Exam 2: Building Blocks of Managerial Accounting

The following information is available for the Bower Corporation for last year: ∙ Raw materials inventory decreased $4,000 from the beginning of the year to the end of the year. ∙ Raw materials inventory on December 31 (end of year)was 50% of raw materials inventory on January 1 (beginning of year). ∙ Beginning work in process inventory was $145,000. ∙ Ending finished goods inventory was $65,000. ∙ Purchases of direct materials were $154,700. ∙ Manufacturing overhead was 50% of the cost of direct labor. ∙ Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $156,000 less than cost of goods sold. Compute: a)finished goods inventory on January 1 (beginning of year) b)work in process inventory on December 31 (end of year) c)direct labor incurred d)manufacturing overhead incurred e)direct materials used f)raw materials inventory on January 1 (beginning of year) g)raw materials inventory on December 31 (end of year) Note to students: The solutions to this problem are not necessarily calculated in alphabetical order.

Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Direct labor costs for Country Furniture Company totaled

Where would period costs be found on the financial statements?

The sales price of a particular unit is $19.00. The company plans to sell 7,500 units. The variable costs are $6.00 per unit and monthly fixed costs are $112,500. Given this information what is the company's total sales revenue?

Which of the following activities is not included in the value chain?

If a company wants to determine a product's cost, it must assign both direct and indirect costs.

Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its costs from the past year include: Direct labor costs for Rustic Living Furniture Company totaled

Average variable costs

All companies have the same types of inventories.

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the beginning finished goods inventory?

Tuity Fruity Beverage Company's operating activities for the year are listed below. What is the cost of goods available for sale?

Fit Apparel Company reports the following data for its first year of operation. What is the cost of goods sold?

Sneider Family Orange Groves processes a variety of fresh juices. The company has the following expenses for July: What is the total cost for the distribution category of the value chain?

Cost of goods sold is a major expense of service companies.

Schlabig & Associates, a public accounting firm, is what type of company?

Joe's Bottling Company provided the following expense information for July: What is the total cost for the production category of the value chain?

Direct costs can be traced to specific units.

Selected financial information for Brookeville Manufacturing is presented in the following table (000s omitted). What was direct materials used?

Company X sells widgets. The following information summarizes the company's operating activities for the year: What is cost of goods sold?

Tuity Fruity Beverage Company's operating activities for the year are listed below. What is the cost of goods sold for the year?