Exam 2: Building Blocks of Managerial Accounting

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: -Prime costs for Comfy Furniture Company totaled

Manitoba Industries Inc. had the following account balances at the end of the current year: Required: Determine the amounts for direct material purchases, direct manufacturing labour, ending work-in-process inventory, and beginning finished goods inventory.

Use the information below to answer the following question(s). Country Furniture Company manufactures furniture at its Halifax, Nova Scotia, factory. Some of its costs from the past year include: -Prime costs for Country Furniture Company totaled

The income statements of manufacturing companies are much less complex than those of service or merchandising companies.

A student is considering whether to finish their university program in four consecutive years, or take a year off and work for some extra cash. Required: a. Identify at least two revenues or costs that are relevant to making this decision. Explain why each is relevant. b. Identify at least two costs that would be considered sunk costs for this decision. c. Comment on at least one qualitative consideration for this decision.

A company which is in the business of reselling tangible products purchased from suppliers to final users is what type of company?

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 production category of the value chain at Sunnybrook Orange Groves?

The following information is available for the Petree Corporation for last year: • Raw materials inventory decreased $4,000 from the beginning of the year to the end of the year. • Raw materials inventory on December 31(end of year) was 50% of raw materials inventory on January 1 (beginning of year). • Beginning work in process inventory was $145,000. • Ending finished goods inventory was $65,000. • Purchases of direct materials were $154,700. • Manufacturing overhead was 50% of the cost of direct labour. • Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $156,000 less than cost of goods sold. Compute: a) Finished goods inventory on January 1(beginning of year) b) Work in process inventory on December 31(end of year) c) Direct labour incurred d) Manufacturing overhead incurred e) Direct materials used f) Raw materials inventory on January 1(beginning of year) g) Raw materials inventory on December 31(end of year) Note to students: The solutions to this problem are not necessarily calculated in alphabetical order.

Use the information below to answer the following question(s). Towpath Tennis & Recreation's operating activities for the year are listed below: -Which of the following, in addition to cost of goods manufactured, is needed to compute the cost of goods sold for a manufacturer?

Use the information below to answer the following question(s). Rustic Living Furniture Company manufactures furniture at its Saskatoon Saskatchewan factory. Some of its costs from the past year include: -Manufacturing overhead for Rustic Living Furniture Company totaled

A company produces toy airplanes at a variable cost of $21 per toy. If 6,000 toys are produced at a total variable cost of $126,000, the total variable cost at 4,000 toys will be

You are trying to decide whether or not to sell back your accounting textbook at the end of the class. The cost you paid for the book is relevant to your decision.

The owner of Willy's Wonderful Burger Stand is concerned because the stand has been averaging only 3,000 burger sales per month, the stand and staff can make 6,000 burgers per month. The variable cost of each burger (buns, meat, etc.) is $2.50. Monthly fixed costs are (taxes, licenses, space rent and salaries) are $7,500. The owner (Willy Wonderful) wants cost information about different volumes so that he can make some operating decisions. Required: Fill in the following chart to provide Willy with the information he wants.

The promotion of products and services is known as

Conversion costs for Comfy Furniture Company totaled

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 gross profit at Summerville Company?

A technical support hotline for customers would be considered which part of the value chain?

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: -Product costs for Comfy Furniture Company totaled

Use the information below to answer the following question(s). Sanjay Company has monthly fixed costs of $112,000. The variable costs are $5.00 per unit.The sales price per unit is $20.00 and they sold 8,000 units. -Sanjay Company's total variable costs will be

Use the information below to answer the following question(s). Macadamia Co. produced and sold 40,000 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. -Calculate this year's operating income if the company plans to produce and sell 50,000 units.