Question 1

Cost of goods manufactured equals

Accepted Answer

A)  total product costs incurred during the current period + beginning work in process - ending work in process. 
B)  direct materials cost + direct labor cost + overhead cost. 
C)  sales - cost of goods sold. 
D)  none of these are correct. 
A)  total product costs incurred during the current period + beginning work in process - ending work in process. 
B)  direct materials cost + direct labor cost + overhead cost. 
C)  sales - cost of goods sold. 
D)  none of these are correct.

Question 2

All product costs other than direct materials and indirect labor are called overhead.

Accepted Answer

A) True 
 B)False

Question 3

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles.
-factory janitorial 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 4

Cost is:

Accepted Answer

A)  the difference between sales revenue and cost of goods sold. 
B)  the benefit given up or sacrificed when on alternative is chosen over another. 
C)  the amount of cash or cash equivalent sacrificed for goods and/or services that are expected to bring a current or future benefit to the organization. 
D)  the revenue per unit. 
A)  the difference between sales revenue and cost of goods sold. 
B)  the benefit given up or sacrificed when on alternative is chosen over another. 
C)  the amount of cash or cash equivalent sacrificed for goods and/or services that are expected to bring a current or future benefit to the organization. 
D)  the revenue per unit.

Question 5

Select the appropriate classification for each of the items listed below.
-Cost of nails used by a home builder

Accepted Answer

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

Question 6

Information from the records of Place, Inc., for December 2011 is as follows:   Net income for the month of December is:

Accepted Answer

A)  $644,000. 
B)  $36,000. 
C)  $636,000. 
D)  $180,000. 
A)  $644,000. 
B)  $36,000. 
C)  $636,000. 
D)  $180,000.

Question 7

Select the appropriate classification of the items listed below.
-A professor's salary at a university

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 8

Reducing the cost required to achieve a given benefit means that a company is becoming less efficient.

Accepted Answer

A) True 
 B)False

Question 9

Expired costs are called assets.

Accepted Answer

A) True 
 B)False

Question 10

Figure 2-4.Junko Company makes financial calculators. During the year Junko manufactured 97,000 financial calculators. Finished goods inventory had the following units on hand:
  
-Refer to Figure 2-4. How many financial calculators did Junko sell during the year?

Accepted Answer

A)  96,780 
B)  97,220 
C)  97,000 
D)  98,260 
A)  96,780 
B)  97,220 
C)  97,000 
D)  98,260

Question 11

Select the appropriate classification for each of the items listed below.
-Fees paid to outside auditing firm

Accepted Answer

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

Question 12

A variable cost in total

Accepted Answer

A)  increases as output increases and decreases as output decreases. 
B)  increases as output increases and/or decreases. 
C)  remains constant no matter the level of output. 
D)  increases as output decreases and decreases as output increases. 
A)  increases as output increases and decreases as output decreases. 
B)  increases as output increases and/or decreases. 
C)  remains constant no matter the level of output. 
D)  increases as output decreases and decreases as output increases.

Question 13

Bartlow Company has supplied the following information from its accounting records for the month of May.
  Required: Solve for the missing amounts (?)

Accepted Answer

The answer of Bartlow Company has supplied the following information...

Question 14

Tesco Company showed the following costs for last month:
  Last month, Tesco produced and sold 20,000 units at a sales price per unit of $18. Assume no beginning or ending inventory balances for work in process and finished goods inventory.
Required: Solve for the following amounts.

Accepted Answer

The answer of Tesco Company showed the following costs for...

Question 15

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. Gross margin per-unit was?

Accepted Answer

A)  $125 
B)  $7 
C)  $95 
D)  $30 
A)  $125 
B)  $7 
C)  $95 
D)  $30

Question 16

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

Accepted Answer

A)  15% 
B)  19% 
C)  17% 
D)  16% 
A)  15% 
B)  19% 
C)  17% 
D)  16%

Question 17

All manufacturing costs are classified as overhead.

Accepted Answer

A) True 
 B)False

Question 18

Gross margin equals

Accepted Answer

A)  cost of goods sold - selling and administrative expenses. 
B)  direct materials + direct labor + manufacturing overhead. 
C)  sales revenue - cost of goods sold. 
D)  cost of goods manufactured + selling and administrative expenses. 
A)  cost of goods sold - selling and administrative expenses. 
B)  direct materials + direct labor + manufacturing overhead. 
C)  sales revenue - cost of goods sold. 
D)  cost of goods manufactured + selling and administrative expenses.

Question 19

Andover Inc. had a gross margin for the month of February totaling $42,000. They sold 5,000 units during the month at a sales price of $20 per unit. What was the amount of cost of goods sold for the month?

Accepted Answer

A)  $100,000 
B)  $42,000 
C)  $58,000 
D)  none of these are correct 
A)  $100,000 
B)  $42,000 
C)  $58,000 
D)  none of these are correct

Question 20

Tucker Company, a manufacturing firm, has supplied the following information from its accounting records for the month of April.
 $\begin{array}{lr}
\text { Direct labor cost } & \$ 12,000 \
\text { Purchases of raw materials } & 17,000 \
\text { Factory insurance } & 4,000 \
\text { Research and development } & 7,500 \
\text { Factory property taxes } & 3,000 \
\text { Sales commissions paid } & 4,500 \
\text { Work in process, April 1 } & 2,000 \
\text { Work in process, April 30 } & 2,800 \
\text { Materials inventory, April 1 } & 1,475 \
\text { Materials inventory, April 30 } & 1,200 \
\text { Finished goods inventory, April 1 } & 2,250 \
\text { Finished goods inventory, April 30 } & 750
\end{array}$ Required: Prepare a Statement of Cost of Goods Manufactured

Accepted Answer

The answer of Tucker Company, a manufacturing firm, has supplied...

Cost of goods manufactured equals

All product costs other than direct materials and indirect labor are called overhead.

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

Cost is:

Select the appropriate classification for each of the items listed below. -Cost of nails used by a home builder

Information from the records of Place, Inc., for December 2011 is as follows: Net income for the month of December is:

Select the appropriate classification of the items listed below. -A professor's salary at a university

Reducing the cost required to achieve a given benefit means that a company is becoming less efficient.

Expired costs are called assets.

Figure 2-4.Junko Company makes financial calculators. During the year Junko manufactured 97,000 financial calculators. Finished goods inventory had the following units on hand: -Refer to Figure 2-4. How many financial calculators did Junko sell during the year?

Select the appropriate classification for each of the items listed below. -Fees paid to outside auditing firm

A variable cost in total

Bartlow Company has supplied the following information from its accounting records for the month of May. Required: Solve for the missing amounts (?)

Tesco Company showed the following costs for last month: Last month, Tesco produced and sold 20,000 units at a sales price per unit of $18. Assume no beginning or ending inventory balances for work in process and finished goods inventory. Required: Solve for the following amounts.

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. Gross margin per-unit was?

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

All manufacturing costs are classified as overhead.

Gross margin equals

Andover Inc. had a gross margin for the month of February totaling $42,000. They sold 5,000 units during the month at a sales price of $20 per unit. What was the amount of cost of goods sold for the month?

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

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Exam 2: Basic Managerial Accounting Concepts

Cost of goods manufactured equals

All product costs other than direct materials and indirect labor are called overhead.

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

Cost is:

Select the appropriate classification for each of the items listed below. -Cost of nails used by a home builder

Information from the records of Place, Inc., for December 2011 is as follows: Net income for the month of December is:

Select the appropriate classification of the items listed below. -A professor's salary at a university

Reducing the cost required to achieve a given benefit means that a company is becoming less efficient.

Expired costs are called assets.

Figure 2-4.Junko Company makes financial calculators. During the year Junko manufactured 97,000 financial calculators. Finished goods inventory had the following units on hand: -Refer to Figure 2-4. How many financial calculators did Junko sell during the year?

Select the appropriate classification for each of the items listed below. -Fees paid to outside auditing firm

A variable cost in total

Bartlow Company has supplied the following information from its accounting records for the month of May. Required: Solve for the missing amounts (?)

Tesco Company showed the following costs for last month: Last month, Tesco produced and sold 20,000 units at a sales price per unit of $18. Assume no beginning or ending inventory balances for work in process and finished goods inventory. Required: Solve for the following amounts.

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. Gross margin per-unit was?

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

All manufacturing costs are classified as overhead.

Gross margin equals

Andover Inc. had a gross margin for the month of February totaling $42,000. They sold 5,000 units during the month at a sales price of $20 per unit. What was the amount of cost of goods sold for the month?

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

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