Exam 18: Introduction to Managerial Accounting

Direct labor and direct materials are

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is

Factory overhead cost is sometimes referred to as factory burden.

Match each description to the appropriate term (a-d). Answers may be used more than once. -Rent expense on factory building

Period costs can be found on both the balance sheet and the income statement.

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

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given. -Accountant salaries

Use the information below for Jensen Company to answer the questions that follow. ​ 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

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

Materials must have which two qualities in order to be classified as direct materials?

Given the following data:?Beginning raw materials inventory$30,000Materials purchased65,000Ending raw materials inventory40,000?What is the amount of raw materials used?

In most business organizations, the chief accountant is called the treasurer.

The phases of the management process are listed below. Match each phase to the appropriate description. -Used by management to develop the organization's objectives and goals

Conversion costs are

Conversion costs consist of product costs and period costs.

The phases of the management process are listed below. Match each phase to the appropriate description. -Monitoring the operating results of implemented plans and comparing actual results to expected results

Managerial accounting uses only past data in reports to aid management in the decision-making process.

Goods that are partially completed by a manufacturer are

Putney Company reports the following information:​​ Sales \ 76,500 Cost of direct materials used in production 7,300 Depreciation on factory equipment 4,700 Indirect labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales salaries expense 15,600 Office salaries expense 8,900 Indirect materials 1,200 Compute: (a)Product costs (b)Period costs