Exam 2: Basic Managerial Accounting Concepts

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 -depreciation of vehicles used by sales personnel

Figure 2-3. Bartlow, Inc. had the following income statement for the month of May. -Refer to Figure 2-3. What was the selling expense percent?

List and describe the three categories of manufacturing costs.

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. How many financial calculators did Junko sell during the year?

Select the appropriate classification for each of the items listed below. a. Product cost b. Period cost -Cost of nails used by a home builder

Select the appropriate classification of the items listed below. a. selling expense b. administrative expense c. direct materials d. direct labor e. overhead -Cost of shipping goods to customers

Which of the following is an example of a period cost?

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

The ____________________________ represents that total product cost of goods completed during the current period and transferred to finished goods inventory.

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?

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 manufacturing cost

Indirect labor would include

Employees who convert direct materials into a product or who provide a service to customers are classified as indirect labor.

See the following separate cases. Required: Solve for the missing amounts (A,B,C,D).

Period costs

Marketing costs would be classified as period costs.

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 -The difference between sales revenue and cost of goods sold

Cost of goods manufactured equals

Which of the following would not be a period cost?

_________________ equals the sum of direct materials, direct labor, and manufacturing overhead.