Exam 2: Building Blocks of Managerial Accounting

Readers Unlimited sells books.The following information summarizes the company's operating expenses for the year: Purchases \ 90,000 Operating expenses 53,000 Bepinning merchandise inventary 12,000 Ending merchandise inventory 15,000 Sales revenue 172,000 -What is operating income?

Dino Company sells collectibles.The following information summarizes Dino's operating activities for the most recent year: Merchandise inventory, bepinging \ 10,000 Merchandise inventory, ending 7,000 Purchases 95,000 Operating expenses 65,000 Sales revenue 180,000 Required: Prepare an income statement for the most recent year.

Selected information regarding a company's most recent quarter follows (all data in thousands). Sales revenue 4,000 Bepinging raw materials inventory 150 Direct materials used \& Purchases of direct materials 500 Direct labor 450 Marufacturing averhead 620 What was the ending raw materials inventory?

Costs can be either direct or indirect,depending upon the cost object.

Swirzoff Company sells office supplies.The following information summarizes Swirzoff's operating activities for the past year: Utilities for stare 6,000 Rent for stare 8,000 Sales comris sions 4,500 Purchases af merchandise 54,000 Inventory, ending 20,500 Inventary, beginging 30,000 Sales revenue 108,000 Required: Prepare an income statement for Swirzoff Company,a merchandiser,for the year ended December 31.

The schedule of cost of goods manufactured is prepared before the income statement for a manufacturing company.

Where would period costs be found on the financial statements?

Selected information regarding a company's most recent quarter follows (all data in thousands). Beginning work in process inventary \ 130 Cost of goods manufactured \ 320 Direct materials used \ 170 Direct labor \ 90 Ending work in process inventory \ 140 What was manufacturing overhead for the quarter?

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 total sales revenue will be:

Place the letter for the appropriate value chain activity on the line in front of each item.Letters may be used more than once or not at all.Assume a manufacturer. A. Research and development D. Marketing B. Desipn E. Distribution C. Praduction ar purchases F. Customer service ____ Depreciation expense on equipment in factory ____ Delivery expense ____ Toll free line for customer orders ____ Customer support hot line ____ Assembly line workers' wages

In ___________,inventory consists of freight-in and the cost of the product which is to be resold.

All of the following are product costs for a manufacturer EXCEPT:

Which of the following costs would appear on the income statements for both a merchandiser and manufacturer?

The activities in the value chain must take place in a specific order.

Among other things,General Mills makes breakfast cereal.Which type of company is General Mills?

Depreciation on a factory would be classified as which part of the value chain?

Which of the following is calculated before operating income can be determined for a manufacturer?

H & R Block,an income tax preparation service,is what type of company?

Differential cost is the difference in cost between two alternatives.