129. Figure 1-3.
Bartlow, Inc. had the following Income Statement for the month of May.
Sales Revenue
$428,000
Cost of Goods Sold
205,440
Gross Margin
222,560
Less:
Selling Expenses
81,320
Administrative Expenses
72,760
Operating Income
$ 68,480
Refer to Figure 1-3: What was the gross margin percent?
130. Figure 1-3.
Bartlow, Inc. had the following Income Statement for the month of May.
Sales Revenue
$428,000
Cost of Goods Sold
205,440
Gross Margin
222,560
Less:
Selling Expenses
81,320
Administrative Expenses
72,760
Operating Income
$ 68,480
Refer to Figure 1-3: What was the selling expense percent?
131. Figure 1-3.
Bartlow, Inc. had the following Income Statement for the month of May.
Sales Revenue
$428,000
Cost of Goods Sold
205,440
Gross Margin
222,560
Less:
Selling Expenses
81,320
Administrative Expenses
72,760
Operating Income
$ 68,480
Refer to Figure 1-3: What was the administrative expense percent?
132. Figure 1-3.
Bartlow, Inc. had the following Income Statement for the month of May.
Sales Revenue
$428,000
Cost of Goods Sold
205,440
Gross Margin
222,560
Less:
Selling Expenses
81,320
Administrative Expenses
72,760
Operating Income
$ 68,480
Refer to Figure 1-3: What was the operating income percent?
133. Figure 1-4.
Junko Company makes typewriters. During the year Junko manufactured 97,000 typewriters. Finished Goods
Inventory had the following units on hand:
January 1
1,260
December 31
1,040
Refer to Figure 1-4: How many typewriters did Junko sell during the year?
134. Figure 1-4.
Junko Company makes typewriters. During the year Junko manufactured 97,000 typewriters. Finished Goods
Inventory had the following units on hand:
January 1
1,260
December 31
1,040
Refer to Figure 1-4: If each typewriter had a per-unit product cost of $112, what was the cost of Finished Goods Inventory on December 31?
135. Figure 1-4.
Junko Company makes typewriters. During the year Junko manufactured 97,000 typewriters. Finished Goods
Inventory had the following units on hand:
January 1
1,260
December 31
1,040
Refer to Figure 1-4: If each typewriter has a per-unit product cost of $112, what was the Cost of Goods Sold last year?
136. Figure 1-5.
In July, Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000.
Overhead totaled $32,000 for the month. Information on inventories was as follows:
July 1
Materials
$6,200
Work in Process
$ 700
Finished Goods
$3,300
Refer to Figure 1-5: What was the cost of direct materials used in July?
137. Figure 1-5.
In July, Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000.
Overhead totaled $32,000 for the month. Information on inventories was as follows:
July 1
Materials
$6,200
Work in Process
$ 700
Finished Goods
$3,300
Refer to Figure 1-5: What were the total manufacturing costs in July?
138. Figure 1-5.
In July, Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000.
Overhead totaled $32,000 for the month. Information on inventories was as follows:
July 1
Materials
$6,200
Work in Process
$ 700
Finished Goods
$3,300
Refer to Figure 1-5: What was the Cost of Goods Manufactured for July?
139. Figure 1-5.
In July, Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000.
Overhead totaled $32,000 for the month. Information on inventories was as follows:
July 1
Materials
$6,200
Work in Process
$ 700
Finished Goods
$3,300
Refer to Figure 1-5: What was the Cost of Goods Sold for July?
140. Figure 1-5.
In July, Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000.
Overhead totaled $32,000 for the month. Information on inventories was as follows:
July 1
Materials
$6,200
Work in Process
$ 700
Finished Goods
$3,300
Refer to Figure 1-5: If Econ Company sold 10,000 units during July and gross margin totaled $29,800, what was the sales price per unit?
141. Figure 1-6.
Seaview Company took the following data from their Income Statement at the end of the current year.
Per-unit product cost:
$30
Gross margin percentage:
40%
Selling and administrative expenses
$30,000
Operating Income
$10,000
Refer to Figure 1-6: What was Gross Margin for the year?
142. Figure 1-6.
Seaview Company took the following data from their Income Statement at the end of the current year.
Per-unit product cost:
$30
Gross margin percentage:
40%
Selling and administrative expenses
$30,000
Operating Income
$10,000
Refer to Figure 1-6: What was Cost of Goods Sold for the year?
143. Figure 1-6.
Seaview Company took the following data from their Income Statement at the end of the current year.
Per-unit product cost:
$30
Gross margin percentage:
40%
Selling and administrative expenses
$30,000
Operating Income
$10,000
Refer to Figure 1-6: How many units were sold during the year?
144. Figure 1-6.
Seaview Company took the following data from their Income Statement at the end of the current year.
Per-unit product cost:
$30
Gross margin percentage:
40%
Selling and administrative expenses
$30,000
Operating Income
$10,000
Refer to Figure 1-6: What was the sales price per unit?
145. Figure 1-7.
Gateway Company produces a product with the following per-unit costs:
Direct Materials
$11
Direct Labor
8
Overhead
15
Last year, Gateway produced and sold 750 units at a sales price of $68 each. Total selling and administrative expense was $22,000.
Refer to Figure 1-7: Prime cost per-unit was?
146. Figure 1-7.
Gateway Company produces a product with the following per-unit costs:
Direct Materials
$11
Direct Labor
8
Overhead
15
Last year, Gateway produced and sold 750 units at a sales price of $68 each. Total selling and administrative expense was $22,000.
Refer to Figure 1-7: Cost of Goods Sold last year was?
147. Figure 1-7.
Gateway Company produces a product with the following per-unit costs:
Direct Materials
$11
Direct Labor
8
Overhead
15
Last year, Gateway produced and sold 750 units at a sales price of $68 each. Total selling and administrative expense was $22,000.
Refer to Figure 1-7: Total operating income last year was?
148. Figure 1-8.
Last year Quest Company incurred the following costs:
Direct Materials:
$40,000
Direct Labor:
60,000
Overhead
90,000
Selling Expenses
24,000
Administrative Expenses
22,000
Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and
finished goods were zero.
Refer to Figure 1-8: Total period expense was?
149. Figure 1-8.
Last year Quest Company incurred the following costs:
Direct Materials:
$40,000
Direct Labor:
60,000
Overhead
90,000
Selling Expenses
24,000
Administrative Expenses
22,000
Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and
finished goods were zero.
Refer to Figure 1-8: Gross margin per-unit was?
150. Figure 1-8.
Last year Quest Company incurred the following costs:
Direct Materials:
$40,000
Direct Labor:
60,000
Overhead
90,000
Selling Expenses
24,000
Administrative Expenses
22,000
Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and
finished goods were zero.
Refer to Figure 1-8: Total produce costs were?
151. Figure 1-8.
Last year Quest Company incurred the following costs:
Direct Materials:
$40,000
Direct Labor:
60,000
Overhead
90,000
Selling Expenses
24,000
Administrative Expenses
22,000
Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and
finished goods were zero.
Refer to Figure 1-8: Conversion cost per unit was?
152. Cost is:
153. Price is not:
154. Assigning costs
155. An opportunity cost is:
156. Select the appropriate item for each of the definitions listed below.
1. number of units sold multiplied by product cost per
157. Select the appropriate definition for each of the items listed below.
per-unit conversion
per-unit cost of goods
3. (total manufacturing costs + work in process
158. Select the appropriate definition for each of the items listed below.
4. A benefit given up when one alternative is chosen over
5. A cost that stays the same regardless of changes in
159. Select the appropriate definition for each of the items listed below.
1. The cost of units finished but not sold at the end of the
Finished goods
2. The cost of units unfinished at the end of the current
Total
Work in process
Cost of goods
4. (direct materials + direct labor + overhead) +/- the
change in work in process inventory from the beginning
Cost of goods
160. Select the appropriate definition of each of the items listed below.
1. The difference between sales revenue and cost of
2. The total cost of goods completed during the
Cost of goods
5. Gross margin – selling and administrative
161. Ashland Company, maker of kitchen cabinets, incurred the following costs during the current year:
Required: Classify each cost as either a product or period cost.
Product
Period
1.
Depreciation on automobiles used by the sales staff.
2.
Salary of Ashland’s Chief Executive Officer
3.
Glue used in the production process
4.
Supplies for factory washroom
5.
Research and development costs
6.
Property taxes on factory building
7.
Salary of company controller
8.
Depreciation on furniture in factory lunchroom
9.
Cost of lubricating machinery
10.
Wood used in production process
Product
Period
1.
Depreciation on automobiles used by the sales staff.
X
2.
Salary of Ashland’s Chief Executive Officer
X
3.
Glue used in the production process
X
4.
Supplies for factory washroom
X
5.
Research and development costs
X
6.
Property taxes on factory building
X
7.
Salary of company controller
X
8.
Depreciation on furniture in factory lunchroom
X
9.
Cost of lubricating machinery
X
10.
Wood used in production process
X
162. Arcadia Company who manufactures recreational vehicles, incurred the following costs during the current
year.
Required:Classify each cost using the table format given below:
Product Cost
Period Cost
Direct
Materials
Direct
Labor
Overhead
Selling
Expense
Administrative
Expense
1.
Wages of general office personnel
2.
Cost of tires
3.
Factory supervisor’s salary
4.
Conference for marketing personnel
5.
Factory security guards
6.
Research and development
7.
Assembly line workers
8.
Company receptionist
9.
Advertising cost
10.
Cost of shipping vehicles to
customers
Product Cost
Period Cost
Direct
Direct
Selling
Administrative
1.
Wages of general office personnel
X
2.
Cost of tires
X
3.
Factory supervisor’s salary
X
4.
Conference for marketing personnel
X
5.
Factory security guards
X
6.
Research and development
X
7.
Assembly line workers
X
8.
Company receptionist
X
9.
Advertising cost
X
Cost of shipping vehicles to
X
163. The Bayou company makes crab pots. Last month, direct materials costing $126,000 were put into
production. Direct labor of $78,000 was incurred and overhead equaled $84,000. Selling and administrative
expenses totaled $66,000 for the month and the company manufactured 3,000 crab pots.
Required:
1. Compute the per-unit product cost
2. Compute the per-unit prime cost
3. Compute the per-unit conversion cost
164. The Blanchett Company manufactures fishing rods. Last year, direct materials costing $516,000 were put
into production. Direct labor of $430,000 was incurred and overhead equaled $645,000. The company had
operating income for the year of $58,000 and manufactured and sold 86,000 fishing rods at a sales price of $21
per unit. Assume that there were no beginning or ending inventory balances in the Work in Process and
Finished Goods Inventory accounts.
Required:
1. Compute the per-unit product cost
2. Compute the per-unit prime cost
3. Compute the per-unit conversion cost
4. Compute the gross margin for the year
5. Compute the selling and administrative expenses for the year