143. Which of the following would not be found on the income statement of a manufacturer?
144. Which of the following would be found on the balance sheet of a manufacturer?
145. Which of the following would be found on the balance sheet of a manufacturer?
146. Gross margin equals
147. Operating income equals
148. Gross margin percent equals
149. Which of the following would not be found on an income statement of a service organization?
150. Which of the following can be found on the income statements of both a manufacturing and service
organization?
151. A manufacturer normally has
152. An income statement of a manufacturer
153. On a manufacturer’s income statement expenses are separated into the following three categories:
154. During the month of June, Telecom Inc. had cost of goods manufactured of $112,000, direct materials cost
of $52,000, direct labor cost of $37,000 and overhead costs of $26,000. The work in process balance at June 30
equaled $10,000. What was the work in process balance on June 1?
155. Talcum Inc. had materials inventory at July 1 of $12,000. The materials inventory at July 31 was $15,000
and the cost of direct materials used in production was $20,000. What was the cost of materials purchased
during the month?
156. Kutlow Inc. had cost of goods sold of $112,000 for the year ended December 31, 2011. The finished goods
inventory on January 1, 2011 was $28,000 and the finished goods inventory on December 31, 2011 was
$17,000. What was the amount of cost of goods manufactured for the year?
157. Andover Inc. had a gross margin for the month of February totaling $42,000. They sold 5,000 units during
158. If beginning work-in-process inventory is $120,000, ending work-in-process inventory is $160,000, cost of
goods manufactured is $400,000 and direct materials used are $100,000, what are the conversion costs?
159. Information from the records of Place, Inc., for December 2011 is as follows:
Sales
$820,000
Selling and administrative expenses
140,000
Direct materials purchases
176,000
Direct labor
200,000
Overhead
270,000
Direct materials, December 1
24,000
Work in process, December 1
50,000
Finished goods, December 1
46,000
Direct materials, December 31
28,000
Work in process, December 31
56,000
Finished goods, December 31
38,000
Net income for the month of December is:
160. Selected data concerning the past year’s operations of the Burner Corporation are as follows:
Selling and administrative expenses
$225,000
Direct materials used
397,500
Direct labor
450,000
Inventories
Dec. 1, 2011
Dec. 31,
2011
Direct materials
$36,000
$42,000
Work in process
75,000
84,000
Finished goods
69,000
57,000
The cost of direct materials purchased is:
161. Figure 13-5
Lonborg Co. had the following beginning and ending inventory balances for the year ended December 31, 2011:
January 1, 2011
Materials
$10,000
Work in Process
$18,000
Finished Goods
$21,000
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 13-5. What was the amount of cost of goods sold for the year?
162. Figure 13-5
Lonborg Co. had the following beginning and ending inventory balances for the year ended December 31, 2011:
January 1, 2011
Materials
$10,000
Work in Process
$18,000
Finished Goods
$21,000
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 13-5. What were the total manufacturing costs for the year?
163. Figure 13-5
Lonborg Co. had the following beginning and ending inventory balances for the year ended December 31, 2011:
January 1, 2011
Materials
$10,000
Work in Process
$18,000
Finished Goods
$21,000
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 13-5. What was Lonborg’s operating income <loss> for the year?
164. Figure 13-5
Lonborg Co. had the following beginning and ending inventory balances for the year ended December 31, 2011:
January 1, 2011
Materials
$10,000
Work in Process
$18,000
Finished Goods
$21,000
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 13-5. What was the amount of cost of goods manufactured for the year?
165. Figure 13-6
Bartlow Inc. had the following income statement for the month of May.
Sales revenue
$428,000
Cost of goods sold
205,440
Gross margin
222,560
Less:
Selling expenses
81,320
Administrative expenses
72,760
Operating income
$ 68,480
Refer to Figure 13-6. What was the sales revenue percent?
166. Figure 13-6
Bartlow Inc. had the following income statement for the month of May.
Sales revenue
$428,000
Cost of goods sold
205,440
Gross margin
222,560
Less:
Selling expenses
81,320
Administrative expenses
72,760
Operating income
$ 68,480
Refer to Figure 13-6. What was the cost of goods sold percent?
167. Figure 13-6
Bartlow Inc. had the following income statement for the month of May.
Sales revenue
$428,000
Cost of goods sold
205,440
Gross margin
222,560
Less:
Selling expenses
81,320
Administrative expenses
72,760
Operating income
$ 68,480
Refer to Figure 13-6. What was the gross margin percent?
168. Figure 13-6
Bartlow Inc. had the following income statement for the month of May.
Sales revenue
$428,000
Cost of goods sold
205,440
Gross margin
222,560
Less:
Selling expenses
81,320
Administrative expenses
72,760
Operating income
$ 68,480
Refer to Figure 13-6. What was the selling expense percent?
169. Figure 13-6
Bartlow Inc. had the following income statement for the month of May.
Sales revenue
$428,000
Cost of goods sold
205,440
Gross margin
222,560
Less:
Selling expenses
81,320
Administrative expenses
72,760
Operating income
$ 68,480
Refer to Figure 13-6. What was the administrative expense percent?
170. Figure 13-6
Bartlow Inc. had the following income statement for the month of May.
Sales revenue
$428,000
Cost of goods sold
205,440
Gross margin
222,560
Less:
Selling expenses
81,320
Administrative expenses
72,760
Operating income
$ 68,480
Refer to Figure 13-6. What was the operating income percent?
171. Figure 13-7
Junko Company makes financial calculators. During the year Junko manufactured 97,000 financial calculators.
Finished goods inventory had the following units on hand:
January 1
1,260
December 31
1,040
Refer to Figure 13-7. How many financial calculators did Junko sell during the year?
172. Figure 13-7
Junko Company makes financial calculators. During the year Junko manufactured 97,000 financial calculators.
Finished goods inventory had the following units on hand:
January 1
1,260
December 31
1,040
Refer to Figure 13-7. If each financial calculator had a per-unit product cost of $112, what was the cost of finished goods inventory on December
31?
173. Figure 13-7
Junko Company makes financial calculators. During the year Junko manufactured 97,000 financial calculators.
Finished goods inventory had the following units on hand:
January 1
1,260
December 31
1,040
Refer to Figure 13-7. If each financial calculator had a per-unit product cost of $112, what was the cost of goods sold for the year?
174. Figure 13-8
Seaview 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 administrative expenses
$30,000
Operating income
$10,000
Refer to Figure 13-8. What was gross margin for the year?
175. Figure 13-8
Seaview 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 administrative expenses
$30,000
Operating income
$10,000
Refer to Figure 13-8. What was cost of goods sold for the year?
176. Figure 13-8
Seaview 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 administrative expenses
$30,000
Operating income
$10,000
Refer to Figure 13-8. How many units were sold during the year?
177. Figure 13-8
Seaview 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 administrative expenses
$30,000
Operating income
$10,000
Refer to Figure 13-8. What was the sales price per unit?
178. Figure 13-1
Last year Quest Company incurred the following costs:
Direct materials:
$40,000
Direct labor:
60,000
Overhead
90,000
Selling expenses
24,000
Administrative expenses
22,000
Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and
finished goods were zero.
Refer to Figure 13-1. What was the conversion cost per unit?
179. Figure 13-1
Last year Quest Company incurred the following costs:
Direct materials:
$40,000
Direct labor:
60,000
Overhead
90,000
Selling expenses
24,000
Administrative expenses
22,000
Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and
finished goods were zero.
Refer to Figure 13-1. What was the total period expense?
180. Figure 13-1
Last year Quest Company incurred the following costs:
Direct materials:
$40,000
Direct labor:
60,000
Overhead
90,000
Selling expenses
24,000
Administrative expenses
22,000
Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and
finished goods were zero.
Refer to Figure 13-1. What was the gross margin per unit?
181. Figure 13-1
Last year Quest Company incurred the following costs:
Direct materials:
$40,000
Direct labor:
60,000
Overhead
90,000
Selling expenses
24,000
Administrative expenses
22,000
Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and
finished goods were zero.
Refer to Figure 13-1. What were total product costs?
182. Figure 13-3
In July, Econo Company purchased materials costing $21,000 and incurred direct labor costs of $18,000.
Overhead totaled $32,000 for the month. Information on inventories was as follows:
July 1
July 31
Materials
$6,200
$7,100
Work in process
$ 700
$1,200
Finished goods
$3,300
$2,700
Refer to Figure 13-3. What was the cost of direct materials used in July?
183. Figure 13-3
In July, Econo Company purchased materials costing $21,000 and incurred direct labor costs of $18,000.
Overhead totaled $32,000 for the month. Information on inventories was as follows:
July 1
July 31
Materials
$6,200
$7,100
Work in process
$ 700
$1,200
Finished goods
$3,300
$2,700
Refer to Figure 13-3. What were the total manufacturing costs in July?
184. Figure 13-3
In July, Econo Company purchased materials costing $21,000 and incurred direct labor costs of $18,000.
Overhead totaled $32,000 for the month. Information on inventories was as follows:
July 1
July 31
Materials
$6,200
$7,100
Work in process
$ 700
$1,200
Finished goods
$3,300
$2,700
Refer to Figure 13-3. What was the cost of goods manufactured for July?
185. Figure 13-3
In July, Econo Company purchased materials costing $21,000 and incurred direct labor costs of $18,000.
Overhead totaled $32,000 for the month. Information on inventories was as follows:
July 1
July 31
Materials
$6,200
$7,100
Work in process
$ 700
$1,200
Finished goods
$3,300
$2,700
Refer to Figure 13-3. What was the cost of goods sold for July?
186. Figure 13-3
In July, Econo Company purchased materials costing $21,000 and incurred direct labor costs of $18,000.
Overhead totaled $32,000 for the month. Information on inventories was as follows:
July 1
July 31
Materials
$6,200
$7,100
Work in process
$ 700
$1,200
Finished goods
$3,300
$2,700
Refer to Figure 13-3. If Econo Company sold 10,000 units during July and gross margin totaled $29,800, what was the sales price per unit?
187. Figure 13-4
Gateway Company produces a product with the following per-unit costs:
Direct materials
$11
Direct labor
8
Overhead
15
Last year, Gateway produced and sold 750 units at a sales price of $68 each. Total selling and administrative expense was $22,000.
Refer to Figure 13-4. What was prime cost per-unit?
188. Figure 13-4
Gateway Company produces a product with the following per-unit costs:
Direct materials
$11
Direct labor
8
Overhead
15
Last year, Gateway produced and sold 750 units at a sales price of $68 each. Total selling and administrative expense was $22,000.
Refer to Figure 13-4. What was the cost of goods sold last year?
189. Figure 13-4
Gateway Company produces a product with the following per-unit costs:
Direct materials
$11
Direct labor
8
Overhead
15
Last year, Gateway produced and sold 750 units at a sales price of $68 each. Total selling and administrative expense was $22,000.
Refer to Figure 13-4. What was total operating income last year?
190. The objective of profit maximization
191. The standards of ethical conduct for managerial accountants include
192. Describe the major differences between managerial accounting and financial accounting.
Managerial accounting:
Internally focused
No mandatory rules
Financial and nonfinancial information; subjective information possible
Emphasis on the future
Internal evaluation and decisions based on very detailed information
Broad, multidisciplinary
193. Discuss in detail the three uses of managerial accounting information.
194. Briefly describe activity-based costing (ABC), value chain, lean accounting and enterprise risk
management (ERM).
195. Describe the provisions of the Sarbanes-Oxley Act of 2002.
SOX was passed by Congress in 2002 due to the various financial scandals. The act established stronger
government control and regulation of public companies in the U.S. in hopes to limit future securities fraud and
accounting misconduct scandals. A great emphasis of SOX is on corporate ethics.
196. Stone Company, maker of computers, incurred the following costs during the year.
Required: Classify each cost as either fixed or variable cost.
Fixed
Variable
1.
Salary of the factory supervisor
2.
Materials needed to assemble the computers
3.
Wages paid to an assembly line worker
4.
Depreciation on the factory
5.
Utility bill for the factory
6.
Grease used to lubricate the machine
7.
Rent paid for the factory
8.
Property taxes on the factory and corporate office
9.
Boxes used to package the completed computers
10.
Advertising in a newspaper monthly
197. Ashland Company, maker of kitchen cabinets, incurred the following costs during the current year.
Required: Classify each cost as either a product or period cost.
Product
Period
1.
Depreciation on automobiles used by the sales staff.
2.
Salary of Ashland’s chief executive officer
3.
Glue used in the production process
4.
Supplies for factory washroom
5.
Research and development costs
6.
Property taxes on factory building
7.
Salary of company controller
8.
Depreciation on furniture in factory lunchroom
9.
Cost of lubricating machinery
10.
Wood used in production process
Product
Period
1.
Depreciation on automobiles used by the sales staff.
X
2.
Salary of Ashland’s chief executive officer
X
3.
Glue used in the production process
X
4.
Supplies for factory washroom
X
5.
Research and development costs
X
6.
Property taxes on factory building
X
7.
Salary of company controller
X
8.
Depreciation on furniture in factory lunchroom
X
9.
Cost of lubricating machinery
X
10.
Wood used in production process
X