Exam 2: Managerial Accounting Concepts and Cost Flows

How is Cost of Goods Sold for a period calculated?

Bell Productions makes holiday decorations. In June, Bell produced 3,000 units. Costs incurred were as follows: Given this data, what was the Conversion Cost per unit?

What are Prime Costs?

Which of the following is not an example of Manufacturing Overhead?

A service firm recorded the beginning and ending balances of Work in Process Inventory as $5,000 and $3,900 respectively. Direct Labor was $15,000, and Overhead allocated was $4,500. What amount should be recognized as Cost of Services?

What are the three components of product costs?

Quincy Manufacturing uses just-in-time inventory techniques to reduce their carrying costs. Despite having a low level of working capital, they experience significant sales and production levels. Quincy reported the following information at year-end: What was Quincy's Cost of Goods Sold for the period?

Which of the following entries correctly reflects the accumulation of Manufacturing Overhead?

Production Department 2 (of Manufacturing Company Inc.) is required to track and report departmental expenses and costs. PD2 reported the following information at year-end: What was PD2's Cost of Goods Sold for the period?

The following data is available for a manufacturing company: What is the total amount debited to manufacturing overhead for the period?

Regent & Associates is a local law firm. After successfully resolving most of their pending cases, Regent is preparing period-end financial statements, and has accumulated the following financial information for the year: What was Murdock's Operating Income for the period?

How does overall variable cost change with respect to production levels?

Ogden Electronics (OE) produced 60,000 widgets last month. OE started the month with $100,000 worth of inventory in Finished Goods. The company incurred $140,000 of various utility and rent charges on their factory, paid $400,000 for raw materials to use in production, and paid employees $100,000 in wages. During the month, inventory costing $600,000 was completed and transferred to Finished Goods Inventory. At the end of the month, OE had $40,000 of Inventory in Finished Goods, $20,000 in Materials Inventory, and $30,000 still in Work in Process. What was OE's Cost of Goods Sold for the month?

Indirect Materials costs flow directly from Materials Inventory to Work in Process Inventory.

Christensen and Associates, LLP is a public accounting firm that provides audit and tax preparation services to local business. Christensen is preparing period-end financial statements, and has accumulated the following financial information for the year: What was Christensen's Net Income for the period?

Jackson Printing Inc. reported the following information at year-end: What was Jackson's Cost of Goods Manufactured for the period?

How does a fixed cost per unit change with respect to production levels?

What is the entry to record the sale of goods on account?

Which of the following entries correctly reflects the entry for recording the wages of all factory workers?

Quincy Manufacturing, Inc. makes kitchen appliance replacement parts. In May, Quincy produced 2000 units. Costs incurred were as follows: Given this data, the total Prime Cost for the units produced in the month of May was: