Chapter 2 An Introduction to Cost Terms and Purposes

Answer the following questions using the information below:

Zephyr Apparels is a clothing retailer. Unit costs associated with one of its products, Product DCT121, are as follows:

Direct materials $ 70

Direct manufacturing labor 20

Variable manufacturing overhead 15

Fixed manufacturing overhead 32

Sales commissions (2% of sales) 5

Administrative salaries 16

Total $158

45) What are the inventoriable costs per unit associated with Product DCT121?

A) $137

B) $140

C) $143

D) $88

46) What are the period costs per unit associated with Product DCT121?

A) $4

B) $16

C) $21

D) $52

Answer the following questions using the information below:

The East Company manufactures several different products. Unit costs associated with Product ORD210 are as follows:

Direct materials $54

Direct manufacturing labor 8

Variable manufacturing overhead 11

Fixed manufacturing overhead 25

Sales commissions (2% of sales) 5

Administrative salaries 12

Total $115

47) What are the inventoriable costs per unit associated with Product ORD210?

A) $73

B) $87

C) $98

D) $62

48) What are the period costs per unit associated with Product ORD203?

A) $5

B) $12

C) $17

D) $18

49) Leslie Manufacturing reported the following:

Revenue	$450,000
Beginning inventory of direct materials, January 1, 2015	20,000
Purchases of direct materials	156,000
Ending inventory of direct materials, December 31, 2015	18,000
Direct manufacturing labor	21,000
Indirect manufacturing costs	42,000
Beginning inventory of finished goods, January 1, 2015	40,000
Cost of goods manufactured	114,000
Ending inventory of finished goods, December 31, 2015	45,000
Operating costs	150,000

How much of the above would be considered period costs for Leslie Manufacturing?

A) $104,000

B) $140,000

C) $150,000

D) $147,000