Chapter 1
T or F: The total product cost equals the sum of direct materials, direct labor, and manufacturing overhead.
True
Total Product Cost / # of Units Produced= _____?
Per-unit Product Cost
Which is NOT a characteristic of managerial accounting information?
To strictly adhere to GAAP
Future-oriented
Tailored to the specific needs of the business
To strictly adhere to GAAP
____ is the revenue left over after you subtract your company's direct costs from your sales revenue.
Gross Margin
Expenses that are not directly related to the production of goods or services are called ____?
Period Costs
In April, Green & Co. purchased materials costing $320 and incurred direct labor cost of $240. Manufacturing overhead totaled $410 for the month.
Information on inventories was as follows:
Inventory April 1 April 30
Materials $80 $60
Work in process $50 $70
Finished goods $90 $60
What was the cost of goods sold (COGS) for April?
COGS=Beginning Finished Goods+COGM−Ending Finished Goods =90+970−60= 1,000