Question 1

Given the following items listed below, identify on which type(s) of business financial statements these items would normally appear , More than one selection may be included in an answer.
-Operating Income

Accepted Answer

Operating income appears on the income statements of all types of businesses, including service providers, merchandisers, and manufacturers, as it represents the profit from regular business operations.

Question 2

Given the following items listed below, identify on which type(s) of business financial statements these items would normally appear , More than one selection may be included in an answer.
-Work-In-Process Inventory

Accepted Answer

Work-In-Process Inventory typically appears on the financial statements of a Manufacturer, as it represents goods that are in the process of being produced but are not yet complete.

Question 3

Given the following items listed below, identify on which type(s) of business financial statements these items would normally appear , More than one selection may be included in an answer.
-Merchandise Inventory

Accepted Answer

Merchandise Inventory is an asset account that is used to track the inventory of a merchandiser.

Question 4

The following information is included below for Golden Gadgets:  Compute the Gross Margin for Golden Gadgets.

Accepted Answer

The answer of The following information is included below for...

Question 5

Yogo Factory reports the following costs and expenses for the month of August  What is the total "Manufacturing Overhead" for Yogo Factory for August?

Accepted Answer

The answer of Yogo Factory reports the following costs and...

Question 6

Winter Widgets reported the following costs and expenses for the month of December:  What is the total "Manufacturing Cost" for Winter Widgets for December?

Accepted Answer

The answer of Winter Widgets reported the following costs and...

Question 7

Sierra Ski, Inc. reported the following costs and expenses for the month of January:  What are the amounts for "Prime Costs" and "Conversion Costs" for Sierra Ski, Inc. for January?

Accepted Answer

The answer of Sierra Ski, Inc. reported the following costs...

Question 8

Buford is interested in raising money for charity by opening his own custom lemonade shop. Instead of buying the lemonade premixed, he plans to make his lemonade from scratch in the shop. He has questions about the reporting of the following costs and expenses, as to whether they are product costs or period costs so that he can properly identify the costs to make one eight-ounce cup of lemonade and then, properly price the cup of lemonade to make a profit. Identify each of the costs as either a "product" cost or a "period" cost to help Buford.

Accepted Answer

The answer of Buford is interested in raising money for...

Question 9

Skye Corporation reported the following costs and expenses for the month of May, which need to be classified as either a direct cost or an indirect cost:  Classify these costs as either "direct" costs or "indirect" costs for Skye Corporation?

Accepted Answer

The answer of Skye Corporation reported the following costs and...

Question 10

Tristate Table Manufacturers incurred the following costs for the current month:  Identify the costs shown above as either variable costs or fixed costs.

Accepted Answer

The answer of Tristate Table Manufacturers incurred the following costs...

Question 11

Determine the missing amounts in the following set of data:

Accepted Answer

The answer of Determine the missing amounts in the following...

Question 12

The following costs were incurred by Birdie's Bikes for the month of July:  Determine the total variable costs and total fixed costs for Birdie's Bikes for the month of July.

Accepted Answer

The answer of The following costs were incurred by Birdie's...

Question 13

Identify the following statements as correct or incorrect regarding cost behavior. 
1) Variable costs change in total and per unit when a given level of activity level changes. 
2) Fixed costs remain the same in total but change inversely with a given change in an activity level. 
3) The relevant range relates to all levels of activity even if it extends beyond the current capacity of the company. 
4) Variable costs and fixed costs will always change on a per unit basis when the activity level changes.

Accepted Answer

The answer of Identify the following statements as correct or...

Question 14

If Meyers Manufacturing currently incurs a variable cost per unit of $19.00 and a fixed cost per unit of $14.00 when it produces 1,000 units, what will the unit variable cost and unit fixed cost be when it produces $10,000 units?

Accepted Answer

The answer of If Meyers Manufacturing currently incurs a variable...

Question 15

If Ciaxis Inc. has $0 in its Direct Materials Inventory (beginning), and $9,300 in its Direct Materials Inventory (ending), and purchased $28,400 of direct materials during the period, what amount of direct materials was used in production by Ciaxis during the period?

Accepted Answer

The answer of If Ciaxis Inc. has $0 in its...

Question 16

If Work-In-Process Inventory has a balance of $4,200 at the beginning of the month, direct materials used in production totaled $10,000, direct labor used in production totaled $15,000, and manufacturing overhead applied totaled $3,700, what is the ending balance in the Work-In-Process Inventory at the end of the month, if none of the units are completed and transferred to finished goods inventory?

Accepted Answer

The answer of If Work-In-Process Inventory has a balance of...

Question 17

Miriad Manufacturers has the following information for the month of September:  Determine the Cost of Goods Manufactured for Miriad Manufacturers for September.

Accepted Answer

The answer of Miriad Manufacturers has the following information for...

Question 18

Crescent Computers, Inc. has the following information for the month of October:  Determine the Cost of Goods Sold for Crescent Computers for October.

Accepted Answer

The answer of Crescent Computers, Inc. has the following information...

Question 19

Prepare the journal entry for the following production activity for the current week: 
• Incurred $5,600 of manufacturing overhead in production of goods for utilities.
• Incurred direct labor costs of $37,200 in production of goods.
• Direct materials of $13,700 were requisitioned for production.

Accepted Answer

The answer of Prepare the journal entry for the following...

Question 20

Country Cookers has the following information for the current fiscal year:  Determine the gross margin for County Cookers.

Accepted Answer

The answer of Country Cookers has the following information for...

Quiz 2: Refresher on Cost Terms Road Map

Given the following items listed below, identify on which type(s) of business financial statements these items would normally appear , More than one selection may be included in an answer. -Operating Income

Given the following items listed below, identify on which type(s) of business financial statements these items would normally appear , More than one selection may be included in an answer. -Work-In-Process Inventory

Given the following items listed below, identify on which type(s) of business financial statements these items would normally appear , More than one selection may be included in an answer. -Merchandise Inventory

The following information is included below for Golden Gadgets: Compute the Gross Margin for Golden Gadgets.

Yogo Factory reports the following costs and expenses for the month of August What is the total "Manufacturing Overhead" for Yogo Factory for August?

Winter Widgets reported the following costs and expenses for the month of December: What is the total "Manufacturing Cost" for Winter Widgets for December?

Sierra Ski, Inc. reported the following costs and expenses for the month of January: What are the amounts for "Prime Costs" and "Conversion Costs" for Sierra Ski, Inc. for January?

Skye Corporation reported the following costs and expenses for the month of May, which need to be classified as either a direct cost or an indirect cost: Classify these costs as either "direct" costs or "indirect" costs for Skye Corporation?

Tristate Table Manufacturers incurred the following costs for the current month: Identify the costs shown above as either variable costs or fixed costs.

Determine the missing amounts in the following set of data:

The following costs were incurred by Birdie's Bikes for the month of July: Determine the total variable costs and total fixed costs for Birdie's Bikes for the month of July.

If Meyers Manufacturing currently incurs a variable cost per unit of $19.00 and a fixed cost per unit of $14.00 when it produces 1,000 units, what will the unit variable cost and unit fixed cost be when it produces $10,000 units?

If Ciaxis Inc. has $0 in its Direct Materials Inventory (beginning), and $9,300 in its Direct Materials Inventory (ending), and purchased $28,400 of direct materials during the period, what amount of direct materials was used in production by Ciaxis during the period?

Miriad Manufacturers has the following information for the month of September: Determine the Cost of Goods Manufactured for Miriad Manufacturers for September.

Crescent Computers, Inc. has the following information for the month of October: Determine the Cost of Goods Sold for Crescent Computers for October.

Country Cookers has the following information for the current fiscal year: Determine the gross margin for County Cookers.