Chapter 2C
D
Argon Spice Ltd. manufactured 800 biscuit packets during its first month of operations. The total manufacturing costs were $2,000. The selling price was $4.60 per packet and 290 packets remained unsold at month end. What is the unit cost of the biscuit packets? (rounded to two decimal places) A) $3.92 B) $2.93 C) $6.90 D) $2.50
B
Gamers Company develops gaming software. Software programmers are paid $32 per hour for straight-time, and time and a half for overtime. Last week, Mary Johnson, a programmer, worked 47 hours including 7 overtime hours. For 3 of the 47 hours, she was unproductive because of technical delays. Calculate the total earnings of Mary Johnson for the week. A) $1,712 B) $1,616 C) $1,520 D) $1,504
C
Inventoriable costs __________. A) do not include indirect manufacturing costs B) are all costs in the income statement other than cost of goods sold C) are expensed as cost of goods sold only when the product is sold D) are all the costs of purchasing goods that are resold in their same form by a manufacturing company
C
Kente Motors Inc. manufactures various models of trucks, one of which is the Z99 model. The assembly department supervisor was paid a salary of $5,000 for the month of June. For the Z99 model of truck, what kind of cost is the assembly department supervisor's salary assuming he or she supervises the assembly of other models also? A) Direct and fixed B) Indirect and variable C) Indirect and fixed D) Direct and variable
B
Logan Company manufactures cell phones and laptop computers in a single plant. Which of the following statements is true assuming cell phones as the cost object? A) The cost of plant insurance is a direct manufacturing cost. B) The cost of wages paid to plant maintenance workers is an indirect manufacturing cost. C) The cost of metal used to make the cell phones is an indirect materials cost. D) The cost of wages paid to the cell phone assembly-line workers is an indirect manufacturing cost.
B
Music Corporation manufactures various models of pianos, one of which is the P52 model. The polishing department supervisor oversees polishing of the P52 model as well as the other models. The supervisor was paid a $4,000 salary for the month of August. For the P52 model of piano, the cost of the polishing department supervisor's salary is __________. A) both an indirect cost and a variable cost B) both an indirect cost and a fixed cost C) both a direct cost and a variable cost D) both a direct cost and a fixed cost
D
The following information relates to Baxter Corporation for 2017: Direct materials used $40,000 Direct manufacturing labor 19,000 Total manufacturing costs incurred 75,000 Cost of goods manufactured 82,000 Calculate the manufacturing overhead costs incurred during 2017. A) $23,000 B) $35,000 C) $56,000 D) $16,000
D
The following information relates to Boron Holdings: Beginning inventory of direct materials, January 1, 2017 $20,000 Ending inventory of direct materials, December 31, 2017 $17,000 Purchases of direct materials in 2017 $83,000 What is the direct materials used by Boron in 2017? A) $103,000 B) $66,000 C) $80,000 D) $86,000
A
The following information relates to Green Force Inc. for 2017: Direct materials used $30,000 Direct manufacturing labor 18,000 Total manufacturing costs incurred 75,000 Ending finished goods inventory 7,000 Beginning finished goods inventory 3,000 Ending work-in-process inventory 2,000 Beginning work-in-process inventory 6,000 What is cost of goods sold for 2017? A) $75,000 B) $79,000 C) $71,000 D) $27,000
D
The following information relates to Nickel Company for 2017: Direct materials used $50,000 Direct manufacturing labor $21,000 Total manufacturing costs incurred $83,000 Cost of goods manufactured $110,000 Calculate the manufacturing overhead costs incurred during 2017. A) $39,000 B) $33,000 C) $62,000 D) $12,000
B
Tyler Inc. manufactures bikes and skateboards in a single factory. Assuming bikes as the cost object, which of the following would NOT be true? A) The cost of leasing the factory would be an indirect cost. B) The cost of the wages of employees who assemble the bikes would be an indirect cost. C) The cost of the wheels on the bikes would be a direct cost. D) The cost of aluminum in the bike frames would be a direct cost.
A
Which of the following is true? A) Companies in the manufacturing sector of the economy typically have direct materials inventory, work-in-process inventory, and finished goods inventory. B) Companies in the service sector of the economy typically have one type of inventory which is comprised of products in their original purchased form. C) Companies in the merchandising sector of the economy typically do not hold inventories of tangible products. D) Companies in the manufacturing sector of the economy typically hold one type of inventory.
C
Which of the following statements is true? A) The term cost allocation is used to describe the assignment of both indirect and direct costs to a particular cost object. B) The term cost tracing is used to describe the assignment of both indirect and direct costs to a particular cost object. C) The term cost tracing is used to describe the assignment of direct costs to a particular cost object. D) The term cost assignment is a general term that encompasses both (1) tracing indirect costs to a cost object and (2) allocating direct costs to a cost object.
C
a graphical representation of a specific cost in total at different production levels for a company that manufactures various garments, including shirts, pants, and dresses. The X-axis shows production levels (within the relevant range) and the Y-axis shows the total cost. It is a straight horizontal line. Which of the following could be the cost shown in the graph, assuming shirts as the cost object? A) The total cost of fabric used to make the shirts B) The total amount paid to garment workers that is calculated on a per-shirt-sewed basis C) The total rental cost of the factory D) The total power cost to run the sewing machines in the factory
