Exam 2: Building Blocks of Managerial Accounting

Place the six business functions in the order they appear along the value chain: A = Customer service B = Design C = Distribution D = Production or purchases E = Research and Development F = Marketing

Use the information below to answer the following question(s). Comfy Furniture Company manufactures furniture at its Windsor, Ontario, factory. Some of its costs from the past year include: -Period costs for Comfy Furniture Company totaled

Redat, a start-up manufacturing company, had a bookkeeper who left suddenly, leaving rather incomplete accounting records for the last month of his employment. You have been hired to sort out the puzzle. Assume Redat's raw materials inventory contains only direct materials. You have the following information available: Find the following amounts: A. Cost of goods sold in June. B. Beginning raw materials inventory. C. Ending finished goods inventory.

Certain item descriptions and amounts are missing from the monthly schedule of cost of goods manufactured below and the income statement of Schredlink Manufacturing. Fill in the missing items.

Collectively, all costs such as design, customer service, etc. are part of

Use the information below to answer the following question(s). Lucas Family Orange Groves processes a variety of fresh juices. The company has the following expenses for July: -What is the total cost for the distribution category of the value chain at Lucas Family Orange Groves?

All costs contain both a fixed and a variable part.

Fixed costs stay constant in total over a wide range of activity levels.

Certain item descriptions and amounts are missing from the monthly schedule of cost of goods manufactured below and the income statement of HiHoist Manufacturing. Fill in the missing items.

The balance sheet of a service company has

Use the information below to answer the following question(s). Bombardeer, an auto manufacturer, incurred the following costs last month (in thousands of dollars). -The total inventoriable product costs costs for Bombardeer are

Compute the missing amounts.

Which of the following is an example of direct labour?

Use the information below to answer the following question(s). Farm Fresh Dairy provided the following expense information for May: -What is the total cost for the marketing category of the value chain at Farm Fresh Dairy?

Use the information below to answer the following question(s). Olde Tyme Beverage Company's operating activities for the year are listed below. -What is the gross profit for the year at the Olde Tyme Beverage Company?

Period costs are

Describe service, merchandising, and manufacturing companies.

Use the information below to answer the following question(s). Sunnybrook Orange Groves processes a variety of fresh juices. The company has the following expenses for July: -What is the total cost for the design category of the value chain at Sunnybrook Orange Groves?

Service companies have the simplest accounting with regard to the income statement.

Cost of goods sold is a major expense of service companies.