Managerial Accounting

Costs/Financial vs. Managerial

100

What is the two part definition for a variable cost?

1)Constant per unit 2)Total variable cost increases or decreases depending on production.

200

Financial accounting produces information for ____ users, while managerial accounting produces information for ____ users.

1)External 2)Internal

300

What type of accounting is governed by GAAP?

Financial Accounting

400

How would you find the conversion cost?

Sum of Direct Labor and Overhead Costs.

500

The process of choosing among competing alternatives is called _____

Decision Making

Inventory Cost Flow

100

What types of cost is a CEO's salary who works at the headquarters and not at the factory?

Fixed Period Cost

200

Prime cost is found by...

The sum of Direct Labor and Direct Materials

300

Titleist had the following beginning and ending inventory balances for the year ended December 31, 2015: Jan. 1 2015 Dec. 31 2015 Materials $14,000 $17000 Work in Process $11,000 $22000 Finished Goods $9,000 $13,500 In addition, direct labor costs of $23,000 were incurred, overhead equaled $32,000, materials purchased were $35,000 and selling and administrative costs were $42,000. Titleist sold 15,000 units of product during the year at a sales price of $12.00 per unit. What was the amount of cost of goods sold, gross margin, and Net Operating Income for the year?

400

Ping had a cost of goods sold of $122,000 for the year ended December 31, 2012. The finished goods inventory on January 1, 2012 was $26,000 and the finished goods inventory on December 31, 2012 was $10,000. What was the amount of cost of goods manufactured for the year?

500

Tate Company produces a product with the following per-unit costs: Direct Materials $14 Direct labor $10 Overhead $12 Last year, Tate Co. produced and sold 1,150 units at a sales price of $78 each. Total selling and administrative expense was $36,500. Cost of goods sold last year was? NOI?

Contribution Margin

100

How can I find the contribution margin ratio?

1)Contribution margin total/unit divided by Total sales in dollars/unit price. 2)Same thing with variable cost instead.

200

A company has the following data: Sales $600,000 Variable costs $450,000 Fixed costs $100,000 Expected production and sales in units 22,000 What is the break-even point in sales dollars and units? Round to the nearest two decimal places.

300

Mike's Company Contribution margin ratio: 19% Fixed expenses: $56,000 Sales: $565,000 Best estimate for NOI?

400

What type of information does the contribution margin give us?

For every dollar we have in sales a percentage of that dollar is used to cover our fixed costs. Example: CMR= 70% (For every one dollar of revenue we have 70 cents of that one dollar goes towards covering our fixed costs and whatever is left over is our net operating income, or profit.

500

Duff beer is projecting the following results for the next accounting period: Variable cost: $150,000 Expected unit production: 30,000 Fixed Costs: $42,000 Sales:$400,000 Sales increase by 4,000 units Advertising increased by $22,000 Found new Direct Material supplier that cut cost by $1 per unit. Moved to new factory, rent has increased by $1,200. What is the effect on the net operating income after these changes have happened?

Cost Formula/High-Low Method

100

Define a mixed cost and give an example.

Variable and fixed component (Salary and commission)(Manufacturing overhead)

200

What are discretionary and committed costs?

1)Discretionary costs are costs that can be easily changed. 2)Committed costs are costs that cannot be easily changed.

300

Robinson Productions has provided cost data and two levels of monthly production volume. Production volume 3,000 units and 5,000 units DM $18,000 and $30,000 DL $12,000 and $20,000 MO $14,000 and $17,000 What is the total manufacturing variable rate?

400

Vader Inc. has provided the average cost data for two levels of monthly output. Production vol. 6,000 units and 10,000 units DM $15.00/unit and $15.00/unit DL $13.00/unit and $13.00/unit MO $20.00/unit and $16.00/unit What is the cost formula based on these costs?

500

Pear sells computers for $450 per unit. The cost formula relates to last year's operations: Y= $120,000 + $250(X) If Pear sold 3,000 computers last year what was it's Net Operating Income

POHR

100

What is the schedule that is used to ensure accuracy in computing product costs?

The schedule of the cost of goods manufactured.

200

Explain steps 1 through 4. Starting with how to find the predetermined overhead rate.

1) Find POHR by taking the estimated annual overhead and divide it by the estimated annual activity level. 2)Take the POHR and multiply it by the actual activity for the month that is driving your overhead. 3)See if you are over or under applied. 4)Adjust COGS

300

What is the difference between normal and actual costing?

Normal= Do not know MO so you must estimate it. Actual= You do know the cost of MO.

400

Ticonderoga produces "The World's Best Pencil". Their Estimated Manufacturing overhead cost for the year was $600,000. Their overhead costs are driven by machine hours. For the month of August their machine hours, since school was about to start, finished at $15,000 hours. The actual manufacturing cost was $42,000 and the applied cost was $45,000 dollars. What was the estimated total machine hours for the year?

500

Dunder Mifflin has the following transactions for the month of March: Purchased materials on account for $250,000 Materials requisitioned for $50,000 Direct labor for the month was incurred of $40,000 Actual overhead for the month was $39,000 Overhead is applied to production at the rate of 55% of direct labor. Jobs totaling $30,000 were transferred from WIP to FG. Jobs costing $25,000 were sold. Balances at the beginning of the month were: Materials: $14,000 WIP: $0 Finished Goods: $12,000 What is the ending balance of Finished Goods?