Exam 2: Basic Managerial Accounting Concepts

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Last year Quest Company incurred the following costs: Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were 0. Direct materials \ 40,000 Direct labour 60,000 Overhead 90,000 Selling expenses 24,000 Administrative expenses 22,000 -Refer to the Figure.What were the total product costs?

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HaulAll Inc.had a per-unit conversion cost of $4.00 during April and incurred a direct materials cost of $100,000,direct labour costs of $110,000,and overhead costs of $50,000.How many units did HaulAll manufacture during May?

(Multiple Choice)
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TechCom Inc. manufactures laptops. Last month, direct materials (e.g., computer components) costing $600,000 were put into production. Direct labour of $900,000 was incurred, overhead equalled $500,000, and selling and administrative costs totalled $400,000. The company manufactured 10,000 laptops during the month. Assume the company had no beginning or ending work-in-process balances. -Refer to the Figure.What was the total per-unit prime cost last month?

(Multiple Choice)
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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 was the cost of goods manufactured for July?

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Costs are directly,NOT indirectly,associated with cost objects.

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Which of the following is included in nonmanufacturing costs?

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Select the appropriate definition for each of the items listed below. -Direct materials + direct labour + overhead

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What is the definition of opportunity cost?

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Big Blue Bubble Company produces a product with the following per-unit costs: Last year, Gateway produced and sold 750 units at a sales price of $80 each. Total selling and administrative expense was $25,000. Direct materials \ 15 Direct labour 10 Overhead 15 -Refer to the Figure.What was the total operating income last year?

(Multiple Choice)
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Ballard Company supplied the following information for the month of December. Required: Solve for the following amounts assuming that Ballard Company's operating income in December was $44,100. Operating income percentage 10.5\% Gross margin percentage 30\% A. sales revenue B. cost of goods sold C. total selling and administrative expenses

(Essay)
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Select the appropriate definition for each of the items listed below. -A cost that increases in total as output increases

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Katz Group had the following income statement for the month of May. Sales revenue \4 28,000 Cost of goods sold 205,440 Gross margin 222,560 Less: Selling expenses 81,320 Administrative expenses 72,760 Operating income \6 8,480 -Refer to the Figure.What was the administrative expense percentage?

(Multiple Choice)
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The T & T Company makes fishing rods.During the current month,direct materials costing $126,000 were put into production.Direct labour costs of $110,000 were incurred and overhead equalled $100,000.Selling and administrative expenses totalled $66,000 for the month,and the company manufactured 3,500 fishing rods.Assume there was no beginning inventory and that 3,000 fishing rods were sold. Required: A. Compute the per-unit product cost. B. Compute the per-unit prime cost. C. Compute the per-unit conversion cost. D. What is cost of goods sold for the month? E. What is the cost of ending finished goods for the month?

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Select the appropriate classification of the output generated by each of the following industries. -Law firm

(Multiple Choice)
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Reducing the cost required to achieve a given benefit means that a company is becoming less efficient.

(True/False)
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Select the appropriate definition for each of the items listed below. -Product cost per-unit × units sold

(Multiple Choice)
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Select the appropriate definition for each of the items listed below. -The cost of units finished but not sold at the end of the current period

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Which of the following would be found on the balance sheet of a manufacturer and not on the balance sheet of a service business?

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Which of the following is characteristic of cost of goods sold?

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Gross margin equals revenue minus cost of goods manufactured.

(True/False)
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