Direct material cost combined with manufacturing overhead cost is known as conversion cost. -true
The cost of shipping parts from a supplier is considered a product cost. |[pic] |True |
|[pic] |False |
|The inventory of finished goods on hand at the end of a period is considered an asset, but inventories of raw materials and | |work-in-process are not considered assets until production is completed.false |
Differential costs can be either fixed or variable.
|Gabrisch Inc. is a merchandising company. Last month the company's merchandise purchases totaled $90,000. The company's beginning | |merchandise inventory was $13,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the | |month? |
|[pic] |$125,000 | |[pic] |$99,000 | |[pic] |$81,000 | |[pic] |$90,000 |
How much opportunity cost is represented in the following information concerning a machine?
|[pic] |$14,000 | |[pic] |$68,000 | |[pic] |$80,000 | |[pic] |$25,000 | |Management of Parrent Corporation has asked your help as an intern in preparing some key reports for April. The company started the month | |with raw materials inventories of $32,000. During the month, the company made raw materials purchases amounting to $68,000. At the end of | |the month, raw materials inventories totaled $35,000. Direct labor cost was $43,000 and manufacturing overhead was $62,000. The beginning | |balance in the work in process account was $19,000 and the ending balance was $12,000. The beginning balance in the finished goods account| |was $35,000 and the ending balance was $58,000. Sales totaled $240,000. Selling expense was $18,000 and administrative expense was | |$42,000. |
The total manufacturing cost for April was:
|[pic] |$105,000 | |[pic] |$173,000 | |[pic] |$62,000 | |[pic] |$170,000 |
Derflinger Corporation reported the following data for the month of January:
The total manufacturing cost for January was: