Question 1

Select the appropriate classification for each of the items listed below.
-Cost of conference for sales team

Accepted Answer

A) Product cost 
B) Period cost 
A) Product cost 
B) Period cost

Question 2

Select the appropriate classification for each of the following costs.
-Line worker's wages

Accepted Answer

A) Period 
B) Product 
A) Period 
B) Product

Question 3

Select the appropriate definition of each of the items listed below.
-Covers a particular period of time

Accepted Answer

A) Income statement 
B) Cost of goods manufactured 
C) Work in process 
D) Gross margin 
E) Operating income 
A) Income statement 
B) Cost of goods manufactured 
C) Work in process 
D) Gross margin 
E) Operating income

Question 4

Cost is a dollar measure of the resources used to achieve a given benefit.

Accepted Answer

A) True 
 B)False

Question 5

Thompson Company,a manufacturing firm,has supplied the following information from its accounting records for the month of November:
Required:
 $$\begin{array} { l r } 
\text { Factory supplies used } & \$ 18,000 \
\text { Depreciation on factory building } & 17,000 \
\text { Sal ary of company controller } & 6,000 \
\text { Factory janitorial costs } & 5,000 \
\text { Marketing and promotion } & 4,500 \
\text { Direct labour cost } & 22,000 \
\text { Purchases of raw materials } & 10,000 \
\text { Finished goods inventory, Nov. 1 } & 2,250 \
\text { Finished goods inventory, Nov. } 30 & 3,750 \
\text { Work-in-process inventory, Nov. 1 } & 4,200 \
\text { Work-in-process inventory, Nov. 30 } & 2,750 \
\text { Materials inventory, Nov. 1 } & 3,500 \
\text { Materials inventory, Nov. 30 } & 5,100
\end{array}$$ A. Prepare a statement of cost of goods manufactured.
B. Prepare a statement of cost of goods sold.

Accepted Answer

The answer of Thompson Company,a manufacturing firm,has supplied the following...

Question 6

Bowring Company took the following data from their income statement at the end of the current year.
 $$\begin{array} { l r } 
\text { Per-unit product cost: } & \$ 30 \
\text { Gross margin percentage: } & 40 \% \
\text { Selling and admini strative expenses } & \$ 30,000 \
\text { Operating income } & \$ 10,000
\end{array}$$
-Refer to the Figure.What was the gross margin for the year?

Accepted Answer

A) $40,000 
B) $50,000 
C) $60,000 
D) $100,000 
A) $40,000 
B) $50,000 
C) $60,000 
D) $100,000

Question 7

Price must be greater than cost in order for the firm to generate income.

Accepted Answer

A) True 
 B)False

Question 8

Sales revenue equals the price per unit times the number of units in inventory.

Accepted Answer

A) True 
 B)False

Question 9

Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles.
-Salary of Chief Executive Officer

Accepted Answer

A) Direct materials 
B) Direct labour 
C) Overhead 
D) Selling expense 
E) Administrative expense 
A) Direct materials 
B) Direct labour 
C) Overhead 
D) Selling expense 
E) Administrative expense

Question 10

It is NOT necessary to assign indirect costs to cost objects.

Accepted Answer

A) True 
 B)False

Question 11

Nexient Company supplied the following data and information on inventories at the end of the current year.
 $$\begin{array} { l r r } 
& \text { January 1 } & \text { December } 31 \
\text { Materials } & \$ 21,000 & \$ 23,500 \
\text { Work in process } & 17,500 & 8,500 \
\text { Finished goods } & 26,000 & 27,000
\end{array}$$ Required: Prepare an income statement of Nexient Company for the current year
 $$\begin{array} { l r } 
\text { Direct labour } & \$ 0,000 \
\text { Selling expenses } & 31,000 \
\text { Sales revenue } & 400,000 \
\text { Administrative expenses } & 14,500 \
\text { Purchases of raw materials } & 62,000 \
\text { Factory supervision } & 50,000 \
\text { Factory supplies used } & 25,000
\end{array}$$

Accepted Answer

The answer of Nexient Company supplied the following data and...

Question 12

Describe the purpose of the three inventory accounts used by a manufacturer.

Accepted Answer

The materials inventory is used to keep

Question 13

Which of the following expenses is included in manufacturing overhead?

Accepted Answer

A) production line supervisor salary 
B) steel used to manufacture a car 
C) production line worker wages 
D) advertising for the product 
A) production line supervisor salary 
B) steel used to manufacture a car 
C) production line worker wages 
D) advertising for the product

Question 14

Select the appropriate classification for each of the following costs.
-CEO's salary

Accepted Answer

A) Period 
B) Product 
A) Period 
B) Product

Question 15

Jackson Grills has supplied the following information from its accounting records for the month of August.
Required: Solve for the missing amounts (?).
 $$\begin{array} { l r } 
\text { Direct labour cost } & \$ 11,500 \
\text { Purchases of raw materials } & 20,000 \
\text { Factory depreciation } & 7,500 \
\text { Advertising } & 10,000 \
\text { Factory property taxes } & 6,500 \
\text { Materials inventory, } 8 / 1 & 1,250 \
\text { Materials inventory, } 8 / 31 & 2,500 \
\text { Work-in-process inventory, } 8 / 1 & ? \
\text { Work-in-process inventory, } 8 / 31 & 1,500 \
\text { Cost of goods manufactured } & 45,850 \
\text { Sales revenue } & ? \
\text { Executive salary cost } & 25,000 \
\text { Finished goods inventory, } 8 / 1 & 5,500 \
\text { Finished goods inventory, } 8 / 31 & 4,250 \
\text { Operating income } & 67,900 \
\text { Gross margin } & ?
\end{array}$$

Accepted Answer

The answer of Jackson Grills has supplied the following information...

Question 16

Select the appropriate classification of the items listed below.
-Cost of lubricating factory robotic arms

Accepted Answer

A) Selling expense 
B) Administrative expense 
C) Direct materials 
D) Direct labour 
E) Overhead 
A) Selling expense 
B) Administrative expense 
C) Direct materials 
D) Direct labour 
E) Overhead

Question 17

Select the appropriate classification of the items listed below.
-Cost of engines in the manufacture of airplanes

Accepted Answer

A) Selling expense 
B) Administrative expense 
C) Direct materials 
D) Direct labour 
E) Overhead 
A) Selling expense 
B) Administrative expense 
C) Direct materials 
D) Direct labour 
E) Overhead

Question 18

Select the appropriate classification for each of the items listed below.
-Sugar used in cookie production

Accepted Answer

A) Product cost 
B) Period cost 
A) Product cost 
B) Period cost

Question 19

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:
 $\begin{array}{lrr} 
& \text { July 1 } & \text { July 31 } \
\text { Materials } & \$ 6,200 & \$ 7,100 \
\text { Work in process } & \$ 700 & \$ 1,200 \
\text { Finished goods } & \$ 3,300 & \$ 2,700
\end{array}$
-Refer to the Figure.What was the cost of direct materials used in July?

Accepted Answer

A) $20,100 
B) $20,500 
C) $21,000 
D) $21,900 
A) $20,100 
B) $20,500 
C) $21,000 
D) $21,900

Question 20

Select the appropriate item for each of the definitions listed below.
-Gross margin − period costs

Accepted Answer

A) Gross margin 
B) Selling expenses 
C) Sales revenue 
D) Cost of goods sold 
E) Operating income 
A) Gross margin 
B) Selling expenses 
C) Sales revenue 
D) Cost of goods sold 
E) Operating income

Select the appropriate classification for each of the items listed below. -Cost of conference for sales team

Select the appropriate classification for each of the following costs. -Line worker's wages

Select the appropriate definition of each of the items listed below. -Covers a particular period of time

Cost is a dollar measure of the resources used to achieve a given benefit.

Bowring Company took the following data from their income statement at the end of the current year. Per-unit product cost: \ 30 Gross margin percentage: 40\% Selling and admini strative expenses \ 30,000 Operating income \ 10,000 -Refer to the Figure.What was the gross margin for the year?

Price must be greater than cost in order for the firm to generate income.

Sales revenue equals the price per unit times the number of units in inventory.

Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles. -Salary of Chief Executive Officer

It is NOT necessary to assign indirect costs to cost objects.

Describe the purpose of the three inventory accounts used by a manufacturer.

Which of the following expenses is included in manufacturing overhead?

Select the appropriate classification for each of the following costs. -CEO's salary

Select the appropriate classification of the items listed below. -Cost of lubricating factory robotic arms

Select the appropriate classification of the items listed below. -Cost of engines in the manufacture of airplanes

Select the appropriate classification for each of the items listed below. -Sugar used in cookie production

Select the appropriate item for each of the definitions listed below. -Gross margin − period costs

Introduction to Managerial Accounting

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters

Exam 2: Basic Managerial Accounting Concepts

Select the appropriate classification for each of the items listed below. -Cost of conference for sales team

Select the appropriate classification for each of the following costs. -Line worker's wages

Select the appropriate definition of each of the items listed below. -Covers a particular period of time

Cost is a dollar measure of the resources used to achieve a given benefit.

Bowring Company took the following data from their income statement at the end of the current year. Per-unit product cost: \ 30 Gross margin percentage: 40\% Selling and admini strative expenses \ 30,000 Operating income \ 10,000 -Refer to the Figure.What was the gross margin for the year?

Price must be greater than cost in order for the firm to generate income.

Sales revenue equals the price per unit times the number of units in inventory.

Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles. -Salary of Chief Executive Officer

It is NOT necessary to assign indirect costs to cost objects.

Describe the purpose of the three inventory accounts used by a manufacturer.

Which of the following expenses is included in manufacturing overhead?

Select the appropriate classification for each of the following costs. -CEO's salary

Select the appropriate classification of the items listed below. -Cost of lubricating factory robotic arms

Select the appropriate classification of the items listed below. -Cost of engines in the manufacture of airplanes

Select the appropriate classification for each of the items listed below. -Sugar used in cookie production

Select the appropriate item for each of the definitions listed below. -Gross margin − period costs

Introduction to Managerial Accounting

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters