Question 1

What is the term for the cost of the partially completed goods at the end of the period?

Accepted Answer

A)  the beginning work-in-process inventory 
B)  the cost of goods manufactured 
C)  the ending work-in-process inventory 
D)  the ending finished goods inventory 
A)  the beginning work-in-process inventory 
B)  the cost of goods manufactured 
C)  the ending work-in-process inventory 
D)  the ending finished goods inventory

Question 2

Kitchens by Kate,maker of kitchen cabinets,incurred the following costs during the current year:
Required: Classify each cost as either a product or period cost. $\begin{array}{|l|l|l|}\hline &\text { Product }&\text { Period }\
\hline  \text {1. Depreciation on vans used by the sales staff. }&& \
\hline  \text {2. Salary of Kitchen's By Kate's chief executive officer }&& \
\hline  \text { 3. Screws used in the production process}& \
\hline  \text {4. Janitorial supplies for factory washroom }& \
\hline  \text {5. Research and development costs }&&\
\hline  \text { 6. Froperty taxes on factory building}& \
\hline  \text { 7. Salary of company controller}&& \
\hline  \text { 8. Depreciation on furniture in factory lunchroom}& \
\hline  \text { 9. Cost of lubricating machinery}& \
\hline  \text {10. Wood used in production process }& \
\hline 
\end{array}$

Accepted Answer

The answer of Kitchens by Kate,maker of kitchen cabinets,incurred the...

Question 3

Prime cost is the sum of direct materials and direct labour.

Accepted Answer

A) True 
 B)False

Question 4

Blue Water Inc.had a gross margin for the month of February totalling $92,000.The company sold 6,000 units during the month at a sales price of $30 per unit.What was the amount of cost of goods sold for the month?

Accepted Answer

A)  $42,000 
B)  $88,000 
C)  $100,000 
D)  $158,000 
A)  $42,000 
B)  $88,000 
C)  $100,000 
D)  $158,000

Question 5

Rizzuto Company supplied the following information for the month of January. $\begin{array}{lr}
\text { Cost of goods sold percentage } & 62 \% \
\text { Selling expense percentage } & 6 \% \
\text { Administrative expense } & 13 \%
\end{array}$ Required: Reconstruct Rizzuto's Income Statement for January assuming that the total sales revenue for the month equalled $500,000.

Accepted Answer

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

Question 6

Cost of goods sold is the total product cost of the units sold during a period.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  $69,100 
B)  $69,600 
C)  $70,500 
D)  $70,700 
A)  $69,100 
B)  $69,600 
C)  $70,500 
D)  $70,700

Question 8

Denim used when making jeans would normally be classified as a variable cost.

Accepted Answer

A) True 
 B)False

Question 9

What is the difference between total manufacturing costs and cost of goods manufactured?

Accepted Answer

Total manufacturing costs would consist

Question 10

Which of the following is characteristic of indirect costs?

Accepted Answer

A)  Indirect costs can be easily and accurately traced to a cost object. 
B)  Indirect costs are shared between or among more than one cost object. 
C)  Indirect costs should always be assigned to a cost object. 
D)  Indirect costs include all labour. 
A)  Indirect costs can be easily and accurately traced to a cost object. 
B)  Indirect costs are shared between or among more than one cost object. 
C)  Indirect costs should always be assigned to a cost object. 
D)  Indirect costs include all labour.

Question 11

Which of the following is a characteristic of price per unit?

Accepted Answer

A)  It is equal to the revenue. 
B)  It must be less than cost for the firm to earn income. 
C)  It is the same as total cost. 
D)  It is the same as cost per unit plus income per unit. 
A)  It is equal to the revenue. 
B)  It must be less than cost for the firm to earn income. 
C)  It is the same as total cost. 
D)  It is the same as cost per unit plus income per unit.

Question 12

Expired costs are called assets.

Accepted Answer

A) True 
 B)False

Question 13

See the following separate cases. $$\begin{array} { l r r } 
& \text { Case \#1 } & \text { Case \#2 } \
\text { Purchase of materials } & \$ , 000 & \mathrm { C } \
\text { Materials inventory (beginning bal ance) } & \mathrm { A } & 220 \
\text { Materials inventory (ending balance) } & 1,000 & 350 \
\text { Direct labour } & 7,000 & 4,250 \
\text { Factory supervi sion } & 1,500 & 1,100 \
\text { Factory supplies } & 1,250 & 900 \
\text { Total manufacturing costs } & 14,500 & \mathrm { D } \
\text { Work-in-process inventory (beginning bal ance) } & 1,200 & 1,230 \
\text { Work-in-process inventory (ending balance) } & \mathrm { B } & 650 \
\text { Cost of goods manufactured } & 14,600 & 10,200
\end{array}$$ Required: Solve for the missing amounts (A,B,C,and D).

Accepted Answer

The answer of See the following separate cases. \[\begin{array} {...

Question 14

Direct materials,direct labour,and overhead are the three classifications of manufacturing costs.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following labour costs is included in indirect labour?

Accepted Answer

A)  the salary of the vice-president of marketing 
B)  the salary of the CEO 
C)  the salary of factory supervisor 
D)  the wages of the production line worker 
A)  the salary of the vice-president of marketing 
B)  the salary of the CEO 
C)  the salary of factory supervisor 
D)  the wages of the production line worker

Question 16

Thompson Company,a manufacturing firm,has supplied the following information from its accounting records for the month of November: $$\begin{array} { l r } 
\text { Factory supplies used } & \$ 18,000 \
\text { Depreciation on factory building } & 17,000 \
\text { Sal ary of company controller } & 6,000 \
\text { Factory janitorial costs } & 5,000 \
\text { Marketing and promotion } & 4,500 \
\text { Direct labour cost } & 22,000 \
\text { Purchases of raw materials } & 10,000 \
\text { Finished goods inventory, Nov. 1 } & 2,250 \
\text { Finished goods inventory, Nov. } 30 & 3,750 \
\text { Work-in-process inventory, Nov. 1 } & 4,200 \
\text { Work-in-process inventory, Nov. 30 } & 2,750 \
\text { Materials inventory, Nov. 1 } & 3,500 \
\text { Materials inventory, Nov. 30 } & 5,100
\end{array}$$ Required: A. $\quad$Prepare a statement of cost of goods manufactured.
B. $\quad$Prepare a statement of cost of goods sold.

Accepted Answer

The answer of Thompson Company,a manufacturing firm,has supplied the following...

Question 17

Gross margin equals revenue minus cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 18

$\begin{array}{ll}
\text { January } 1 & 1,260 \
\text { December } 31 & 1,040
\end{array}$
-Refer to the Figure.Suppose each set of portable speakers has a per-unit product cost of $112.What would be the cost of finished goods inventory on December 31?

Accepted Answer

A)  $24,640 
B)  $116,480 
C)  $124,640 
D)  $141,120 
A)  $24,640 
B)  $116,480 
C)  $124,640 
D)  $141,120

Question 19

Jackson Grills has supplied the following information from its accounting records for the month of August. $\begin{array} { l r } 
\text { Direct labour cost } & \$ 11,500 \
\text { Purchases of raw materials } & 20,000 \
\text { Factory depreciation } & 7,500 \
\text { Advertising } & 10,000 \
\text { Factory property taxes } & 6,500 \
\text { Materials inventory, } 8 / 1 & 1,250 \
\text { Materials inventory, } 8 / 31 & 2,500 \
\text { Work-in-process inventory, } 8 / 1 & ? \
\text { Work-in-process inventory, } 8 / 31 & 1,500 \
\text { Cost of goods manufactured } & 45,850 \
\text { Sales revenue } & ? \
\text { Executive salary cost } & 25,000 \
\text { Finished goods inventory, } 8 / 1 & 5,500 \
\text { Finished goods inventory, } 8 / 31 & 4,250 \
\text { Operating income } & 67,900 \
\text { Gross margin } & ?
\end{array}$ Required: Solve for the missing amounts (?).

Accepted Answer

The answer of Jackson Grills has supplied the following information...

Question 20

In terms of managerial accounting,which of the following is the best definition of cost?

Accepted Answer

A)  the cash sacrificed for goods expected to bring future benefit to the organization 
B)  a dollar measure of the cash used to achieve a given benefit 
C)  the asset incurred to produce future benefits 
D)  the equivalent of the cost of goods sold 
A)  the cash sacrificed for goods expected to bring future benefit to the organization 
B)  a dollar measure of the cash used to achieve a given benefit 
C)  the asset incurred to produce future benefits 
D)  the equivalent of the cost of goods sold

What is the term for the cost of the partially completed goods at the end of the period?

Prime cost is the sum of direct materials and direct labour.

Blue Water Inc.had a gross margin for the month of February totalling $92,000.The company sold 6,000 units during the month at a sales price of $30 per unit.What was the amount of cost of goods sold for the month?

Cost of goods sold is the total product cost of the units sold during a period.

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 goods manufactured for July?

Denim used when making jeans would normally be classified as a variable cost.

What is the difference between total manufacturing costs and cost of goods manufactured?

Which of the following is characteristic of indirect costs?

Which of the following is a characteristic of price per unit?

Expired costs are called assets.

Direct materials,direct labour,and overhead are the three classifications of manufacturing costs.

Which of the following labour costs is included in indirect labour?

Gross margin equals revenue minus cost of goods manufactured.

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 finished goods inventory on December 31?

In terms of managerial accounting,which of the following is the best definition of cost?

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

What is the term for the cost of the partially completed goods at the end of the period?

Prime cost is the sum of direct materials and direct labour.

Blue Water Inc.had a gross margin for the month of February totalling $92,000.The company sold 6,000 units during the month at a sales price of $30 per unit.What was the amount of cost of goods sold for the month?

Cost of goods sold is the total product cost of the units sold during a period.

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 goods manufactured for July?

Denim used when making jeans would normally be classified as a variable cost.

What is the difference between total manufacturing costs and cost of goods manufactured?

Which of the following is characteristic of indirect costs?

Which of the following is a characteristic of price per unit?

Expired costs are called assets.

Direct materials,direct labour,and overhead are the three classifications of manufacturing costs.

Which of the following labour costs is included in indirect labour?

Gross margin equals revenue minus cost of goods manufactured.

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 finished goods inventory on December 31?

In terms of managerial accounting,which of the following is the best definition of cost?

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