help please

Chapters 18-25

• Multiple choice (5 pts each) (highlight or clearly mark your answer)

Which of the following is an example of direct labor cost in a factory?

Wages of assembly line personnel

Salary of vice president of production

Wages of factory security guard

Salary of production manager

Which of the following is true of product costs?

They are expensed in the period they are paid.

For external reporting, GAAP requires that they be expensed before the products are sold.

They are first recorded in an inventory account.

For merchandising companies, product costs do not include freight costs.

Which of the following is true of absorption costing?

the variable manufacturing costs are considered period costs

the fixed manufacturing costs are considered period costs

both variable and fixed manufacturing costs are considered product costs

both variable and fixed manufacturing costs are considered period costs

Which of the following would use a process costing system rather than a job order costing system?

a health-care provider

a music production studio

a paint manufacturer

a home remodeling contractor

The procurement manager was able to bring down the cost of direct materials by purchasing materials of a slightly lower grade quality than the company had used previously. The lower grade of materials, however, meant a higher defect rate on the assembly line, and higher wastage of materials during production, which in turn lowered operating income. This situation would have led to a(n):

favorable direct materials cost variance.

unfavorable direct labor cost variance.

unfavorable direct labor efficiency variance.

favorable direct materials efficiency variance.

Which of the following is an example of a labor cost standard?

$40 per direct labor hour

50 square feet per unit

$0.95 per square foot

0.5 direct labor hours per unit

• Problems (10 pts each) (please show your work for partial credit)

Amoeba Manufacturing Company provided the following information for the year 2015:

PurchasesRaw Materials	$90,000
Plant Utilities & Insurance	67,500
Indirect Materials	11,750
Indirect Labor	4,750
Direct Materials Used in Production	96,000
Direct Labor	117,500
Depreciation on Factory Plant & Equipment	6,000
Cost of Goods Manufactured	290,850
Cost of Goods Sold	304,550

The inventory account balances as of January 1st2015 are given below.

Raw Materials Inventory	$42,000
Work-in-Process Inventory	12,000
Finished Goods Inventory	49,500

What is the ending balance in the finished goods inventory?

The following information was obtained from Fizz Company:

Advertising Costs	$9,900
Indirect Labor	11,000
CEO's Salary	49,000
Direct Labor	41,000
Indirect Materials	7,900
Direct Materials Used	61,000
Factory Utilities	700
Factory Janitorial Costs	2,300
Manufacturing Equipment Depreciation	2,100
Delivery Vehicle Depreciation	1,100
Administrative Wages and Salaries	21,000

How much were Fizz's period costs?

Samson Inc. reported the following information for the year 2015:

Service Revenue	$40,000
Operating Expenses	$23,625
Net Income	$16,375
Number of Services Provided for the Year	10,500

How much was the unit cost per service?

Muses Manufacturing produces plastic toys and uses process costing. There are three processing departmentsAssembling, Finishing, and Packaging. On January 1, 2012, the Finishing Department had 2,000 units of partially processed product in production. During January, 32,000 units were transferred in from the Assembling Department and 29,000 units were completed and transferred out. At the end of the month, there were 5,000 units of partially processed products remaining in the Finishing Department. See additional details below.

Finishing Department, ending balance at January 31, 2012

Percentage completion for materials cost:	90%
Percentage completion for conversion cost:	75%

For the Finishing Department, what was the number of equivalent units for the month of January, with respect to direct materials?

Antique Works is owned and operated by a craftsman who makes replicas of historic firearms for museums, sportsmen, and collectors. The cost data are as follows:

Price per unit	$720
Variable costs per unit	470
Fixed costs per month	8,000

If Antique expects to sell 40 units per month, what is his margin of safety expressed in units per month?

Jame Company sells glass vases at a wholesale price of $3 per unit. The variable cost of manufacture is $1.75 per unit. The fixed costs are $7,500 per month. Jame sold 5,500 units during this month. Calculate Jame's operating income (loss) for this month.

Wood Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $4.00 per square foot from the supplier. Delivery costs are $0.25 per board foot. Carpenters' wages are $25.00 per hour. Payroll costs are $3.60 per hour and benefits are $5.00 per hour. How much is the direct materials cost standard (per square foot)?

Chapters 18-25 Multiple choice (5 pts each) (highlight or clearly mark your answer) 1) Which of the following is an example of direct labor cost in a factory? a. Wages of assembly line personnel b. Salary of vice president of production c. Wages of factory security guard d. Salary of production manager 2) Which of the following is true of product costs? a. They are expensed in the period they are paid. b. For external reporting, GAAP requires that they be expensed before the products are sold. c. They are first recorded in an inventory account. d. For merchandising companies, product costs do not include freight costs. 3) Which of the following is true of absorption costing? a. the variable manufacturing costs are considered period costs b. the fixed manufacturing costs are considered period costs c. both variable and fixed manufacturing costs are considered product costs d. both variable and fixed manufacturing costs are considered period costs 4) Which of the following would use a process costing system rather than a job order costing system? a. a healthcare provider b. a music production studio c. a paint manufacturer d. a home remodeling contractor 5) The procurement manager was able to bring down the cost of direct materials by purchasing materials of a slightly lower grade quality than the company had used previously. The lower grade of materials, however, meant a higher defect rate on the assembly line, and higher wastage of materials during production, which in turn lowered operating income. This situation would have led to a(n): a. favorable direct materials cost variance. b. unfavorable direct labor cost variance. c. unfavorable direct labor efficiency variance. d. favorable direct materials efficiency variance. 6) Which of the following is an example of a labor cost standard? a. $40 per direct labor hour b. 50 square feet per unit c. $0.95 per square foot d. 0.5 direct labor hours per unit Problems (10 pts each) (please show your work for partial credit) 1) Amoeba Manufacturing Company provided the following information for the year 2015: PurchasesRaw Materials Plant Utilities & Insurance Indirect Materials Indirect Labor Direct Materials Used in Production Direct Labor Depreciation on Factory Plant & Equipment Cost of Goods Manufactured Cost of Goods Sold $90,000 67,500 11,750 4,750 96,000 117,500 6,000 290,850 304,550 st The inventory account balances as of January 1 2015 are given below. Raw Materials Inventory WorkinProcess Inventory Finished Goods Inventory $42,000 12,000 49,500 What is the ending balance in the finished goods inventory? 2) The following information was obtained from Fizz Company: Advertising Costs Indirect Labor CEO's Salary Direct Labor Indirect Materials Direct Materials Used Factory Utilities Factory Janitorial Costs Manufacturing Equipment Depreciation Delivery Vehicle Depreciation Administrative Wages and Salaries How much were Fizz's period costs? $9,900 11,000 49,000 41,000 7,900 61,000 700 2,300 2,100 1,100 21,000 3) Samson Inc. reported the following information for the year 2015: Service Revenue Operating Expenses Net Income Number of Services Provided for the Year $40,000 $23,625 $16,375 10,500 How much was the unit cost per service? 4) Muses Manufacturing produces plastic toys and uses process costing. There are three processing departments Assembling, Finishing, and Packaging. On January 1, 2012, the Finishing Department had 2,000 units of partially processed product in production. During January, 32,000 units were transferred in from the Assembling Department and 29,000 units were completed and transferred out. At the end of the month, there were 5,000 units of partially processed products remaining in the Finishing Department. See additional details below. Finishing Department, ending balance at January 31, 2012 Percentage completion for materials cost: 90% Percentage completion for conversion cost: 75% For the Finishing Department, what was the number of equivalent units for the month of January, with respect to direct materials? 5) Antique Works is owned and operated by a craftsman who makes replicas of historic firearms for museums, sportsmen, and collectors. The cost data are as follows: Price per unit Variable costs per unit Fixed costs per month $720 470 8,000 If Antique expects to sell 40 units per month, what is his margin of safety expressed in units per month? 6) Jame Company sells glass vases at a wholesale price of $3 per unit. The variable cost of manufacture is $1.75 per unit. The fixed costs are $7,500 per month. Jame sold 5,500 units during this month. Calculate Jame's operating income (loss) for this month. 7) Wood Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $4.00 per square foot from the supplier. Delivery costs are $0.25 per board foot. Carpenters' wages are $25.00 per hour. Payroll costs are $3.60 per hour and benefits are $5.00 per hour. How much is the direct materials cost standard (per square foot)