Required: 1. What would you do if you were Leroy? I would decline the offer. The offer includes an implicit request to use confidential information to help Jean win the bid. Use of such information for personal advantage is wrong. Leroy has a professional and personal obligation to his current employer. This obligation must take precedence over the opportunity for personal financial gain. What do you suppose the code of conduct for Leroy’s company would say about this situation? Which of the statements is incorrect? Corporate codes of conduct emphasize honesty and profitability. 2. Is there much risk to him personally if he reviews the bid? Yes Should the degree of risk have any bearing on his decision? No Accumulating costs means that C. costs must be measured and tracked Wachman Company produces a product with the following per-unit costs: Direct materials $15 Direct labor 6 Manufacturing overhead 19 Last year, Wachman produced and sold 2,000 units at a price of $75 each. Total selling and administrative expense was $30,000. Refer to the information for Wachman Company above. Conversion cost per unit was B. $25 - Conversion cost is the sum of direct labor and manufacturing overhead The accountant in a factory that produces biscuits for fast-food restaurants wants to assign costs to boxes of biscuits. Which of the following costs can be traced directly to boxes of biscuits?
a . The cost of flour and baking soda b .The wages of the mixing labor c.The cost of the boxes d.The cost of packing labor e .All of these. Direct costs can be traced directly to the cost object and are costs necessary for the completion of the activity. Bobby Dee's is an owner-operated company that details (thoroughly cleans—inside and out) automobiles. Bobby Dee's is which of the following? C. Service firm - Manufacturing companies produce products and have inventory accounts. Retailers and wholesalers buy products as inventory and then sell products for profit. Service companies provide intangible products/services. Services do not use an inventory account. Target is which of the following? B. Retailer - Manufacturing companies produce products and have inventory accounts. Retailers and wholesalers buy products as inventory and then sell products for profit. Service companies provide intangible products/services. Services do not use an inventory account. JackMan Company produces die-cast metal bulldozers for toy shops. JackMan estimated the following average costs per bulldozer: Direct materials $8.65 Direct labor 1.10 Manufacturing overhead 0.95 Prime cost per unit is e.$9.75. - rime costs consist of direct materials and direct labor Which of the following is a period expense? B. CEO salary - Period costs are other costs necessary in operations of the company, but not directly related to production, thus not carried as an inventory cost.
- Spring '16