Question 1

Twichell Inc., a local retailer, has provided the following data for the month of December:  
-The cost of goods sold for December was:

Accepted Answer

A)  $131,000 
B)  $128,000 
C)  $134,000 
D)  $200,000 
A)  $131,000 
B)  $128,000 
C)  $134,000 
D)  $200,000

Question 2

Dagg Corporation reported the following data for the month of October:  
-The total manufacturing cost for October was:

Accepted Answer

A)  $84,000 
B)  $114,000 
C)  $176,000 
D)  $165,000 
A)  $84,000 
B)  $114,000 
C)  $176,000 
D)  $165,000

Question 3

The following costs were incurred in August:  
Conversion costs during the month totaled:

Accepted Answer

A)  $127,000 
B)  $51,000 
C)  $52,000 
D)  $75,000 
A)  $127,000 
B)  $51,000 
C)  $52,000 
D)  $75,000

Question 4

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

Accepted Answer

A)  product cost. 
B)  period cost. 
C)  variable cost. 
D)  all of these. 
A)  product cost. 
B)  period cost. 
C)  variable cost. 
D)  all of these.

Question 5

A partial listing of costs incurred at Peggs Corporation during September appears below:  
-The total of the period costs listed above for September is:

Accepted Answer

A)  $389,000 
B)  $318,000 
C)  $71,000 
D)  $351,000 
A)  $389,000 
B)  $318,000 
C)  $71,000 
D)  $351,000

Question 6

Sid Freeman has developed a new electronic device that he has decided to produce and market. The production facility will be in a nearby industrial park which Sid will rent for $4,000 per month. Utilities will cost about $500 per month. He will use his personal computer, which he purchased for $2,000 last year, to monitor the production process. The computer will become obsolete before it wears out from use. The computer will be depreciated at the rate of $1,000 per year. He will rent production equipment at a monthly cost of $8,000. Sid estimates the material cost per finished unit of product to be $50, and the labor cost to be $10. He will hire workers, and spend his time promoting the product. To do this he will quit his job which pays $4,500 per month. Advertising will cost $2,000 per month. Sid will not draw a salary from the new company until it gets well established.
Required:
Complete the chart below by placing an "X" under each heading that helps to identify the cost involved. There can be "Xs" placed under more than one heading for a single cost; e.g., a cost might be a sunk cost, an overhead cost, and a product cost. There would be an "X" placed under each of these headings opposite the cost.   
*Between the alternatives of producing and not producing the device.

Accepted Answer

The answer of Sid Freeman has developed a new electronic...

Question 7

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year.  
-The cost of goods manufactured (finished) for the year (in thousands of dollars) was:

Accepted Answer

A)  $530 
B)  $520 
C)  $500 
D)  $460 
A)  $530 
B)  $520 
C)  $500 
D)  $460

Question 8

Which terms below correctly describe the cost of the black paint used to paint the dots on a pair of dice?

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D

Question 9

Direct materials used in production totaled $330,000. Direct labor was $415,000 and manufacturing overhead was $220,000. What were the total manufacturing costs incurred for the month?

Accepted Answer

A)  $530,000 
B)  $965,000 
C)  $745,000 
D)  $635,000 
A)  $530,000 
B)  $965,000 
C)  $745,000 
D)  $635,000

Question 10

A fixed cost is constant per unit of product.

Accepted Answer

A) True 
 B)False

Question 11

The CFO of Stoffer Corporation has provided the following data for October. The beginning balance in the raw materials inventory account was $39,000. During the month, the company made raw materials purchases amounting to $68,000. At the end of the month, the balance in the raw materials inventory account was $28,000. Direct labor cost was $29,000 and manufacturing overhead was $78,000. The beginning balance in the work in process account was $11,000 and the ending balance was $13,000. The beginning balance in the finished goods account was $37,000 and the ending balance was $47,000. Sales totaled $240,000. Selling expense was $21,000 and administrative expense was $27,000.
-The net operating income for October was:

Accepted Answer

A)  $85,000 
B)  $18,000 
C)  $17,000 
D)  $66,000 
A)  $85,000 
B)  $18,000 
C)  $17,000 
D)  $66,000

Question 12

How much opportunity cost is represented in the following information concerning a machine?

Accepted Answer

A)  $80,000 
B)  $14,000 
C)  $25,000 
D)  $68,000 
A)  $80,000 
B)  $14,000 
C)  $25,000 
D)  $68,000

Question 13

The following costs were incurred in August:  
Prime costs during the month totaled:

Accepted Answer

A)  $39,000 
B)  $59,000 
C)  $96,000 
D)  $38,000 
A)  $39,000 
B)  $59,000 
C)  $96,000 
D)  $38,000

Question 14

The cost of shipping parts from a supplier is considered a product cost.

Accepted Answer

A) True 
 B)False

Question 15

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:  
-Manufacturing overhead for the year was:

Accepted Answer

A)  $84,000 
B)  $78,000 
C)  $56,000 
D)  $72,000 
A)  $84,000 
B)  $78,000 
C)  $56,000 
D)  $72,000

Question 16

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year.  
-The cost of the raw materials used in production during the year (in thousands of dollars) was:

Accepted Answer

A)  $180 
B)  $40 
C)  $120 
D)  $160 
A)  $180 
B)  $40 
C)  $120 
D)  $160

Question 17

A partial listing of costs incurred at Peggs Corporation during September appears below:  
-The total of the product costs listed above for September is:

Accepted Answer

A)  $351,000 
B)  $669,000 
C)  $71,000 
D)  $318,000 
A)  $351,000 
B)  $669,000 
C)  $71,000 
D)  $318,000

Question 18

Management of Parrent Corporation has asked your help as an intern in preparing some key reports for April. The company started the month with raw materials inventories of $32,000. During the month, the company made raw materials purchases amounting to $68,000. At the end of the month, raw materials inventories totaled $35,000. Direct labor cost was $43,000 and manufacturing overhead was $62,000. The beginning balance in the work in process account was $19,000 and the ending balance was $12,000. The beginning balance in the finished goods account was $35,000 and the ending balance was $58,000. Sales totaled $240,000. Selling expense was $18,000 and administrative expense was $42,000.
-The cost of goods sold for April was:

Accepted Answer

A)  $123,000 
B)  $200,000 
C)  $217,000 
D)  $154,000 
A)  $123,000 
B)  $200,000 
C)  $217,000 
D)  $154,000

Question 19

Lavell Corporation reported the following data for the month of February:  
-The total manufacturing cost for February was:

Accepted Answer

A)  $174,000 
B)  $171,000 
C)  $70,000 
D)  $108,000 
A)  $174,000 
B)  $171,000 
C)  $70,000 
D)  $108,000

Question 20

Gluth Corporation has provided the following data for the month of July. The beginning balance in the finished goods inventory account was $56,000 and the ending balance was $49,000. Sales totaled $290,000. Cost of goods manufactured was $147,000, selling expense was $17,000, and administrative expense was $68,000.
-The cost of goods sold for July was:

Accepted Answer

A)  $232,000 
B)  $140,000 
C)  $154,000 
D)  $147,000 
A)  $232,000 
B)  $140,000 
C)  $154,000 
D)  $147,000

Exam 2: Managerial Accounting and Cost Concepts

Twichell Inc., a local retailer, has provided the following data for the month of December: -The cost of goods sold for December was:

Dagg Corporation reported the following data for the month of October: -The total manufacturing cost for October was:

The following costs were incurred in August: Conversion costs during the month totaled:

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

A partial listing of costs incurred at Peggs Corporation during September appears below: -The total of the period costs listed above for September is:

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year. -The cost of goods manufactured (finished) for the year (in thousands of dollars) was:

Which terms below correctly describe the cost of the black paint used to paint the dots on a pair of dice?

Direct materials used in production totaled $330,000. Direct labor was $415,000 and manufacturing overhead was $220,000. What were the total manufacturing costs incurred for the month?

A fixed cost is constant per unit of product.

How much opportunity cost is represented in the following information concerning a machine?

The following costs were incurred in August: Prime costs during the month totaled:

The cost of shipping parts from a supplier is considered a product cost.

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: -Manufacturing overhead for the year was:

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year. -The cost of the raw materials used in production during the year (in thousands of dollars) was:

A partial listing of costs incurred at Peggs Corporation during September appears below: -The total of the product costs listed above for September is:

Lavell Corporation reported the following data for the month of February: -The total manufacturing cost for February was:

Managerial Accounting and the Business Environment

Systems Design: Job-Order Costing

Systems Design: Process Costing

Cost Behavior Analysis and Use

Cost-Volume-Profit Relationship

Variable Costing: a Tool for Management

Activity Based Costing: a Tool to Aid Decision-Making

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Operating Performance Measures

Segment Reporting, Decentralization, and the Balanced Scorecard

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Pricing Products and Services

Profitability Analysis

Further Classification of Labor Costs

Cost of Quality

the Predetermined Overhead Rate and Capacity

Fifo Method

Service Department Allocations

Least-Squares Regression Computations

Abc Action Analysis

Using a Modified Form of Activity-Based Costing to

Predetermined Overhead Rates and Overhead Analysis

Journal Entries to Record Variances

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

The Direct Method of Determining the Net Cash Provided by

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