Exam 2: Basic Managerial Accounting Concepts

Select the appropriate classification for each of the following costs. -Research and development costs

Explain the difference between an inventoriable cost and a non-inventoriable cost.

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 gross margin percentage?

What type of organization is the Hudson Bay Company?

Assuming a separate schedule of cost of goods manufactured,which of the following is found on a manufacturer's income statement?

Select the appropriate definition for each of the items listed below. -(total manufacturing costs + work in process beginning − work in process ending)/units produced

A variable cost is one that decreases in total as output increases and increases in total as output decreases.

Select the appropriate classification of the output generated by each of the following industries. -A&W Restaurant

Information from the records of Island Timberlands Inc.for November is as follows: What is the net income for the month of November? Sales \ 820,000 Selling and administrative expenses 140,000 Direct materials purchases 176,000 Direct labour 200,000 Factory overhead 270,000 Direct materials, November 1 24,000 Work in process, November 1 50,000 Finished goods, November 1 46,000 Direct materials, November 30 28,000 Work in process, November 30 56,000 Finished goods, Novmeber 30 38,000

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

What is the formula to calculate operating income?

Select the appropriate classification of the output generated by each of the following industries. -Calgary Flames

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 selling expense percentage?

Select the appropriate classification of the items listed below. -Wages of assembly line workers in an plastics plant

What type of cost is direct labour?

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 sales revenue percentage?

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 cost of goods sold last year?

The Owen Sound Company manufactures fishing rods.Last year,direct materials costing $516,000 were put into production.Direct labour costs of $430,000 were incurred,and overhead equalled $645,000.The company had operating income for the year of $58,000 and manufactured and sold 86,000 fishing rods at a sales price of $21 per unit.Assume that there were no beginning or ending inventory balances in the work in process and no finished goods inventory accounts. Required: A. Compute the per-unit product cost. B. Compute the per-unit prime cost. C. Compute the per-unit conversion cost. D. Compute the gross margin for the year. E. Compute the selling and administrative expenses for the year. F. Assume production amounted to 86,000 fishing rods and 80,000 were sold. Compute cost of goods sold. G. Assume production amounted to 86,000 fishing rods and 80,000 were sold. Compute the balance in ending finished goods inventory.

Select the appropriate classification of the items listed below. -professor's salary at a college

Which of the following is an example of a period cost?