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The following selected information was extracted from the 20x3 accounting records of Farrina Products: The following selected information was extracted from the 20x3 accounting records of Farrina Products: *Seventy percent of the company's building was devoted to production activities; the remaining 30% was used for selling and administrative functions. Farrina's beginning and ending work-in-process inventories amounted to $306,000 and $245,000, respectively. The company's beginning and ending finished-goods inventories were $450,000 and $440,000, respectively. A. Calculate Farrina's manufacturing overhead for the year. B. Calculate Farrina's cost of goods manufactured. C. Compute Farrina's cost of goods sold. *Seventy percent of the company's building was devoted to production activities; the remaining 30% was used for selling and administrative functions. Farrina's beginning and ending work-in-process inventories amounted to $306,000 and $245,000, respectively. The company's beginning and ending finished-goods inventories were $450,000 and $440,000, respectively. A. Calculate Farrina's manufacturing overhead for the year. B. Calculate Farrina's cost of goods manufactured. C. Compute Farrina's cost of goods sold.

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The answers include:
A. Manufacturing ov...

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Sunk costs are irrelevant to all future decisions.

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How should a company that manufactures automobiles classify its partially completed vehicles?


A) Supplies.
B) Raw materials inventory.
C) Finished goods inventory.
D) Cost of goods manufactured.
E) Work-in-process inventory.

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Different cost concepts and classifications are used for different purposes.

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Peyton Manufacturing has the following data: Peyton Manufacturing has the following data: - If direct materials used during the year were $135,000, what was cost of goods manufactured? A) $140,500. B) $539,000. C) $409,500. D) $544,500. E) None of the answers is correct. - If direct materials used during the year were $135,000, what was cost of goods manufactured?


A) $140,500.
B) $539,000.
C) $409,500.
D) $544,500.
E) None of the answers is correct.

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Research and development costs are classified as:


A) product costs.
B) period costs.
C) inventoriable costs.
D) cost of goods sold.
E) labor costs.

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Prime costs are comprised of:


A) direct materials and manufacturing overhead.
B) direct labor and manufacturing overhead.
C) direct materials, direct labor, and manufacturing overhead.
D) direct materials and direct labor.
E) direct materials and indirect materials.

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Which of the following would not be a period cost?


A) Sales salaries.
B) Sales commissions.
C) Tamper-proof packaging.
D) Legal costs.
E) Accounting costs.

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Out-of-pocket costs are defined as the benefit that is sacrificed when the choice of one action precludes taking an alternative course of action.

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Costs that can be easily traced to a specific department are called:


A) direct costs.
B) indirect costs.
C) product costs.
D) manufacturing costs.
E) processing costs.

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Which two terms below best describe the wages paid to security guards that monitor a factory 24 hours a day?


A) variable cost and direct cost
B) fixed cost and direct cost
C) variable cost and indirect cost
D) fixed cost and indirect cost
E) value-added cost and direct cost

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Sylvia Corporation sold 12,500 units of its single product during the year, reporting a cost of goods sold that totaled $250,000. A review of the company's accounting records disclosed the following information: Sylvia Corporation sold 12,500 units of its single product during the year, reporting a cost of goods sold that totaled $250,000. A review of the company's accounting records disclosed the following information: Sylvia is subject to a 30% income tax rate. Required: A. Determine the selling price per unit. B. Management established a goal at the beginning of the year to reduce the company's investment in finished-goods inventory and work-in-process inventory. 1. Analyze cost of goods sold and determine if management's goal was achieved with respect to finished-goods inventory. Show computations. 2. Analyze the firm's manufacturing costs and determine if management's goal was achieved with respect to work-in-process inventory. Show computations. C. Is the company profitable? Show calculations. Sylvia is subject to a 30% income tax rate. Required: A. Determine the selling price per unit. B. Management established a goal at the beginning of the year to reduce the company's investment in finished-goods inventory and work-in-process inventory. 1. Analyze cost of goods sold and determine if management's goal was achieved with respect to finished-goods inventory. Show computations. 2. Analyze the firm's manufacturing costs and determine if management's goal was achieved with respect to work-in-process inventory. Show computations. C. Is the company profitable? Show calculations.

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A. Let X = sales revenue
0.4X = $250,000...

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Which of the following would not be classified as a product cost?


A) Direct materials.
B) Direct labor.
C) Indirect materials.
D) Insurance on a manufacturing plant.
E) Sales bonuses for meeting quota sales.

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Which of the following statements is true?


A) Product costs affect only the balance sheet.
B) Product costs affect only the income statement.
C) Period costs affect only the balance sheet.
D) Neither product costs nor period costs affect the Statement of Retained Earnings. This can also be a true statement if the period costs were prepaid (i.e., prepaid advertising, depreciation) .
E) Product costs eventually affect both the balance sheet and the income statement.

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Sebastian Muffler, Inc. operates an automobile service facility. The table below shows the cost incurred during a month when 500 mufflers were replaced. Sebastian Muffler, Inc. operates an automobile service facility. The table below shows the cost incurred during a month when 500 mufflers were replaced. Required: Fill in the missing amounts, labeled A through O, in the table above. Required: Fill in the missing amounts, labeled A through O, in the table above.

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blured image Explanatory notes:
A and C each equal $...

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Peyton Manufacturing has the following data: Peyton Manufacturing has the following data: - If the cost of goods manufactured for the year was $565,000, what was the amount of direct materials used during the year? A) $155,500. B) $140,500. C) $150,000. D) $145,500. E) None of the answers is correct. - If the cost of goods manufactured for the year was $565,000, what was the amount of direct materials used during the year?


A) $155,500.
B) $140,500.
C) $150,000.
D) $145,500.
E) None of the answers is correct.

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Indirect labor is not a component of manufacturing overhead.

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Travon and Tony (T & T) Enterprises has a single facility that it uses for manufacturing, sales, and administrative activities. Should the company's building depreciation charge be expensed in its entirety or is a different accounting procedure appropriate? Explain.

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The company's depreciation charge is, in...

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How would a 5% sales commission paid to sales personnel be classified in a manufacturing company?


A) Fixed, period cost.
B) Fixed, product cost.
C) Variable, period cost.
D) Variable, product cost.
E) Direct labor, product cost.

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Work-in-process inventory is composed of:


A) direct material and direct labor.
B) direct labor and manufacturing overhead.
C) direct material and manufacturing overhead.
D) direct material, direct labor, and manufacturing overhead.
E) direct material only.

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