Exam 18: Introduction to Managerial Accounting

Unit cost per service is calculated by dividing total costs by the total number of services provided.

The cost of direct materials cannot easily be traced to the manufactured product,and therefore,it is a component of manufacturing overhead.

Evanston Manufacturing,Inc.reported the following information for the year: Number of Units Produced 153,000 Number of Units Sold 62,000 Cost of Goods Manufactured \ 268,000 Cost of Goods Sold 52,600 Sales Revenue 132,000 Gross Profit 73,520 Operating Expense 727,000 What was the unit product cost? (Round your answer to the nearest cent.)

Direct materials and direct labor are prime costs.

Which of the following is an example of a period cost for a manufacturing company?

Which of the following would be included as manufacturing overhead for a manufacturing company?

Given the following information,determine the cost of goods sold. Direct Labor Incurred \ 61,000 Manufacturing Overhead Incurred 177,000 Direct Materials Used 155,000 Finished Goods Inventory, Jan. 1 198,000 Finished Goods Inventory, Dec. 31 97,500 Work-in-Process Inventory, Jan. 1 221,500 Work-in-Process Inventory, Dec. 31 109,000

Manufacturing overhead is also referred to as ________.

Which of the following describes the cost of goods manufactured?

Which of the following is an example of direct labor cost in a factory?

Simons,Inc.sells plasticware.The following information summarizes Simons' operating activities for the year: Utilities Expense \ 65,000 Rent Expense 10,000 Sales Commissions Expense 32,500 Purchases of Merchandise 260,000 Merchandise Inventory on January 1 65,000 Merchandise Inventory on December 31 97,500 Sales Revenue 650,000 Prepare an income statement for Simons,Inc.,a merchandiser,for the year ended December 31 using the format below: Sales Revenue Cost of Goods Sold: Beginning Inventory Purchases Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Selling Expenses: Sales Commissions Expense Administrative Expenses: Rent Expense Utilities Expense Total Operating Expenses Operating Income

For a manufacturer,rent paid for an office building is an example of a period cost.

Which of the following is a philosophy designed to integrate all organizational areas in order to provide customers with superior products and services,while meeting organizational goals throughout the value chain?

Financial statements prepared for investors and creditors often include forward-looking information because they make decisions based on a company's future prospects.

Selling and administrative expenses are subtracted from gross profit to obtain operating income.

A manufacturer produced 10,500 total units.The cost of goods manufactured is $81,000 and the cost of goods sold is $67,000.The unit product cost is $6.38.

How does a service company calculate unit cost per service? Why do managers need to know the unit cost per service?

One of the primary activities of Rex,Inc.is to purchase hats from Viva,Inc.in Texas and sell them to its customers in Washington for a profit.It is likely that Rex is a ________.

Total manufacturing costs to account for during the year minus the ending Work-in-Process Inventory equals the cost of goods manufactured.

The three categories of period costs are direct materials,direct labor,and manufacturing overhead.