Exam 2: Building Blocks of Managerial Accounting

Comfy Furniture Company manufactures furniture at its Akron,Ohio,factory.Some of its costs from the past year include: Depreciation on sales office \ 11,000 Depreciation on factory equipment \ 16,000 Factory supervisor salary \ 52,500 Sales commissions \ 23,000 Lubricants used in factory equipment \ 3,000 Insurance costs for factory \ 21,000 Wages paid to maintenance workers \ 115,000 Fabric used to upholster furniture \ 7,000 Freight-in (on raw materials) \ 2,500 Costs of delivery to customers \ 9,000 Wages paid to assembly-line workers \ 132,500 Lumber used to build product \ 72,000 Utilities in factory \ 44,500 Utilities in sales office \ 26,500 - Conversion costs for Comfy Furniture Company totaled:

A lawn mowing business would be classified as a:

Cost of goods sold is a major expense of service companies.

Selected financial information for Sunnydale Manufacturing is presented in the following table (000s omitted). Sales revenue \ 4,000 Purchases of direct materials \ 500 Direct labor \ 450 Manufacturing overhead \ 620 Operating expenses \ 700 Beginning raw materials inventory \ 150 Ending raw materials inventory \ 170 Beginning work in process inventory \ 320 Ending work in process inventory \ 310 Beginning finished goods inventory \ 250 Ending finished goods inventory \ 200 - What was cost of goods sold?

Which of the following is NOT a period cost?

Which of the following is an example of overhead in a factory?

____________ costs include all costs associated with the production of a product.

Merchandising companies include both wholesalers and retailers.

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 cost of goods sold?

All costs contain both a fixed and a variable part.

Summerville Company sells office supplies.The following information summarizes the company's operating activities for the year: Utilities far the stare \ 8,000 Sales comrissions 11,000 Sales revenue 151,000 Purchases of merchandise 73,000 January 1 inventary 27,000 Rent for stare 12,000 December 31 inventory 23,000 - What is operating income?

Indirect costs cannot be traced to the cost objects,so they are allocated.

Towpath Tennis & Recreation's operating activities for the year are listed below (000s omitted). Purcheses \ 150,000 Operating expenses 62,000 Bepinging inventory 27,000 Ending inventory 32,000 Sales revenue 302,000 -What is the cost of goods available for sale?

Conversion costs consist of:

Which of the following costs could be found in work in process inventory for an ice cream manufacturer?

All of the components of manufacturing-from research and development through customer service after the sale-are part of a firm's value chain.

Inventoriable product costs consist of manufacturing overhead,direct labor and direct materials.

A merchandiser's purchases are equivalent to a manufacturer's:

Advertising expenses would be considered which part of the value chain?

Active Apparel Company reports the following data for its first year of operation. Cost of goods manufactured \ 500,000 Work in process inventory, bepinging 0 Work in process inventory, ending 120,000 Direct materials used 85,000 Manufacturing overhead 100,000 Finished goods inventory, ending 72,000 - What are the total manufacturing costs for the year?