Exam 2: Basic Managerial Accounting Concepts

___________________ is the cost of the partially completed goods that are still on the factory floor at the end of a time period.

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

Product costs include direct materials, direct labor, and selling costs.

________________ and _________________ costs are considered period costs.

MATCHING Select the appropriate classification for each of the following costs. a. Period b. Product -Factory supervisor's salary

MATCHING Select the appropriate classification for each of the following costs. a. Period b. Product -Advertising costs

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

Industries that provide intangible services do not normally have direct contact with their customers.

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?

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. Conversion cost per unit was?

Select the appropriate classification for each of the items listed below. a. Product cost b. Period cost -Factory security costs

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

Select the appropriate classification of the output generated by each of the following industries. a. Tangible b. Intangible -Professional sports franchise

The unit cost

A cost object is something for which a company wants to know the cost.

Which of the following is an example of direct labor?

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?

Select the appropriate definition for each of the items listed below. a. Work in process inventory b. Finished goods inventory c. Cost of goods sold d. Cost of goods manufactured e. Total manufacturing costs -The cost of units unfinished at the end of the current period