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Chapter 1
Chapter 2
100

T or F: The total product cost equals the sum of direct materials, direct labor, and manufacturing overhead.

True 

100

Total Product Cost / # of Units Produced= _____?

Per-unit Product Cost

200

Which is NOT a characteristic of managerial accounting information? 

  1. To strictly adhere to GAAP 

  2. Future-oriented 

  3. Tailored to the specific needs of the business 

To strictly adhere to GAAP 

200

____ is the revenue left over after you subtract your company's direct costs from your sales revenue. 

Gross Margin 

300

Expenses that are not directly related to the production of goods or services are called ____?

Period Costs

300

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