1: A manufacturing company that incurs shipping costs to deliver its product to a customer; would be classify this cost as a(n):

a) Direct materials

b) Administrative expense

c) Manufacturing overhead

d) Selling expense

2: Romeo Corporation has the following accounting data for the year:

The cost of goods manufactured for the year is:

a) $7,000

b) $200

c) $8,200

d) $5,000

3: Which item will not appear on the Schedule of Cost of Goods Manufactured?

a) Beginning finished goods inventory

b) Ending work in process inventory

c) Direct labor

d) Beginning raw materials inventory

4: Lana Company shows the following cost data for its utilities.

Using the high-low method, determine the fixed cost portion of the utility expense. Round your Variable cost per unit to three decimals.

a) $75,000

b) $26,250

c) $21,750

d) $54,000

Finished goods inventory, January 1 Finished goods inventory, December 31 Total cost of goods sold $3,200 4,000 4,200 Month Units Total Cost January 80,000 $144,000 February 50,000 $120,000 March 70,000 $141,000 April 90,000 $195,000