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Study Resources (Accounting)

11) Conversion costs consist of: A) direct labor and manufacturing overhead. B) direct materials and direct labor. C) direct materials and manufacturing overhead. D) direct materials, direct labor and manufacturing overhead. 12) Which of the following is an example of direct labor? A) Salary of a production manager B) Salary of the vice-president of operations C) Wages of.
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26) Readers Unlimited sells books. The following information summarizes the company's operating expenses for the year: Purchases $90,000 Operating expenses $53,000 Beginning merchandise inventory $12,000 Ending merchandise inventory $15,000 Sales revenue $172,000 What is cost of goods available for sale? A) $105,000 B) $82,000 C) $87,000 D) $102,000 27) Readers Unlimited sells books. The following information summarizes the company's operating expenses for the year: Purchases $90,000 Operating expenses $53,000 Beginning merchandise.
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34) Place the letter for the appropriate value chain activity on the line in front of each item. Letters may be used more than once or not at all. Assume a manufacturer. A. Research and development D. Marketing B. Design E. Distribution C. Production or purchases F. Customer service _____ Depreciation expense on equipment in factory _____ Delivery expense _____ Toll free line for customer.
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21) Comfy Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Depreciation on sales office $11,000 Depreciation on factory equipment $16,000 Factory supervisor salary $52,500 Sales commissions $23,000 Lubricants used in factory equipment $3,000 Insurance costs for factory $21,000 Wages paid to maintenance workers $115,000 Fabric used to upholster furniture $7,000 Freight-in (on raw materials) $2,500 Costs of delivery to.
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28) Describe service, merchandising, and manufacturing companies. 29) Explain the difference between raw materials inventory, work in process inventory, and finished goods inventory. 30) Describe a company that has some elements of all three types of companies. It is part service company, part manufacturer, and part merchandiser. 31) Why do service firms not.
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11) A company is deciding whether to purchase production equipment which can produce units more quickly than the current equipment. Which of the following costs would be relevant to its decision? A) The cost of the new equipment B) The salary of the factory manager C) The cost of raw materials D) The original.
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16) Towpath Tennis & Recreation's operating activities for the year are listed below. Purchases $150,000 Operating expenses 62,000 Beginning Inventory 27,000 Ending inventory 32,000 Sales revenue 302,000 What is the cost of goods sold for the year? A) $177,000 B) $150,000 C) $145,000 D) $90,000 17) Towpath Tennis & Recreation's operating activities for the year are listed below. Purchases $150,000 Operating expenses 62,000 Beginning Inventory 27,000 Ending inventory 32,000 Sales revenue 302,000 What is the gross profit.
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21) Which element in the value chain would contain inventoriable costs for a manufacturer? A) Research and development B) Design C) Production D) Distribution 22) Uniquely Me Shoppe, a clothing retailer, had the following total costs as grouped by value chain element: Research and development $53,000 Design $17,000 Purchases $99,000 Marketing $42,000 Distribution $68,000 Customer service $27,000 What were the company's inventoriable costs? A) $99,000 B) $116,000 C) $17,000 D) $169,000 23) Uniquely.
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54) Buildit a start up manufacturing company's bookkeeper left suddenly leaving rather incomplete accounting records for the last month of his employment. You have been hired to sort out the puzzle. Assume Buildeit's raw materials inventory contains only direct materials. You have the following information available: Work in process inventory, April 30 $4,200 Finished.
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29) Indicate whether each of the following costs is a product cost or a period cost. Assume a manufacturer. A) ________ Direct materials used in factory B) ________ Factory utilities C) ________ Salespersons' commissions D) ________ Salary of plant manager E) ________ Indirect materials used in factory F) ________ Depreciation expense on store equipment G) ________ Indirect.
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6) Which of the following is calculated before operating income can be determined for a manufacturer? A) Cost of goods available for sale B) Cost of goods manufactured C) Cost of goods sold D) All of the above 7) The only difference in the balance sheets of various types of businesses (for example, manufacturing vs..
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21) In ________, inventory consists of freight-in and the cost of the product which is to be resold. A) a service company B) a merchandising company C) a manufacturing company D) all of these companies 22) Which type of company has the highest percentage of labor costs? A) Service company B) Merchandising company C) Manufacturing company D) All companies.
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32) A company which is in the business of providing intangible services is what type of company? A) Manufacturing B) Service company C) Retailer D) Wholesaler 33) A company which is in the business of reselling tangible products purchased from suppliers to final users is what type of company? A) Manufacturing B) Service company C) Retailer D) Wholesaler 34) A.
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49) Swirzoff Company sells office supplies. The following information summarizes Swirzoff's operating activities for the past year: Utilities for store 6,000 Rent for store 8,000 Sales commissions 4,500 Purchases of merchandise 54,000 Inventory, ending 20,500 Inventory, beginning 30,000 Sales revenue 108,000 Required:  Prepare an income statement for Swirzoff Company, a merchandiser, for the year ended December 31. .
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30) Bombadeer, an auto manufacturer, incurred the following costs last month (in thousands of dollars). Interior assemblies $540 Depreciation on administrative offices 280 Assembly workers' wages      1,340 Plant utilities 290 Production supervisors' salaries        150 Engine and body parts and assemblies      2,500 Machine lubricants      75 Property tax on corporate offices        40 Cost of warranty repairs      450 Factory janitors' wages     90 Cost of designing.
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50) South State Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during 2009. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100; maintenance of $4,500; supplies of $1,800; depreciation expense of $7,900;.
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28) Sunnybrook Orange Groves processes a variety of fresh juices. The company has the following expenses for July: Depreciation expense on bottling machines $63,000 Glass juice bottles $53,000 Commissions for salespeople $27,000 Salaries of nutrition researchers $89,000 Cost of maintaining website used for  customer orders $4,000 Wages of factory workers $75,000 Freshness seals/caps for juice bottles $3,000 Reconfigure the factory layout $102,000 Customer help line $2,000 Cost of refrigerated.
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48) Dino Company sells collectibles. The following information summarizes Dino's operating activities for the most recent year: Merchandise inventory, beginning $10,000 Merchandise inventory, ending 7,000 Purchases 95,000 Operating expenses 65,000 Sales revenue 180,000 Required:  Prepare an income statement for the most recent year. .
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28) ABC Company makes wooden furniture. Identify each of the following as either an inventoriable product cost or a period cost. If it is an inventoriable product cost, classify it as direct materials, direct labor, or manufacturing overhead. A. ________ Insurance on the plant building B. ________ Cost of shipping the furniture.
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56) Redat a start up manufacturing company's bookkeeper left suddenly leaving rather incomplete accounting records for the last month of his employment. You have been hired to sort out the puzzle. Assume Redat's raw materials inventory contains only direct materials. You have the following information available: Work in process inventory, June 30 $6,400 Finished.
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18) A company decision as to where to locate a new store would be considered: A) customer service. B) marketing. C) production. D) research and development. 19) Farm Fresh Dairy provided the following expense information for May: Assembly-line workers' wages $72,000 Caps for milk bottles 2,000 Reconfiguring the assembly line 155,000 Customer support hotline 8,000 Delivery expenses 17,000 Depreciation on factory equipment 81,000 Plastic milk bottles 52,000 Salaries of salespeople 63,000 Salaries.
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1) An inventoriable cost could be the cost of the marketing and distribution of a product. 2) Inventoriable product costs consist of manufacturing overhead, direct labor and direct materials. 3) All of the following are product costs for a manufacturer EXCEPT: A) direct labor. B) direct materials. C) freight out. D) manufacturing overhead. 4) Period costs are: A).
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55) Homeco a start up manufacturing company's bookkeeper left suddenly leaving rather incomplete accounting records for the last month of his employment. You have been hired to sort out the puzzle. Assume Homeco's raw materials inventory contains only direct materials. You have the following information available: Work in process inventory, May 30 $9,300 Finished.
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27) On the line in front of each statement, enter the letter corresponding to the term that best fits that statement. You may use a letter more than once and some letters may not be used at all. A. Materials inventory E. Work in process inventory B. Service companies F. Manufacturing companies C. Merchandise inventory G. Merchandising companies D. Finished goods inventory _____ Typically have.
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51) The following information is available for the Petree Corporation for last year: ? Raw materials inventory decreased $4,000 from the beginning of the year to the end of the year. ?Raw materials inventory on December 31(end of year) was 50% of raw materials inventory on January 1 (beginning of year). ? Beginning.
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53) Makeit a start up manufacturing company's bookkeeper left suddenly leaving rather incomplete accounting records for the last month of his employment. You have been hired to sort out the puzzle. Assume Makeit's raw materials inventory contains only direct materials. You have the following information available: Work in process inventory, April 30 $3,000 Finished.
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26) Using "D" for direct materials and "I" for indirect materials classify for auto manufacturer each of the following costs assuming the cost object is a new vehicle A. _____ Seats B. _____ Depreciation expense on administrative offices. C. _____ Assembly workers wages D. _____ Plant utilities E. _____ Production supervisors salaries 27) Using "D" for.
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36) Backyards, Inc., sells lawn furniture. Selected financial information for the most recent year follows. Beginning merchandise inventory on January 1 was $32,000. Ending merchandise inventory on December 31 was $37,000. Purchases during the year were $101,000. Selling and administrative expenses were $75,000. Sales for year were $257,000. What was the value of goods available for.
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38) Place the letter for the appropriate value chain element on the line in front of each item. Letters may be used more than once or not at all. A. Research and development D. Marketing B. Design E. Distribution C. Production or purchases F. Customer service _____ Delivery of products and services _____ Detailed engineering plans for products _____ Payment to sponsor a racing team _____.
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52) The following amounts were taken from the general ledger of the Excellent Manufacturing Company. Compute the cost of goods manufactured and the cost of goods sold for the company for the year. Raw materials inventory - beg. of year $50,000 Depreciation - plant & equipment $26,000 Raw materials inventory - end of year 56,000 Repairs.
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8) All of the following activities are included in the value chain EXCEPT for: A) customer service. B) design. C) production. D) reporting. 9) Which of the following would NOT be a cost object? A) Built-to-order web sales B) Costs in the legal department C) Sales of a particular model in the southeast D) All of these could serve.
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1) Differential cost is the difference in cost between two alternatives. 2) Decision making is guided only by differential costs. 3) Irrelevant factors should be considered when making decisions. 4) You are trying to decide whether or not to sell back your accounting textbook at the end of the class. The cost you.
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11) ________ costs include all costs associated with the production of a product. A) Direct B) Inventoriable C) Mixed D) Overhead 12) Manufacturing overhead costs for a product include: A) direct material. B) operating expenses. C) prime costs. D) indirect manufacturing costs. 13) When do inventoriable costs become expenses? A) When direct materials are purchased B) When the manufacturing process begins C) When.
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40) Assume the costs listed below are incurred by an Telcra Manufacturing. Place the letter for the appropriate value chain element on the line in front of each item. Letters may be used more than once or not at all. A. Research and development D. Marketing B. Design E. Distribution C. Production or purchases F. Customer service Costs: ____ Salaries of sales persons ____ Depreciation.
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15) Differentiate between relevant and irrelevant costs and give an example using both. 16) On the line in front of each statement, enter the letter corresponding to the term that best may not be used at all. A. Direct costs F. Variable costs B. Marginal cost G. Indirect cost C. Average cost H. Sunk cost D. Conversion costs I. Differential cost E. Prime costs   _____ The combination of direct materials and.
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46) Use the appropriate letter(s) to indicate if the following costs would be found on the income statement of a: A. service company. B. merchandising company. C. manufacturing company. You may use more than one letter for each answer. _____ Revenue _____ Salaries expense _____ Customer service expense _____ Cost of goods manufactured _____ Cost of goods sold .
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41) Assume the costs listed below are incurred by an Telcra Manufacturing. Place the letter for the appropriate value chain element on the line in front of each item. Letters may be used more than once or not at all. A. Research and development D. Marketing B. Design E. Distribution C. Production or purchases F. Customer service Costs: _____ Salaries for the engineers who.
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47) Compute the missing amounts. Miami Company Orlando Company Sales $200,000 (D) Cost of Goods Sold    Beginning Inventory (A) 60,000    Purchases and Freight-In 118,000 (E)    Cost of goods available for sale (B) 180,000    Ending Inventory 4,000 4,000    Cost of goods sold 120,000 (F) Gross Margin 80,000 224,000 Selling and Administrative Expenses (C) 170,000 Operating Income 24,000 (G) .
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