Exam 16: Managerial Accounting Concepts and Principles

Work in process inventory on December 31 is $42,000. Work in process inventory decreased by 40% during the year. Total manufacturing costs incurred amount to $260,000. What is the cost of goods manufactured?

A plant manager's salary is

Taylor Industries had a fire and some of its accounting records were destroyed. Available information is presented below for the year ended December 31. Materials inventory, December 31 \ 15,000 Direct materials purchased 28,000 Direct materials used 22,900 Cost of goods manufactured 135,000 Additional information: Factory overhead is 150% of direct labor cost Finished goods inventory decreased by $18,000 during the year Work in process inventory increased by $12,000 during the year Calculate: a) Materials inventory, January 1 b) Direct labor cost c) Factory overhead incurred d) Cost of goods sold

Managerial accounting provides useful information to managers on product costs.

Managers use managerial information to evaluate performance of a company's operation.

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered direct or indirect cost for the cost object given. -The factory supervisor's salary for the bar stool factory

Which of the following costs are conversion costs?

A staff department has no direct authority over a line department.

Direct costs can be specifically traced to a cost object.

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Baker's wages

Identify the following costs as a) direct materials, b) direct labor, or c) factory overhead for a lawn mower manufacturer. 1. Wheels 2. Depreciation on worker's tools 3. Wages of assemblers 4. Grease for wheel axles

Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $196,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.

Which of the following is not true in regards to direct materials for a bakery?

Which of the following items would not be classified as part of factory overhead?

Davis Manufacturing Company had the following data: January 1 December 31 Accounts receivable \ 27,000 \ 33,000 Materials inventory 22,500 6,000 Work in process inventory 70,200 48,000 Finished goods inventory 3,000 15,000 Collections on account were $625,000. Cost of goods sold was 68% of sales. Direct materials purchased amounted to $90,000. Factory overhead was 300% of the cost of direct labor. Compute: a) Sales revenue all sales were on account)b) Cost of goods sold c) Cost of goods manufactured d) Direct labor used e) Direct materials incurred f) Factory overhead incurred

Goods that are part way through the manufacturing process, but not yet complete, are referred to as materials inventory.

Match the items below for a bakery to the type of cost a-d). -Sprinkles for decoration indirect material)

A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report.

The following information is taken from the financial records of Gunner Manufacturing: Cost of materials used $45,000 Direct labor costs 48,000 Factory overhead 39,000 Work in process, beg. 18,000 Work in process, end. 28,000 What is cost of goods manufactured?