Income statement concepts
Application of income statement concepts
Manufacturing costs and cost flows
ACCT 201 Review
Miscellany
100
It's the name for the cost of items sold during a period.
What is cost of goods sold?
100
It's cost of goods sold, assuming the following information:

Beginning finished goods inventory: $200

Cost of goods manufactured: $400

Ending finished goods inventory: $100

What is $500?

$200 + $400 = COGAS of $600 - ending FGI of $100 = $500

100
Beginning DM plus this, minus ending raw materials inventory, equals direct materials used in production.
What is purchases of direct materials?
100
Revenue minus variable costs.
What is contribution margin?
100
This case established the basis for judicial review under Article III of the US Constitution.
What is Marbury v. Madison?
200
It's the cost of those items finishing the manufacturing process during a period.
What is cost of goods manufactured?
200
It's total manufacturing costs, given the following assumptions:

Beginning WIP: $10,000

Cost of goods manufactured: $18,000

Ending WIP: $15,000

What is $23,000?

BWIP + Total mfg costs = Total WIP - COGM = EWIP

$10,000 + x - $18,000 = $15,000

x = $23,000

200
It's the reason we can't just add up manufacturing costs incurred in a period and get directly to COGS.
What is inventory?
200
It's the formula for break-even in sales revenue.
What is fixed costs divided by the CM ratio?
200
He wrote The Ingenious Hidalgo Don Quixote of La Mancha .
Who is Miguel de Cervantes?
300
It's the total of all costs of resources, items or activities that entered the manufacturing process during a period.
What is total manufacturing costs?
300
It's beginning FG inventory, given the following:

COGAS = $200

COGS = $100

COGM = $50

EWIP = $100

What is $150?

BFGI + COGM = COGAS.

BFGI + $50 = $200.

Thus, BFGI = $150

300
It comes between raw materials inventory and finished goods inventory.
What is work-in-process or WIP inventory?
300
If sales mix shifts towards a less profitable product, the break-even point will do this.
What is increase?
300
This English blues-rock band claims among its members famous guitarists Eric Clapton, Jimmy Page and Jeff Beck.
What is The Yardbirds?
400
It's those items that are intended for sale but not yet sold.
What is inventory?
400
It's COGS, given the following:

BWIP: $200

Total mfg costs: $300

EWIP: $100

BFGI: $300

EFGI: $250

What is $450?

BWIP + total MFG costs - EWIP = COGM

$200 + $300 - $100 = $400

BFGI + COGM - EFGI = COGS

$300 + $400 + $250 = $450.

400
For all inventory accounts, the beginning balance, plus additions, minus amounts withdrawn, equals this.
What is the ending balance?
400
It's what contribution margin equals at the breakeven point (other than sales minus variable costs).

What is total fixed costs?
400
They are the first five books of the Bible.
What are Genesis, Exodus, Leviticus, Numbers, and Deuteronomy?
500
It's the cost of raw materials that left the raw materials warehousing location and were put into production during a period.
What is direct materials used in production?
500
It's direct materials used in production, assuming the following:

Direct labor cost: $200

Manufacturing overhead cost: $500

BWIP: $600

EWIP: $300

BFGI: $1000

EFGI: $800

COGS: $1400

What is $200?

Fill in backwards:
BFGI + COGM - EFGI = COGS
$1000 + COGM - $800 = $1400
Thus, COGM = $1,200

BWIP + Total MFG costs - EWIP = COGM
$600 + TMC - $300 = $1200
Thus, TMC = $900

DM used + DL + MOH = TMC
DM used + $200 + $500 = $900
Thus, DM used = $200.

500
A merchandising firm doesn't have these types of inventory.
What are direct materials and work-in-process?
500
It's what the degree of operating leverage will do if FC increase and nothing else changes.
What is increase?
500
He successfully landed US Airways flight 1549 in the Hudson River in January 2009.
Who is Chesley Sullenberger?
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