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. -Cost of nails used by a furniture builder

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 Ballard Company. How many sets of portable speakers did the company sell during the year?

Refer to Owen Sound Company. Assume production amounted to 86,000 fishing rods and 80,000 were sold. Calculate cost of goods sold.

Refer to Owen Sound Company. Assume production amounted to 86,000 fishing rods and 80,000 were sold. Calculate the balance in ending finished goods inventory.

Match each of the following terms with their correct description from the items listed below. -Gross margin - period 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. -Fees paid to an accounting firm for annual audit

Match each following terms with their correct description from the items listed below. -A manufacturing cost

Assigning costs involves the way that a cost is linked to some cost object.

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. -Accounting firm

Match each of the following terms with their correct description from the items listed below. -Covers a particular period of time

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 Bowring Company. What was the cost of goods sold for the year?

Match each of the following terms with their correct description from the items listed below. -The cost of units unfinished at the end of the current period

A fixed cost is a cost that increases in total as output increases and decreases in total as output decreases.

Match each following terms with their correct description from the items listed below. -A cost that is difficult to trace to a cost object

Cost of goods manufactured represents the cost of direct materials, direct labour, and manufacturing overhead incurred relating to goods sold during the current accounting 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. -Janitorial supplies for the factory

Corby Distilleries supplied the following data at the end of the current year. Finished goods inventory, Jan 1. $12,000 Finished goods inventory, Dec. 31 7,500 Cost of goods manufactured 152,380 Sales revenue 212,000 Sales commissions 19,080 Research and development costs 15,900 Required: A. Calculate the cost of goods sold percent. B. Calculate the gross margin percent. C. Calculate the selling expense percent. D. Calculate the administrative expense percent. E. Calculate the operating income percent.

Arche produces a product with the following per unit costs. Direct materials $17 Direct labour 11 Manufacturing overhead 12 Last year, Arche produced and sold 3,000 units at a sales price of $80 each. Total selling and administrative expenses were $25,000. Required: Solve for the following: A. total cost of goods sold for last year B. operating income for last year C. total gross margin for last year D. prime cost per unit

List the types of inventory accounts that a service business, retailer, and manufacturer would have in their accounting records.

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 selling expense percentage?