Exam 2: Basic Managerial Accounting Concepts

Kitchens by Kate,maker of kitchen cabinets,incurred the following costs during the current year: Required: Classify each cost as either a product or period cost.

Expired costs are called assets.

Select the appropriate classification for each of the following costs. -Janitorial supplies for the factory

What are expired costs?

Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles. -Factory supply costs

Select the appropriate definition for each of the items listed below. -A manufacturing cost

Allied Company showed the following costs for last month. 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. Direct materials \ 40,000 Direct labour 35,000 Overhead 52,000 Selling expense 17,000 Administrative expense 12,000 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

In July, Econo Company purchased materials costing $21,000 and incurred direct labour cost of $18,000. 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 the Figure.What were the total manufacturing costs in July?

Select the appropriate classification of the output generated by each of the following industries. -Bowling alley

The revenue per unit is called price.

For external reporting purposes,product costs must be classified into only three categories.

When are product costs expensed?

Direct materials cannot be directly traced to the goods or services being produced.

Select the appropriate item for each of the definitions listed below. -Number of units sold multiplied by product cost per unit

Select the appropriate classification of the items listed below. -Chief of surgery's salary at a hospital

Select the appropriate classification of the items listed below. -Nails used in the manufacture of furniture

What is the difference between a period cost and a product cost?

Which of the following labour costs is included in indirect labour?

Select the appropriate classification for each of the following costs. -National advertising campaign costs

Direct materials,direct labour,and overhead are the three classifications of manufacturing costs.