Exam 2: Cost Concepts

If CD Company were to sell 43,000 units, the total expected cost would be

Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?

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?

Using the following data, calculate the beginning work in process inventory. Cost of goods sold \ 70 Direct labour \ 20 Direct materials \ 15 Cost of goods manufactured \ 80 Work in process ending \ 10 Finished goods ending \ 15 Manufacturing overhead \ 30 The beginning work in process inventory is:

Gabel Inc. is a merchandising company. Last month the company's merchandise purchases totalled $63,000. The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $15,000. What was the company's cost of goods sold for the month?

Reference: Bergeron Inc. reported the following data for last year: Work in process inventory, beginning \ 100 Work in process inventory, ending \ 150 Finished goods inventory, beginning \ 180 Finished goods inventory, ending \ 200 Direct labour cost \ 300 Direct materials cost \ 500 Manufacturing overhead cost \ 400 -The cost of goods manufactured was?

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). -Shipping costs to send the finished milk chocolate bars and chocolate covered almonds to wholesalers.

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 chocolate covered almonds.

Reference: 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: Direct materials used in production \ 110,000 Direct labour costs for the year 55,000 Work in process, beginning 22,000 Finished goods, beginning 45,000 Cost of goods available for sale 288,000 Cost of goods sold 238,000 Work in process, ending 16,000 -Cost of goods manufactured for the year 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?

Reference: The following data (in thousands of dollars) have been taken from the accounting records of Karling Corporation for the just completed year. Sales \ 990 Raw materials inventory, beginning \ 40 Raw materials inventory, ending \ 70 Purchases of raw materials \ 120 Direct labour \ 200 Manufacturing overhead \ 230 Administrative expenses \ 150 Selling expenses \ 140 Work in process inventory, beginning \ 70 Work in process inventory, ending \ 50 Finished goods inventory, beginning \ 120 Finished goods inventory, ending \ 160 -The cost of goods sold for the year (in thousands of dollars)was:

Reference: The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year. Sales \ 910 Raw materials inventory, beginning \ 80 Raw materials inventory, ending \ 20 Purchases of raw materials \ 100 Direct labour \ 130 Manufacturing overhead \ 200 Administrative expenses \ 160 Selling expenses \ 140 Work in process inventory, beginning \ 40 Work in process inventory, ending \ 10 Finished goods inventory, beginning \ 130 Finished goods inventory, ending \ 150 -The cost of goods sold for the year (in thousands of dollars)was:

Each of the following would be a period cost except:

All the following costs should be considered direct costs of providing delivery room services to a particular mother and her baby: the costs of drugs administered in the operating room, the attending physician's fees, and a portion of the liability insurance carried by the hospital to cover the delivery room.

Rossiter Company failed to record a credit sale at the end of the year, although the reduction in finished goods inventories was correctly recorded when the goods were shipped to the customer. Which one of the following statements is correct?

Conversion cost consists of which of the following

Reference: The following data (in thousands of dollars) have been taken from the accounting records of Karling Corporation for the just completed year. Sales \ 990 Raw materials inventory, beginning \ 40 Raw materials inventory, ending \ 70 Purchases of raw materials \ 120 Direct labour \ 200 Manufacturing overhead \ 230 Administrative expenses \ 150 Selling expenses \ 140 Work in process inventory, beginning \ 70 Work in process inventory, ending \ 50 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:

Variable cost:

In a manufacturing company, goods available for sale equals the sum of the cost of goods manufactured and the beginning finished goods inventory.

Which one of the following costs should NOT be considered a direct cost of serving particular customer who orders a customized personal computer by phone directly from the manufacturer?