Cost Accounting Chapter 2 Quiz 2

Birdies Apparels is a clothing retailer. Unit costs associated with one of its products, Product DCT121, are as follows: Direct materials $ 70 Direct manufacturing labor 20 Variable manufacturing overhead 15 Fixed manufacturing overhead 32 Sales commissions (2% of sales) 5 Administrative salaries 16 Total $158 What are the direct variable manufacturing costs per unit associated with Product DCT121?

$105

A company reported revenues of $375,000, cost of goods sold of $118,000, selling expenses of $11,000, and total operating costs of $70,000. Gross margin for the year is ________.

$257,000

Begining finished good 1-1-2015 $92000 ending finished goods 12-31-2015 $75000 cost of goods sold $300000 sales revenues $450000 operating expenses $95000 What is operating income for 2015?

$55000

The Kardashian Company manufactures several different products. Unit costs associated with Product ORD210 are as follows: Direct materials $54 Direct manufacturing labor 8 Variable manufacturing overhead 11 Fixed manufacturing overhead 25 Sales commissions (2% of sales) 5 Administrative salaries 12 Total $115 What are the inventoriable costs per unit associated with Product ORD210?

$98

The following information pertains to the Diamond Corp: Beginning work-in-process inventory $ 75,000 Ending work-in-process inventory 85,000 Beginning finished goods inventory 175,000 Ending finished goods inventory 200,000 Cost of goods manufactured 1,200,000 What is cost of goods sold?

1,175,000

Penderson company reported the following Manufacturing Cost $2,000,000 units manufactured 50,000 units sold 47,000 units sold for $75 per unit begining inventory 0 What is the amount of gross profit margin?

1,645,000

Leslie Manufacturing reported the​ following: Revenue $450,000 Beginning inventory of direct​ materials, January​ 1, 2015 20000 Purchases of direct materials 156000 Ending inventory of direct​ materials, December​ 31, 2015 18000 Direct manufacturing labor 21000 Indirect manufacturing costs 42000 Beginning inventory of finished​ goods, January​ 1, 2015 40000 Cost of goods manufactured 114000 Ending inventory of finished​ goods, December​ 31, 2015 45000 Operating costs 150000 What is leslie's operating income

191000

period cost____________

are treated as expenses in the period they are incurred

Comparing budgeted costs to actual costs helps managers to improve

control

The general term used to identify both the tracing and the allocation of accumulated costs to a cost object is ____________

cost assignment

Which of the following is included in product cost for pricing and product mix decesions

design cost

Prime costs include ________.

direct materials and direct manufacturing labor costs

cost assignment_____________

encompasses allocating indirect costs to a cost object

________ sector companies purchase materials and components and convert them into finished goods.

manufacturing

Under GAAP, for the purposes of calculating inventory costs, product costs include ________.

only inventoriable cost

Which of the following influences the make or buy decision to the company?

opportunity cost

budgeted cost are_____________-

planned forecasted costs

A manufacturing plant produces two product lines: gold equipment and soccer equipment. An example of indirect cost for the soccer equipment line is the ___________

salary paid to the plant supervisor

within the relevant range, if there is a change in the level of the cost driver, then ___________

total fixed costs will remain the same and total variable costs will change

Which of the following is true if the volume of sales increases (within a relevant range)?

variable cost increase