Which of the following is a major subsystem of the cost accounting information system? The following information has been provided for Hopen Enterprises: ? Cost of goods manufactured $7,500 Work in process Beginning 1,200 Ending 1,400 Direct labor 4,000 Materials placed in production 1,500 Factory overhead ? ? What is the amount of factory overhead? Which of the following costs are expensed in the period in which they are incurred? The Sumter Company recently had a fire in its accounting office, destroying most of its records

1. Which of the following is a major subsystem of the cost accounting information system?

Operational control information system

2. The following information has been provided for Hopen Enterprises:
   ?
   
   Cost of goods manufactured
   $7,500
   
   Work in process
   Beginning
   1,200
   
   Ending
   1,400
   
   Direct labor
   4,000
   
   Materials placed in production
   1,500
   
   Factory overhead
   ?
   
   ?
   
   What is the amount of factory overhead?

SUPPORTING CALCULATIONS: $7,500 + $1,400 − $1,200 − $4,000 − $1,500 = $2,200

3. Which of the following costs are expensed in the period in which they are incurred?

Nonproduction costs

4. The Sumter Company recently had a fire in its accounting office, destroying most of its records. Only the following information could be salvaged for 2018:
   ?
   
   Direct labor
   $400,000
   
   Factory overhead
   200,000
   
   Cost of goods sold
   800,000
   
   Work in process, January 1
   80,000
   
   Finished goods, January 1
   160,000
   
   Work in process, December 31
   100,000
   
   Finished goods, December 31
   120,000
   
   ?
   
   The cost of direct materials used in production during 2018 is

SUPPORTING CALCULATIONS: $800,000 + $120,000 − $160,000 + $100,000 − $80,000 − $400,000 − $200,000 = $180,000

5. Product costs include production, marketing, and customer service, and are used for strategic design decisions and tactical profitability analysis.

false

6. Product value-chain costs assist managers in meeting which of the following objectives?

product mix decisions

7. The records for the previous year for Sarasota Boat Builders, Inc., shows the following data:
   ?
   
   Selling and administrative expenses
   $300,000
   
   Direct materials used
   530,000
   
   Direct labor (100,000 hours)
   600,000
   
   Factory overhead application rate
   $5 per DLH
   
   ?
   
   
   Inventories
   
   
   Beginning
   
   Ending
   
   Work in process
   $150,000
   
   $160,000
   
   Finished goods
   80,000
   
   50,000
   
   ?
   
   The cost of goods sold is

SUPPORTING CALCULATIONS: $530,000 + $600,000 + $500,000($5 × 100,000) + $150,000 − $160,000 + $80,000 − $50,000 = $1,650,000

8. Information from the records of the Conundrum Company for September 2018 was as follows:
   ?
   
   Sales
   
   $307,500
   
   Selling and administrative expenses
   
   52,500
   
   Direct materials used
   
   66,000
   
   Direct labor
   
   75,000
   
   Variable factory overhead
   
   50,000
   
   Factory overhead
   
   51,250
   
   
   
   ?
   
   Inventories
   
   ?
   
   Sept. 1, 2018
   
   Sept 30, 2018
   
   Direct materials
   
   $ 8,000
   
   $10,500
   
   Work in process
   
   18,750
   
   21,000
   
   Finished goods
   
   17,250
   
   14,250
   
   ?
   
   Conundrum Corporation produced 20,000 units.
   
   ?
   
   What are the total variable costs per unit?

$66,000 + 75,000 + 50,000 = $191,000/20,000 units = $9.55 per unit

9. The following information pertains to Steel Wheels, Inc:
   ?
   
   Cost of goods manufactured
   $350,000
   
   Beginning work-in-process inventory
   110,000
   
   Ending work-in-process inventory
   80,000
   
   Manufacturing overhead
   50,000
   
   What are the prime costs for the year?

SUPPORTING CALCULATIONS: $350,000 + $80,000 − $110,000 − $50,000 = $270,000

10. Product costs are converted from cost to expense when

units are sold.