Question 1

Select the appropriate classification for each of the following costs.
-Cost accountant's salary

Accepted Answer

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

Question 2

Stone Company, maker of computers, incurred the following costs during the year:
Required: Classify each cost as either fixed or variable cost.

Accepted Answer

1. Fixed
2. Variable
3. Variab

Question 3

Lakeland Inc. manufactured 5,000 units during the month of March. They incurred direct materials cost of $100,000 and overhead cost of $40,000. If their per-unit prime cost was $26.00 per unit how much direct labor cost did they incur during March?

Accepted Answer

A)  $20,000 
B)  $35,000 
C)  $90,000 
D)  $30,000 
A)  $20,000 
B)  $35,000 
C)  $90,000 
D)  $30,000

Question 4

Select the appropriate definition for each of the items listed below.
-(total manufacturing costs + work in process beginning - work in process ending)/units produced

Accepted Answer

A) per-unit prime cost 
B) per-unit conversion cost 
C) per-unit cost of goods manufactured 
A) per-unit prime cost 
B) per-unit conversion cost 
C) per-unit cost of goods manufactured

Question 5

Kutlow Inc. had cost of goods sold of $112,000 for the year ended December 31, 2011. The finished goods inventory on January 1, 2011 was $28,000 and the finished goods inventory on December 31, 2011 was $17,000. What was the amount of cost of goods manufactured for the year?

Accepted Answer

A)  $129,000 
B)  $101,000 
C)  $67,000 
D)  $113,000 
A)  $129,000 
B)  $101,000 
C)  $67,000 
D)  $113,000

Question 6

Select the appropriate classification for each of the items listed below.
-Factory supervisor's salary

Accepted Answer

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

Question 7

Period costs are all costs that are not product costs, such as office supplies.

Accepted Answer

A) True 
 B)False

Question 8

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 per-unit conversion cost was:

Accepted Answer

A)  $218.75 
B)  $156.25 
C)  $162.50 
D)  $100.00 
A)  $218.75 
B)  $156.25 
C)  $162.50 
D)  $100.00

Question 9

Marketing costs would be classified as period costs.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  100% 
B)  19% 
C)  52% 
D)  48% 
A)  100% 
B)  19% 
C)  52% 
D)  48%

Question 11

Cost of goods manufactured equals

Accepted Answer

A)  the cost of indirect materials used in production. 
B)  the product cost of goods completed during the current period. 
C)  the period costs for the current period. 
D)  the cost of direct materials and direct labor used during the current period. 
A)  the cost of indirect materials used in production. 
B)  the product cost of goods completed during the current period. 
C)  the period costs for the current period. 
D)  the cost of direct materials and direct labor used during the current period.

Question 12

Select the appropriate classification of the items listed below.
-Glue used in the manufacture of furniture

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 13

Select the appropriate classification for each of the following costs.
-Research and development costs

Accepted Answer

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

Question 14

Which of the following would be found on the balance sheet of a manufacturer?

Accepted Answer

A)  work in process 
B)  raw materials 
C)  finished goods 
D)  All of the these are correct 
A)  work in process 
B)  raw materials 
C)  finished goods 
D)  All of the these are correct

Question 15

Glue used in the manufacture of cabinets would be an example of a fixed cost.

Accepted Answer

A) True 
 B)False

Question 16

See the following separate cases.
  Required: Solve for the missing amounts (A,B,C,D,E,F)

Accepted Answer

The answer of See the following separate cases.
  Required:...

Question 17

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 product costs for last month were:

Accepted Answer

A)  $1,750,000 
B)  $2,110,000 
C)  $1,300,000 
D)  $1,250,000 
A)  $1,750,000 
B)  $2,110,000 
C)  $1,300,000 
D)  $1,250,000

Question 18

Selected data concerning the past year's operations of the Burner Corporation are as follows:   The cost of direct materials purchased is:

Accepted Answer

A)  $397,500. 
B)  $403,500. 
C)  $367,500. 
D)  $405,000. 
A)  $397,500. 
B)  $403,500. 
C)  $367,500. 
D)  $405,000.

Question 19

Figure 2-6.Seaview Company took the following data from their income statement at the end of the current year.  
-Refer to Figure 2-6. What was cost of goods sold for the year?

Accepted Answer

A)  $60,000 
B)  $40,000 
C)  $100,000 
D)  none of these 
A)  $60,000 
B)  $40,000 
C)  $100,000 
D)  none of these

Question 20

A fixed cost is a cost that does not increase in total as output increases and does not decrease in total as output decreases.

Accepted Answer

A) True 
 B)False

Select the appropriate classification for each of the following costs. -Cost accountant's salary

Stone Company, maker of computers, incurred the following costs during the year: Required: Classify each cost as either fixed or variable cost.

Lakeland Inc. manufactured 5,000 units during the month of March. They incurred direct materials cost of $100,000 and overhead cost of $40,000. If their per-unit prime cost was $26.00 per unit how much direct labor cost did they incur during March?

Select the appropriate definition for each of the items listed below. -(total manufacturing costs + work in process beginning - work in process ending)/units produced

Kutlow Inc. had cost of goods sold of $112,000 for the year ended December 31, 2011. The finished goods inventory on January 1, 2011 was $28,000 and the finished goods inventory on December 31, 2011 was $17,000. What was the amount of cost of goods manufactured for the year?

Select the appropriate classification for each of the items listed below. -Factory supervisor's salary

Period costs are all costs that are not product costs, such as office supplies.

Marketing costs would be classified as period costs.

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

Cost of goods manufactured equals

Select the appropriate classification of the items listed below. -Glue used in the manufacture of furniture

Select the appropriate classification for each of the following costs. -Research and development costs

Which of the following would be found on the balance sheet of a manufacturer?

Glue used in the manufacture of cabinets would be an example of a fixed cost.

See the following separate cases. Required: Solve for the missing amounts (A,B,C,D,E,F)

Selected data concerning the past year's operations of the Burner Corporation are as follows: The cost of direct materials purchased is:

Figure 2-6.Seaview Company took the following data from their income statement at the end of the current year. -Refer to Figure 2-6. What was cost of goods sold for the year?

A fixed cost is a cost that does not increase in total as output increases and does not decrease in total as output decreases.

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 for each of the following costs. -Cost accountant's salary

Stone Company, maker of computers, incurred the following costs during the year: Required: Classify each cost as either fixed or variable cost.

Lakeland Inc. manufactured 5,000 units during the month of March. They incurred direct materials cost of $100,000 and overhead cost of $40,000. If their per-unit prime cost was $26.00 per unit how much direct labor cost did they incur during March?

Select the appropriate definition for each of the items listed below. -(total manufacturing costs + work in process beginning - work in process ending)/units produced

Kutlow Inc. had cost of goods sold of $112,000 for the year ended December 31, 2011. The finished goods inventory on January 1, 2011 was $28,000 and the finished goods inventory on December 31, 2011 was $17,000. What was the amount of cost of goods manufactured for the year?

Select the appropriate classification for each of the items listed below. -Factory supervisor's salary

Period costs are all costs that are not product costs, such as office supplies.

Marketing costs would be classified as period costs.

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

Cost of goods manufactured equals

Select the appropriate classification of the items listed below. -Glue used in the manufacture of furniture

Select the appropriate classification for each of the following costs. -Research and development costs

Which of the following would be found on the balance sheet of a manufacturer?

Glue used in the manufacture of cabinets would be an example of a fixed cost.

See the following separate cases. Required: Solve for the missing amounts (A,B,C,D,E,F)

Selected data concerning the past year's operations of the Burner Corporation are as follows: The cost of direct materials purchased is:

Figure 2-6.Seaview Company took the following data from their income statement at the end of the current year. -Refer to Figure 2-6. What was cost of goods sold for the year?

A fixed cost is a cost that does not increase in total as output increases and does not decrease in total as output decreases.

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