Exam 1: Introduction to Financial Statements

Ogleby Inc.'s accounting records reflect the following inventories: Dec. 31,2016 Dec. 31, 2017 Raw materials inventory \ 120,000 \ 96,000 Work in process inventory 156,000 174,000 Finished goods inventory 150,000 138,000 During 2017, Ogleby purchased $980,000 of raw materials, incurred direct labor costs of $175,000, and incurred manufacturing overhead totaling $224,000. How much is total manufacturing costs incurred during 2017 for Ogleby?

Decision-making is an integral part of the planning, directing, and controlling functions.

Which one of the following is an example of a period cost?

As current technology changes manufacturing processes, it is likely that direct

The function that pertains to keeping the activities of the enterprise on track is

Period costs include selling and administrative expenses.

Wasson Company reported the following year-end information: Beginning work in process inventory \ 35,000 Beginning raw materials inventory 18,000 Ending work in process inventory 38,000 Ending raw materials inventory 15,000 Raw materials purchased 560,000 Direct labor 210,000 Manufacturing overhead 120,000 How much is Wasson's total cost of work in process for the year?

Managerial accounting applies to all forms of business organizations.

Benson Inc.'s accounting records reflect the following inventories: Dec. 31,2016 Dec. 31, 2017 Raw materials inventory \ 80,000 \ 64,000 Work in process inventory 104,000 116,000 Finished goods inventory 100,000 92,000 During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. Assume Benson's cost of goods manufactured for 2017 amounted to $1,660,000.How much would it report as cost of goods sold for the year?

Property taxes on a manufacturing plant are an element of a Product Cost Period Cost a. Yes No b. Yes Yes c. No Yes d. No No

Determining the unit cost of manufacturing a product is an output of financial accounting.

Because of automation, which component of product cost is declining?

Which one of the following is not a cost element in manufacturing a product?

Product costs are also called

The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the

Which of the following is not classified as direct labor?

As inventoriable costs expire, they become

In a manufacturing company balance sheet, manufacturing inventories are reported in the current assets section in the order of their expected use in production.

Walker Company reported the following year-end information: Beginning work in process inventory \ 46,000 Beginning raw materials inventory 24,000 Ending work in process inventory 50,000 Ending raw materials inventory 20,000 Raw materials purchased 830,000 Direct labor 440,000 Manufacturing overhead 100,000 How much is Walker's cost of goods manufactured for the year?

If the amount of "Cost of goods manufactured" during a period exceeds the amount of "Total manufacturing costs" for the period, then