Exam 2: Basic Managerial Accounting Concepts

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. -National advertising campaign costs

The revenue per unit is called sales price.

Match each following terms with their correct description from the items listed below. -A cost that is NOT inventoried

The cost of maintenance personnel in a factory building would be classified as direct labour.

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. -Bowling alley

Indirect materials can be directly traced to the goods or services being produced.

How many inventory accounts does a typical manufacturer have?

Explain the difference between a period cost and a product cost.

Product costs are carried in inventory only until production of the goods is completed.

Refer to Owen Sound Company. Calculate the gross margin for the year.

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 manufacturing 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. Calculate the per-unit product cost. B. Calculate the per-unit prime cost. C. Calculate the per-unit conversion cost. D. Calculate cost of goods sold for the month? E. Calculate the cost of ending finished goods for the month?

Which expense is included in manufacturing overhead?

A variable cost is one that decreases in total as output increases and increases in total as output decreases.

Match each following terms with their correct formula from the items listed below. -(direct labour + manufacturing overhead)/units produced

How is the cost of goods manufactured calculated?

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 Econo Company. What were the total manufacturing costs in July?

Which statement best describes cost of goods sold?