Question 1

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Cupcake mix

Accepted Answer

A) Prime costs 
B) Conversion costs 
C) Both prime and conversion costs 
D) Neither prime or conversion costs 
A) Prime costs 
B) Conversion costs 
C) Both prime and conversion costs 
D) Neither prime or conversion costs

Question 2

$$\begin{array} { | l | l | } 
\hline \text { Sales } & \$ 76,500 \
\hline \text { Direct materials used } & 7,300 \
\hline \text { Depreciati on on factory equipment } & 4,700 \
\hline \text { Indirect labor } & 5,900 \
\hline \text { Direct labor } & 10,500 \
\hline \text { Factory rent } & 4,200 \
\hline \text { Factory utilities } & 1,200 \
\hline \text { Sales salaries expense } & 15,600 \
\hline \text { Office salaries expense } & 8,900 \
\hline \text { Indirect materials } & 1,200 \
\hline
\end{array}$$ Period costs are
-The Darwin Company reports the following information:

Accepted Answer

A)  $24,500 
B)  $30,300 
C)  $29,200 
D)  $35,000 
A)  $24,500 
B)  $30,300 
C)  $29,200 
D)  $35,000

Question 3

Conversion cost is the combination of direct materials cost and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is an example of a factory overhead cost?

Accepted Answer

A)  repair and maintenance cost on the administrative building 
B)  factory heating and lighting cost 
C)  insurance premiums on salespersons' automobiles 
D)  president's salary 
A)  repair and maintenance cost on the administrative building 
B)  factory heating and lighting cost 
C)  insurance premiums on salespersons' automobiles 
D)  president's salary

Question 5

Work in process inventory on December 31 of the current year is $44,000. Work in process inventory increased by 60% during the year. Cost of goods manufactured amounts to $275,000. What are the total manufacturing costs incurred in the current year?

Accepted Answer

A)  $291,500 
B)  $302,000 
C)  $275,750 
D)  $233,750 
A)  $291,500 
B)  $302,000 
C)  $275,750 
D)  $233,750

Question 6

Indirect labor and indirect materials would be part of factory overhead.

Accepted Answer

A) True 
 B)False

Question 7

Given the following data: $$\begin{array} { | l | l | } 
\hline \text { B eginning raw materials inventory } &  { \$ 30,000 } \
\hline \text { Materials purchased } & 65,000 \
\hline \text { Ending raw material s inventory } & 40,000 \
\hline
\end{array}$$ What is the amount of raw materials used?

Accepted Answer

A)  $5,000 
B)  $55,000 
C)  $75,000 
D)  $30,000 
A)  $5,000 
B)  $55,000 
C)  $75,000 
D)  $30,000

Question 8

Laramie Technologies had the following data:
Cost of materials used
$50,000
Direct labor costs
56,000
Factory overhead
28,000
Work in process, beg.
45,000
Work in process, end.
32,000
Calculate the cost of goods manufactured.

Accepted Answer

Cost of goods manufa

Question 9

Managerial accounting information includes both historical and estimated data.

Accepted Answer

A) True 
 B)False

Question 10

Managerial accounting reports are

Accepted Answer

A)  prepared according to GAAP 
B)  prepared according to management needs 
C)  prepared periodically only 
D)  related to the entire business entity only 
A)  prepared according to GAAP 
B)  prepared according to management needs 
C)  prepared periodically only 
D)  related to the entire business entity only

Question 11

Which of the following is not a characteristic of useful managerial accounting reports?

Accepted Answer

A)  accurate 
B)  GAAP-adhering 
C)  historical and estimated data 
D)  prepared as needed 
A)  accurate 
B)  GAAP-adhering 
C)  historical and estimated data 
D)  prepared as needed

Question 12

Which of the following is the principle reason for preparing managerial accounting reports?

Accepted Answer

A)  usefulness to management 
B)  cost of preparation 
C)  clarity 
D)  GAAP 
A)  usefulness to management 
B)  cost of preparation 
C)  clarity 
D)  GAAP

Question 13

Differentiate between financial and managerial accounting, addressing such issues as users, nature of information, guidelines for preparation, timeliness and focus of reporting.

Accepted Answer

The answer of Differentiate between financial and managerial accounting, addressing...

Question 14

Which of the following is not a prime cost?

Accepted Answer

A)  plant janitor's wages 
B)  direct labor wages 
C)  machine operator wages 
D)  assembly line wages 
A)  plant janitor's wages 
B)  direct labor wages 
C)  machine operator wages 
D)  assembly line wages

Question 15

Watson Company has the following data: $$\begin{array} { | l | l | } 
\hline \text { Work in process, beginning } & \$ 18,000 \
\hline \text { Work in process, ending } & 25,000 \
\hline \text { Direct labor costs incurred } & 5,000 \
\hline \text { Cost of goods manufactured } & 9,000 \
\hline \text { Factory overhead } & 7,000 \
\hline
\end{array}$$ Calculate the amount of direct materials used.

Accepted Answer

Direct materials use

Question 16

Jensen Company reports the following: $$\begin{array} { | l | l | } 
\hline \text { Direct materials used } & \$ 345,000 \
\hline \text { Direct labor incurred } & 250,000 \
\hline \text { Factory overhead incurred } & 400,000 \
\hline \text { Operating expenses } & 175,000 \
\hline
\end{array}$$
-Jensen Company's period costs are

Accepted Answer

A)  $345,000 
B)  $250,000 
C)  $400,000 
D)  $175,000 
A)  $345,000 
B)  $250,000 
C)  $400,000 
D)  $175,000

Question 17

Magnus Industries has the following data: $$\begin{array} { | l | l | } 
\hline \text { Beginning raw materials inventory } & \$ 75,000 \
\hline \text { Materials purchased } & 40,000 \
\hline \text { Ending raw materials inventory } & 60,000 \
\hline
\end{array}$$ Calculate the cost of raw materials used.

Accepted Answer

Raw Materials Used =

Question 18

Given the following data: Cost of materials used
$45,000
Direct labor costs
48,000
Factory overhead
39,000
Work in process, beg.
28,000
Work in process, end.
18,000
Finished goods, beg.
28,000
Finished goods, end.
18,000
What is cost of goods sold?

Accepted Answer

A)  $152,000 
B)  $142,000 
C)  $10,000 
D)  $128,000 
A)  $152,000 
B)  $142,000 
C)  $10,000 
D)  $128,000

Question 19

What is decision making? Who is responsible for decision making in a managerial situation?​

Accepted Answer

Inherent in each management process plan

Question 20

The cost of a manufactured product generally consists of which of the following costs?

Accepted Answer

A)  direct materials cost and factory overhead cost only 
B)  direct labor cost and factory overhead cost only 
C)  direct labor cost, direct materials cost, and factory overhead cost 
D)  direct materials cost and direct labor cost only 
A)  direct materials cost and factory overhead cost only 
B)  direct labor cost and factory overhead cost only 
C)  direct labor cost, direct materials cost, and factory overhead cost 
D)  direct materials cost and direct labor cost only

Exam 16: Managerial Accounting Concepts and Principles

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Cupcake mix

Conversion cost is the combination of direct materials cost and factory overhead cost.

Which of the following is an example of a factory overhead cost?

Work in process inventory on December 31 of the current year is $44,000. Work in process inventory increased by 60% during the year. Cost of goods manufactured amounts to $275,000. What are the total manufacturing costs incurred in the current year?

Indirect labor and indirect materials would be part of factory overhead.

Given the following data: B eginning raw materials inventory \ 30,000 Materials purchased 65,000 Ending raw material s inventory 40,000 What is the amount of raw materials used?

Laramie Technologies had the following data: Cost of materials used $50,000 Direct labor costs 56,000 Factory overhead 28,000 Work in process, beg. 45,000 Work in process, end. 32,000 Calculate the cost of goods manufactured.

Managerial accounting information includes both historical and estimated data.

Managerial accounting reports are

Which of the following is not a characteristic of useful managerial accounting reports?

Which of the following is the principle reason for preparing managerial accounting reports?

Differentiate between financial and managerial accounting, addressing such issues as users, nature of information, guidelines for preparation, timeliness and focus of reporting.

Which of the following is not a prime cost?

Watson Company has the following data: Work in process, beginning \ 18,000 Work in process, ending 25,000 Direct labor costs incurred 5,000 Cost of goods manufactured 9,000 Factory overhead 7,000 Calculate the amount of direct materials used.

Jensen Company reports the following: Direct materials used \ 345,000 Direct labor incurred 250,000 Factory overhead incurred 400,000 Operating expenses 175,000 -Jensen Company's period costs are

Magnus Industries has the following data: Beginning raw materials inventory \ 75,000 Materials purchased 40,000 Ending raw materials inventory 60,000 Calculate the cost of raw materials used.

Given the following data: Cost of materials used $45,000 Direct labor costs 48,000 Factory overhead 39,000 Work in process, beg. 28,000 Work in process, end. 18,000 Finished goods, beg. 28,000 Finished goods, end. 18,000 What is cost of goods sold?

What is decision making? Who is responsible for decision making in a managerial situation?​

The cost of a manufactured product generally consists of which of the following costs?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Filters

What is decision making? Who is responsible for decision making in a managerial situation?