Thompson Inc.has the following selected information available for 2009: $\begin{array}{c} \begin{array}{l} \text {Cost of goods manufactured}\\ \text {Cost of goods sold}\\ \text {Direct labour costs incurred}\\ \text {Raw material purchased}\\ \text {Raw material used}\\ \\ \text {Beginning work-in-process}\\ \text {Ending work-in-process}\\ \end{array} \begin{array}{r} \$180000\\ 150000\\ 45000\\ 90000\\ 80000\\ \\ 15000\\ 9000 \end{array} \end{array}$ Manufacturing overhead costs in 2009 amounted to:

A) $39 000 B) $55 000 C) $49 000 D) $31 000 A) $39 000 B) $55 000 C) $49 000 D) $31 000

Capital Manufacturing produces a unique souvenir product for various museums around the country.During the year,the company incurred the following costs: $\begin{array}{lr} \text { Direct material used } & \$ 50000 \\ \text { Direct labour } & 80000 \\ \text { Manufacturing overhead } & 30000 \\ \text { Marketing expenses } & 10000 \\ \text { Administrative expenses } & 20000 \end{array}$ During the year,25 000 units were produced out of which 20 000 units were sold for $15 each. Required: A. Calculate the total product costs incurred for the year. B. What is the product cost per unit? C. What is cost of goods sold for the year? D. What is net income for the year?

A. Total product costs @#LAT-DLM& B. Pro

Scott Products manufactures high-quality running shoes. The following information is available for 2009: $\begin{array}{c} \begin{array}{l} \\ \text { Raw materials inventory}\\ \text { Work-in-process inventory}\\ \text { Finished goods inventory}\\ \\ \text { Raw materials purchased}\\ \text { Direct labour costs}\\ \text { Factory rent}\\ \text { Factory supplies}\\ \text { Factory utilities}\\ \text { Factory depreciation}\\ \text { Marketing costs}\\ \text { Administrative costs}\\ \end{array} \begin{array}{rr} \underline{\text { Beginning} } &\underline{ \text { Ending }}\\ \$ 25000 & \$ 82000 \\ 280000 & 130000 \\ 90000 & 120000 \\ & \\ & \$ 250000 \\ & 340000 \\ &60000 \\ &20000 \\ & 15000 \\ &30000 \\ & 25000 \\ & 100000 \end{array} \end{array}$ In addition, 42 400 pairs were produced in 2009 out of which 40 900 pairs were sold for $70 each. -Cost of goods manufactured for 2009 is:

A) $990 000 B) $973 000 C) $848 000 D) $865 000 A) $990 000 B) $973 000 C) $848 000 D) $865 000

Nate’s Novelties, Inc. has the following information available for July: $\begin{array}{c} \begin{array}{l} \text {Raw materials inventory }\\ \text {Work-in-process inventory}\\ \text { Finished goods inventory}\\ \\ \text {Raw materials purchased}\\ \text {Direct labour costs}\\ \text { Overhead costs}\\ \end{array} \begin{array}{rr} \$ 12000 & \$ 9000 \\ 35000 & 20000 \\ 20000 & 44000 \\ & \\ & \$ 25000 \\ & 55000 \\ & 35000 \end{array} \end{array}$ -Raw materials used for July is:

A) $21 000 B) $22 000 C) $25 000 D) $28 000 A) $21 000 B) $22 000 C) $25 000 D) $28 000

Jones Manufacturing Inc. incurred the following costs in November: \[\begin{array} { l r l r } \text { Direct labour } & \$ 50000 & \text { Advertising costs } & \$ 33000 \\ \text { Indirect labour } & 20000 & \text { Factory rent } & 10000 \\ \text { Administrative salaries } & 25000 & \text { Factory depreciation } & 6000 \\ \text { Direct materials purchased } & 23000 & \text { Administrative rent } & 5000 \\ \text { Indirect materials used } & 4000 & \text { Administrative depreciation } & 7000 \end{array}\] In addition, the following information is also available: $\begin{array}{c} \begin{array}{l} \\ \text { Raw materials }\\ \text { Work-in-process }\\ \text { Finished goods}\\ \\ \text { Number of units produced }\\ \text {Number of units sold}\\ \text { (sales price of \( \$ 25 $ per unit)}\\ \end{array} \begin{array}{rr} \underline{\text { Beginning} } &\underline{ \text { Ending }}\\ \$ 5000 & \$ 8000 \\ 60000 & 55000 \\ 17250 & 9200 \\ & \\ & 20000 \text { units } \\ \\ & 21400 \text { units } \end{array} \end{array}\) -Cost of goods manufactured in November is:

A) $ 91 000 B) $115 000 C) $155 000 D) $143 000 A) $ 91 000 B) $115 000 C) $155 000 D) $143 000

Creative Products Inc.incurred the following costs (in alphabetical order)during 2005 related to one of its products: $\begin{array}{lr} \text { Administrative costs } & 2000 \\ \text { Advertising costs } & 1000 \\ \text { Direct material used } & 8000 \\ \text { Direct labour } &20000\\ \text { Factory equipment depreciation } & 1000 \\ \text { Factory rent } &5000 \\ \text { Indirect labour } & 3000 \\ \text { Indirect materials } &2000 \end{array}$ During the year,3000 units were produced out of which 2750 units were sold for $30 each. Required: A. Calculate the total product costs incurred for the year. B. What is the product cost per unit? C. What is cost of goods sold for the year? D. What is net income for the year?

A. Total product costs @#LAT-DLM&@#LAT-DLM&@#LAT-DLM& B. Pro

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

Clapton Inc.would like to prepare an income statement for March.Their production department records show that total product costs in March were $225 000 when 50 000 units were produced.Their sales department records show that 46 000 units were sold for $16 each.Monthly administrative and marketing expenses totalled $60 000.What should be net income for March?

(Multiple Choice)

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Question 61

Which of the following statements is false regarding non-manufacturing costs?

(Multiple Choice)

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Question 62

Briefly compare a traditional manufacturing environment with a lean production and just-in-time (JIT)manufacturing environment.

(Essay)

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Question 63

In a just-in-time environment,the production process often begins when:

(Multiple Choice)

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Question 64

Which of the following is not an example of a manufacturing overhead cost?

(Multiple Choice)

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Question 65

Provide specific examples of why accurate product or service costing information is important for internal purposes.

(Essay)

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Question 66

Thompson Inc.has the following selected information available for 2009: Cost of goods manufactured Cost of goods sold Direct labour costs incurred Raw material purchased Raw material used Beginning work-in-process Ending work-in-process \1 80000 150000 45000 90000 80000 15000 9000 Manufacturing overhead costs in 2009 amounted to:

(Multiple Choice)

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(86)

Question 67

Capital Manufacturing produces a unique souvenir product for various museums around the country.During the year,the company incurred the following costs: Direct material used \ 50000 Direct labour 80000 Manufacturing overhead 30000 Marketing expenses 10000 Administrative expenses 20000 During the year,25 000 units were produced out of which 20 000 units were sold for $15 each. Required: A. Calculate the total product costs incurred for the year. B. What is the product cost per unit? C. What is cost of goods sold for the year? D. What is net income for the year?

(Essay)

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(70)

Question 68

In general,costs incurred in the factory that do not qualify as either direct material or direct labour are called:

(Multiple Choice)

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(81)

Question 69

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. -Cost of goods manufactured for 2009 is:

(Multiple Choice)

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(90)

Question 70

Nate’s Novelties, Inc. has the following information available for July: Raw materials inventory Work-in-process inventory Finished goods inventory Raw materials purchased Direct labour costs Overhead costs \ 12000 \ 9000 35000 20000 20000 44000 \ 25000 55000 35000 -Raw materials used for July is:

(Multiple Choice)

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(68)

Question 71

Which of the following is a characteristic of a traditional production environment but not of a lean production and just-in-time (JIT)manufacturing environment?

(Multiple Choice)

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Question 72

Jones Manufacturing Inc. incurred the following costs in November: Direct labour \ 50000 Advertising costs \ 33000 Indirect labour 20000 Factory rent 10000 Administrative salaries 25000 Factory depreciation 6000 Direct materials purchased 23000 Administrative rent 5000 Indirect materials used 4000 Administrative depreciation 7000 In addition, the following information is also available: Raw materials Work-in-process Finished goods Number of units produced Number of units sold (sales price of \ 25 per unit) \ 5000 \ 8000 60000 55000 17250 9200 20000 units 21400 units -Cost of goods manufactured in November is:

(Multiple Choice)

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Question 73

The journal entry to record cost of goods manufactured would include a:

(Multiple Choice)

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Question 74

Creative Products Inc.incurred the following costs (in alphabetical order)during 2005 related to one of its products: Administrative costs 2000 Advertising costs 1000 Direct material used 8000 Direct labour 20000 Factory equipment depreciation 1000 Factory rent 5000 Indirect labour 3000 Indirect materials 2000 During the year,3000 units were produced out of which 2750 units were sold for $30 each. Required: A. Calculate the total product costs incurred for the year. B. What is the product cost per unit? C. What is cost of goods sold for the year? D. What is net income for the year?

(Essay)

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(83)

Question 75

Which of the following statements regarding the traditional manufacturing environment is not true?

(Multiple Choice)

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Question 76

Which of the following is not a type of manufacturing cost?

(Multiple Choice)

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Question 77

The following information is available for the Brown Company for the month ended 31 July: Direct materials purchased \2 1000 Direct labour (2500 hrs@ \1 2) 30000 Indirect labour 3000 Indirect materials 2500 Office supplies expense 100 Factory equipment depreciation 2000 Office Equipment depreciation 750 Administrative expenses 20000 Office utilities 75 Factory utilities 200 Marketing expense 2500 Sales revenue 150000 Sales commissions expense 1500 Direct materials inventory \ 27000 \ 24500 Work in process inventory 25000 29000 Finished Goods inventory 22000 15000 Required: A. Determine the direct materials used in July. B. Determine cost of goods manufactured in July. C. Determine cost of goods sold for July. D. Prepare an income statement for July. (ignore taxes)

(Essay)

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Question 78

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

(Multiple Choice)

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Question 79

Products and their costs flow through a production facility in the following order:

(Multiple Choice)

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Question 80

Which of the following statements is false regarding non-manufacturing costs?

Briefly compare a traditional manufacturing environment with a lean production and just-in-time (JIT)manufacturing environment.

In a just-in-time environment,the production process often begins when:

Which of the following is not an example of a manufacturing overhead cost?

Provide specific examples of why accurate product or service costing information is important for internal purposes.

In general,costs incurred in the factory that do not qualify as either direct material or direct labour are called:

Nate’s Novelties, Inc. has the following information available for July: Raw materials inventory Work-in-process inventory Finished goods inventory Raw materials purchased Direct labour costs Overhead costs \ 12000 \ 9000 35000 20000 20000 44000 \ 25000 55000 35000 -Raw materials used for July is:

Which of the following is a characteristic of a traditional production environment but not of a lean production and just-in-time (JIT)manufacturing environment?

The journal entry to record cost of goods manufactured would include a:

Which of the following statements regarding the traditional manufacturing environment is not true?

Which of the following is not a type of manufacturing cost?

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

Products and their costs flow through a production facility in the following order:

Introduction to Managerial Accounting

Cost Behaviour

Job Costing and Overhead Costing Systems

Process Costing Systems

Service and Operations Costing

Departmental Overhead Costing

Activity-Based Costing

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investmentdecisions

Fixed and Rolling Budgets for Planning and Decision Making

Management Accounting for Cost Control and Performance Evaluation Flexible Budgets and Variance Analysis

Decentralisation and Modern Performance Management Systems the Balanced Scorecard

Accounting for Sustainability Social Reporting,environmental Reporting and Management Accounting

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