Exam 2: Product Costing: Manufacturing Processes, cost Terminology and Cost Flows

Scott Products manufactures high-quality running shoes. The following information is available for 2009: Raw materials inventory Work-in-process inventory Finished goods inventory Raw materials purchased Direct labour costs Factory rent Factory supplies Factory utilities Factory depreciation Marketing costs Administrative costs \ 25000 \ 82000 280000 130000 90000 120000 \ 250000 340000 60000 20000 15000 30000 25000 100000 In addition, 42 400 pairs were produced in 2009 out of which 40 900 pairs were sold for $70 each. -What is net income for 2009? (ignore taxes)

Which of the following statements is true regarding the lean production and just-in-time (JIT)manufacturing systems?

Which of the following increases the work-in-process account?

Identify at least two characteristics of a lean production and just-in-time (JIT)manufacturing environment.

When non-manufacturing costs are subtracted from gross margin,the result is called:

Michael’s Manufacturing, Inc. has the following information available for the month of July: Raw materials inventory Work-in-process inventory Finished goods inventory Raw materials purchased Direct labour costs Overhead costs \ 50000 \ 62000 80000 55000 24000 35000 \ 120000 60000 45000 -Cost of goods manufactured for July is:

Michael’s Manufacturing, Inc. has the following information available for the month of July: Raw materials inventory Work-in-process inventory Finished goods inventory Raw materials purchased Direct labour costs Overhead costs \ 50000 \ 62000 80000 55000 24000 35000 \ 120000 60000 45000 -Cost of goods sold for July is:

Under ideal conditions,companies operating in a _________ environment would reduce inventories of raw materials,work-in-process and finished goods to very low levels or even zero.

Which of the following is a risk that would more likely be seen in a lean production and just-in-time manufacturing environment than in a traditional production environment?

The journal entry to record raw materials used would include a:

Describe the cost accumulation process in a traditional manufacturing environment versus a just-in-time (JIT)environment.

Hudson Inc. has the following information available for September: Raw materials Work-in-process Finished goods Raw materials purchased Direct labour costs Manufacturing overhead costs Administrative costs Marketing costs 8000 \ 5000 30000 40000 7000 3000 25000 70000 30000 12000 6000 -Cost of goods manufactured for September is:

Brenda's Bakery has the following information available for October: Raw materials Work-in-process Finished goods Cost of goods manufactured Cost of goods sold Direct labour costs Factory rent and depreciation Selling expenses \ 4000 \ 2000 32000 17000 5000 3000 88000 90000 35000 10000 3000 How much raw material was purchased in October?

Companies that operate in a lean production and just-in-time manufacturing environment are more likely to experience which of the following?

Franklin Street Manufacturing has the following cost information available for 2009: Direct materials used \ 10000 Direct labour costs 25000 Factory overhead 20000 Marketing expenses 4000 Administrative expenses 6000 20 000 units were produced during the year out of which 19 000 units were sold for $10 each. -What is cost of goods sold for 2009?

Hudson Inc. has the following information available for September: Raw materials Work-in-process Finished goods Raw materials purchased Direct labour costs Manufacturing overhead costs Administrative costs Marketing costs 8000 \ 5000 30000 40000 7000 3000 25000 70000 30000 12000 6000 -Total non-manufacturing costs for September are:

Which of the following types of companies would be the least likely to have the following cost pattern? Raw materials $\rarr$ Work-in-Process $\rarr$ Finished Goods $\rarr$ Cost of goods sold

Jasper Corporation incurred the following costs in April: Salesperson's salaries \ 40000 Factory maintenance worker \ 20000 Factory insurance 12000 Administrative utilities 4000 Factory supervisor salary 30000 Administrative supplies 1000 Advertising 15000 Delivery truck insurance 2000 Factory machine operator 22000 Factory machine depreciation 6000 Direct materials used 25000 Receptionist salary 18000 -Total period costs are:

Which of the following types of employees would most likely have their wage be classified as direct labour?

McClintock Manufacturing Inc.has the following information available for the month of July: Raw materials inventory Work-in-process inventory Finished goods inventory Raw materials purchased Direct labour costs Overhead costs Selling and administrative costs \ 12000 \ 8000 45000 55000 9000 11000 \ 45000 80000 30000 20000 Required: A. Calculate raw materials used for July. B. Calculate cost of goods manufactured for July. C. Calculate cost of goods sold for July. D. Assume that sales revenue totalled $\$ 250000$ , calculate net income for July. (ignore taxes)