Home / Questions / Which element in the value chain would contain inventoriable costs for a manufacturer? A
Which element in the value chain would contain inventoriable costs for a manufacturer?
A) Research and development
B) Design
C) Production
D) Distribution
22) Uniquely Me Shoppe, a clothing retailer, had the following total costs as grouped by value chain element:
Research and development |
$53,000 |
Design |
$17,000 |
Purchases |
$99,000 |
Marketing |
$42,000 |
Distribution |
$68,000 |
Customer service |
$27,000 |
What were the company's inventoriable costs?
A) $99,000
B) $116,000
C) $17,000
D) $169,000
23) Uniquely Me Shoppe, a clothing retailer, had the following total costs as grouped by value chain element:
Research and development |
$53,000 |
Design |
$17,000 |
Purchases |
$99,000 |
Marketing |
$42,000 |
Distribution |
$68,000 |
Customer service |
$27,000 |
What were the company's period costs?
A) $306,000
B) $137,000
C) $110,000
D) $207,000
24) Comfy Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:
Depreciation on sales office |
$11,000 |
Depreciation on factory equipment |
$16,000 |
Factory supervisor salary |
$52,500 |
Sales commissions |
$23,000 |
Lubricants used in factory equipment |
$3,000 |
Insurance costs for factory |
$21,000 |
Wages paid to maintenance workers |
$115,000 |
Fabric used to upholster furniture |
$7,000 |
Freight-in (on raw materials) |
$2,500 |
Costs of delivery to customers |
$9,000 |
Wages paid to assembly-line workers |
$132,500 |
Lumber used to build product |
$72,000 |
Utilities in factory |
$44,000 |
Utilities in sales office |
$26,500 |
Product costs for Comfy Furniture Company totaled:
A) $351,000.
B) $442,500.
C) $466,000.
D) $482,000.
25) Comfy Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:
Depreciation on sales office |
$11,000 |
Depreciation on factory equipment |
$16,000 |
Factory supervisor salary |
$52,500 |
Sales commissions |
$23,000 |
Lubricants used in factory equipment |
$3,000 |
Insurance costs for factory |
$21,000 |
Wages paid to maintenance workers |
$115,000 |
Fabric used to upholster furniture |
$7,000 |
Freight-in (on raw materials) |
$2,500 |
Costs of delivery to customers |
$9,000 |
Wages paid to assembly-line workers |
$132,500 |
Lumber used to build product |
$72,000 |
Utilities in factory |
$44,000 |
Utilities in sales office |
$26,500 |
Period costs for Comfy Furniture Company totaled:
A) $43,000.
B) $46,500.
C) $69,500.
D) $121,000.
26) First Sporting Equipment manufactures sporting goods. Selected costs from the past year include:
Plastics used to make products |
$151,000 |
Heating and lighting costs for factory |
$73,000 |
Factory janitor wages |
$67,000 |
Costs of shipping to customers |
$11,000 |
Lubricants used in factory equipment |
$2,000 |
Lighting costs for sales office |
$17,000 |
Depreciation on factory equipment |
$23,000 |
Office supplies for sales office |
$4,000 |
Insurance costs for factory |
$15,000 |
Maintenance worker wages |
$99,000 |
Freight-in (on plastics) |
$8,000 |
Aluminum used to make products |
$175,000 |
Assembly-line worker wages |
$142,000 |
Salaries of salespeople |
$284,000 |
Product costs for First Sporting Equipment totaled:
A) $620,000.
B) $732,000.
C) $755,000.
D) $827,000.
27) First Sporting Equipment manufactures sporting goods. Selected costs from the past year include:
Plastics used to make products |
$151,000 |
Heating and lighting costs for factory |
$73,000 |
Factory janitor wages |
$67,000 |
Costs of shipping to customers |
$11,000 |
Lubricants used in factory equipment |
$2,000 |
Lighting costs for sales office |
$17,000 |
Depreciation on factory equipment |
$23,000 |
Office supplies for sales office |
$4,000 |
Insurance costs for factory |
$15,000 |
Maintenance worker wages |
$99,000 |
Freight-in (on plastics) |
$8,000 |
Aluminum used to make products |
$175,000 |
Assembly-line worker wages |
$142,000 |
Salaries of salespeople |
$284,000 |
Period costs for First Sporting Equipment totaled:
A) $116,000.
B) $99,000.
C) $201,000.
D) $32,000
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