Chapter 2—Basic Managerial Accounting Concepts
61. Gross margin percent equals
|
a. |
gross margin/cost of goods sold. |
|
b. |
operating income/sales revenue. |
|
c. |
gross margin/sales revenue. |
|
d. |
sales revenue/gross margin. |
.
62. Which of the following wouldnot be found on an income statement of a service organization?
|
a. |
selling expenses |
|
b. |
cost of goods sold |
|
c. |
operating income |
|
d. |
sales revenue |
63. Which of the following can be found on the income statements of both a manufacturing and service organization?
|
a. |
revenues |
|
b. |
operating income |
|
c. |
administrative expenses |
|
d. |
all of these can be found on both. |
64. A manufacturer normally has
|
a. |
one inventory account. |
|
b. |
four inventory accounts. |
|
c. |
three inventory accounts. |
|
d. |
none of these are correct. |
65. An income statement of a manufacturer
|
a. |
will show the ending balance of work in process. |
|
b. |
contains only manufacturing costs. |
|
c. |
will show the ending balance of materials inventory. |
|
d. |
covers a certain period of time. |
66. On a manufacturer's income statement expenses are separated into the following three categories:
|
a. |
production, period, and indirect |
|
b. |
materials, work in process, and finished goods |
|
c. |
production, selling, and administrative |
|
d. |
variable, fixed, and direct |
Figure 2-2.
Lonborg Co. had the following beginning and ending inventory balances for the year ended December 31, 2011:
|
January 1, 2011 |
December 31, 2011 | |
|
Materials |
$10,000 |
$ 8,000 |
|
Work in Process |
$18,000 |
$17,000 |
|
Finished Goods |
$21,000 |
$16,500 |
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.
67. Refer to Figure 2-2. What was the amount of cost of goods manufactured for the year?
|
a. |
$101,000 |
|
b. |
$124,000 |
|
c. |
$100,000 |
|
d. |
$102,000 |
68. Refer to Figure 2-2. What was the amount of cost of goods sold for the year?
|
a. |
$102,000 |
|
b. |
$97,500 |
|
c. |
$106,500 |
|
d. |
$128,500 |
69. Refer to Figure 2-2. What were the total manufacturing costs for the year?
|
a. |
$101,000 |
|
b. |
$102,000 |
|
c. |
$123,000 |
|
d. |
$106,500 |
70. Refer to Figure 2-2. What was Lonborg's operating income <loss> for the year?
|
a. |
$18,500 |
|
b. |
$125,000 |
|
c. |
$<3,500> |
|
d. |
$5,500 |
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Solution: Chapter 2—Basic Managerial Accounting Concepts