Exam 2: Basic Managerial Accounting Concepts

Select the appropriate definition of each of the items listed below. a. Income Statement b. Cost of goods manufactured c. Work in process d. Gross margin e. Operating income -Covers a particular period of time

Information from the records of Cain Corporation for December 2011 are as follows: The prime costs are:

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.

Which of the following would be an example of a direct materials cost?

Select the appropriate classification of the items listed below. a. selling expense b. administrative expense c. direct materials d. direct labor e. overhead -A professor's salary at a university

Expired costs are called

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

During the month of January, Enterprise Inc. had total manufacturing costs of $110,000. They incurred $40,000 of direct labor cost and $30,000 of overhead cost during the month. If the materials inventory on January 1 was $3,000 less that the materials inventory on January 31, what was the cost of materials purchased during the month?

Expired costs are called assets.

Which of the following would not be included in overhead?

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?

Wapato Company produces a product with the following per unit costs. Last year, Wapato produced and sold 3,000 units at a sales price of $80 each. Total selling and administrative expenses were $25,000. Required: Solve for the following:

Select the appropriate definition for each of the items listed below. a. period cost b. direct cost c. opportunity cost d. variable cost e. indirect cost f. fixed cost g. product cost -A benefit given up when one alternative is chosen over another

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

Tucker Company, a manufacturing firm, has supplied the following information from its accounting records for the month of April. Required: Prepare a Statement of Cost of Goods Manufactured

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

Cost of goods manufactured represents the cost of direct materials, direct labor, and overhead incurred during the current accounting period.

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?

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?

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. a. direct materials b. direct labor c. overhead d. selling expense e. administrative expense -cost of windshields used in the production process