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Quiz - BUS 121 Ch. 2 _2A

Quiz - BUS 121 Ch. 2 _2A - Fixed costs 3 Depreciation on...

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NAME CHRISTINE DONALDSON SCORE ______________ BUS 121: Managerial Accounting Chapter 2 Quiz #2 Questions (6 points) 1. List the three general ledger “inventory” accounts common to a manufacturing company. (1 point) Raw materials Work in progress Finished goods 2. List the three manufacturing costs that go into production in a manufacturing company. (1 point) Direct materials Direct labor Manufacturing overhead 3. Identify the following as product or period costs. (1/2 point each, 2 points) 1) Shipping charges paid to freight carriers. Period costs 2) Miscellaneous materials and supplies used in production. Product costs 3) Depreciation on office copiers and printers in the administrative area. Period costs 4) Salary and benefits of factory maintenance workers. Period costs 4. Identify the following as fixed or variable costs. (1/2 point each, 2 points) 1) Shipping charges paid to freight carriers. Variable costs 2) Miscellaneous materials and supplies used in production.
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Unformatted text preview: Fixed costs 3) Depreciation on office copiers and printers in the administrative area. Fixed costs 4) Salary and benefits of factory maintenance workers. Variable costs Exercise (4 points) 1. Wilson Manufacturing Co. produced 10,000 units during the current year. Two costs are being evaluated: (1) Equipment Rental charges, a fixed cost , were $22,500 or $2.25/unit; and (2) Indirect Materials, a variable cost , were $16,000 or $1.60 per unit. Required: For the coming year, production is expected to be 15,000 units. Calculate, for each of the two costs being evaluated, the anticipated $ cost in total dollars and as a per-unit cost . Total $ Cost Per-Unit Cost Equipment Rental $22,500 $1.50 (22500/15000) *fixed costs stay the same in total money Indirect Materials $25,440 (1.60*15000) $1.60 *variable costs stay the same on a per unit basis....
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