Question 1

The sales commission incurred based on units of product sold during the month is an example of a product cost.

Accepted Answer

A) True 
 B)False

Question 2

The schedule of cost of goods manufactured is divided into four parts consisting of all of the following except:

Accepted Answer

A) Direct materials. 
B) Computation of cost of goods sold. 
C) Overhead. 
D) Computation of cost of goods manufactured. 
E) Direct labor. 
A) Direct materials. 
B) Computation of cost of goods sold. 
C) Overhead. 
D) Computation of cost of goods manufactured. 
E) Direct labor.

Question 3

Just-in-time manufacturing techniques can be useful in _____________ days' sales in raw materials inventory.

Accepted Answer

A) keeping constant 
B) changing upward 
C) adding to 
D) lowering 
E) increasing 
A) keeping constant 
B) changing upward 
C) adding to 
D) lowering 
E) increasing

Question 4

The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.

Accepted Answer

A) True 
 B)False

Question 5

_______________ is the deliberate misuse of the employer's assets for the employee's personal gain.

Accepted Answer

The answer of _______________ is the deliberate misuse of the...

Question 6

An employee overstates his reimbursable expenses in one period in order to receive needed additional cash.Since he intends to reduce his expenses the next period by the current overstatement,this act is not considered fraudulent.

Accepted Answer

A) True 
 B)False

Question 7

Information for Jersey Metalworks as of December 31 follows.Prepare (a)the company's schedule of cost of goods manufactured for the year ended December 31; (b)prepare the company's income statement that reports separate categories for selling and general and administrative expenses.

Accepted Answer

The answer of Information for Jersey Metalworks as of December...

Question 8

Which of the following accounts would appear on a schedule of cost of goods manufactured?

Accepted Answer

A) Raw materials,factory insurance expired,indirect labor. 
B) Raw materials,work in process,finished goods. 
C) Direct labor,delivery equipment,and depreciation on factory equipment. 
D) Direct materials,indirect labor,sales salaries. 
E) Direct labor,factory repairs and maintenance,wages payable. 
A) Raw materials,factory insurance expired,indirect labor. 
B) Raw materials,work in process,finished goods. 
C) Direct labor,delivery equipment,and depreciation on factory equipment. 
D) Direct materials,indirect labor,sales salaries. 
E) Direct labor,factory repairs and maintenance,wages payable.

Question 9

Which of the following statements is true regarding product and period costs?

Accepted Answer

A) Office salaries expense and factory maintenance are both product costs. 
B) Office rent is a product cost and supervisors' salaries expense is a period cost. 
C) Factory rent is a product cost and advertising expense is a period cost. 
D) Delivery expense is a product cost and indirect materials is a period cost. 
E) Sales commissions and indirect labor are both period costs. 
A) Office salaries expense and factory maintenance are both product costs. 
B) Office rent is a product cost and supervisors' salaries expense is a period cost. 
C) Factory rent is a product cost and advertising expense is a period cost. 
D) Delivery expense is a product cost and indirect materials is a period cost. 
E) Sales commissions and indirect labor are both period costs.

Question 10

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year:   The raw materials used in manufacturing during the year totaled $1,018,000.Raw materials purchased during the year amount to:

Accepted Answer

A) $955,000. 
B) $892,000. 
C) $1,565,000. 
D) $408,000. 
E) $1,081,000. 
A) $955,000. 
B) $892,000. 
C) $1,565,000. 
D) $408,000. 
E) $1,081,000.

Question 11

_____________________ inventory consists of goods a company acquires to use in making products.

Accepted Answer

The answer of _____________________ inventory consists of goods a company...

Question 12

Using the information below for Laurels Company;determine the cost of goods manufactured during the current year:

Accepted Answer

A) $12,000. 
B) $16,100. 
C) $17,100. 
D) $18,100. 
E) $13,600. 
A) $12,000. 
B) $16,100. 
C) $17,100. 
D) $18,100. 
E) $13,600.

Question 13

Using the information below,compute the raw materials inventory turnover:

Accepted Answer

A) 6.76. 
B) 6.02. 
C) 54.0. 
D) 60.6. 
E) 6.37. 
A) 6.76. 
B) 6.02. 
C) 54.0. 
D) 60.6. 
E) 6.37.

Question 14

Continuous improvement:

Accepted Answer

A) Encourages employees to maintain established business practices. 
B) Strives to preserve acceptable levels of performance. 
C) Rejects the notion of "good enough." 
D) Is not applicable to most businesses. 
E) Is possible only in service businesses. 
A) Encourages employees to maintain established business practices. 
B) Strives to preserve acceptable levels of performance. 
C) Rejects the notion of "good enough." 
D) Is not applicable to most businesses. 
E) Is possible only in service businesses.

Question 15

The following items for Neptune Company are used to compute the cost of goods manufactured and the cost of goods sold.Indicate how each item should be used in the calculations by filling in the blanks with "+" if the item is to be added,"-" if the item is to be subtracted,or "0" if the item is not used in the calculation.The first item is completed as an example.

Accepted Answer

The answer of The following items for Neptune Company are...

Question 16

Which of the following items appears only in a manufacturing company's financial statements?

Accepted Answer

A) Cost of goods sold. 
B) Cost of goods manufactured. 
C) Goods available for sale. 
D) Gross profit. 
E) Net income. 
A) Cost of goods sold. 
B) Cost of goods manufactured. 
C) Goods available for sale. 
D) Gross profit. 
E) Net income.

Question 17

Costs that flow directly to the income statement as expenses are called:

Accepted Answer

A) Period costs. 
B) Product costs. 
C) General costs. 
D) Balance sheet costs. 
E) Capitalized costs. 
A) Period costs. 
B) Product costs. 
C) General costs. 
D) Balance sheet costs. 
E) Capitalized costs.

Question 18

For each item shown below,classify it as a product cost or a period cost,by placing an X in the appropriate column.For each item that is a product cost,also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.

Accepted Answer

The answer of For each item shown below,classify it as...

Question 19

Using the information below,calculate gross profit for the period.

Accepted Answer

A) $714,000. 
B) $482,000. 
C) $1,022,000. 
D) $187,000. 
E) $727,000. 
A) $714,000. 
B) $482,000. 
C) $1,022,000. 
D) $187,000. 
E) $727,000.

Question 20

Using the information below for Laurels Company;determine the manufacturing costs added during the current year:

Accepted Answer

A) $12,000. 
B) $16,100. 
C) $17,100. 
D) $18,100. 
E) $13,600. 
A) $12,000. 
B) $16,100. 
C) $17,100. 
D) $18,100. 
E) $13,600.

Exam 18: Managerial Accounting Concepts and Principles

The sales commission incurred based on units of product sold during the month is an example of a product cost.

The schedule of cost of goods manufactured is divided into four parts consisting of all of the following except:

Just-in-time manufacturing techniques can be useful in _____________ days' sales in raw materials inventory.

The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.

_______________ is the deliberate misuse of the employer's assets for the employee's personal gain.

An employee overstates his reimbursable expenses in one period in order to receive needed additional cash.Since he intends to reduce his expenses the next period by the current overstatement,this act is not considered fraudulent.

Information for Jersey Metalworks as of December 31 follows.Prepare (a)the company's schedule of cost of goods manufactured for the year ended December 31; (b)prepare the company's income statement that reports separate categories for selling and general and administrative expenses.

Which of the following accounts would appear on a schedule of cost of goods manufactured?

Which of the following statements is true regarding product and period costs?

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: The raw materials used in manufacturing during the year totaled $1,018,000.Raw materials purchased during the year amount to:

_____________________ inventory consists of goods a company acquires to use in making products.

Using the information below for Laurels Company;determine the cost of goods manufactured during the current year:

Using the information below,compute the raw materials inventory turnover:

Continuous improvement:

Which of the following items appears only in a manufacturing company's financial statements?

Costs that flow directly to the income statement as expenses are called:

For each item shown below,classify it as a product cost or a period cost,by placing an X in the appropriate column.For each item that is a product cost,also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.

Using the information below,calculate gross profit for the period.

Using the information below for Laurels Company;determine the manufacturing costs added during the current year:

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

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