Exam 2: Basic Managerial Accounting Concepts

Book City had cost of goods sold of $140,000 for the year ended December 31.The finished goods inventory on January 1 was $35,000 and the finished goods inventory on December 31was $17,000.What was the amount of cost of goods manufactured for the year?

Information from the records of Becker Corporation for December is as follows: -Refer to the Figure.What are the conversion costs?

The Stelco Company manufactures microwave ovens.Last year,the per-unit product cost was $56,the per-unit prime cost was $34,and the per-unit conversion cost was $42.Cost of goods sold for the year was $560,000,and the sale price per unit was $100.In addition,direct labour costs of $200,000 and selling and administrative expenses of $240,000 were incurred. Required: A. Calculate how many units were sold last year. B. Compute the cost of direct materials used. C. Compute the cost of overhead. D. Compute the gross margin for the year. E. Calculate operating income.

Nelvana Company makes tablets.During the year,Nelvana manufactured and sold 75,000 tablets at a sales price of $600 per unit.Nelvana's per-unit product cost was $540,and selling and administrative expenses totalled $3,200,000. Required: A. Compute the total sales revenue. B. Compute the gross margin. C. Compute the operating income. D. Compute the operating income if 75,000 tablets were produced and 69,000 were sold.

ComPrint Co. had the following beginning and ending inventory balances for the year ended December 31: January 1 December 31 Materials \ 10,000 \ 8,000 Work in Process \ 18,000 \ 17,000 Finished Goods \ 21,000 \ 16,500 In addition, direct labour costs of $30,000 were incurred, overhead equalled $42,000, materials purchased were $27,000, and selling and administrative costs were $22,000. ComPrint Co. sold 25,000 units of product during the year at a sales price of $5.00 per unit. -Refer to the Figure.What were the total manufacturing costs for the year?

What is the difference between total manufacturing costs and cost of goods manufactured?

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 cost of goods sold percentage?

TechCom Inc. manufactures laptops. Last month, direct materials (e.g., computer components) costing $600,000 were put into production. Direct labour of $900,000 was incurred, overhead equalled $500,000, and selling and administrative costs totalled $400,000. The company manufactured 10,000 laptops during the month. Assume the company had no beginning or ending work-in-process balances. -Refer to the Figure.What were the total product costs last month?

Bowring Company took the following data from their income statement at the end of the current year. Per-unit product cost: \ 30 Gross margin percentage: 40\% Selling and admini strative expenses \ 30,000 Operating income \ 10,000 -Refer to the Figure.What was the cost of goods sold for the year?

Indirect costs are costs that are NOT easily and accurately traced to a cost object.

Which of the following is an example of a direct materials cost?

Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles. -Factory janitorial supplies

Bowring Company took the following data from their income statement at the end of the current year. Per-unit product cost: \ 30 Gross margin percentage: 40\% Selling and admini strative expenses \ 30,000 Operating income \ 10,000 -Refer to the Figure.What was the sales price per unit?

Assigning costs involves the way that a cost is linked to some cost object.

How is the cost of goods manufactured calculated?

In June,Olympic Company purchased materials costing $38,000,and incurred direct labour costs of $42,000.Overhead totalled $27,000 for the month.Information on inventories was as follows. Required: June 1 June 30 Materials \ 3,000 \ 2,700 Work in process 1,000 1,275 Finished goods 2,500 1,775 A. Calculate the cost of direct materials used during June. B. Calculate the total manufacturing cost for June. C. Calculate the cost of goods manufactured for June. D. Calculate cost of goods sold for June.

Which of the following is characteristic of a manufacturer?

Fairchild Group's accountant prepared the following Income Statement for the month of August. Required: Fairchild Group Income Statement For the month of August Sales revenue \ 912,200 Cost of goods sold 601,920 Gross margin 310,080 Less: Selling expense 164,160 Administrative expense 63,840 Operating income \ 82,080 A. Calculate the sales revenue percent. B. Calculate the cost of goods sold percent. C. Calculate the gross margin percent. D. Calculate the selling expense percent. E. Calculate the administrative expense percent. F. Calculate the operating income percent.

Select the appropriate definition for each of the items listed below. -A cost that stays the same in total regardless of changes in output

See the following separate cases. Required: Solve for the missing amounts (A,B,C,D,E,and F).