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Exam 2: Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows

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Question 31

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Products and their costs flow through a production facility in the following order:

A) work in process, finished goods, cost of goods sold
B) raw materials, work in process, finished goods, cost of goods sold
C) work in process, raw materials, cost of goods sold, finished goods
D) work-in-process, cost of goods manufactured, cost of goods sold

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

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Question 32

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Which of the following statements is true about manufacturing companies over the past 20 years?

A) The grouping of machines into "manufacturing cells" has increased.
B) Carrying large amounts of inventory is often less costly than carrying small amounts of inventory.
C) They have moved from a "pull" approach to more of a "push" approach.
D) The basic production process has changed very little over the past 20 years.

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

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Question 33

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Jones Manufacturing Inc. Jones Manufacturing Inc. incurred the following costs in November: In addition, the following information is also available: Refer to the Jones Manufacturing Inc. information above. Net operating income for November is: (Ignore taxes)

Which of the following is a effect of using a traditional production environment but not of a lean production and just-in-time (JIT) manufacturing environment?

Which of the following is not a manufacturing cost?

Capital Manufacturing produces a unique souvenir product for various museums around the country. During the year, the company incurred the following costs: During the year, 25,000 units were produced out of which 20,000 units were sold for $20 each. Required:

Franklin Street Manufacturing Franklin Street Manufacturing has the following cost information available for 2011: 20,000 units were produced during the year out of which 19,000 units were sold for $10 each. Refer to the Franklin Street Manufacturing information above. What is net operating income for 2011? (Ignore taxes)

In a just-in-time environment, the production process often begins when:

Hillsborough Street Manufacturing Inc. Hillsborough Street Manufacturing Inc. incurred the following costs in 2011: 45,000 units were produced during the year out of which 38,000 units were sold for $10 each. There was no beginning or ending raw materials or work in process inventory. Refer to the Hillsborough Street Manufacturing Inc. information above. What is the product cost per unit?

Nate's Novelties, Inc. Nate's Novelties, Inc. has the following information available for July: Refer to the Nate's Novelties, Inc. information above. Raw materials used for July is:

A traditional manufacturing environment does not have which of the following?

Provide specific examples of why accurate product or service costing information is important for internal purposes.

Which of the following is not an example of a manufacturing overhead cost?

Under ideal conditions, companies operating in a ____ environment would reduce inventories of raw materials, work in process and finished goods to very low levels or even zero.

Briefly describe the difference between a manufacturing and a nonmanufacturing cost.

Jones Manufacturing Inc. Jones Manufacturing Inc. incurred the following costs in November: In addition, the following information is also available: Refer to the Jones Manufacturing Inc. information above. Cost of goods manufactured in November is:

Brenda's Bakery has the following information available for October: How much raw material was purchased in October?

In general, costs incurred in the factory those do not qualify as either direct material or direct labor are called:

Identify with an "X" the following costs as either a manufacturing (product) or nonmanufacturing (period) cost. If it is a manufacturing cost, further identify it as either direct material (DM), direct labor (DL), or overhead (OH).

Identify some of the benefits and risks of a lean production and just-in-time (JIT) environment.