8. Sales commissions are classified as:
a. Fixed costs
b. Product costs
c. Period costs
d. Mixed costs
e. Indirect costs
9. An example of a mixed cost is:
a. Utilities (electric and natural gas)
b. Direct materials
c. Rent on the manufacturing facility
d. All of the above
e. None of the above
10. When the activity level increases within the relevant range, what should happen with respect to the following?
Total Fixed Costs Total Variable Costs
а. Decrease No change
b. Decrease Decrease
c. No change Decrease
d. No change Increase
е. Increase Increase
f. Increase No change
11. Hawkins Textiles, Inc. is a merchandising company. During the month of August 2018, Hawkins had cost of goods sold of $66,000. The company's beginning merchandise inventory was $17,000, and its ending merchandise inventory was $23,000. What was the total amount of the company's merchandise purchases for the month?
a. $94,000
b. $72,000
c. $66,000
d. $60,000
12. Which of the following costs is classified as a prime cost?
Direct Materials Indirect Materials
a. Yes Yes
b. No No
c. Yes No
d. No Yes
8. Sales commissions are classified as:
a. Fixed costs
b. Product costs
c. Period costs
d. Mixed costs
e. Indirect costs
9. An example of a mixed cost is:
a. Utilities (electric and natural gas)
b. Direct materials
c. Rent on the manufacturing facility
d. All of the above
e. None of the above
10. When the activity level increases within the relevant range, what should happen with respect to the following?
Total Fixed Costs Total Variable Costs
а. Decrease No change
b. Decrease Decrease
c. No change Decrease
d. No change Increase
е. Increase Increase
f. Increase No change
11. Hawkins Textiles, Inc. is a merchandising company. During the month of August 2018, Hawkins had cost of goods sold of $66,000. The company's beginning merchandise inventory was $17,000, and its ending merchandise inventory was $23,000. What was the total amount of the company's merchandise purchases for the month?
a. $94,000
b. $72,000
c. $66,000
d. $60,000
12. Which of the following costs is classified as a prime cost?
Direct Materials Indirect Materials
a. Yes Yes
b. No No
c. Yes No
d. No Yes
Related questions
Costs per Equivalent Unit and Production Costs
The following information concerns production in the Forging Department for September. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $66,220 of direct materials.
| ACCOUNT Work in ProcessâForging Department | ACCOUNT NO. | ||||||||
| Date | Item | Debit | Credit | Balance | |||||
| Debit | Credit | ||||||||
| Sept. | 1 | Bal., 7,700 units, 80% completed | 78,540 | ||||||
| 30 | Direct materials, 70,000 units | 588,000 | 666,540 | ||||||
| 30 | Direct labor | 60,910 | 727,450 | ||||||
| 30 | Factory overhead | 84,116 | ? | 811,566 | |||||
| 30 | Goods finished, ? units | ? | |||||||
| 30 | Bal., 6,200 units, 60% completed | ? | |||||||
Based on the above data, determine each of the following amounts.
If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar.
a. Cost of beginning work in process inventory completed in September.
$
b. Cost of units transferred to the next department during September.
$
c. Cost of ending work in process inventory on September 30.
$
d. Costs per equivalent unit of direct materials and conversion included in the September 1 beginning work in process. If required, round your answers to two decimal places.
| Direct materials cost per equivalent unit | $ |
| Conversion cost per equivalent unit | $ |
e. The September increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month. If required, round your answers to two decimal places.
| Increase or Decrease | Amount | |
| Change in direct materials cost per equivalent unit | Decrease | $ |
| Change in conversion cost per equivalent unit | Increase | $ |
