Exam 2: Basic Managerial Accounting Concepts

Becker Corporation Information from the records of Becker Corporation for December is as follows: Sales \ 1,230,000 Selling and administrative expenses 210,000 Direct materials used 300,000 Direct labour 350,000 Manufacturing overhead 455,000 $\text { Inventories }$ Dec. 1 Dec. 31 Direct materials \ 36,000 \ 42,000 Work-in-process 75,000 84,000 Finished goods 69,000 57,000 -Refer to Big Blue Bubble Company. What was the total operating income last year?

Employees who convert direct materials into a product or who provide a service to customers are classified as indirect labour.

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. -Rental cost of executive Lear jet

Which of the following would be found on the balance sheet of a manufacturer?

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

Which statement best describes sales price per unit?

Match each of the following terms with their correct description from the items listed below. -The difference between sales revenue and cost of goods sold

Which job position is an example of direct labour?

Services are most appropriately classified as intangible and perishable.

Refer to ComPrint Co. What was the amount of Cost of Goods Manufactured for the year?

Refer to Owen Sound Company. Calculate the per-unit product cost.

A cost object is any item, such as products, customers, departments, regions, and so on, for which costs are measured and assigned.

Match each of the following terms with their correct description from the items listed below. -Product cost per-unit × units sold

Match each following terms with their correct description from the items listed below. -A benefit given up when one alternative is chosen over another

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

Match each of the following terms with their correct description from the items listed below. -The total cost of goods completed during the current period

Which of the following is a period cost?

What is the behaviour pattern of a variable cost?

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 31 was $17,000. What was the amount of cost of goods manufactured for the year?

Global Inc. manufactured 6,000 units during the month of April and incurred a direct materials cost of $110,000 and a manufacturing overhead cost of $50,000. Suppose the per-unit prime cost was $30.00 per unit. How much direct labour cost did Global incur during April?