Exam 18: Introduction to Managerial Accounting

Nurix,Inc.is a business consulting firm.During the month of February,Nurix earned $55,600 of revenues by providing services to 47 clients.Operating costs for February were $8500 and non-operating costs were $6000.What is the unit cost per service? (Round your answer to the nearest cent.)

The IMA standards of ethical practice require managerial accountants to maintain their professional competence.

Anything for which managers want a separate measurement of cost is called a ________.

Planning requires managers to look to the future and establish goals for the business.

Rios Corporation reports costs for the year as follows: Direct Materials Used \ 780,000 Wages to Line Workers 245,000 Office Rent 33,000 Indirect Materials Used 800,000 How much is the total product costs for the year?

Match each term with its correct definition. -This role requires managers to look to the future.

Crabapples,Inc.purchases and sells boxes of dried fruit.The following information summarizes its operating activities for the year: Selling Expenses \ 10,000 Merchandise Inventory on December 31 32,000 Merchandise Inventory on January 1 46,000 Purchases of merchandise 82,500 Rent for store 12,700 Sales commissions 7100 Sales revenue 168,000 What is the cost per box of dry fruits if Crabapples sold 4000 boxes of dry fruit during the year? (Round your answer to the nearest cent.)

Partial income statements of Company A and Company B are provided below: Company A Revenue \ 80,000 Expenses: Utilities Expense \ 5,000 Salaries Expense 15,000 Rent Expense Total Expenses Operating Income \ 56,300 Company B Revenue \ 50,000 Cost of Goods Sold: Beginning Merchandise Inventory \ 4,000 Purchases and Freight In 23,000 Cost of Goods Available for Sale 27,000 Ending Merchandise Inventory Cost of Goods Sold Gross Profit \ 28,500 Which of the following statements is TRUE?

The following format represents the flow of costs for all three manufacturing inventory accounts: Beginning balance + Additions - Ending balance = Amount used,manufactured,or sold

Which of the following would be considered a product cost for a manufacturing business?

The unit product cost is only part of the information that is needed to determine the sales price for each product.

Manufacturing overhead includes all manufacturing costs,such as direct labor and direct materials.

At the beginning of the year,Swift,Inc.'s Work-in-Process Inventory account had a balance of $124,000.During the year,$250,000 of direct materials were used in production,and $72,000 of direct labor costs were incurred.Manufacturing overhead amounted to $832,000.The cost of goods manufactured was $676,000.What is the balance in the Work-in-Process Inventory account on December 31?

Which of the following is a product cost?

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

How does a manufacturing company calculate unit product cost? Why do managers need to know the unit product cost?

Belstone,Inc.is a merchandiser of stone ornaments.It sold 15,000 units during the year.The company has provided the following information: Sales Revenue \ 525,000 Purchases (excluding Freight In) 347,000 Selling and Administrative Expenses 36,500 Freight In 15,500 Beginning Merchandise Inventory 42,000 Ending Merchandise Inventory 55,500 How much is the gross profit for the year?

Indirect labor costs might include the salary of the production manager.

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

Argento Supplies,Inc.selected cost data for the year are shown below: Work-in-Process Inventory, Jan. 1 \ 5920 Direct Materials Used 101,000 Work-in-Process Inventory, Dec. 31 2860 Cost of Goods Manufactured 193,100 Assuming manufacturing overhead costs of $27,800,what is the amount of direct labor incurred by Argento Supplies,Inc.during the year?