Question 1

The following information pertains to the Packer Corporation.Calculate the cost of goods sold for the period:

Accepted Answer

A) $250,000. 
B) $290,000. 
C) $242,000. 
D) $258,000. 
E) $246,000. 
A) $250,000. 
B) $290,000. 
C) $242,000. 
D) $258,000. 
E) $246,000. A

Question 2

Using the information below,calculate the cost of goods manufactured for the period.

Accepted Answer

A) $553,000. 
B) $536,000. 
C) $549,000. 
D) $527,000. 
E) $525,000. 
A) $553,000. 
B) $536,000. 
C) $549,000. 
D) $527,000. 
E) $525,000. D

Question 3

Use the following information to prepare the schedule of cost of goods manufactured for Graffstone Company for the month ended June 30.

Accepted Answer

The answer of Use the following information to prepare the...

Question 4

All of the following statements regarding manufacturing costs are true except:

Accepted Answer

A) Direct material costs that increase in total with volume of production are called variable costs. 
B) The reporting of fixed and variable costs separately is not helpful to managers in analyzing cost behavior. 
C) When overhead costs vary with production,they are called variable overhead. 
D) When overhead costs don't vary with production,they are called fixed overhead. 
E) Overhead can be both variable and fixed. 
A) Direct material costs that increase in total with volume of production are called variable costs. 
B) The reporting of fixed and variable costs separately is not helpful to managers in analyzing cost behavior. 
C) When overhead costs vary with production,they are called variable overhead. 
D) When overhead costs don't vary with production,they are called fixed overhead. 
E) Overhead can be both variable and fixed.

Question 5

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it,and estimates and projections are acceptable.

Accepted Answer

A) True 
 B)False

Question 6

Using the information below,calculate net income for the period.

Accepted Answer

A) $774,000. 
B) $769,000. 
C) $530,000. 
D) $535,000. 
E) $448,000. 
A) $774,000. 
B) $769,000. 
C) $530,000. 
D) $535,000. 
E) $448,000.

Question 7

Just-in-time manufacturing is a system that acquires inventory and produces product only when needed for an order.

Accepted Answer

A) True 
 B)False

Question 8

Policies and procedures used by management to monitor and control business activities are known as ____________________________.

Accepted Answer

The answer of Policies and procedures used by management to...

Question 9

Raw materials inventory should not include indirect materials.

Accepted Answer

A) True 
 B)False

Question 10

The schedule of cost of goods manufactured must be prepared monthly as it is a required general-purpose financial statement.

Accepted Answer

A) True 
 B)False

Question 11

Indirect labor refers to the cost of the workers whose efforts are directly related to specific units of product.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following items does not represent a difference between financial and managerial accounting?

Accepted Answer

A) Users of the information. 
B) Flexibility of reporting. 
C) Timeliness of information. 
D) Focus of the information. 
E) Managerial accounting does not use the financial information from the financial accounting system. 
A) Users of the information. 
B) Flexibility of reporting. 
C) Timeliness of information. 
D) Focus of the information. 
E) Managerial accounting does not use the financial information from the financial accounting system.

Question 13

Information for Stanton,Inc. ,as of December 31 follows.Prepare a schedule of cost of goods manufactured for the year ended December 31.

Accepted Answer

The answer of Information for Stanton,Inc. ,as of December 31...

Question 14

Expenditures that flow directly to the current income statement and are not reported as assets are ___________________ costs.

Accepted Answer

The answer of Expenditures that flow directly to the current...

Question 15

Current information for the Healey Company follows:   All raw materials used were traceable to specific units of product.Healey Company's Cost of Goods Manufactured for the year is:

Accepted Answer

A) $125,800. 
B) $128,600. 
C) $131,400. 
D) $137,000. 
E) $139,000. 
A) $125,800. 
B) $128,600. 
C) $131,400. 
D) $137,000. 
E) $139,000.

Question 16

Goods a company acquires to use in making products are called:

Accepted Answer

A) Cost of goods sold. 
B) Raw materials inventory. 
C) Finished goods inventory. 
D) Work in Process inventory. 
E) Conversion costs. 
A) Cost of goods sold. 
B) Raw materials inventory. 
C) Finished goods inventory. 
D) Work in Process inventory. 
E) Conversion costs.

Question 17

A manufacturer's inventory that is not completely finished is called ________________.

Accepted Answer

The answer of A manufacturer's inventory that is not completely...

Question 18

Marv's Furniture and Fixtures produces seats for movie theaters.Listed below are selected cost items for the seat production.Classify each cost as either fixed or variable,and either a product or a period cost by placing an x in the appropriate boxes.

Accepted Answer

The answer of Marv's Furniture and Fixtures produces seats for...

Question 19

The Tacky Company manufactures staples.Costs for October were direct labor,$84,000;indirect labor,$36,700;direct materials,$55,900;factory maintenance,$4,800;factory utilities,$3,200;and insurance on plant and equipment,$700.What is Tacky Company's factory overhead for October?

Accepted Answer

The answer of The Tacky Company manufactures staples.Costs for October...

Question 20

Product costs are capitalized as inventory on the balance sheet and period costs are expenses on the income statement.

Accepted Answer

A) True 
 B)False

Exam 18: Managerial Accounting Concepts and Principles

The following information pertains to the Packer Corporation.Calculate the cost of goods sold for the period:

Using the information below,calculate the cost of goods manufactured for the period.

Use the following information to prepare the schedule of cost of goods manufactured for Graffstone Company for the month ended June 30.

All of the following statements regarding manufacturing costs are true except:

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it,and estimates and projections are acceptable.

Using the information below,calculate net income for the period.

Just-in-time manufacturing is a system that acquires inventory and produces product only when needed for an order.

Policies and procedures used by management to monitor and control business activities are known as ____________________________.

Raw materials inventory should not include indirect materials.

The schedule of cost of goods manufactured must be prepared monthly as it is a required general-purpose financial statement.

Indirect labor refers to the cost of the workers whose efforts are directly related to specific units of product.

Which of the following items does not represent a difference between financial and managerial accounting?

Information for Stanton,Inc. ,as of December 31 follows.Prepare a schedule of cost of goods manufactured for the year ended December 31.

Expenditures that flow directly to the current income statement and are not reported as assets are ___________________ costs.

Current information for the Healey Company follows: All raw materials used were traceable to specific units of product.Healey Company's Cost of Goods Manufactured for the year is:

Goods a company acquires to use in making products are called:

A manufacturer's inventory that is not completely finished is called ________________.

Marv's Furniture and Fixtures produces seats for movie theaters.Listed below are selected cost items for the seat production.Classify each cost as either fixed or variable,and either a product or a period cost by placing an x in the appropriate boxes.

The Tacky Company manufactures staples.Costs for October were direct labor,$84,000;indirect labor,$36,700;direct materials,$55,900;factory maintenance,$4,800;factory utilities,$3,200;and insurance on plant and equipment,$700.What is Tacky Company's factory overhead for October?

Product costs are capitalized as inventory on the balance sheet and period costs are expenses on the income statement.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

Filters