ACG 2071 Chapter 2 HW – Flashcards
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Typically has a single inventory account
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Merchandiser
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Typically has no inventory
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Service company
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Typically has several kinds of inventory
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Manufacturer
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Depreciation of a building
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Indirect cost
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Cost of costume jewelry on the mannequins in junior department
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Direct cost
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Cost of bags used to package customer purchases at the main registers for the store
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Indirect cost
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The Medina Kohl's store managers salary
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Indirect Cost
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Cost of the security staff at the Medina salary
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Indirect cost
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Manager of junior department
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Direct cost
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Junior department sale clerks
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Direct cost
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Cost of juniors clothing
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Direct cost
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Cost of hangers used to display the clothing in the store
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Indirect cost
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Electricity for the building
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Indirect cost
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Cost of radio advertising for the store
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Indirect cost
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Juniors clothing buyers salaries
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Indirect cost
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Cost of milk purchased from local dairy farmers
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Product DM
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Depreciation of marketing departments computers
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Period
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Property tax on dairy processing plant
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Product MOH
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Gas used to operate refrigerated trucks delivering finished dairy products of grocery store
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Period
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Company presidents annual bonus
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Period
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Depreciation on refrigerated trucks used to collect raw milk from local dairy farmers
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Product MOH
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Plastic gallon containers in which milk is packaged
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Product DM
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Research and development on improving milk pasteurization process
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Period
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Television advertisments for Dairy plains products
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Period
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Lubricants used in running bottling machines
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Product MOH
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Wages and salaries paid to machine operations at dairy processing plant
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Product DL
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Calculation of COGS
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Beg. inv. + purchases = Cost of goods available for sale - ending inv. = COGS
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Calculation of Income Statement
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Sales Revenue -COGS = GP - Operating expenses = Operating income
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Airplane seat
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DM
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Production supervisor salaries
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IL
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Depreciation on forklifts
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Other MOH
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Machine lubricants
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IM
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Factory janitors wages
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IL
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Assembly workers wages
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DL
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Property tax on corporate marketing offices
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Period
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Plant utilities
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Other MOH
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Cost of warranty repairs
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Period
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Machine operators health insurance
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DL
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Depreciation on admin. offices
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Period
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Cost of designing new plant layout
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Period
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Jet engines
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DM
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Calculation of Total Manufacturing overhead cost
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IL+ IM+ Other MOH
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Calculation of Total Inventoriable products
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DM+DL+MOH
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Calculation of Total Prime Cost
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DL+DM
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Calculation of Total Conversion Cost
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DL+MOH
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Interest rate paid on invested funds when deciding how much inventory to keep on hand
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Relevant
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Cost of computers purchased six months ago when deciding whether to upgrade to computers with a faster processing sped
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Irrelevant
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The property tax rates in different locales when deciding where to locate the companys hq
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Relevant
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The type of fuel used by delivery vans when deciding which make and model of van to purchase for the companys delivery van fleet
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Relevant
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Cost of operating automated production machinery vs the cost of direct labor when deciding whether to automate production
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Relevant
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The fair market value of old manufacturing equipment when deciding whether to replace it with new equipment
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Relevant
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Cost of purchasing packaging materials from an outside vendor when deciding whether to continue manufacturing the packaging materials in house
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Relevant
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Depreciation expense on old manufacturing equipment when deciding whether to replace it with newer equipment
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The total amount of the restaurants fixed costs when deciding whether to add additional items to the menu
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The cost of land purchased three years ago when deciding whether to build on the land now or wait two more years
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Irrelevant
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Companies want to run at full capacity to better utilize the resources they spend on ___ costs. The more units they produce, the ____ the ___ cost per unit.
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Fixed, lower, average fixed cost
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Calculation for monthly profit
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Total revenue- total cost
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Machine operators health insurance
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DL
