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

A) $69,600 B) $70,200 C) $71,100 D) $71,300 A) $69,600 B) $70,200 C) $71,100 D) $71,300

Becker Corporation Information from the records of Becker Corporation for December is as follows: $\begin{array}{lr} \text { Sales } & \$ 1,230,000 \\ \text { Selling and administrative expenses } & 210,000 \\ \text { Direct materials used } & 300,000 \\ \text { Direct labour } & 350,000 \\ \text { Manufacturing overhead } & 455,000 \end{array}$ $\text { Inventories }$ $\begin{array}{lrr} & \text { Dec. } 1 & \text { Dec. } 31 \\ \text { Direct materials }& \$ 36,000 & \$ 42,000 \\ \text { Work-in-process } & 75,000 & 84,000 \\ \text { Finished goods } & 69,000 & 57,000 \end{array}$ -Refer to Becker Corporation . What are the prime costs?

A) $564,000 B) $650,000 C) $805,000 D) $969,000 A) $564,000 B) $650,000 C) $805,000 D) $969,000

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: $\begin{array}{lrr}&\text { July } 1& \text { July } 31\\ \text { Materials } & \$ 6,200 & \$ 7,100 \\ \text { Work-in-process } & \$ 700 & \$ 1,200 \\ \text { Finished goods } & \$ 3,300 & \$ 2,700 \end{array}$ -Refer to Quest Company. What was the gross margin per unit?

A) $7 B) $30 C) $95 D) $125 A) $7 B) $30 C) $95 D) $125

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. -Factory assembly line worker's wages

(Multiple Choice)

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Question 41

Any costs associated with storing, selling, and delivering a product are generally classified as period costs.

(True/False)

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Question 42

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 was the cost of goods sold for July?

(Multiple Choice)

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Question 43

Period costs are those costs associated with the manufacture of goods or the providing of services over a period of time.

(True/False)

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Question 44

Sales price must be greater than cost in order for the firm to generate a profit.

(True/False)

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Question 45

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 Becker Corporation . What are the prime costs?

(Multiple Choice)

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Question 46

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 was the gross margin per unit?

(Multiple Choice)

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Question 47

Refer to ComPrint Co. What was the operating income or loss for the year?

(Multiple Choice)

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Question 48

What can generally be found on the income statements of both a manufacturer and a service organization?

(Multiple Choice)

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Question 49

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. -Fees paid to the radio station for advertising

(Multiple Choice)

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Question 50

Match each of the following terms with their correct description from the items listed below. -(direct materials + direct labour + manufacturing overhead) +/- the change in work-in-process inventory from the beginning to the end of the current period

(Multiple Choice)

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Question 51

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. -Depreciation on furniture in the factory lunchroom

(Multiple Choice)

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Question 52

As costs are used up in the production of revenues, they are said to expire. Expired costs are called expenses.

(True/False)

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Question 53

Costs incurred to produce future benefits would generally be categorized as liabilities.

(True/False)

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Question 54

How is prime cost calculated?

(Multiple Choice)

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Question 55

Allied Company showed the following costs for last month. Direct materials $40,000 Direct labour 35,000 Manufacturing 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. total product cost for last month B. unit product cost for last month C. total period costs D. gross margin for last month E. operating income for last month

(Essay)

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Question 56

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. -Property taxes on the factory building

(Multiple Choice)

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Question 57

Which labour cost is included in indirect labour?

(Multiple Choice)

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Question 58

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?

(Multiple Choice)

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Question 59

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

(True/False)

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Question 60

Showing 41 - 60 of 217

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. -Factory assembly line worker's wages

Any costs associated with storing, selling, and delivering a product are generally classified as period costs.

Period costs are those costs associated with the manufacture of goods or the providing of services over a period of time.

Sales price must be greater than cost in order for the firm to generate a profit.

Refer to ComPrint Co. What was the operating income or loss for the year?

What can generally be found on the income statements of both a manufacturer and a service organization?

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. -Fees paid to the radio station for advertising

Match each of the following terms with their correct description from the items listed below. -(direct materials + direct labour + manufacturing overhead) +/- the change in work-in-process inventory from the beginning to the end of the current period

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. -Depreciation on furniture in the factory lunchroom

As costs are used up in the production of revenues, they are said to expire. Expired costs are called expenses.

Costs incurred to produce future benefits would generally be categorized as liabilities.

How is prime cost calculated?

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. -Property taxes on the factory building

Which labour cost is included in indirect 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?

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

Introduction to Managerial Accounting

Cost Behaviour

Cost-Volume-Profit 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

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