ACCT 251 Chapter 2 Quiz-1

ACCT 251 Chapter 2 Quiz-1 - 2 Problem II Management of...

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Name: Melanie Larson_ ACCT 251 Management Accounting Fall 2009 Quiz Chapter 2 Problem I The following information is available for Castle Company for the month of January 2010. Sales $80,000 Cost of goods manufactured $25,000 Factory supplies used $800 Raw materials purchased $25,000 Commissions paid $3,000 Materials handling cost $2,250 Advertising $650 Direct materials issued to production $20,000 Cost of good sold $35,000 Salaries, factory supervision $2,500 Salaries, corporate executives $3,750 Property tax - factory $350 Raw materials inventory, 1/1/2010 $3,500 Work-in-process inventory, 12/31/2009 $12,500 Work-in-process inventory, 1/31/2010 $25,250 Finished goods inventory, 1/31/2010 $9,500 Materials handling cost is the cost of moving materials from the warehouse to the factory floor. Required: 1. Determine the cost of raw materials inventory on January 31, 2010. 1
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2. Determine the direct labor cost for January 2010. 3. Determine the cost of finished goods inventory on January 1, 2010. 4. Determine the profit earned for the month of January 2010.
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Unformatted text preview: 2 Problem II Management of Caterpillar, Inc. wants to know the product cost of a dump truck for external financial reporting purposes. Determine whether the following costs would be considered product (PROD) or period (PER) costs. Also determine if they would be considered direct materials (DM), direct labor (DL), overhead (OH), selling (S), or general and administrative (GA) costs. Finally, determine whether the cost would be assigned using direct tracing (DIT), driver tracing (DRT), allocation (ALL), or if they would not be assigned (NA). Cost PROD/PER DM/DL/OH/S/GA DIT/DRT/ALL/NA Cost of the tires on the dump truck Production supervisors salary Cost of the factory maintenance department Wages of workers who put the tires on the dump truck Cost of shipping the finished dump truck to the customer Cost of lug nuts to hold tires in place Cost of legal department salaries Cost of property tax for the production facility 3...
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ACCT 251 Chapter 2 Quiz-1 - 2 Problem II Management of...

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