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Exam 2: Basic Managerial Accounting Concepts

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Question 41

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

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verified

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Question 42

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Production costs include direct materials, direct labour, and manufacturing overhead.

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Question 43

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Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Controller's salary

Which statement best describes the income statement of a manufacturer?

Econo Company In July, Econo Company purchased materials costing $21,000 and incurred direct labour cost of $18,000. Manufacturing overhead totalled $32,000 for the month. Information on inventories was as follows: $\begin{array}{lrr}&\text { July } 1& \text { July } 31\\\text { Materials } & \$ 6,200 & \$ 7,100 \\\text { Work-in-process } & \$ 700 & \$ 1,200 \\\text { Finished goods } & \$ 3,300 & \$ 2,700\end{array}$ -Refer to Bowring Company. What was the sales price per unit?

Describe the purpose of the three inventory accounts used by a manufacturer.

Selected data concerning the past year's operations of the Intelligent Creatures Corporation are as follows: Selling and administrative expenses $225,000 Direct materials used 397,500 Direct labour 450,000 Inventories Dec) 1 Dec. 31 Direct materials $36,000 $42,000 Work-in-process 75,000 84,000 Finished goods 69,000 57,000 What is the cost of direct materials purchased?

Which of the following best describes the term assigning costs?

What are expired costs?

Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Factory manager's salary

Select the appropriate classification of the output generated by each of the following industries.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Car manufacturer

Prime cost is the sum of direct materials and direct labour.

While it is necessary to assign direct costs to cost objects, it is NOT necessary to assign indirect costs.

Cost of goods sold is the total product cost of the units manufactured during a period.

Which statement best describes indirect costs?

Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Sugar used in cookie production

Which of the following reflects the formula to calculate gross margin percent?

What is an example of an intangible product?

Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Depreciation on vans used by the sales staff

Econo Company In July, Econo Company purchased materials costing $21,000 and incurred direct labour cost of $18,000. Manufacturing overhead totalled $32,000 for the month. Information on inventories was as follows: $\begin{array}{lrr}&\text { July } 1& \text { July } 31\\\text { Materials } & \$ 6,200 & \$ 7,100 \\\text { Work-in-process } & \$ 700 & \$ 1,200 \\\text { Finished goods } & \$ 3,300 & \$ 2,700\end{array}$ -Refer to Ballard Company. Suppose each set of portable speakers has a per-unit product cost of $112. What would be the cost of goods sold last year?