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question 16-3

Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms. The preparation and use of accounting information designed to assist managers in planning and controlling the operations business. All manufacturing costs other than direct materials used and direct labor. Direct materials and direct labor used in manufacturing a product. A manufacturing cost that can be traced conveniently and directly to manufactured units of product. The account debited at the time that the Manufacturing Overhead account is credited. The amount transferred from the Work in Process Inventory account to the Finished Goods Inventory account. Costs that are debited directly to expense accounts when the costs are incurred. Into which of the three elements of manufacturing cost would each of the following be classified? Tubing used in manufacturing bicycles. Wages paid by an automobile manufacturer to employees who test-drive completed automobiles. Property taxes on machinery. Gold bullion used by a jewelry manufacturer. Wages of assembly-line workers who package frozen food. Salary of plant superintendent. Electricity used in factory operations. Salary of a nurse in a factory first-aid station. Indicate whether each of the following should be considered a product cost or a period cost. If you identify the item as a product cost, also indicate whether it is a direct or an indirect cost. For example, the answer to item 0 is "indirect product cost." Begin with item a. Property taxes on factory building. Cost of disposal of hazardous waste materials to a chemical plant. Amounts paid by a mobile home manufacturer to a subcontractor who installs plumbing each mobile home. Depreciation on sales showroom fixtures. Salaries of security guards in an administrative office building. Salaries of factory security guards. Salaries of office workers in the credit department. Depreciation on the raw materials warehouse. Income taxes on a portable manufacturing company. The following information was taken from the accounting records of Reliable Tool Corporation: Overhead is assigned to production at $300,000. Compute the amount of the work in process inventory on hand at year-end. The accounting records of NuTronics, Inc., include the following information for the year ended December 31, 2011. Overhead is assigned to production at $192,000. Prepare a schedule of the cost of finished goods manufactured. (Not all of the data given above are used in this schedule.) Assume that the company manufactures a single product and that 20,000 units were completed during the year. What is the average per-unit cost of manufacturing this product? The Bags and Luggage Company had the following account balances as of January 1: During the month of January, all of the following occurred: Direct labor costs were $42,000 for 1, 800 hours worked. Direct materials costing $35, 750 and indirect materials costing $3, 500 were purchased. Sales commissions of $16, 500 were earned by the sales force. $26,000 worth of direct materials were used in production. Advertising costs of $6, 300 were incurred. Factory supervisors earned salaries of $12,000. Indirect labor costs for the month were $3,000. Monthly depreciation on factory equipment was $4, 500

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