Question 1

Sales revenue equals the price per unit times the number of units in inventory.

Accepted Answer

A) True 
 B)False

Question 2

Assigning costs involves the way that a cost is linked to some cost object.

Accepted Answer

A) True 
 B)False

Question 3

Into which two major functional categories are costs subdivided?

Accepted Answer

A)  production and nonproduction 
B)  selling and administration 
C)  prime and conversion 
D)  opportunity and direct 
A)  production and nonproduction 
B)  selling and administration 
C)  prime and conversion 
D)  opportunity and direct

Question 4

Book City had cost of goods sold of $140,000 for the year ended December 31.The finished goods inventory on January 1 was $35,000 and the finished goods inventory on December 31was $17,000.What was the amount of cost of goods manufactured for the year?

Accepted Answer

A)  $52,000 
B)  $157,000 
C)  $158,000 
D)  $175,000 
A)  $52,000 
B)  $157,000 
C)  $158,000 
D)  $175,000

Question 5

Which of the following is characteristic of cost of goods sold?

Accepted Answer

A)  Cost of goods sold is the total product cost for the units sold during a period. 
B)  Cost of goods sold is the total product cost on the balance sheet. 
C)  Cost of goods sold is a cost that will be more than the revenue. 
D)  Cost of goods sold does not include the direct materials cost of the product. 
A)  Cost of goods sold is the total product cost for the units sold during a period. 
B)  Cost of goods sold is the total product cost on the balance sheet. 
C)  Cost of goods sold is a cost that will be more than the revenue. 
D)  Cost of goods sold does not include the direct materials cost of the product.

Question 6

$$\begin{array} { l l l } 
& \text { July 1 } & \text { July } 31 \
\text { Materials } & \$ 6,200 & \$ 7,100 \
\text { Work in process } & \$ 700 & \$ 1,200 \
\text { Finished goods } & \$ 3,300 & \$ 2,700
\end{array}$$
-Refer to the Figure.What was the cost of direct materials used in July?

Accepted Answer

A)  $20,100 
B)  $20,500 
C)  $21,000 
D)  $21,900 
A)  $20,100 
B)  $20,500 
C)  $21,000 
D)  $21,900

Question 7

Nelvana Company makes tablets.During the year,Nelvana manufactured and sold 75,000 tablets at a sales price of $600 per unit.Nelvana's per-unit product cost was $540,and selling and administrative expenses totalled $3,200,000.
Required: A. $\quad$Compute the total sales revenue.
B. $\quad$Compute the gross margin.
C. $\quad$Compute the operating income.
D. $\quad$Compute the operating income if 75,000 tablets were produced and 69,000 were sold.

Accepted Answer

The answer of Nelvana Company makes tablets.During the year,Nelvana manufactured...

Question 8

$$\begin{array} { l l l } 
& \text { July 1 } & \text { July } 31 \
\text { Materials } & \$ 6,200 & \$ 7,100 \
\text { Work in process } & \$ 700 & \$ 1,200 \
\text { Finished goods } & \$ 3,300 & \$ 2,700
\end{array}$$
-Refer to the Figure.What were the total manufacturing costs in July?

Accepted Answer

A)  $50,000 
B)  $69,600 
C)  $70,100 
D)  $71,000 
A)  $50,000 
B)  $69,600 
C)  $70,100 
D)  $71,000

Question 9

Refer to the Figure.What was the total per-unit prime cost last month?

Accepted Answer

A)  $62.50 
B)  $150.00 
C)  $162.50 
D)  $263.75 
A)  $62.50 
B)  $150.00 
C)  $162.50 
D)  $263.75

Question 10

$\begin{array}{lr}
\text { Direct materials } & \$ 15 \
\text { Direct labour } & 10 \
\text { Overhead } & 15
\end{array}$
-Refer to the Figure.What was the prime cost per unit?

Accepted Answer

A)  $11 
B)  $25 
C)  $30 
D)  $34 
A)  $11 
B)  $25 
C)  $30 
D)  $34

Question 11

A cost object is any item for which costs are measured and assigned.

Accepted Answer

A) True 
 B)False

Question 12

What is the difference between a period cost and a product cost?

Accepted Answer

A period cost is a nonmanufacturing cost

Question 13

Refer to the Figure.What was the amount of cost of goods manufactured last month?

Accepted Answer

A)  $1,250,000 
B)  $1,300,000 
C)  $1,750,000 
D)  $2,000,000 
A)  $1,250,000 
B)  $1,300,000 
C)  $1,750,000 
D)  $2,000,000

Question 14

Refer to the Figure.What were the total product costs last month?

Accepted Answer

A)  $1,250,000 
B)  $1,300,000 
C)  $1,750,000 
D)  $2,000,000 
A)  $1,250,000 
B)  $1,300,000 
C)  $1,750,000 
D)  $2,000,000

Question 15

$$\begin{array} { l r } 
\text { Direct materials } & \$ 40,000 \
\text { Direct labour } & 60,000 \
\text { Overhead } & 90,000 \
\text { Selling expenses } & 24,000 \
\text { Administrative expenses } & 22,000
\end{array}$$
-Refer to the Figure.What was Quest's total period expense?

Accepted Answer

A)  $24,000 
B)  $46,000 
C)  $190,000 
D)  $250,000 
A)  $24,000 
B)  $46,000 
C)  $190,000 
D)  $250,000

Question 16

During the month of May,Blackburn Inc.had cost of goods manufactured of $120,000,direct materials cost of $60,000,direct labour cost of $37,000,and overhead cost of $26,000.The work-in-process balance at May 31 equalled $10,000.What was the work-in-process balance on May 1?

Accepted Answer

A)  $7,000 
B)  $10,000 
C)  $13,000 
D)  $115,000 
A)  $7,000 
B)  $10,000 
C)  $13,000 
D)  $115,000

Question 17

What type of organization is the Hudson Bay Company?

Accepted Answer

A)  production organization 
B)  service organization 
C)  manufacturing organization 
D)  merchandising organization 
A)  production organization 
B)  service organization 
C)  manufacturing organization 
D)  merchandising organization

Question 18

Cost is a dollar measure of the resources used to achieve a given benefit.

Accepted Answer

A) True 
 B)False

Question 19

Ganz,Inc.had materials inventory at July 1 of $12,000.The materials inventory at July 31 was $15,000,and the cost of direct materials used in production was $20,000.What was the cost of materials purchased during the month?

Accepted Answer

A)  $17,000 
B)  $20,000 
C)  $23,000 
D)  $35,000 
A)  $17,000 
B)  $20,000 
C)  $23,000 
D)  $35,000

Question 20

Which of the following would be found on the balance sheet of a manufacturer and not on the balance sheet of a service business?

Accepted Answer

A)  cost of goods manufactured 
B)  work in process 
C)  cost of goods sold 
D)  gross profit 
A)  cost of goods manufactured 
B)  work in process 
C)  cost of goods sold 
D)  gross profit

Sales revenue equals the price per unit times the number of units in inventory.

Assigning costs involves the way that a cost is linked to some cost object.

Into which two major functional categories are costs subdivided?

Book City had cost of goods sold of $140,000 for the year ended December 31.The finished goods inventory on January 1 was $35,000 and the finished goods inventory on December 31was $17,000.What was the amount of cost of goods manufactured for the year?

Which of the following is characteristic of cost of goods sold?

July 1 July 31 Materials \ 6,200 \ 7,100 Work in process \ 700 \ 1,200 Finished goods \ 3,300 \ 2,700 -Refer to the Figure.What was the cost of direct materials used in July?

July 1 July 31 Materials \ 6,200 \ 7,100 Work in process \ 700 \ 1,200 Finished goods \ 3,300 \ 2,700 -Refer to the Figure.What were the total manufacturing costs in July?

Refer to the Figure.What was the total per-unit prime cost last month?

Direct materials \ 15 Direct labour 10 Overhead 15 -Refer to the Figure.What was the prime cost per unit?

A cost object is any item for which costs are measured and assigned.

What is the difference between a period cost and a product cost?

Refer to the Figure.What was the amount of cost of goods manufactured last month?

Refer to the Figure.What were the total product costs last month?

Direct materials \ 40,000 Direct labour 60,000 Overhead 90,000 Selling expenses 24,000 Administrative expenses 22,000 -Refer to the Figure.What was Quest's total period expense?

During the month of May,Blackburn Inc.had cost of goods manufactured of $120,000,direct materials cost of $60,000,direct labour cost of $37,000,and overhead cost of $26,000.The work-in-process balance at May 31 equalled $10,000.What was the work-in-process balance on May 1?

What type of organization is the Hudson Bay Company?

Cost is a dollar measure of the resources used to achieve a given benefit.

Ganz,Inc.had materials inventory at July 1 of $12,000.The materials inventory at July 31 was $15,000,and the cost of direct materials used in production was $20,000.What was the cost of materials purchased during the month?

Which of the following would be found on the balance sheet of a manufacturer and not on the balance sheet of a service business?

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

Exam 2: Basic Managerial Accounting Concepts

Sales revenue equals the price per unit times the number of units in inventory.

Assigning costs involves the way that a cost is linked to some cost object.

Into which two major functional categories are costs subdivided?

Book City had cost of goods sold of $140,000 for the year ended December 31.The finished goods inventory on January 1 was $35,000 and the finished goods inventory on December 31was $17,000.What was the amount of cost of goods manufactured for the year?

Which of the following is characteristic of cost of goods sold?

July 1 July 31 Materials \ 6,200 \ 7,100 Work in process \ 700 \ 1,200 Finished goods \ 3,300 \ 2,700 -Refer to the Figure.What was the cost of direct materials used in July?

July 1 July 31 Materials \ 6,200 \ 7,100 Work in process \ 700 \ 1,200 Finished goods \ 3,300 \ 2,700 -Refer to the Figure.What were the total manufacturing costs in July?

Refer to the Figure.What was the total per-unit prime cost last month?

Direct materials \ 15 Direct labour 10 Overhead 15 -Refer to the Figure.What was the prime cost per unit?

A cost object is any item for which costs are measured and assigned.

What is the difference between a period cost and a product cost?

Refer to the Figure.What was the amount of cost of goods manufactured last month?

Refer to the Figure.What were the total product costs last month?

Direct materials \ 40,000 Direct labour 60,000 Overhead 90,000 Selling expenses 24,000 Administrative expenses 22,000 -Refer to the Figure.What was Quest's total period expense?

During the month of May,Blackburn Inc.had cost of goods manufactured of $120,000,direct materials cost of $60,000,direct labour cost of $37,000,and overhead cost of $26,000.The work-in-process balance at May 31 equalled $10,000.What was the work-in-process balance on May 1?

What type of organization is the Hudson Bay Company?

Cost is a dollar measure of the resources used to achieve a given benefit.

Ganz,Inc.had materials inventory at July 1 of $12,000.The materials inventory at July 31 was $15,000,and the cost of direct materials used in production was $20,000.What was the cost of materials purchased during the month?

Which of the following would be found on the balance sheet of a manufacturer and not on the balance sheet of a service business?

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