Question 1

Product costs consist of

Accepted Answer

A) period costs. 
B) indirect materials,indirect labor,and administrative costs. 
C) direct materials,direct labor,and selling costs. 
D) direct materials,direct labor,and overhead. 
A) period costs. 
B) indirect materials,indirect labor,and administrative costs. 
C) direct materials,direct labor,and selling costs. 
D) direct materials,direct labor,and overhead. D

Question 2

Production costs that are not attached to units that are sold are reported as:

Accepted Answer

A) selling expenses. 
B) cost of goods sold. 
C) administrative costs. 
D) inventory. 
A) selling expenses. 
B) cost of goods sold. 
C) administrative costs. 
D) inventory. D

Question 3

Expired costs are called assets.

Accepted Answer

A) True 
 B)False  False

Question 4

Figure 2-3. Bartlow,Inc.had the following income statement for the month of May.
  Refer to Figure 2-3.What was the administrative expense percent?

Accepted Answer

A) 17% 
B) 19% 
C) 16% 
D) 15% 
A) 17% 
B) 19% 
C) 16% 
D) 15%

Question 5

Figure 2-4. Junko Company makes financial calculators.During the year Junko manufactured 97,000 financial calculators.Finished goods inventory had the following units on hand:
  Refer to Figure 2-4.If each financial calculator had a per-unit product cost of $112,what was the cost of Finished goods inventory on December 31?

Accepted Answer

A) $116,480 
B) $141,120 
C) $24,640 
D) none of these are correct 
A) $116,480 
B) $141,120 
C) $24,640 
D) none of these are correct

Question 6

Figure 2-5. In July,Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000.Overhead totaled $32,000 for the month.Information on inventories was as follows:
  Refer to Figure 2-5.What were the total manufacturing costs in July?

Accepted Answer

A) $71,000 
B) $50,000 
C) $69,600 
D) $70,100 
A) $71,000 
B) $50,000 
C) $69,600 
D) $70,100

Question 7

Assigning costs to cost objects

Accepted Answer

A) provides information for decision making. 
B) can be accomplished in a number of ways. 
C) can be a simple or complex process. 
D) do all of these. 
A) provides information for decision making. 
B) can be accomplished in a number of ways. 
C) can be a simple or complex process. 
D) do all of these.

Question 8

Figure 2-3. Bartlow,Inc.had the following income statement for the month of May.
  Refer to Figure 2-3.What was the selling expense percent?

Accepted Answer

A) 17% 
B) 19% 
C) 16% 
D) no correct answer 
A) 17% 
B) 19% 
C) 16% 
D) no correct answer

Question 9

An opportunity cost is the benefit given up or sacrificed when one alternative is chosen over another.

Accepted Answer

A) True 
 B)False

Question 10

Figure 2-3. Bartlow,Inc.had the following income statement for the month of May.
  Refer to Figure 2-3.What was the gross margin percent?

Accepted Answer

A) 52% 
B) 48% 
C) 17% 
D) 19% 
A) 52% 
B) 48% 
C) 17% 
D) 19%

Question 11

Figure 2-1. Concam Inc.manufactures television sets.Last month direct materials (electronic components,etc.)costing $500,000 were put into production.Direct labor of $800,000 was incurred,overhead equaled $450,000,and selling and administrative costs totaled $360,000.The company manufactured 8,000 television sets during the month.Assume that there were no beginning or ending work in process balances.
Refer to Figure 2-1.The total per unit prime cost was:

Accepted Answer

A) $263.75 
B) $62.50 
C) $162.50 
D) $156.25 
A) $263.75 
B) $62.50 
C) $162.50 
D) $156.25

Question 12

Figure 2-5. In July,Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000.Overhead totaled $32,000 for the month.Information on inventories was as follows:
  Refer to Figure 2-5.What was the cost of direct materials used in July?

Accepted Answer

A) $21,000 
B) $20,100 
C) $21,900 
D) $20,500 
A) $21,000 
B) $20,100 
C) $21,900 
D) $20,500

Question 13

Product costs are carried in inventory until the goods are finished.

Accepted Answer

A) True 
 B)False

Question 14

Product costs are expensed

Accepted Answer

A) when the product is finished. 
B) when the product unit cost is calculated. 
C) when the product is sold. 
D) all of these are correct. 
A) when the product is finished. 
B) when the product unit cost is calculated. 
C) when the product is sold. 
D) all of these are correct.

Question 15

Prime cost is the sum of direct materials cost and direct labor cost.

Accepted Answer

A) True 
 B)False

Question 16

Extrema Company supplied the following data at the end of the current year.
   Required:

Accepted Answer

The answer of Extrema Company supplied the following data at...

Question 17

Costs that can be easily and accurately traced to a cost object are called __________.

Accepted Answer

The answer of Costs that can be easily and accurately...

Question 18

Rancor Inc.had a per-unit conversion cost of $2.50 during April and incurred direct materials cost of $100,000,direct labor costs of $75,000,and overhead costs of $45,000 during the month.How many units did they manufacture during the month?

Accepted Answer

A) 70,000 
B) 18,000 
C) 48,000 
D) 30,000 
A) 70,000 
B) 18,000 
C) 48,000 
D) 30,000

Question 19

Explain the difference between a cost that is included in valuing inventory and a cost that is not included in valuing inventory.

Accepted Answer

A cost that is included in valuing inven

Question 20

See the following separate cases.
   Required: Solve for the missing amounts (A,B,C,D,E,F)

Accepted Answer

The answer of See the following separate cases.
  ...

Product costs consist of

Production costs that are not attached to units that are sold are reported as:

Expired costs are called assets.

Figure 2-3. Bartlow,Inc.had the following income statement for the month of May. Refer to Figure 2-3.What was the administrative expense percent?

Figure 2-5. In July,Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000.Overhead totaled $32,000 for the month.Information on inventories was as follows: Refer to Figure 2-5.What were the total manufacturing costs in July?

Assigning costs to cost objects

Figure 2-3. Bartlow,Inc.had the following income statement for the month of May. Refer to Figure 2-3.What was the selling expense percent?

An opportunity cost is the benefit given up or sacrificed when one alternative is chosen over another.

Figure 2-3. Bartlow,Inc.had the following income statement for the month of May. Refer to Figure 2-3.What was the gross margin percent?

Figure 2-5. In July,Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000.Overhead totaled $32,000 for the month.Information on inventories was as follows: Refer to Figure 2-5.What was the cost of direct materials used in July?

Product costs are carried in inventory until the goods are finished.

Product costs are expensed

Prime cost is the sum of direct materials cost and direct labor cost.

Extrema Company supplied the following data at the end of the current year. Required:

Costs that can be easily and accurately traced to a cost object are called __________.

Rancor Inc.had a per-unit conversion cost of $2.50 during April and incurred direct materials cost of $100,000,direct labor costs of $75,000,and overhead costs of $45,000 during the month.How many units did they manufacture during the month?

Explain the difference between a cost that is included in valuing inventory and a cost that is not included in valuing inventory.

See the following separate cases. Required: Solve for the missing amounts (A,B,C,D,E,F)

Introduction to Managerial Accounting

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Basic Managerial Accounting Concepts

Product costs consist of

Production costs that are not attached to units that are sold are reported as:

Expired costs are called assets.

Figure 2-3. Bartlow,Inc.had the following income statement for the month of May. Refer to Figure 2-3.What was the administrative expense percent?

Figure 2-5. In July,Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000.Overhead totaled $32,000 for the month.Information on inventories was as follows: Refer to Figure 2-5.What were the total manufacturing costs in July?

Assigning costs to cost objects

Figure 2-3. Bartlow,Inc.had the following income statement for the month of May. Refer to Figure 2-3.What was the selling expense percent?

An opportunity cost is the benefit given up or sacrificed when one alternative is chosen over another.

Figure 2-3. Bartlow,Inc.had the following income statement for the month of May. Refer to Figure 2-3.What was the gross margin percent?

Figure 2-5. In July,Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000.Overhead totaled $32,000 for the month.Information on inventories was as follows: Refer to Figure 2-5.What was the cost of direct materials used in July?

Product costs are carried in inventory until the goods are finished.

Product costs are expensed

Prime cost is the sum of direct materials cost and direct labor cost.

Extrema Company supplied the following data at the end of the current year. Required:

Costs that can be easily and accurately traced to a cost object are called __________.

Rancor Inc.had a per-unit conversion cost of $2.50 during April and incurred direct materials cost of $100,000,direct labor costs of $75,000,and overhead costs of $45,000 during the month.How many units did they manufacture during the month?

Explain the difference between a cost that is included in valuing inventory and a cost that is not included in valuing inventory.

See the following separate cases. Required: Solve for the missing amounts (A,B,C,D,E,F)

Introduction to Managerial Accounting

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

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