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Exam 2: Basic Managerial Accounting Concepts

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Question 21

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Cost of goods manufactured equals

A) the cost of indirect materials used in production.
B) the product cost of goods completed during the current period.
C) the period costs for the current period.
D) the cost of direct materials and direct labor used during the current period.

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Question 22

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

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Question 23

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Select the appropriate definition for each of the items listed below. a. per-unit prime cost b. per-unit conversion cost c. per-unit cost of goods manufactured -(direct materials + direct labor)/units produced

The process of assigning an indirect cost to a cost object by using a reasonable and convenient method is called _____________.

Glue used in the manufacture of cabinets would be an example of a fixed cost.

All manufacturing costs are classified as overhead.

Select the appropriate definition of each of the items listed below. a. Income Statement b. Cost of goods manufactured c. Work in process d. Gross margin e. Operating income -The total cost of goods completed during the current period

A manufacturer normally has

Which of the following would be found on the balance sheet of a manufacturer?

Figure 2-2. Lonborg Co. had the following beginning and ending inventory balances for the year ended December 31, 2011: In addition, direct labor costs of $30,000 were incurred, overhead equaled $42,000, materials purchased were $27,000 and selling and administrative costs were $22,000. Lonborg Co. sold 25,000 units of product during the year at a sales price of $5.00 per unit. -Refer to Figure 2-2. What were the total manufacturing costs for the year?

Select the appropriate classification for each of the items listed below. a. Product cost b. Period cost -Fees paid to outside auditing firm

All product costs other than direct materials and indirect labor are called overhead.

Select the appropriate classification of the output generated by each of the following industries. a. Tangible b. Intangible -Bowling alley

Organizations that produce products are called _______________________.

Figure 2-1. Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances. -Refer to Figure 2-1. The total product costs for last month were:

Figure 2-6. Seaview Company took the following data from their income statement at the end of the current year. -Refer to Figure 2-6. How many units were sold during the year?

MATCHING Select the appropriate classification for each of the following costs. a. Period b. Product -Cost of shipping products to customers

Figure 2-5. In July, Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000. Overhead totaled $32,000 for the month. Information on inventories was as follows: -Refer to Figure 2-5. What was the cost of goods manufactured for July?

Select the appropriate classification of the items listed below. a. selling expense b. administrative expense c. direct materials d. direct labor e. overhead -Cost of lubricating factory machinery

Select the appropriate classification for each of the items listed below. a. Product cost b. Period cost -Factory supervisor's salary