Question 1

Swirzoff Company sells office supplies.The following information summarizes Swirzoff's operating activities for the past year:
  
Required: Prepare an income statement for Swirzoff Company,a merchandiser,for the year ended December 31.

Accepted Answer

The answer of Swirzoff Company sells office supplies.The following information...

Question 2

In a manufacturing plant,which type of employee wage is an example of indirect labour?

Accepted Answer

A) Chief operating officer's salary 
B) Machine operator's wages 
C) Plant manager's salary 
D) salesperson commissions

Question 3

Use the appropriate letter(s)to indicate if the following costs would be found on the income statement of a:
A.service company.
B.merchandising company.
C.manufacturing company.
You may use more than one letter for each answer.

Accepted Answer

The answer of Use the appropriate letter(s)to indicate if the...

Question 4

Research and development is needed to improve products and to design new products.

Accepted Answer

A) True 
 B)False

Question 5

What is the cost of goods sold for the year at Towpath Tennis & Recreation?

Accepted Answer

A) $177,000 
B) $150,000 
C) $145,000 
D) $90,000

Question 6

When do inventoriable costs become expenses?

Accepted Answer

A) When direct materials are purchased 
B) When the manufacturing process begins 
C) When the manufacturing process is completed 
D) When the product is sold

Question 7

The balance sheet of a service company has

Accepted Answer

A) little or no inventory. 
B) raw materials inventory. 
C) three categories of inventory. 
D) two categories of inventory.

Question 8

A(n)________ cost is one whose total amount changes in direct proportion to a change in volume.

Accepted Answer

A) fixed 
B) irrelevant 
C) mixed 
D) variable

Question 9

Before these materials are used to manufacture its cars,Honda classifies steel,glass,and plastic as

Accepted Answer

A) finished goods inventory. 
B) raw materials inventory. 
C) work in process inventory. 
D) merchandise inventory.

Question 10

When manufacturing products,which of the following is an example of an inventoriable cost?

Accepted Answer

A) Depreciation on office equipment 
B) Depreciation on store building 
C) Depreciation on factory equipment 
D) Sales salaries expenses

Question 11

Intel Corporation makes computer chips.Intel Corporation would be classified as a

Accepted Answer

A) manufacturing company. 
B) merchandising company. 
C) service company. 
D) wholesale company.

Question 12

Sanjay Company's average fixed costs per unit will be

Accepted Answer

A) $19.00 per unit. 
B) $5.00 per unit. 
C) $14.00 per unit. 
D) $15.00 per unit.

Question 13

Match between columns
                        Premises: Has the highest percentage of labour costs
Generally has no inventory
Has three types of inventory
Walmart is this type of company
Inventory consists of freight-in and the purchase cost of the finished product

Accepted Answer

The Answer of Service company and Manufacturing company and Merchandising is...

Question 14

________ has/have three types of inventory.

Accepted Answer

A) A service company 
B) A merchandising company 
C) A manufacturing company 
D) A wholesale company

Question 15

Which of the following would be on the balance sheet of a service company?

Accepted Answer

A) Factory equipment depreciation 
B) Cost of goods manufactured 
C) Cost of goods sold 
D) Accounts receivable

Question 16

A merchandiser's purchases are equivalent to a manufacturer's

Accepted Answer

A) cost of goods manufactured. 
B) cost of goods sold. 
C) raw materials inventory. 
D) work in process inventory.

Question 17

Selected information regarding a company's most recent quarter follows (all data in thousands).

What was manufacturing overhead for the quarter?

Accepted Answer

A) $70 
B) $260 
C) $310 
D) $60

Question 18

Which of the following statements is correct concerning product costs?

Accepted Answer

A) Product costs are expensed in the period incurred. 
B) Product costs are expensed in the period the related product is sold. 
C) Product costs are shown with operating expenses on the income statement. 
D) Product costs are shown with current liabilities on the balance sheet.

Question 19

When determining the cost of a manufactured product,a salesperson's salary would be classified as

Accepted Answer

A) a direct cost. 
B) an indirect cost. 
C) a period cost. 
D) a conversion cost.

Question 20

What is the total cost for the distribution category of the value chain at Sunnybrook Orange Groves?

Accepted Answer

A) $20,000 
B) $21,000 
C) $17,000 
D) $19,000

Exam 2: Building Blocks of Managerial Accounting

Swirzoff Company sells office supplies.The following information summarizes Swirzoff's operating activities for the past year: Required: Prepare an income statement for Swirzoff Company,a merchandiser,for the year ended December 31.