Exam 2: Building Blocks of Managerial Accounting

The following information is taken from the records of Britton Company for March: * Of these costs, 60 percent are assigned to manufacturing and 40 percent to selling and administration. Required: a. Prepare a schedule of cost of goods manufactured. b. Prepare an income statement for the month.

Depreciation on a factory would be classified as a cost in which part of the value chain?

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 distribution category of the value chain at Farm Fresh Dairy?

Differentiate between fixed and variable costs and give an example of each.

Use the information below to answer the following question(s). Back Yards Inc. sells lawn furniture. The following information summarizes the company's operating expenses for the year: -What was cost of goods sold at Back Yards Inc.?

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 period costs for Bombardeer are

Which of the following costs would appear on the income statements for both a merchandiser and manufacturer?

Match the following: A) Period cost B) Inventoriable product cost, manufacturing overhead C) Inventoriable product cost, direct materials D) Inventoriable product cost, direct labour 1) Insurance on the plant building 2) Cost of shipping the furniture to the customers 3) Assembly line workers' wages 4) Depreciation on plant equipment 5) Salespersons' salaries 6) Cost of various types of wood 7) Insurance on delivery trucks 8) Plant forklift operator's salary

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 marketing category of the value chain at Sunnybrook Orange Groves?

Match the following: A) Research and Development B) Customer Service C) Marketing D) Design E) Production F) Distribution 1) Cost of a commercial during a TV program 2) Cost of shipping goods to customers 3) Costs associated with repairing costs under warrantee 4) Costs of developing a new produce 5) Cost of making a prototype of a new product 6) Cost of labour for machine operator in factory

Use the information below to answer the following question(s). Express Company reports the following data for its first year of operation. -What are the total manufacturing costs to account for at Express Company?

________ information is that which differs between alternatives and can affect the future.

________ has three types of inventory.

All companies are either classified as service, merchandising, or manufacturing companies.

Big Island Coffee Co. produced and sold 120,000 units last year. Per unit revenue and costs were as follows: Fixed manufacturing overhead and administrative salaries are fixed costs. The per unit amounts are based on last year's production. Required: Calculate this year's operating income if the company plans to produce and sell 200,000 units.

Makeit, 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 Makeit's raw materials inventory contains only direct materials. You have the following information available: Find the following amounts: A. Cost of goods sold in April. B. Beginning raw materials inventory. C. Ending finished goods inventory.

Use the information below to answer the following question(s). Summerville Company sells office supplies. The following information summarizes the company's operating activities for the year: -What is total operating expense at Summerville Company?

Swirzoff Company sells office supplies. The following information summarizes Swirzoff's operating activities for the past year: Required: Prepare an income statement for Swirzoff Company, a merchandiser, for the year ended December 31.

You have the opportunity to attend a Leafs game either at home in Toronto against the Buffalo Sabres or in Buffalo. You can travel to the Toronto game using your weekly TTC bus pass which cost $36.00 when purchased to travel to school each week. If you attend the game in Buffalo your share of the cost of travelling with a group of friends by car will be $23.00. The cost of a ticket in Buffalo is $45.00. In Toronto you will have to acquire the ticket from a scalper at the cost of $85.00. The cost of hot dogs and beer at the Toronto game will be $60.00. The same food and beverages in Buffalo will cost $38.00. You must decide which game to attend. Required: A. Which if any of the listed costs above are not relevant to your decision? B. What are the total relevant costs of attending the game in Toronto? C. What are the total relevant costs of attending the game in Buffalo? D. What is the differential cost involved in your decision?

How are average cost and marginal cost computed?