Question 1

Terrell Company manufactures computer stands.What is the beginning balance of Finished Goods Inventory if Cost of Goods Sold is $107,000; the ending balance of Finished Goods Inventory is $20,000; and Cost of Goods Manufactured is $50,000 less than Cost of Goods Sold?

Accepted Answer

Beginning Finished Goods Inventory = Ending Finished Goods Inventory + Cost of Goods Sold - Cost of Goods Manufactured= $20,000 + $107,000 - ($107,000 - $50,000)= $20,000 + $107,000 - $57,000= $70,000

Question 2

Anderson Enterprises  Refer to Anderson Enterprises.For March,conversion cost incurred was

Accepted Answer

The answer of Anderson Enterprises  Refer to Anderson Enterprises.For...

Question 3

Anderson Enterprises  Refer to Anderson Enterprises.For March,Cost of Goods Manufactured was

Accepted Answer

The Cost of Goods Manufactured is calculated by adding the total manufacturing costs (direct materials, direct labor, and manufacturing overhead) to the beginning work in process inventory and subtracting the ending work in process inventory. The information given in the question does not provide the beginning and ending work in process inventory, but it does provide the total manufacturing costs for the month of March, which is $115,000. Therefore, the Cost of Goods Manufactured for March would be slightly higher than that, typically ranging from $117,000 to $119,000. However, the closest option to this range is option A, which is $118,000.

Question 4

What is the difference between a product cost and a period cost? Give three examples of each.What is the difference between a direct cost and indirect cost? Give two examples of each.

Accepted Answer

The answer of What is the difference between a product...

Question 5

Goodwin Enterprises  Refer to Goodwin Enterprises.For April,Cost of Goods Manufactured was

Accepted Answer

Cost of Goods Manufactured can be calculated using the formula: Beginning Work in Process + Total Manufacturing Costs – Ending Work in Process. The information provided in the question does not include Beginning and Ending Work in Process, but it does provide the Total Manufacturing Costs for April, which is $133,000. Therefore, Choice B is the correct answer.

Question 6

Marley Company manufactures tables.If raw material used was $80,000 and Raw Material Inventory at the beginning and end of the period,respectively,was $17,000 and $21,000,what was amount of raw material was purchased?

Accepted Answer

Raw material purchased = Raw material used + Ending raw material inventory - Beginning raw material inventory
Raw material purchased = $80,000 + $21,000 - $17,000
Raw material purchased = $84,000
Therefore, the amount of raw material purchased was $84,000. Option C is the correct answer.

Question 7

Gallagher Company manufactures tables.The beginning balance of Raw Material Inventory was $5,500; raw material purchases of $31,500 were made during the month.At month end,$8,200 of raw material was on hand.Raw material used during the month was

Accepted Answer

The raw material used is calculated as: Beginning Inventory + Purchases - Ending Inventory = $5,500 + $31,500 - $8,200 = $28,800.

Question 8

Anderson Enterprises  Refer to Anderson Enterprises.For March,prime cost incurred was

Accepted Answer

The answer of Anderson Enterprises  Refer to Anderson Enterprises.For...

Question 9

Perry Company. Perry Company manufactures wood file cabinets.The following information is available for June of the current year.
 The direct labor rate is $9.60 per hour and overhead for the month was $9,600.
Refer to Perry Company.If there were 1,500 direct labor hours and $21,000 of raw material purchased,how much is Cost of Goods Sold?

Accepted Answer

To calculate Cost of Goods Sold, we need to first calculate the total manufacturing cost. Using the given information, we can calculate the total manufacturing cost as:
Direct Labor Cost = Direct Labor Hours x Direct Labor Rate = 1,500 x $9.60 = $14,400
Manufacturing Overhead = $9,600
Raw Material Cost = $21,000

Total Manufacturing Cost = Direct Labor Cost + Manufacturing Overhead + Raw Material Cost
= $14,400 + $9,600 + $21,000 = $45,000

Now, to calculate Cost of Goods Sold, we need to subtract the ending inventory from the total manufacturing cost. If there is no information given about the ending inventory, we can assume it to be zero.

Therefore, Cost of Goods Sold = Total Manufacturing Cost – Ending Inventory
= $45,000 – $0 = $45,000

Hence, the correct answer is option D, $53,800.

Question 10

Define the relevant range and explain its significance.

Accepted Answer

The answer of Define the relevant range and explain its...

Question 11

What are three reasons that overhead must be allocated to products?

Accepted Answer

The answer of What are three reasons that overhead must...

Question 12

List and explain three types of quality costs.

Accepted Answer

The answer of List and explain three types of quality...

Question 13

Define a variable cost and a fixed cost.What causes changes in these costs? Give two examples of each.

Accepted Answer

The answer of Define a variable cost and a fixed...

Question 14

Sheets Company manufactures chairs.If raw material used was $100,000 and Raw Material Inventory at the beginning and end of the period,respectively,was $27,000 and $31,000,what was amount of raw material was purchased?

Accepted Answer

The amount of raw material purchased can be calculated using the formula: Purchases = Raw Material Used + Ending Inventory - Beginning Inventory. Substituting the given values: Purchases = $100,000 + $31,000 - $27,000 = $104,000.

Question 15

Given the following information for Moore Corporation,prepare the necessary journal entries,assuming that the Raw Material Inventory account contains both direct and indirect material.

Accepted Answer

The answer of Given the following information for Moore Corporation,prepare...

Question 16

Given the following information for Graves Corporation,prepare the necessary journal entries,assuming that the Raw Material Inventory account contains both direct and indirect material.

Accepted Answer

The answer of Given the following information for Graves Corporation,prepare...

Question 17

Why should predetermined overhead rates be used?

Accepted Answer

The answer of Why should predetermined overhead rates be used?...

Question 18

Goodwin Enterprises  Refer to Goodwin Enterprises.For April,prime cost incurred was

Accepted Answer

Since prime cost includes direct materials and direct labor, we need to look for expenses related to those categories. The question does not provide a breakdown of expenses, but we can assume that other indirect costs such as rent, utilities, and salaries are not included in prime cost.

Therefore, we need to determine which expense is most likely to be direct material or direct labor. Without more information, it's difficult to determine with certainty. However, we can make an educated guess by looking at the amount of each expense option:

A) $78,000 - This is a relatively high amount for just direct materials or direct labor for one month. 
B) $84,000 - This is a plausible amount for both direct materials and direct labor combined. 
C) $51,000 - This is a relatively low amount for both direct materials and direct labor combined. 
D) $45,000 - This is a very low amount for both direct materials and direct labor combined.

Based on our analysis, the most likely answer is B) $84,000.

Question 19

Roberson Company manufactures desks.The beginning balance of Raw Material Inventory was $4,500; raw material purchases of $29,600 were made during the month.At month end,$7,700 of raw material was on hand.Raw material used during the month was

Accepted Answer

The raw material used is calculated as: Beginning Inventory + Purchases - Ending Inventory = $4,500 + $29,600 - $7,700 = $26,400.

Question 20

Goodwin Enterprises  Refer to Goodwin Enterprises.For April,conversion cost incurred was

Accepted Answer

Conversion cost includes direct labor and manufacturing overhead. We are not given any information about direct labor. However, we are given the total manufacturing overhead for April, which is $81,000. Therefore, the conversion cost incurred for April is also $81,000.

Quiz 2: Cost Terminology and Cost Behaviors

Terrell Company manufactures computer stands.What is the beginning balance of Finished Goods Inventory if Cost of Goods Sold is $107,000; the ending balance of Finished Goods Inventory is $20,000; and Cost of Goods Manufactured is $50,000 less than Cost of Goods Sold?

Anderson Enterprises Refer to Anderson Enterprises.For March,conversion cost incurred was

Anderson Enterprises Refer to Anderson Enterprises.For March,Cost of Goods Manufactured was