Information from the records of Island Timberlands Inc.for November is as follows: $\begin{array}{lr} \text { Sales } & \$ 820,000 \\ \text { Selling and administrative expenses } & 140,000 \\ \text { Direct materials purchases } & 176,000 \\ \text { Direct labour } & 200,000 \\ \text { Factory overhead } & 270,000 \\ \text { Direct materials, November 1 } & 24,000\\ \text { Work in process, November } 1 & 50,000 \\ \text { Finished goods, November } 1 & 46,000 \\ \text { Direct materials, November } 30 & 28,000 \\ \text { Work in process, November } 30 & 56,000 \\ \text { Finished goods, Novmeber } 30 & 38,000 \end{array}$ What is the net income for the month of November?

A) $36,000 B) $180,000 C) $636,000 D) $644,000 A) $36,000 B) $180,000 C) $636,000 D) $644,000

$\begin{array}{l} \text { Sales revenue } &\$428,000\\ \text { Cost of goods sold }&205,440\\\text { Gross margin }&222,560\\\text { Less: }\\\text { Selling expenses }&81,320\\\text { Administrative expenses }&72,760\\\text { Operating income }&\$68,480 \end{array}$ -Refer to the Figure.What was the gross margin percentage?

A) 17% B) 19% C) 48% D) 52% A) 17% B) 19% C) 48% D) 52%

$\begin{array}{lr} \text { Sales } & \$ 1,230,000 \\ \text { Selling and administrative expenses } & 210,00 0\\ \text { Direct materials used } & 300,000 \\ \text { Direct labour } & 350,000 \\ \text { Factory overhead } & 455,000 \end{array}$ $\begin{array}{lrr}&\text { Inventories }\\ \text { Direct materials } & \text { Dec. } 1 & \text { Dec. } 31 \\ \text { Work in process } & \$ 36,000 & \$ 42,000 \\ \text { Finished goods } & 75,000 & 84,000 \\ \text { Fin } & 69,000 & 57,000 \end{array}$ -Refer to the Figure.What are the prime costs?

A) $564,000 B) $650,000 C) $805,000 D) $969,000 A) $564,000 B) $650,000 C) $805,000 D) $969,000

Ballard Company supplied the following information for the month of December. \[\begin{array} { l r } \text { Operating income percentage } & 10.5 \% \\ \text { Gross margin percentage } & 30 \% \end{array}\] Required: Solve for the following amounts assuming that Ballard Company's operating income in December was $44,100. A. $\quad$sales revenue B. $\quad$cost of goods sold C. $\quad$total selling and administrative expenses

The answer of Ballard Company supplied the following information for...

\[\begin{array} { l r } \text { Per-unit product cost: } & \$ 30 \\ \text { Gross margin percentage: } & 40 \% \\ \text { Selling and admini strative expenses } & \$ 30,000 \\ \text { Operating income } & \$ 10,000 \end{array}\] -Refer to the Figure.How many units were sold during the year?

A) 1,000 B) 1,500 C) 2,000 D) 3,333 A) 1,000 B) 1,500 C) 2,000 D) 3,333

$\begin{array}{l} \text { Sales revenue } &\$428,000\\ \text { Cost of goods sold }&205,440\\\text { Gross margin }&222,560\\\text { Less: }\\\text { Selling expenses }&81,320\\\text { Administrative expenses }&72,760\\\text { Operating income }&\$68,480 \end{array}$ -Refer to the Figure.What was the cost of goods sold percentage?

A) 19% B) 48% C) 52% D) 100% A) 19% B) 48% C) 52% D) 100%

$\begin{array}{lr} \text { Direct materials } & \$ 15 \\ \text { Direct labour } & 10 \\ \text { Overhead } & 15 \end{array}$ -Refer to the Figure.What was the total operating income last year?

A) $3,500 B) $25,500 C) $29,000 D) $51,000 A) $3,500 B) $25,500 C) $29,000 D) $51,000

$\begin{array}{l} \text { Sales revenue } &\$428,000\\ \text { Cost of goods sold }&205,440\\\text { Gross margin }&222,560\\\text { Less: }\\\text { Selling expenses }&81,320\\\text { Administrative expenses }&72,760\\\text { Operating income }&\$68,480 \end{array}$ -Refer to the Figure.What was the administrative expense percentage?

A) 15% B) 16% C) 17% D) 19% A) 15% B) 16% C) 17% D) 19%

Exam 2: Basic Managerial Accounting Concepts

Information from the records of Island Timberlands Inc.for November is as follows: Sales \ 820,000 Selling and administrative expenses 140,000 Direct materials purchases 176,000 Direct labour 200,000 Factory overhead 270,000 Direct materials, November 1 24,000 Work in process, November 1 50,000 Finished goods, November 1 46,000 Direct materials, November 30 28,000 Work in process, November 30 56,000 Finished goods, Novmeber 30 38,000 What is the net income for the month of November?

(Multiple Choice)

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Question 21

How is unit cost calculated?

(Multiple Choice)

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Question 22

Sales revenue \4 28,000 Cost of goods sold 205,440 Gross margin 222,560 Less: Selling expenses 81,320 Administrative expenses 72,760 Operating income \6 8,480 -Refer to the Figure.What was the gross margin percentage?

(Multiple Choice)

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Question 23

Sales \ 1,230,000 Selling and administrative expenses 210,000 Direct materials used 300,000 Direct labour 350,000 Factory overhead 455,000 Inventories Direct materials Dec. 1 Dec. 31 Work in process \ 36,000 \ 42,000 Finished goods 75,000 84,000 Fin 69,000 57,000 -Refer to the Figure.What are the prime costs?

(Multiple Choice)

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Question 24

Screws used in the manufacture of cabinets are an example of a variable cost.

(True/False)

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Question 25

The T & T Company makes fishing rods.During the current month,direct materials costing $126,000 were put into production.Direct labour costs of $110,000 were incurred and overhead equalled $100,000.Selling and administrative expenses totalled $66,000 for the month,and the company manufactured 3,500 fishing rods.Assume there was no beginning inventory and that 3,000 fishing rods were sold. Required: A. Compute the per-unit product cost. B. Compute the per-unit prime cost. C. Compute the per-unit conversion cost. D. What is cost of goods sold for the month? E. What is the cost of ending finished goods for the month?

(Essay)

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Question 26

Period costs are those costs associated with the manufacture of goods or the providing of services.

(True/False)

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Question 27

Ballard Company supplied the following information for the month of December. Operating income percentage 10.5\% Gross margin percentage 30\% Required: Solve for the following amounts assuming that Ballard Company's operating income in December was $44,100. A. $\quad$ sales revenue B. $\quad$ cost of goods sold C. $\quad$ total selling and administrative expenses

(Essay)

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Question 28

How many inventory accounts does a typical manufacturer have?

(Multiple Choice)

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Question 29

Any costs associated with storing,selling,and delivering a product are classified as period costs.

(True/False)

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Question 30

What are expired costs?

(Multiple Choice)

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Question 31

Services are intangible and perishable.

(True/False)

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Question 32

Per-unit product cost: \ 30 Gross margin percentage: 40\% Selling and admini strative expenses \ 30,000 Operating income \ 10,000 -Refer to the Figure.How many units were sold during the year?

(Multiple Choice)

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Question 33

January 1 1,260 December 31 1,040 -Refer to the Figure.Suppose each set of portable speakers has a per-unit product cost of $112.What would be the cost of goods sold last year?

(Multiple Choice)

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Question 34

How is the cost of goods manufactured calculated?

(Multiple Choice)

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Question 35

Sales revenue \4 28,000 Cost of goods sold 205,440 Gross margin 222,560 Less: Selling expenses 81,320 Administrative expenses 72,760 Operating income \6 8,480 -Refer to the Figure.What was the cost of goods sold percentage?

(Multiple Choice)

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Question 36

Direct materials \ 15 Direct labour 10 Overhead 15 -Refer to the Figure.What was the total operating income last year?

(Multiple Choice)

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Question 37

Which of the following is an example of a direct materials cost?

(Multiple Choice)

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Question 38

Sales revenue \4 28,000 Cost of goods sold 205,440 Gross margin 222,560 Less: Selling expenses 81,320 Administrative expenses 72,760 Operating income \6 8,480 -Refer to the Figure.What was the administrative expense percentage?

(Multiple Choice)

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Question 39

When are product costs expensed?

(Multiple Choice)

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Question 40

How is unit cost calculated?

Sales revenue \4 28,000 Cost of goods sold 205,440 Gross margin 222,560 Less: Selling expenses 81,320 Administrative expenses 72,760 Operating income \6 8,480 -Refer to the Figure.What was the gross margin percentage?

Screws used in the manufacture of cabinets are an example of a variable cost.

Period costs are those costs associated with the manufacture of goods or the providing of services.

How many inventory accounts does a typical manufacturer have?

Any costs associated with storing,selling,and delivering a product are classified as period costs.

What are expired costs?

Services are intangible and perishable.

Per-unit product cost: \ 30 Gross margin percentage: 40\% Selling and admini strative expenses \ 30,000 Operating income \ 10,000 -Refer to the Figure.How many units were sold during the year?

January 1 1,260 December 31 1,040 -Refer to the Figure.Suppose each set of portable speakers has a per-unit product cost of $112.What would be the cost of goods sold last year?

How is the cost of goods manufactured calculated?

Sales revenue \4 28,000 Cost of goods sold 205,440 Gross margin 222,560 Less: Selling expenses 81,320 Administrative expenses 72,760 Operating income \6 8,480 -Refer to the Figure.What was the cost of goods sold percentage?

Direct materials \ 15 Direct labour 10 Overhead 15 -Refer to the Figure.What was the total operating income last year?

Which of the following is an example of a direct materials cost?

Sales revenue \4 28,000 Cost of goods sold 205,440 Gross margin 222,560 Less: Selling expenses 81,320 Administrative expenses 72,760 Operating income \6 8,480 -Refer to the Figure.What was the administrative expense percentage?

When are product costs expensed?

Introduction to Managerial Accounting

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters