Exam 2: Basic Managerial Accounting Concepts

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.What was the amount of cost of goods manufactured last month?

Costs can be assigned to cost objects in only one way.

A manufacturer normally has

Materials in the raw materials account do not become direct materials

Baleen Company supplied the following data at the end of the current year: Required: Prepare an income statement for Baleen Company.

Insurance coverage,medical care,and accounting are examples of _________________ performed for customers.

It is beneficial to assign indirect costs to cost objects.

Sales revenue equals the product cost per unit times the number of units sold.

Rizzuto Company supplied the following information for the month of January. Required: Reconstruct Rizzuto's income statement for January assuming that their total sales revenue for the month equaled $500,000.

Lakeland Inc.manufactured 5,000 units during the month of March.They incurred direct materials cost of $100,000 and overhead cost of $40,000.If their per-unit prime cost was $26.00 per unit how much direct labor cost did they incur during March?

Macon Company supplied the following data and information on inventories at the end of the current year. Required: Prepare an income statement of Macon Company for the current year.

Stabler Company,a manufacturing firm,has provided the following information for the month of May: Required:

A(n)________________ is a cost that does not increase in total as output increase and does not decrease in total as output decreases.

The cost of janitorial services for a factory building would be classified as indirect labor.

Fidalgo Company makes stereos.During the year,Fidalgo manufactured and sold 75,000 stereos at a sales price of $575 per unit.Fidalgo's per-unit product cost was $540 and selling and administrative expenses totaled $2,000,000. Required:

A fixed cost is a cost that does not increase in total as output increases and does not decrease in total as output decreases.

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 has a per-unit product cost of $112,what was the cost of goods sold last year?

A cost object is any item such as products,customers,departments,regions,and so on,for which costs are measured and assigned.

Which of the following is not an example of a direct materials cost?

Cost of goods manufactured equals