Question 1

Select the appropriate classification of the items listed below.
-Wages of assembly line workers in an automobile plant

Accepted Answer

A) selling expense 
B) administrative expense 
C) direct materials 
D) direct labor 
E) overhead 
A) selling expense 
B) administrative expense 
C) direct materials 
D) direct labor 
E) overhead

Question 2

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles.
-factory security costs

Accepted Answer

A) direct materials 
B) direct labor 
C) overhead 
D) selling expense 
E) administrative expense 
A) direct materials 
B) direct labor 
C) overhead 
D) selling expense 
E) administrative expense

Question 3

Select the appropriate definition for each of the items listed below.
-A manufacturing cost

Accepted Answer

A) period cost 
B) direct cost 
C) opportunity cost 
D) variable cost 
E) indirect cost
F)fixed cost
G)product cost 
A) period cost 
B) direct cost 
C) opportunity cost 
D) variable cost 
E) indirect cost
F)fixed cost
G)product cost

Question 4

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?

Accepted Answer

A)  $190,000 
B)  $100,000 
C)  $150,000 
D)  $236,000 
A)  $190,000 
B)  $100,000 
C)  $150,000 
D)  $236,000

Question 5

A cost object is any item such as products, customers, departments, regions, and so on, for which costs are measured and assigned.

Accepted Answer

A) True 
 B)False

Question 6

Arcadia Company manufactures recreational vehicles and incurred the following costs during the current year.
Required: Classify each cost using the table format given below:

Accepted Answer

The answer of Arcadia Company manufactures recreational vehicles and incurred...

Question 7

The cost of the partially completed goods at the end of the period would be

Accepted Answer

A)  ending work in process inventory. 
B)  cost of goods sold. 
C)  beginning finished goods inventory. 
D)  beginning work in process inventory. 
A)  ending work in process inventory. 
B)  cost of goods sold. 
C)  beginning finished goods inventory. 
D)  beginning work in process inventory.

Question 8

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

Accepted Answer

A)  52% 
B)  48% 
C)  17% 
D)  19% 
A)  52% 
B)  48% 
C)  17% 
D)  19%

Question 9

Costs are subdivided into what two major functional categories?

Accepted Answer

A)  opportunity and allocation 
B)  fixed and variable 
C)  product and non-production 
D)  direct and indirect 
A)  opportunity and allocation 
B)  fixed and variable 
C)  product and non-production 
D)  direct and indirect

Question 10

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?

Accepted Answer

A)  $101,000 
B)  $124,000 
C)  $100,000 
D)  $102,000 
A)  $101,000 
B)  $124,000 
C)  $100,000 
D)  $102,000

Question 11

Figure 2-7.Gateway Company produces a product with the following per-unit costs:
 $\begin{array}{lr}
\text { Direct materials } & \$ 11 \
\text { Direct labor } & 8 \
\text { Overhead } & 15
\end{array}$ 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. Total operating income last year was?

Accepted Answer

A)  $29,000 
B)  $51,000 
C)  $25,500 
D)  $3,500 
A)  $29,000 
B)  $51,000 
C)  $25,500 
D)  $3,500

Question 12

Select the appropriate classification for each of the items listed below.
-Factory security costs

Accepted Answer

A) Product cost 
B) Period cost 
A) Product cost 
B) Period cost

Question 13

Assigning costs involves the way that a cost is linked to some cost object.

Accepted Answer

A) True 
 B)False

Question 14

Ross Company makes handbags. Last month direct materials (leather, thread, zippers, decorative accents) costing $76,000 were put into production. Ross had 30 workers, each worked 160 hours this month and each are paid $12 per hour. Overhead equaled $80,000 for the period. Ross Company produced 40,000 handbags as of the end of the month.
Required: Calculate the total product cost for the month and calculate the cost of one handbag that was produced.

Accepted Answer

Direct materials = 76,000
Dire

Question 15

________________ are those costs, both direct and indirect, of producing a product in a manufacturing firm or of acquiring a product in a merchandising firm and preparing it for sale.

Accepted Answer

The answer of ________________ are those costs, both direct and...

Question 16

The unit cost

Accepted Answer

A)  is the total product costs divided by the number of units produced. 
B)  includes period costs. 
C)  is the total prime costs divided by the number of units produced. 
D)  is the total conversion costs divided by the number of units produced. 
A)  is the total product costs divided by the number of units produced. 
B)  includes period costs. 
C)  is the total prime costs divided by the number of units produced. 
D)  is the total conversion costs divided by the number of units produced.

Question 17

Select the appropriate definition for each of the items listed below.
-Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

Accepted Answer

A) Work in process inventory 
B) Finished goods inventory 
C) Cost of goods sold 
D) Cost of goods manufactured 
E) Total manufacturing costs 
A) Work in process inventory 
B) Finished goods inventory 
C) Cost of goods sold 
D) Cost of goods manufactured 
E) Total manufacturing costs

Question 18

Product costs are carried in inventory until the goods are finished.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  $960,000. 
B)  $564,000. 
C)  $705,000. 
D)  $969,000. 
A)  $960,000. 
B)  $564,000. 
C)  $705,000. 
D)  $969,000.

Question 20

Product costs consist of

Accepted Answer

A)  period costs. 
B)  indirect materials, indirect labor, and administrative costs. 
C)  direct materials, direct labor, and selling costs. 
D)  direct materials, direct labor, and overhead. 
A)  period costs. 
B)  indirect materials, indirect labor, and administrative costs. 
C)  direct materials, direct labor, and selling costs. 
D)  direct materials, direct labor, and overhead.

Select the appropriate classification of the items listed below. -Wages of assembly line workers in an automobile plant

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -factory security costs

Select the appropriate definition for each of the items listed below. -A manufacturing cost

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?

A cost object is any item such as products, customers, departments, regions, and so on, for which costs are measured and assigned.

Arcadia Company manufactures recreational vehicles and incurred the following costs during the current year. Required: Classify each cost using the table format given below:

The cost of the partially completed goods at the end of the period would be

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

Costs are subdivided into what two major functional categories?

Select the appropriate classification for each of the items listed below. -Factory security costs

Assigning costs involves the way that a cost is linked to some cost object.

________________ are those costs, both direct and indirect, of producing a product in a manufacturing firm or of acquiring a product in a merchandising firm and preparing it for sale.

The unit cost

Select the appropriate definition for each of the items listed below. -Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

Product costs are carried in inventory until the goods are finished.

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

Product costs consist of

Introduction to Managerial Accounting

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Basic Managerial Accounting Concepts

Select the appropriate classification of the items listed below. -Wages of assembly line workers in an automobile plant

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -factory security costs

Select the appropriate definition for each of the items listed below. -A manufacturing cost

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?

A cost object is any item such as products, customers, departments, regions, and so on, for which costs are measured and assigned.

Arcadia Company manufactures recreational vehicles and incurred the following costs during the current year. Required: Classify each cost using the table format given below:

The cost of the partially completed goods at the end of the period would be

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

Costs are subdivided into what two major functional categories?

Select the appropriate classification for each of the items listed below. -Factory security costs

Assigning costs involves the way that a cost is linked to some cost object.

________________ are those costs, both direct and indirect, of producing a product in a manufacturing firm or of acquiring a product in a merchandising firm and preparing it for sale.

The unit cost

Select the appropriate definition for each of the items listed below. -Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

Product costs are carried in inventory until the goods are finished.

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

Product costs consist of

Introduction to Managerial Accounting

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters