Exam 2: Basic Managerial Accounting Concepts

During the month of March, Cara, Inc. had total manufacturing costs of $130,000 and incurred $40,000 in direct labour costs and $30,000 in manufacturing overhead costs. The materials inventory on March 1 was $3,000 less than the materials inventory on March 31. What was the cost of materials purchased during the month?

Select the appropriate classification of the output generated by each of the following industries.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Law firm

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

Direct costs are those costs that can be easily and accurately traced to a cost object.

What is opportunity cost?

Match each of the following terms with their correct description from the items listed below. -Number of units sold multiplied by product cost per unit

Screws used in the manufacture of cabinets would normally be classified as a variable cost.

Match each of the following terms with their correct description from the items listed below. -Marketing and distributing costs

Katz Group Katz Group had the following income statement for the month of May. Sales revenue \ 428,000 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 Katz Group. What was the administrative expense percentage?

What is the formula to calculate gross margin?

Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Product shipping costs

Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Cost of lubricating production machinery

Select the appropriate classification of the output generated by each of the following industries.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Calgary Flames professional hockey team

What would generally NOT be found on the income statement of a service organization?

Select the appropriate classification of the output generated by each of the following industries.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -A&W Restaurant

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

Econo Company In July, Econo Company purchased materials costing $21,000 and incurred direct labour cost of $18,000. Manufacturing overhead totalled $32,000 for the month. Information on inventories was as follows: July 1 July 31 Materials \ 6,200 \ 7,100 Work-in-process \ 700 \ 1,200 Finished goods \ 3,300 \ 2,700 -Refer to Quest Company. What were the total product costs?

Indirect costs are costs that are easily and accurately traced to a cost object.

Research and development costs would generally be classified as period costs.

Katz Group Katz Group had the following income statement for the month of May. Sales revenue \ 428,000 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 Katz Group. What was the gross margin percentage?