Exam 2: Basic Managerial Accounting Concepts

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -salary of chief executive officer

Industries that provide intangible services do not normally have direct contact with their customers.

The difference between sales revenue and cost of goods sold is known as the ______________.

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 Lonborg's operating income <loss> for the year?

Product costs are expensed

The Butchart Company manufactures microwave ovens. Last year, the per-unit product cost was $56, the per-unit prime cost was $34, and the per-unit conversion cost was $42. Cost of goods sold for the year was $560,000 and the sale price per unit was $100. In addition, direct labor costs of $200,000 and selling and administrative expenses of $240,000 were incurred. Required:

Which of the following would not be a period cost?

Cashman Company supplied the following information for the month of December. Required: Solve for the following amounts assuming that Cashman Company's operating income in December was $44,100.

Figure 2-1.Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances. -Refer to Figure 2-1. The total per unit prime cost was:

During the month of June, Telecom Inc. had cost of goods manufactured of $112,000, direct materials cost of $52,000, direct labor cost of $37,000 and overhead cost of $26,000. The work in process balance at June 30 equaled $10,000. What was the work in process balance on June 1?

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

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -cost of windshields used in the production process

Insurance coverage, medical care, and accounting are examples of _________________ performed for customers.

Select the appropriate item for each of the definitions listed below. -price x units sold

The cost of janitorial services for a factory building would be classified as indirect labor.

Figure 2-1.Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances. -Refer to Figure 2-1. What was the amount of cost of goods manufactured last month?

Any costs associated with storing, selling, and delivering the product are classified as product costs.

Select the appropriate classification for each of the items listed below. -Sugar used in soft drink production

Property taxes on a factory building would normally be classified as a fixed cost.

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