Exam 2: Building Blocks of Managerial Accounting

Porches, Inc., sells lawn furniture. Selected financial information for the most recent year follows: Beginning merchandise inventory on January 1 was $33,000. Ending merchandise inventory on December 31 was $35,000. Purchases during the year were $92,000. Selling and administrative expenses were $75,000. Sales for year were $262,000. What was operating income for the year?

Paper Clip Company sells office supplies. The following information summarizes the company's operating activities for the year: What is total operating expense?

Joe's Bottling Company provided the following expense information for July: What is the total cost of research and development?

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

Place the value chain elements in the correct order by numbering them from 1 to 6. ___ Design ___ Customer Service ___ Marketing ___ Research and Development ___ Distribution ___ Production or Purchases

London Plastics has monthly fixed costs of $84,000, while its variable costs are $4.00 per unit. If the sales price of a unit is $15.00 and London Plastics sell 14,000 units, the company's total variable costs will be

Indirect materials and indirect labor are ________ for a manufactured product.

All costs contain both a fixed and a variable portion.

ABC Company makes wooden furniture. Identify each of the following as either an inventoriable product cost or a period cost. If it is an inventoriable product cost, classify it as direct materials, direct labor, or manufacturing overhead. A. ________ Insurance on the plant building B. ________ Cost of shipping the furniture to the customers C. ________ Assembly line workers' wages D. ________ Depreciation on plant equipment E. ________ Salesmen's salaries F. ________ Cost of various types of wood G. ________ Insurance on delivery trucks H. ________ Plant forklift operator's salary

Indicate whether each of the following costs is a product cost or a period cost. Assume a manufacturer. A)________ direct materials used in factory B)________ factory utilities C)________ salespersons' commissions D)________ salary of plant manager E)________ indirect materials used in factory F)________ depreciation expense on store equipment G)________ indirect labor incurred in factory H)________ advertising expense I)________ direct labor incurred in factory J)________ factory machinery repairs and maintenance K)________ depreciation expense on factory machinery L)________ supplies used in store M)________ plant insurance expired

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 production category of the value chain?

Direct materials for a company were $500,000; manufacturing overhead was $250,000; and direct labor was $770,000. Prime costs would total

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

London Plastics sells a product for $15.00 per unit. The product requires $4.00 per unit in variable costs to produce it. The company plans on selling 12,000 units of this product. If the monthly fixed costs are $84,000, the total sales revenue will be

North Pacific Company used $65,000 of direct materials and incurred $43,000 of direct labor costs during 2011. Indirect labor amounted to $1,700 while indirect materials used totaled $1,800. Other operating costs pertaining to the factory included utilities of $4,300; maintenance of $6,800; supplies of $1,500; depreciation expense of $8,900; and property taxes of $2,400. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $6,400 balance and ended the year with a $7800 balance. Required: Prepare a schedule of cost of goods manufactured for South State Company for the year ended December 31.

Pink Ribbon Shoppe, a clothing retailer, had the following total costs as grouped by value chain element: What were the company's period costs?

Lots of Stuff Company reports the following data for its first year of operation. What are the total manufacturing costs?

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 variable cost?

Selected financial information for Brookeville Manufacturing is presented in the following table (000s omitted). What was cost of goods manufactured?

Classify each of the following business costs into one of the six value chain elements. A. cost of a commercial during a TV program B. cost of shipping goods to customers C. costs associated with repairing products under warranty D. costs of developing a new product E. cost of making a prototype of a new product F. cost of labor for machine operator in factory