Question 1

All manufacturing costs are classified as overhead.

Accepted Answer

A) True 
 B)False

Question 2

Expired costs are called ____________.

Accepted Answer

The answer of Expired costs are called ____________....

Question 3

Figure 2-2. Lonborg Co.had the following beginning and ending inventory balances for the year ended December 31,2011:
  In addition,direct labor costs of $30,000 were incurred,overhead equaled $42,000,materials purchased were $27,000 and selling and administrative costs were $22,000.Lonborg Co.sold 25,000 units of product during the year at a sales price of $5.00 per unit.
Refer to Figure 2-2.What were the total manufacturing costs for the year?

Accepted Answer

A) $101,000 
B) $102,000 
C) $123,000 
D) $106,500 
A) $101,000 
B) $102,000 
C) $123,000 
D) $106,500

Question 4

Direct materials can be directly traced to the goods or services being produced.

Accepted Answer

A) True 
 B)False

Question 5

Figure 2-2. Lonborg Co.had the following beginning and ending inventory balances for the year ended December 31,2011:
  In addition,direct labor costs of $30,000 were incurred,overhead equaled $42,000,materials purchased were $27,000 and selling and administrative costs were $22,000.Lonborg Co.sold 25,000 units of product during the year at a sales price of $5.00 per unit.
Refer to Figure 2-2.What was Lonborg's operating income <loss> for the year?

Accepted Answer

A) $18,500 B) $125,000 C) $<3,500> D) $5,500 A) $18,500 B) $125,000 C) $<3,500> D) $5,500

Question 6

Gross margin equals

Accepted Answer

A) cost of goods sold - selling and administrative expenses. 
B) direct materials + direct labor + manufacturing overhead. 
C) sales revenue - cost of goods sold. 
D) cost of goods manufactured + selling and administrative expenses. 
A) cost of goods sold - selling and administrative expenses. 
B) direct materials + direct labor + manufacturing overhead. 
C) sales revenue - cost of goods sold. 
D) cost of goods manufactured + selling and administrative expenses.

Question 7

Figure 2-7. Gateway Company produces a product with the following per-unit costs:
  Last year,Gateway produced and sold 750 units at a sales price of $68 each.Total selling and administrative expense was $22,000.
Refer to Figure 2-7.Total operating income last year was?

Accepted Answer

A) $29,000 
B) $51,000 
C) $25,500 
D) $3,500 
A) $29,000 
B) $51,000 
C) $25,500 
D) $3,500

Question 8

Figure 2-6. Seaview Company took the following data from their income statement at the end of the current year.
  Refer to Figure 2-6.What was gross margin for the year?

Accepted Answer

A) $60,000 
B) $100,000 
C) $40,000 
D) none of these 
A) $60,000 
B) $100,000 
C) $40,000 
D) none of these

Question 9

Reducing the cost required to achieve a given benefit means that a company is becoming less efficient.

Accepted Answer

A) True 
 B)False

Question 10

Gross margin percent equals

Accepted Answer

A) gross margin/cost of goods sold. 
B) operating income/sales revenue. 
C) gross margin/sales revenue. 
D) sales revenue/gross margin. 
A) gross margin/cost of goods sold. 
B) operating income/sales revenue. 
C) gross margin/sales revenue. 
D) sales revenue/gross margin.

Question 11

Price must be greater than cost in order for the firm to generate revenue.

Accepted Answer

A) True 
 B)False

Question 12

Organizations that produce products are called _______________________.

Accepted Answer

manufactur

Question 13

Andover Inc.had a gross margin for the month of February totaling $42,000.They sold 5,000 units during the month at a sales price of $20 per unit.What was the amount of cost of goods sold for the month?

Accepted Answer

A) $100,000 
B) $42,000 
C) $58,000 
D) none of these are correct 
A) $100,000 
B) $42,000 
C) $58,000 
D) none of these are correct

Question 14

All product costs other than direct materials and direct labor are put into a category called _________________________.

Accepted Answer

manufactur

Question 15

You Decide
You are the accounting manager at Falcon Inc.You just hired a new staff accountant to assist you in breaking out costs into their appropriate classifications.The staff accountant asks you why cost classification is important.
How would you respond?

Accepted Answer

Cost classification is important for a v

Question 16

In June,Olympic Company purchased materials costing $38,000,and incurred direct labor cost of $42,000.Overhead totaled $27,000 for the month.Information on inventories was as follows.
   Required:

Accepted Answer

The answer of In June,Olympic Company purchased materials costing $38,000,and...

Question 17

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

Accepted Answer

A) work in process 
B) raw materials 
C) finished goods 
D) All of the these are correct 
A) work in process 
B) raw materials 
C) finished goods 
D) All of the these are correct

Question 18

Figure 2-2. Lonborg Co.had the following beginning and ending inventory balances for the year ended December 31,2011:
  In addition,direct labor costs of $30,000 were incurred,overhead equaled $42,000,materials purchased were $27,000 and selling and administrative costs were $22,000.Lonborg Co.sold 25,000 units of product during the year at a sales price of $5.00 per unit.
Refer to Figure 2-2.What was the amount of cost of goods sold for the year?

Accepted Answer

A) $102,000 
B) $97,500 
C) $106,500 
D) $128,500 
A) $102,000 
B) $97,500 
C) $106,500 
D) $128,500

Question 19

Figure 2-7. Gateway Company produces a product with the following per-unit costs:
  Last year,Gateway produced and sold 750 units at a sales price of $68 each.Total selling and administrative expense was $22,000.
Refer to Figure 2-7.Cost of goods sold last year was?

Accepted Answer

A) $47,500 
B) $25,500 
C) $14,250 
D) $51,000 
A) $47,500 
B) $25,500 
C) $14,250 
D) $51,000

Question 20

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 product costs for last month were:

Accepted Answer

A) $1,750,000 
B) $2,110,000 
C) $1,300,000 
D) $1,250,000 
A) $1,750,000 
B) $2,110,000 
C) $1,300,000 
D) $1,250,000

All manufacturing costs are classified as overhead.

Expired costs are called ____________.

Direct materials can be directly traced to the goods or services being produced.

Gross margin equals

Figure 2-7. Gateway Company produces a product with the following per-unit costs: Last year,Gateway produced and sold 750 units at a sales price of $68 each.Total selling and administrative expense was $22,000. Refer to Figure 2-7.Total operating income last year was?

Figure 2-6. Seaview Company took the following data from their income statement at the end of the current year. Refer to Figure 2-6.What was gross margin for the year?

Reducing the cost required to achieve a given benefit means that a company is becoming less efficient.

Gross margin percent equals

Price must be greater than cost in order for the firm to generate revenue.

Organizations that produce products are called _______________________.

Andover Inc.had a gross margin for the month of February totaling $42,000.They sold 5,000 units during the month at a sales price of $20 per unit.What was the amount of cost of goods sold for the month?

All product costs other than direct materials and direct labor are put into a category called _________________________.

You Decide You are the accounting manager at Falcon Inc.You just hired a new staff accountant to assist you in breaking out costs into their appropriate classifications.The staff accountant asks you why cost classification is important. How would you respond?

In June,Olympic Company purchased materials costing $38,000,and incurred direct labor cost of $42,000.Overhead totaled $27,000 for the month.Information on inventories was as follows. Required:

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

Figure 2-7. Gateway Company produces a product with the following per-unit costs: Last year,Gateway produced and sold 750 units at a sales price of $68 each.Total selling and administrative expense was $22,000. Refer to Figure 2-7.Cost of goods sold last year was?

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

Filters

Exam 2: Basic Managerial Accounting Concepts

All manufacturing costs are classified as overhead.

Expired costs are called ____________.

Direct materials can be directly traced to the goods or services being produced.

Gross margin equals

Figure 2-7. Gateway Company produces a product with the following per-unit costs: Last year,Gateway produced and sold 750 units at a sales price of $68 each.Total selling and administrative expense was $22,000. Refer to Figure 2-7.Total operating income last year was?

Figure 2-6. Seaview Company took the following data from their income statement at the end of the current year. Refer to Figure 2-6.What was gross margin for the year?

Reducing the cost required to achieve a given benefit means that a company is becoming less efficient.

Gross margin percent equals

Price must be greater than cost in order for the firm to generate revenue.

Organizations that produce products are called _______________________.

Andover Inc.had a gross margin for the month of February totaling $42,000.They sold 5,000 units during the month at a sales price of $20 per unit.What was the amount of cost of goods sold for the month?

All product costs other than direct materials and direct labor are put into a category called _________________________.

You Decide You are the accounting manager at Falcon Inc.You just hired a new staff accountant to assist you in breaking out costs into their appropriate classifications.The staff accountant asks you why cost classification is important. How would you respond?

In June,Olympic Company purchased materials costing $38,000,and incurred direct labor cost of $42,000.Overhead totaled $27,000 for the month.Information on inventories was as follows. Required:

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

Figure 2-7. Gateway Company produces a product with the following per-unit costs: Last year,Gateway produced and sold 750 units at a sales price of $68 each.Total selling and administrative expense was $22,000. Refer to Figure 2-7.Cost of goods sold last year was?

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

Filters