Exam 2: Basic Managerial Accounting Concepts

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?

Sales revenue equals the product cost per unit times the number of units sold.

Cost of goods sold

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. If Econo Company sold 10,000 units during July and gross margin totaled $29,800, what was the sales price per unit?

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

Extrema Company supplied the following data at the end of the current year. Required:

Which of the following would not be found on the income statement of a manufacturer?

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 product costs were?

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

An indirect cost

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 cost that increases in total as output increases

Assigning costs

Assigning costs tells the accountant who spent the money.

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 manufactured for the year?

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 finished but not sold at the end of the current period

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?

Expired costs are called ____________.

Operating income equals

Fidalgo Company makes stereos. During the year, Fidalgo manufactured and sold 75,000 stereos at a sales price of $575 per unit. Fidalgo's per-unit product cost was $540 and selling and administrative expenses totaled $2,000,000. Required:

Select the appropriate classification of the output generated by each of the following industries. a. Tangible b. Intangible -Fast food restaurant