36.
37.
Calculate the conversion costs from the following information:
Fixed manufacturing overhead
$2,000
Variable manufacturing overhead
1,000
Direct materials
2,500
Direct labor
1,500
38.
The corporate controller’s salary would be considered a(n):
39.
The costs of direct materials are classified as:
Conversion
cost
Manufacturing
cost
Prime
cost
A)
Yes
Yes
Yes
B)
No
No
No
C)
Yes
Yes
No
D)
No
Yes
Yes
40.
Grover Company has the following data for the production and sale of 2,000 units.
Sales price per unit
$800 per unit
Fixed costs:
Marketing and
administrative
$400,000 per
period
Manufacturing overhead
$200,000 per
period
Variable costs:
Marketing and
administrative
$50 per unit
Manufacturing overhead
$80 per unit
Direct labor
$100 per unit
Direct Materials
$200 per unit
What is the conversion cost per unit?
41.
Grover Company has the following data for the production and sale of 2,000 units.
Sales price per unit
$800 per unit
Fixed costs:
Marketing and
administrative
$400,000 per
period
Manufacturing overhead
$200,000 per
period
Variable costs:
Marketing and
administrative
$50 per unit
Manufacturing overhead
$80 per unit
Direct labor
$100 per unit
Direct Materials
$200 per unit
What is the prime cost per unit?
42.
Which one of the following costs is classified as a period cost? (CIA adapted)
43.
The following cost data for the month of May were taken from the records of the Terrence
Manufacturing Company: (CIA adapted)
Depreciation on factory equipment
$1,000
Depreciation on sales office
500
Advertising
7,000
Wages of production workers
28,000
Raw materials used
47,000
Sales salaries and commissions
10,000
Factory rent
2,000
Factory insurance
500
Materials handling
1,500
Administrative salaries
2,000
Based upon this information, the manufacturing cost incurred during the month was:
44.
Which of the following is not a name for indirect resources?
45.
Which of the following should be considered part of a manufacturing company’s direct
labor cost?
46.
Tulsa Company, (a merchandising Co.) has the following data pertaining to the year ended
December 31, 2016: (CPA adapted)
Purchases
$450,000
Beginning inventory
170,000
Ending inventory
210,000
Freight-in
50,000
Freight-out
75,000
What is the cost of goods sold for the year?
47.
The Shoal Company’s manufacturing costs for the third quarter of 2016 were as follows:
(CPA adapted)
Direct materials and direct labor
$700,000
Other variable manufacturing costs
100,000
Depreciation of factory building and
manufacturing equipment
80,000
Other fixed manufacturing costs
18,000
What amount should be considered product costs for external reporting purposes?
48.
The three basic elements of manufacturing cost are direct materials, direct labor, and:
49.
Prime cost consists of direct materials combined with:
50.
Classifying a cost as either direct or indirect depends upon
51.
The process of assigning indirect costs to products, services, people, business units, etc.,
is
52.
A ___________________ is any end to which a cost is assigned.
53.
54.
The beginning Work–in-Process inventory plus the total of the manufacturing costs
equals
55.
A product cost is deducted from revenue when
56.
The amount of direct materials issued to production is found by
57.
The beginning Finished Goods Inventory plus the cost of goods manufactured equals
58.
Direct labor would be part of the cost of the ending inventory for which of these
accounts?
59.
The Work-in-Process Inventory of the Model Fabricating Corp. was $3,000 higher on
December 31, 2016 than it was on January 1, 2016. This implies that in 2016:
60.
Which of the following is not a product cost under full-absorption costing?
61.
The term “gross margin” for a manufacturing firm refers to the excess of sales over: