Exam 1: Managerial Accounting and Cost Concepts

Whitman Corporation,a merchandising company,reported sales of 7,400 units for May at a selling price of $677 per unit.The cost of goods sold (all variable)was $441 per unit and the variable selling expense was $54 per unit.The total fixed selling expense was $155,600.The variable administrative expense was $24 per unit and the total fixed administrative expense was $370,400. Required: a.Prepare a contribution format income statement for May. b.Prepare a traditional format income statement for May.

Discretionary fixed costs arise from annual decisions by management to spend in certain fixed cost areas.

In September direct labor was 40% of conversion cost.If the manufacturing overhead for the month was $66,000 and the direct materials cost was $20,000,the direct labor cost was:

The following data pertains to activity and the cost of cleaning and maintenance for two recent months: The best estimate of the total month 1 variable cost for cleaning and maintenance is:

The following data have been provided by a retailer that sells a single product. -What is the best estimate of the company's variable selling and administrative expense per unit?

The traditional format income statement is used as an internal planning and decision-making tool.Its emphasis on cost behavior aids cost-volume-profit analysis,management performance appraisals,and budgeting.

The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: -The best estimate of the total cost to manufacture 1,200 units is closest to:

Nikkel Corporation, a merchandising company, reported the following results for July: -The contribution margin for July is:

Which of the following costs would not be included as part of manufacturing overhead?

Supply costs at Lattea Corporation's chain of gyms are listed below: Management believes that supply cost is a mixed cost that depends on client-visits.Using the high-low method to estimate the variable and fixed components of this cost,those estimates would be closest to:

A partial listing of costs incurred at Starr Corporation during June appears below: Required: a.What is the total amount of product cost listed above? Show your work. b.What is the total amount of period cost listed above? Show your work.

Pittman Corporation,a merchandising company,reported the following results for September: Required: a.Prepare a traditional format income statement for September. b.Prepare a contribution format income statement for September.

Dickison Corporation reported the following data for the month of December: -The prime cost for December was:

The following data pertains to activity and utility costs for two recent years: Using the high-low method,the cost formula for utilities is:

Holzhauer Corporation, a merchandising company, reported the following results for March: Cost of goods sold is a variable cost in this company. -The contribution margin for March is:

The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: -The best estimate of the total monthly fixed manufacturing cost is:

Even if operations are interrupted or cut back,committed fixed costs remain largely unchanged in the short term because the costs of restoring them later are likely to be far greater than any short-run savings that might be realized.

Salvadore Inc., a local retailer, has provided the following data for the month of September: -The net operating income for September was:

Anaconda Mining Company shipped 9,000 tons of copper concentrate for $450,000 in March and 11,000 tons for $549,000 in April.Shipping costs for 12,000 tons to be shipped in May would be expected to be:

The following would typically be considered indirect costs of manufacturing a particular Boeing 747 to be delivered to Singapore Airlines: electricity to run production equipment,the factory manager's salary,and the cost of the General Electric jet engines installed on the aircraft.