Question 1

Cost of goods sold is the total product cost of the units sold during a period.

Accepted Answer

A) True 
 B)False

Question 2

Templar Company,a manufacturing firm,has supplied the following information from its accounting records for the month of November:
   Required:

Accepted Answer

The answer of Templar Company,a manufacturing firm,has supplied the following...

Question 3

Assigning costs tells the accountant who spent the money.

Accepted Answer

A) True 
 B)False

Question 4

During the month of June,Telecom Inc.had cost of goods manufactured of $112,000,direct materials cost of $52,000,direct labor cost of $37,000 and overhead cost of $26,000.The work in process balance at June 30 equaled $10,000.What was the work in process balance on June 1?

Accepted Answer

A) $7,000 
B) $13,000 
C) $10,000 
D) $115,000 
A) $7,000 
B) $13,000 
C) $10,000 
D) $115,000

Question 5

Marketing costs would be classified as period costs.

Accepted Answer

A) True 
 B)False

Question 6

Operating income equals

Accepted Answer

A) sales revenue - cost of goods sold - selling and administrative expense 
B) gross margin - selling expenses 
C) sales revenue - cost of goods sold 
D) sales revenue - selling and administrative expenses 
A) sales revenue - cost of goods sold - selling and administrative expense 
B) gross margin - selling expenses 
C) sales revenue - cost of goods sold 
D) sales revenue - selling and administrative expenses

Question 7

Conversion cost is the sum of

Accepted Answer

A) product costs and period costs. 
B) selling cost and administrative costs. 
C) direct labor cost and direct materials costs. 
D) direct labor cost and overhead costs. 
A) product costs and period costs. 
B) selling cost and administrative costs. 
C) direct labor cost and direct materials costs. 
D) direct labor cost and overhead costs.

Question 8

Figure 2-8. Last year Quest Company incurred the following costs:
  Quest produced and sold 2,000 units at a sales price of $125 each.Assume that beginning and ending inventories of materials,work in process,and finished goods were zero.
Refer to Figure 2-8.Total period expense was?

Accepted Answer

A) $24,000 
B) $190,000 
C) $46,000 
D) $250,000 
A) $24,000 
B) $190,000 
C) $46,000 
D) $250,000

Question 9

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 goods sold for July?

Accepted Answer

A) $70,200 
B) $69,600 
C) $71,300 
D) $71,100 
A) $70,200 
B) $69,600 
C) $71,300 
D) $71,100

Question 10

The difference between sales revenue and cost of goods sold is known as the ______________.

Accepted Answer

The answer of The difference between sales revenue and cost...

Question 11

Selected data concerning the past year's operations of the Burner Corporation are as follows:   The cost of direct materials purchased is:

Accepted Answer

A) $397,500. 
B) $403,500. 
C) $367,500. 
D) $405,000. 
A) $397,500. 
B) $403,500. 
C) $367,500. 
D) $405,000.

Question 12

Talcum Inc.had materials inventory at July 1 of $12,000.The materials inventory at July 31 was $15,000 and the cost of direct materials used in production was $20,000.What was the cost of materials purchased during the month?

Accepted Answer

A) $23,000 
B) $17,000 
C) $35,000 
D) $20,000 
A) $23,000 
B) $17,000 
C) $35,000 
D) $20,000

Question 13

Product costs

Accepted Answer

A) are costs that are included in the determining the value of the inventory. 
B) are manufacturing costs. 
C) include direct materials,direct labor,and overhead. 
D) are all of these. 
A) are costs that are included in the determining the value of the inventory. 
B) are manufacturing costs. 
C) include direct materials,direct labor,and overhead. 
D) are all of these.

Question 14

On a manufacturer's income statement expenses are separated into the following three categories:

Accepted Answer

A) production,period,and indirect 
B) materials,work in process,and finished goods 
C) production,selling,and administrative 
D) variable,fixed,and direct 
A) production,period,and indirect 
B) materials,work in process,and finished goods 
C) production,selling,and administrative 
D) variable,fixed,and direct

Question 15

Which of the following would be found on the balance sheet of a manufacturer?

Accepted Answer

A) sales revenue 
B) selling expenses 
C) factory equipment 
D) all of these are correct 
A) sales revenue 
B) selling expenses 
C) factory equipment 
D) all of these are correct

Question 16

Which of the following is an example of a tangible product?

Accepted Answer

A) lawn care 
B) accounting services 
C) customer service 
D) computer 
A) lawn care 
B) accounting services 
C) customer service 
D) computer

Question 17

All product costs other than direct materials and indirect labor are called overhead.

Accepted Answer

A) True 
 B)False

Question 18

For external reporting purposes,costs must be classified into only three categories.

Accepted Answer

A) True 
 B)False

Question 19

Rancor Company's accountant prepared the following income statement for the month of August.
   Required:

Accepted Answer

The answer of Rancor Company's accountant prepared the following income...

Question 20

Gross margin is the difference between sales revenue and cost of goods sold.

Accepted Answer

A) True 
 B)False

Cost of goods sold is the total product cost of the units sold during a period.

Templar Company,a manufacturing firm,has supplied the following information from its accounting records for the month of November: Required:

Assigning costs tells the accountant who spent the money.

During the month of June,Telecom Inc.had cost of goods manufactured of $112,000,direct materials cost of $52,000,direct labor cost of $37,000 and overhead cost of $26,000.The work in process balance at June 30 equaled $10,000.What was the work in process balance on June 1?

Marketing costs would be classified as period costs.

Operating income equals

Conversion cost is the sum of

Figure 2-8. Last year Quest Company incurred the following costs: Quest produced and sold 2,000 units at a sales price of $125 each.Assume that beginning and ending inventories of materials,work in process,and finished goods were zero. Refer to Figure 2-8.Total period expense was?

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 goods sold for July?

The difference between sales revenue and cost of goods sold is known as the ______________.

Selected data concerning the past year's operations of the Burner Corporation are as follows: The cost of direct materials purchased is:

Talcum Inc.had materials inventory at July 1 of $12,000.The materials inventory at July 31 was $15,000 and the cost of direct materials used in production was $20,000.What was the cost of materials purchased during the month?

Product costs

On a manufacturer's income statement expenses are separated into the following three categories:

Which of the following would be found on the balance sheet of a manufacturer?

Which of the following is an example of a tangible product?

All product costs other than direct materials and indirect labor are called overhead.

For external reporting purposes,costs must be classified into only three categories.

Rancor Company's accountant prepared the following income statement for the month of August. Required:

Gross margin is the difference between sales revenue and cost of goods sold.

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

Cost of goods sold is the total product cost of the units sold during a period.

Templar Company,a manufacturing firm,has supplied the following information from its accounting records for the month of November: Required:

Assigning costs tells the accountant who spent the money.

During the month of June,Telecom Inc.had cost of goods manufactured of $112,000,direct materials cost of $52,000,direct labor cost of $37,000 and overhead cost of $26,000.The work in process balance at June 30 equaled $10,000.What was the work in process balance on June 1?

Marketing costs would be classified as period costs.

Operating income equals

Conversion cost is the sum of

Figure 2-8. Last year Quest Company incurred the following costs: Quest produced and sold 2,000 units at a sales price of $125 each.Assume that beginning and ending inventories of materials,work in process,and finished goods were zero. Refer to Figure 2-8.Total period expense was?

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 goods sold for July?

The difference between sales revenue and cost of goods sold is known as the ______________.

Selected data concerning the past year's operations of the Burner Corporation are as follows: The cost of direct materials purchased is:

Talcum Inc.had materials inventory at July 1 of $12,000.The materials inventory at July 31 was $15,000 and the cost of direct materials used in production was $20,000.What was the cost of materials purchased during the month?

Product costs

On a manufacturer's income statement expenses are separated into the following three categories:

Which of the following would be found on the balance sheet of a manufacturer?

Which of the following is an example of a tangible product?

All product costs other than direct materials and indirect labor are called overhead.

For external reporting purposes,costs must be classified into only three categories.

Rancor Company's accountant prepared the following income statement for the month of August. Required:

Gross margin is the difference between sales revenue and cost of goods sold.

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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