85. Cheboygan Company has the following unit costs:
Cheboygan produced and sold 10,000 units. If the product sells for $100, what is the operating
profit under full absorption costing?
86. Cheboygan Company has the following unit costs:
Cheboygan produced and sold 10,000 units. If the product sells for $100, what is the operating
profit using a contribution margin income statement?
87. Which of the following is not a name for indirect resources?
88. Which of the following should be considered part of a manufacturing company’s direct
labor cost?
89.
The variable cost of goods sold is:
90.
The absorption cost of goods sold is:
91.
The variable operating income is:
92.
The absorption operating income is:
93.
The variable ending inventory is:
94.
The absorption ending inventory is:
95.
The difference between the variable ending inventory cost and the absorption ending inventory
cost is:
96. Absorption costing measures contribution to profit as:
97. The corporate controller’s salary would be considered a(n):
98. The costs of direct materials are classified as:
99. Manufacturing overhead:
100. The three basic elements of manufacturing cost are direct materials, direct labor, and:
101. Prime cost consists of direct materials combined with:
102. Which terms below correctly describe the cost of the black paint used to paint the dots on
a pair of dice?
103. The cost of fire insurance for a manufacturing plant is generally considered to be a:
104. An example of a period cost is:
105. Transportation costs incurred by a manufacturing company to ship its product to its
customers would be classified as which of the following?
106. Micro Computer Company has set up a toll-free telephone line for customer inquiries
regarding computer hardware produced by the company. The cost of this toll-free line would be
classified as which of the following?
107. The following information is available for the Netland Consulting Company for the fiscal
year ended December 31.
Required:
(a) Compute the cost of services sold.
(b) Compute the total marketing and administrative costs.
(c) Compute net income.
108. The following information is available for the Ridgedale Manufacturing Company for the
fiscal year ended December 31.
Required:
(a) Compute the cost of goods sold.
(b) Compute the total marketing and administrative costs.
(c) Compute net income.
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109. The following information is available for the Roberts Retail Store for the fiscal year ended
December 31.
Required:
(a) Prepare a cost of goods sold statement for Roberts Retail Store.
(b) Compute the gross margin for the fiscal year ended December 31.
110. Required:
For each of the following costs incurred in a manufacturing company, indicate whether the costs
are (a) fixed or variable and (b) product costs or period costs.