Exam 2: Building Blocks of Managerial Accounting

How are average cost and marginal cost computed?

Sunnybrook Orange Groves processes a variety of fresh juices.The company has the following expenses for July: Depreciation expense an bottling machines \ 63,000 Glass juice bottles \ 54,000 Comrissions for salespeople \ 27,000 Salaries of mutrition researchers \ 89,000 Costs of maintaining website used for custamer orders \ 4,000 Wages of factory workers \ 75,000 Freshess seals/caps for juice battles \ 3,000 Reconfiguring the factory layout \ 102,000 Custamer help line \ 2,000 Costs of refrigerated trucks used to deliver juice \ 17,000 - What is the total cost for the distribution category of the value chain?

Which type(s)of companies prepare income statements and balance sheets?

Name and briefly describe the activities that make up the value chain.

Merchandising and manufacturing companies have finished goods inventory.

Fixed costs stay constant in total over a wide range of activity levels.

The following amounts were taken from the general ledger of the Excellent Manufacturing Company.Compute the cost of goods manufactured and the cost of goods sold for the company for the year. 11ea84ce_c56b_8a7b_83dc_3de27700dfbe

Why do service firms not have inventory costs pertaining to items to be sold? What type of costs do they have?

Selected information regarding a company's most recent quarter follows (all data in thousands). Operating expenses \ 700 Gross profit \ 2,390 Sales revenue \ 4,000 Ending finished goods inventory \ 200 Cost of goods manufactured \ 1,560 - What was the beginning finished goods inventory?

Direct labor for a company was $132,000; manufacturing overhead was $275,000; and direct materials were $253,000.Conversion costs would total:

Paris Plastics has monthly fixed costs of $90,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $16.00 and Paris Plastics sell 12,000 units,the company's average fixed costs per unit will be:

Explain the difference between raw materials inventory,work in process inventory,and finished goods inventory.

Express Company reports the following data for its first year of operation. Cost of goods manufactured \ 475,000 Work in process inventory, bepinging 0 Work in process inventory, ending 140,000 Direct materials used 110,000 Manufacturing overhead 185,000 Finished goods inventary, ending 101,000 -What is the cost of goods sold?

Average variable costs:

Use the correct number to designate each item below.Assume a manufacturer. 1.Direct materials 2)Selling and general expenses 3)Manufacturing overhead 4)Direct labor A)____ Rent expense on factory building B)____ Sales supplies used C)____ Factory supplies used D)____ Indirect materials used E)____ Wages of assembly line personnel F)____ Cost of primary material used to make product G)____ Depreciation expense on office equipment H)____ Rent expense on office facilities I)____ Insurance expired on factory equipment J)____ Utilities incurred in the office K)____ Advertising expense L)____ Taxes paid on factory building

Describe service,merchandising,and manufacturing companies.

Express Company reports the following data for its first year of operation. Cost of goods manufactured \ 475,000 Work in process inventory, bepinging 0 Work in process inventory, ending 140,000 Direct materials used 110,000 Manufacturing overhead 185,000 Finished goods inventory, ending 101,000 - What are the total manufacturing costs for the year?

____________ information is that which differs between alternatives and can affect the future.

Farm Fresh Dairy provided the following expense information for May: Assembly-line warkers' wages \ 72,000 Caps for milk bottles 2,000 Reconfigurig the assembly line 155,000 Custamer support hotline 8,000 Delivery expenses 17,000 Depreciation an factory equipment 81,000 Plastic milk bottles 52,000 Salaries of salespegple 63,000 Salaries of research scientists 84,000 Custamer toll-free order line 4,000 What is the total cost of research and development?

All companies have the same types of inventories.