 Raw materials inventory, ending 19,000 Raw materials inventory, beginning 18,000 Rent on production factory 19,000 Rent, retail store 18,000 Sales 243,000 Utilities on production factory 17,500 Utilities, retail store 17,000 Wages, retail staff 20,000 WIP inventory, beginning 19,500 WIP inventory, ending 21,500 -What was the total manufacturing costs for the period?

Last month a manufacturing company had the following operating results: Beginning finished goods inventory \ 74,000 Ending finished goods inventory \ 73,000 Sales \ 464,000 Gross margin \ 52,000 What was the cost of goods manufactured for the month?

Manufacturing overhead consists of:

Reference: The following data (in thousands of dollars) have been taken from the accounting records of Karlist Corporation for the just completed year. Sales \ 800 Raw materials inventory, beginning \ 60 Raw materials inventory, ending \ 70 Purchases of raw materials \ 180 Direct labour \ 100 Manufacturing overhead \ 190 Administrative expenses \ 110 Selling expenses \ 150 Work in process inventory, beginning \ 70 Work in process inventory, ending \ 80 Finished goods inventory, beginning \ 120 Finished goods inventory, ending \ 160 -The cost of the raw materials used in production during the year (in thousands of dollars) was:

The following account balances has been extracted from Jimbob Co.'s general ledger: Direct materials used in production \ 200,000 Depreciation factory building \ 10,000 Depreciation factory equipment \ 50,000 Depreciation sales department automobiles \ 10,000 Direct wages factory employees \ 200,000 Sales department salaries and commissions \ 150,000 Factory manager's salary \ 50,000 Utility costs factory \ 50,000 Utility costs sales office \ 20,000 What was the total of manufacturing costs?

The prime cost was?

Reference: Tech Computer manufactures computers in its plant located in Toronto and then ships the computers directly to distributors and retailers. The company's accountant has enlisted you to classify the following company's expenses: -Straight line depreciation on the factory building.

Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead.

Reference: The following data (in thousands of dollars) have been taken from the accounting records of Karlist Corporation for the just completed year. Sales \ 800 Raw materials inventory, beginning \ 60 Raw materials inventory, ending \ 70 Purchases of raw materials \ 180 Direct labour \ 100 Manufacturing overhead \ 190 Administrative expenses \ 110 Selling expenses \ 150 Work in process inventory, beginning \ 70 Work in process inventory, ending \ 80 Finished goods inventory, beginning \ 120 Finished goods inventory, ending \ 160 -The net income for the year (in thousands of dollars)was:

Last month, when 10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable costs are 50% of total unit costs. If 10,500 units are manufactured next month and cost behaviour patterns remain unchanged, the total cost of goods manufactured will be?

Reference: Charlie's Chocolate Factory manufactures chocolate bars and ships them directly to wholesalers and retailers across the country. The company has two product lines: milk chocolate bars and chocolate covered almonds. Classify the following company's expenses if the cost object is a single product line (either milk chocolate bars or chocolate covered almonds). -Salaries for milk chocolate bars production line workers 88)

An opportunity cost is:

Williams Company's direct labour cost is 25% of its conversion cost. If the manufacturing overhead cost for the last period was $45,000 and the direct materials cost was $25,000, the direct labour cost was:

The cost of fire insurance for a manufacturing plant is generally considered to be a:

The following information was provided by Wilson Company for the year just ended: Beginning finished goods inventory \ 150,750 Ending finished goods inventory \ 140,475 Sales \ 475,000 Gross margin \ 150,000 The cost of goods manufactured for the year was:

When a decision is made among a number of alternatives, the potential benefit that is lost by choosing one alternative over another is the:

Reference: At a sales volume of 32,000 units, CD Company's total fixed costs are $64,000 and total variable costs are $60,000. (Do not round intermediate calculations) -If CD Company were to sell 50,000 units, the total expected cost per unit would be (Do not round intermediate calculations.:

The sequence of major activities that every organization carries out to fulfill its missio is known as:

Reference: Charlie's Chocolate Factory manufactures chocolate bars and ships them directly to wholesalers and retailers across the country. The company has two product lines: milk chocolate bars and chocolate covered almonds. Classify the following company's expenses if the cost object is a single product line (either milk chocolate bars or chocolate covered almonds). -Advertising campaign for Charlie's Chocolate Factory, no specific products were mentioned in the campaign.

Reference: The following data pertain to Harriman Company's operations during July: July 1 July 31 Raw materials inventory 0 \ 5,000 Work in process inventory ? 4,000 Finished goods inventory \ 12,000 ? Other data: Cost of goods manufactured \ 105,000 Raw materials used 40,000 Manufacturing overhead costs 20,000 Direct labour costs 39,000 Gross profit 100,000 Sales 210,000 -The beginning work in process inventory was?