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If the volume of production is increased over the level planned,the cost per unit would be expected to:


A) Decrease for fixed costs and remain unchanged for variable costs.
B) Remain unchanged for fixed costs and increase for variable costs.
C) Decrease for fixed costs and increase for variable costs.
D) Increase for fixed costs and increase for variable costs.

E) B) and C)
F) A) and D)

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The range of the cost driver in which the actual value of the cost driver is expected to fall is called the:


A) Actual cost range.
B) Driver range.
C) Activity range.
D) Expected cost range.
E) Relevant Range.

F) A) and E)
G) C) and E)

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Consider the following for Franklin Street Manufacturing: Consider the following for Franklin Street Manufacturing: What are the cost of goods manufactured and cost of goods sold? A) A B) B C) C D) D COGM = $900 + $350 = $1,250 COGS = $1,250 - $685 = $565 What are the cost of goods manufactured and cost of goods sold? Consider the following for Franklin Street Manufacturing: What are the cost of goods manufactured and cost of goods sold? A) A B) B C) C D) D COGM = $900 + $350 = $1,250 COGS = $1,250 - $685 = $565


A) A
B) B
C) C
D) D
COGM = $900 + $350 = $1,250
COGS = $1,250 - $685 = $565

E) All of the above
F) None of the above

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The following information was taken from the accounting records of Elliott Manufacturing Corp.Unfortunately,some of the data were destroyed by a computer malfunction. The following information was taken from the accounting records of Elliott Manufacturing Corp.Unfortunately,some of the data were destroyed by a computer malfunction. Cost of goods manufactured is calculated to be: A) $32,000. B) $30,000. C) $33,000. D) $38,000. E) $27,000. Cost of goods manufactured is calculated to be:


A) $32,000.
B) $30,000.
C) $33,000.
D) $38,000.
E) $27,000.

F) D) and E)
G) B) and C)

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Furniture Co.incurred the following costs during 2010: Furniture Co.incurred the following costs during 2010: What was the amount of direct materials and direct labor used for the year? A) A B) B C) C D) D = Labor + $115,000 = $240,000;Labor = $125,000.Materials + $125,000 = $210,000 = Prime Costs.Materials = $85,000 What was the amount of direct materials and direct labor used for the year? Furniture Co.incurred the following costs during 2010: What was the amount of direct materials and direct labor used for the year? A) A B) B C) C D) D = Labor + $115,000 = $240,000;Labor = $125,000.Materials + $125,000 = $210,000 = Prime Costs.Materials = $85,000


A) A
B) B
C) C
D) D
= Labor + $115,000 = $240,000;Labor = $125,000.Materials + $125,000 = $210,000 = Prime Costs.Materials = $85,000

E) B) and C)
F) All of the above

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The following information applies to the Johnson Tools Company for the year ended December 31,2010:

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Required:Prepare a statement...

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Woodcarving Co.incurred the following costs during 2010: Woodcarving Co.incurred the following costs during 2010: What was the amount of direct materials and direct labor used for the year? A) A B) B C) C D) D = Labor + $315,000 = $460,000;Labor = $145,000.Materials + $145,000 = $390,000 = Prime Costs.Materials = $245,000 What was the amount of direct materials and direct labor used for the year? Woodcarving Co.incurred the following costs during 2010: What was the amount of direct materials and direct labor used for the year? A) A B) B C) C D) D = Labor + $315,000 = $460,000;Labor = $145,000.Materials + $145,000 = $390,000 = Prime Costs.Materials = $245,000


A) A
B) B
C) C
D) D
= Labor + $315,000 = $460,000;Labor = $145,000.Materials + $145,000 = $390,000 = Prime Costs.Materials = $245,000

E) C) and D)
F) B) and D)

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Manufacturing firms use which of the following three inventory accounts?


A) Materials,Work-in-process,Transferred-out.
B) Materials,Work-in-process,Finished goods.
C) Materials,Finished goods,Transferred out.
D) Work-in-process,Finished goods,Transferred-out.

E) A) and B)
F) A) and C)

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Dave's Lighting Inc.produces lamps.During 2010,the company incurred the following costs:

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Inventories for the year wer...

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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:


A) Prime costs.
B) Conversion costs.
C) Variable production costs.
D) Factory overhead.

E) A) and B)
F) None of the above

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Assume the following information pertaining to Cub Company: Assume the following information pertaining to Cub Company: Factory overhead is calculated to be: A) $110,000. B) $136,000. C) $111,000. D) $84,000. E) $112,000. Factory overhead is calculated to be:


A) $110,000.
B) $136,000.
C) $111,000.
D) $84,000.
E) $112,000.

F) A) and B)
G) A) and C)

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The following data pertains to Lam Co.'s manufacturing operations: The following data pertains to Lam Co.'s manufacturing operations: Additional information for the month of April: Overhead is applied at $10 per direct labor hour. For the month of April,prime cost incurred was: A) $75,000. B) $69,000. C) $45,000. D) $39,000. = $75,000 = Material (($18,000 + 42,000-15,000) = $45,000) plus Direct labor of $30,000 Additional information for the month of April: The following data pertains to Lam Co.'s manufacturing operations: Additional information for the month of April: Overhead is applied at $10 per direct labor hour. For the month of April,prime cost incurred was: A) $75,000. B) $69,000. C) $45,000. D) $39,000. = $75,000 = Material (($18,000 + 42,000-15,000) = $45,000) plus Direct labor of $30,000 Overhead is applied at $10 per direct labor hour. For the month of April,prime cost incurred was:


A) $75,000.
B) $69,000.
C) $45,000.
D) $39,000.
= $75,000 = Material (($18,000 + 42,000-15,000) = $45,000) plus Direct labor of $30,000

E) B) and D)
F) All of the above

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Jeffrey's Bottling Co.incurred the following costs during 2010: Jeffrey's Bottling Co.incurred the following costs during 2010: If direct materials cost was $140,000 in 2010,what was the conversion cost for year 2010? A) $255,000 B) $240,000 C) $215,000 D) $235,000 Direct Labor Cost = $220,000 - $140,000 = $80,000 Conversion Cost = $80,000 + $175,000 = $255,000 If direct materials cost was $140,000 in 2010,what was the conversion cost for year 2010?


A) $255,000
B) $240,000
C) $215,000
D) $235,000
Direct Labor Cost = $220,000 - $140,000 = $80,000
Conversion Cost = $80,000 + $175,000 = $255,000

E) A) and C)
F) A) and B)

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Factory overhead costs for a given period were 2 times as much as the direct material costs.Prime costs totaled $8,000.Conversion costs totaled $11,350.What are the direct labor costs for the period?


A) $4,650.
B) $3,560.
C) $4,200.
D) $3,860.
$11,350 = Direct Labor Costs + Factory Overhead Costs
Direct Labor Costs = $8,000 - Direct Materials Costs
Factory Overhead Costs = 2(Direct Materials Costs)
Solve for Direct Materials Costs via substitution:
$11,350 = ($8,000 - Direct Materials Costs) + 2(Direct Materials Costs)
Direct Materials Costs = $3,350
Direct Labor Costs = $8,000 - $3,350 = $4,650

E) A) and B)
F) A) and C)

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The following information applies to the General Lawnmower Company for the year ended December 31,2010:

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blured image
Required:Prepare a statement...

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The income statement for a manufacturing company includes:


A) Indirect Labor,Factory Overhead,and Total Manufacturing Cost.
B) Total Manufacturing Cost and Cost of Goods Sold.
C) Indirect Materials,Factory Overhead,and Cost of Goods Manufactured.
D) Indirect Labor,Indirect Materials and Cost of Goods Sold.

E) None of the above
F) All of the above

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A manager of a large retail firm is interested in knowing what the company's product costs are.Which of the following would be considered a product cost for the manager's company?


A) Direct materials.
B) Direct labor.
C) Factory overhead.
D) Transportation costs paid by the retailer to transport the purchased product to its distribution location.

E) A) and C)
F) None of the above

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Which one of the following is not a type of cost driver?


A) Structural cost driver.
B) Executional cost driver.
C) Volume-Based cost driver.
D) Differential cost driver.
E) Activity-Based cost driver.

F) A) and D)
G) A) and C)

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The following data pertains to Lam Co.'s manufacturing operations: The following data pertains to Lam Co.'s manufacturing operations: Additional information for the month of April: Overhead is applied at $10 per direct labor hour. For the month of April,cost of goods manufactured was: A) $118,000. B) $115,000. C) $112,000. D) $109,000. $118,000 = $9,000 + ($42,000 + $18,000 - $15,000) + $30,000 + $40,000 - $6,000 Overhead incurred = overhead applied = ($30,000/$7.50) x $10 = $40,000 Additional information for the month of April: The following data pertains to Lam Co.'s manufacturing operations: Additional information for the month of April: Overhead is applied at $10 per direct labor hour. For the month of April,cost of goods manufactured was: A) $118,000. B) $115,000. C) $112,000. D) $109,000. $118,000 = $9,000 + ($42,000 + $18,000 - $15,000) + $30,000 + $40,000 - $6,000 Overhead incurred = overhead applied = ($30,000/$7.50) x $10 = $40,000 Overhead is applied at $10 per direct labor hour. For the month of April,cost of goods manufactured was:


A) $118,000.
B) $115,000.
C) $112,000.
D) $109,000.
$118,000 = $9,000 + ($42,000 + $18,000 - $15,000) + $30,000 + $40,000 - $6,000
Overhead incurred = overhead applied = ($30,000/$7.50) x $10 = $40,000

E) B) and D)
F) C) and D)

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Fashionaire Company produces children's clothing.During 2010,the company incurred the following costs: Fashionaire Company produces children's clothing.During 2010,the company incurred the following costs: Inventories for the year were: Required: Prepare a statement of cost of goods manufactured and cost of goods sold. Inventories for the year were: Fashionaire Company produces children's clothing.During 2010,the company incurred the following costs: Inventories for the year were: Required: Prepare a statement of cost of goods manufactured and cost of goods sold. Required: Prepare a statement of cost of goods manufactured and cost of goods sold.

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