Exam 2: Basic Managerial Accounting Concepts

Which of the following is included in nonmanufacturing costs?

Costs incurred to produce future benefits are usually liabilities.

Direct materials cannot be directly traced to the goods or services being produced.

January 1 December 31 Materials \ 10,000 \ 8,000 Work in Process \ 18,000 \ 17,000 Finished Goods \ 21,000 \ 16,500 -Refer to the Figure.What was ComPrint's operating income or loss for the year?

The revenue per unit is called price.

Which of the following job positions is an example of direct labour?

List and describe the three categories of manufacturing costs.

Which of the following would NOT be found on the income statement of a service organization?

Price must be greater than cost in order for the firm to generate income.

What is the definition of opportunity cost?

Allied Company showed the following costs for last month. Direct materials \ 40,000 Direct labour 35,000 Overhead 52,000 Selling expense 17,000 Administrative expense 12,000 Last month,Allied produced and sold 20,000 units at a sales price per unit of $18.Assume no beginning or ending inventory balances for work in process and finished goods inventory. Required: Solve for the following amounts. A. $\quad$ total product cost for last month B. $\quad$ unit product cost for last month C. $\quad$ total period costs D. $\quad$ gross margin for last month E. $\quad$ operating income for last month

Nexient Company supplied the following data and information on inventories at the end of the current year. January 1 December 31 Materials \ 21,000 \ 23,500 Work in process 17,500 8,500 Finished goods 26,000 27,000 Direct labour \ 40,000 Selling expenses 31,000 Sales revenue 400,000 Administrative expenses 14,500 Purchases of raw materials 62,000 Factory supervision 50,000 Factory supplies used 25,000 Required: Prepare an income statement of Nexient Company for the current year

Allocation means that an indirect cost is assigned to a cost object using a reasonable and convenient method.

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.Suppose Econo Company sold 10,000 units during July and gross margin totalled $29,800.What would be the sales price per unit?

Assuming a separate schedule of cost of goods manufactured,which of the following is found on a manufacturer's income statement?

How is prime cost calculated?

HaulAll Inc.had a per-unit conversion cost of $4.00 during April and incurred a direct materials cost of $100,000,direct labour costs of $110,000,and overhead costs of $50,000.How many units did HaulAll manufacture during May?

Which of the following is characteristic of a manufacturer?

All product costs other than direct materials and indirect labour are called overhead.

Cost of goods manufactured represents the cost of direct materials,direct labour,and overhead incurred during the current accounting period.