Exam 1: Introduction to Financial Statements

Both direct labor cost and indirect labor cost are product costs.

Which one of the following is not a direct material?

Managerial accounting does not encompass

On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n)

The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead costs.

Managerial accounting internal reports are prepared more frequently than are classified financial statements.

What is "balanced" in the balanced scorecard approach?

Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.

Which of the following is not an internal user?

Given the following data for Mehring Company, compute (A) total manufacturing costs and (B) cost of goods manufactured: Direct materials used \ 230,000 Beginning work in process \ 30,000 Direct labor 150,000 Ending work in process 15,000 Manufacturing overhead 255,000 Beginning finished goods 38,000 Operating expenses 263,000 Ending finished qoods 23,000 (A) (B) a. \ 620,000 \ 650,000 b. \ 635,000 \ 620,000 c. \ 635,000 \ 650,000 d. \ 650,000 \ 665,000

The equivalent of finished goods inventory for a merchandising firm is referred to as

Raw materials inventory shows the cost of completed goods available for sale to customers.

Given the following data for Glennon Company, compute (A) total manufacturing costs and (B) costs of goods manufactured: Direct materials used \ 270,000 Beginning work in process \ 40,000 Direct labor 200,000 Ending work in process 20,000 Manufacturing overhead 250,000 Beginning finished goods 50,000 Operating expenses 350,000 Ending finished goods 30,000 (A) (B) a. \ 700,000 \ 740,000 b. \ 720,000 \ 700,000 c. \ 720,000 \ 740,000 d. \ 740,000 \ 760,000

The reporting standard for external financial reports is

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

Using $3,000,000 as the total manufacturing costs, compute the cost of goods manufactured using the following information. Raw materials inventory, January 1 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 18,000 Work in process, December 31 12,000 Finished goods, January 1 40,000 Finished goods, December 31 32,000 Raw materials purchases 1,700,000 Direct labor 760,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000

For inventoriable costs to become expenses under the matching principle,

The wages of a timekeeper in the factory would be classified as

Which of the following is not another name for the term manufacturing overhead?

Using $3,040,000 as the cost of goods manufactured, compute the cost of goods sold using the following information. Raw materials inventory, January 1 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 18,000 Work in process, December 31 12,000 Finished goods, January 1 40,000 Finished goods, December 31 32,000 Raw materials purchases 1,700,000 Direct labor 760,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000