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28. The three attributes of cost information include accuracy, timeliness, and:
29. When cost relationships are linear, total variable costs will vary in proportion to changes
in:
30. The term relevant range as used in cost accounting means the range over which:
31. If the volume of production is increased over the level planned, the cost per unit would be
expected to:
32. When production levels are expected to decline within a relevant range, what effects
would be anticipated with respect to each of the following?
Fixed Costs
per Unit Variable Costs
per Unit
A) increase no change
B) increase increase
C) no change no change
D) no change increase
33. Which of the following is normally considered to be a product cost?
34. The Gray Company has a staff of five clerks in its general accounting department. Three
clerks who work during the day perform sundry accounting tasks; the two clerks who work in the
evening are responsible for (1) collecting the cost data for the various jobs in process, (2)
verifying manufacturing material and labor reports, and (3) supplying production reports to the
supervisors by the next morning. The salaries of these two clerks who work at night should be
classified as:
35. A manufacturer of machinery currently produces equipment for a single client. The client
supplies all required raw material on a no-cost basis. The manufacturer contracts to complete
the desired units from this raw material. The total production costs incurred by the manufacturer
are correctly identified as:
36. Certain workers are assigned the task of unpacking production materials received from
suppliers. These workers place the material in a storage area pending subsequent use in the
production process. The labor cost of such workers is normally classified as:
37. Prime cost and conversion cost share what common element of total cost?
38. Conrad, Inc. recently lost a portion of its records in an office fire. The following
information was salvaged from the accounting records.
Cost of Goods Sold $65,000
Work-in-Process Inventory, Beginning 10,500
Work-in-Process Inventory, Ending 9,000
Selling and Administrative Expense 15,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning ?
Direct Materials Used ?
Factory Overhead Applied 12,000
Operating Income 14,000
Direct Materials Inventory, Beginning 11,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 60,000
Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The
CFO of Fisher, Inc. has asked you to recalculate the following accounts and to report to him by
the end of the day.
What is the amount of direct materials used?
39. Conrad, Inc. recently lost a portion of its records in an office fire. The following
information was salvaged from the accounting records.
Cost of Goods Sold $65,000
Work-in-Process Inventory, Beginning 10,500
Work-in-Process Inventory, Ending 9,000
Selling and Administrative Expense 15,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning ?
Direct Materials Used ?
Factory Overhead Applied 12,000
Operating Income 14,000
Direct Materials Inventory, Beginning 11,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 60,000
Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The
CFO of Fisher, Inc. has asked you to recalculate the following accounts and to report to him by
the end of the day.
What is the amount of direct materials purchased?
40. Conrad, Inc. recently lost a portion of its records in an office fire. The following
information was salvaged from the accounting records.
Cost of Goods Sold $65,000
Work-in-Process Inventory, Beginning 10,500
Work-in-Process Inventory, Ending 9,000
Selling and Administrative Expense 15,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning ?
Direct Materials Used ?
Factory Overhead Applied 12,000
Operating Income 14,000
Direct Materials Inventory, Beginning 11,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 60,000
Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The
CFO of Fisher, Inc. has asked you to recalculate the following accounts and to report to him by
the end of the day.
What is the amount in the finished goods inventory at the beginning of the year?
41. Conrad, Inc. recently lost a portion of its records in an office fire. The following
information was salvaged from the accounting records.
Cost of Goods Sold $65,000
Work-in-Process Inventory, Beginning 10,500
Work-in-Process Inventory, Ending 9,000
Selling and Administrative Expense 15,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning ?
Direct Materials Used ?
Factory Overhead Applied 12,000
Operating Income 14,000
Direct Materials Inventory, Beginning 11,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 60,000
Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The
CFO of Fisher, Inc. has asked you to recalculate the following accounts and to report to him by
the end of the day.
What is the amount of total manufacturing cost?
42. Conrad, Inc. recently lost a portion of its records in an office fire. The following
information was salvaged from the accounting records.
Cost of Goods Sold $65,000
Work-in-Process Inventory, Beginning 10,500
Work-in-Process Inventory, Ending 9,000
Selling and Administrative Expense 15,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning ?
Direct Materials Used ?
Factory Overhead Applied 12,000
Operating Income 14,000
Direct Materials Inventory, Beginning 11,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 60,000
Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The
CFO of Fisher, Inc. has asked you to recalculate the following accounts and to report to him by
the end of the day.
What is the amount of net sales?
43. Tierney Construction, Inc. recently lost a portion of its financial records in an office theft.
The following accounting information remained in the office files:
Cost of goods sold $80,000
Work in process inventory, January 1, 2013 18,500
Work in process inventory, December 31, 2013 14,500
Selling and Administrative Expenses 16,000
Net Income 30,000
Factory overhead 20,000
Direct materials inventory, January 1, 2013 26,000
Direct materials inventory, December 31, 2013 14,000
Cost of goods manufactured 98,000
Finished goods inventory, January 1, 2013 31,000
Direct labor cost incurred during the period amounted to 2.5 times the factory overhead. The
CFO of Tierney Construction, Inc. has asked you to recalculate the following accounts and to
report to him by the end of tomorrow.
What should be the amount of direct materials used?
44. Tierney Construction, Inc. recently lost a portion of its financial records in an office theft.
The following accounting information remained in the office files:
Cost of goods sold $80,000
Work in process inventory, January 1, 2013 18,500
Work in process inventory, December 31, 2013 14,500
Selling and Administrative Expenses 16,000
Net Income 30,000
Factory overhead 20,000
Direct materials inventory, January 1, 2013 26,000
Direct materials inventory, December 31, 2013 14,000
Cost of goods manufactured 98,000
Finished goods inventory, January 1, 2013 31,000
Direct labor cost incurred during the period amounted to 2.5 times the factory overhead. The
CFO of Tierney Construction, Inc. has asked you to recalculate the following accounts and to
report to him by the end of tomorrow.
What should be the amount of direct materials purchased?
45. Tierney Construction, Inc. recently lost a portion of its financial records in an office theft.
The following accounting information remained in the office files:
Cost of goods sold $80,000
Work in process inventory, January 1, 2013 18,500
Work in process inventory, December 31, 2013 14,500
Selling and Administrative Expenses 16,000
Net Income 30,000
Factory overhead 20,000
Direct materials inventory, January 1, 2013 26,000
Direct materials inventory, December 31, 2013 14,000
Cost of goods manufactured 98,000
Finished goods inventory, January 1, 2013 31,000
Direct labor cost incurred during the period amounted to 2.5 times the factory overhead. The
CFO of Tierney Construction, Inc. has asked you to recalculate the following accounts and to
report to him by the end of tomorrow.
What should be the amount in the finished goods inventory at December 31, 2013?
46. Tierney Construction, Inc. recently lost a portion of its financial records in an office theft.
The following accounting information remained in the office files:
Cost of goods sold $80,000
Work in process inventory, January 1, 2013 18,500
Work in process inventory, December 31, 2013 14,500
Selling and Administrative Expenses 16,000
Net Income 30,000
Factory overhead 20,000
Direct materials inventory, January 1, 2013 26,000
Direct materials inventory, December 31, 2013 14,000
Cost of goods manufactured 98,000
Finished goods inventory, January 1, 2013 31,000
Direct labor cost incurred during the period amounted to 2.5 times the factory overhead. The
CFO of Tierney Construction, Inc. has asked you to recalculate the following accounts and to
report to him by the end of tomorrow.
What should be the amount of total manufacturing cost?
47. Stephenson Company's computer system recently crashed, erasing much of the
Company's financial data. The following accounting information was discovered soon afterwards
on the CFO's back-up computer disk.
Cost of Goods Sold $380,000
Work-in-Process Inventory, Beginning 30,000
Work-in-Process Inventory, Ending 40,000
Selling and Administrative Expense 50,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning ?
Direct Materials Purchased 171,000
Factory Overhead Applied 112,000
Operating Income 22,000
Direct Materials Inventory, Beginning 18,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 340,000
Direct Labor 55,000
The CFO of Stephenson Company has asked you to recalculate the following accounts and
report to him by week's end.
What should be the amount of direct materials used?
48. Stephenson Company's computer system recently crashed, erasing much of the
Company's financial data. The following accounting information was discovered soon afterwards
on the CFO's back-up computer disk.
Cost of Goods Sold $380,000
Work-in-Process Inventory, Beginning 30,000
Work-in-Process Inventory, Ending 40,000
Selling and Administrative Expense 50,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning ?
Direct Materials Purchased 171,000
Factory Overhead Applied 112,000
Operating Income 22,000
Direct Materials Inventory, Beginning 18,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 340,000
Direct Labor 55,000
The CFO of Stephenson Company has asked you to recalculate the following accounts and
report to him by week's end.
What should be the amount of direct materials available for use?
49. Stephenson Company's computer system recently crashed, erasing much of the
Company's financial data. The following accounting information was discovered soon afterwards
on the CFO's back-up computer disk.
Cost of Goods Sold $380,000
Work-in-Process Inventory, Beginning 30,000
Work-in-Process Inventory, Ending 40,000
Selling and Administrative Expense 50,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning ?
Direct Materials Purchased 171,000
Factory Overhead Applied 112,000
Operating Income 22,000
Direct Materials Inventory, Beginning 18,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 340,000
Direct Labor 55,000
The CFO of Stephenson Company has asked you to recalculate the following accounts and
report to him by week's end.
What should be the amount in the finished goods inventory at the beginning of the year?
50. Stephenson Company's computer system recently crashed, erasing much of the
Company's financial data. The following accounting information was discovered soon afterwards
on the CFO's back-up computer disk.
Cost of Goods Sold $380,000
Work-in-Process Inventory, Beginning 30,000
Work-in-Process Inventory, Ending 40,000
Selling and Administrative Expense 50,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning ?
Direct Materials Purchased 171,000
Factory Overhead Applied 112,000
Operating Income 22,000
Direct Materials Inventory, Beginning 18,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 340,000
Direct Labor 55,000
The CFO of Stephenson Company has asked you to recalculate the following accounts and
report to him by week's end.
What should be the amount of total manufacturing cost?
51. If finished goods inventory has increased during the period, which of the following is
always true?
52. Manufacturing firms use which of the following three inventory accounts?
