Exam 18: Introduction to Managerial Accounting

Managerial accounting reports are

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

Differentiate between period and product costs, including examples of each type of cost.

What term refers to the cost of changing direct materials into a finished manufactured product?

Match each description to the appropriate term (a-d). Answers may be used more than once. -Depreciation on office equipment

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given. -Nails and screws used in the production of the bar stools

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

The following are costs incurred by a lawn mower manufacturer. Identify them as either: -Depreciation on worker's tools

Only the value of the inventory that is sold will appear on the income statement.

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

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

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

For each of the following costs, classify them as either: -Product assembly labor incurred

The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year.​​ Sales \ 1,980 Selling expenses 280 Factory overhead 460 Direct labor 400 Administrative expenses 300 Purchases of direct materials 240 Finished goods inventory, beginning 240 Finished goods inventory, ending 320 Materials inventory, beginning 80 Materials inventory, ending 140 Work in process inventory, beginning 140 Work in process inventory, ending 100 Required (a)What was the cost of the direct materials used in production during the year? (b)What was the cost of goods manufactured for the year? (c)What was the cost of goods sold for the year? (d)What was the net income for the year?​Present all calculations in thousands of dollars.

For each of the following costs, classify them as either: -Insurance expired on administrative facilities

Cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost.

Replacing light fixtures with energy-efficient lighting is an example of which eco-efficiency measure?

Prime costs are

Match the items below for a bakery to the type of cost (a-d). Answers may be used more than once. -Baker's wages

Keeton Company has the following data:?? Cost of materials used \ 60,000 Direct labor costs 58,000 Factory overhead 33,000 Work in process inventory, beginning 29,000 Work in process inventory, ending 18,000 Finished goods inventory, beginning 32,000 Finished goods inventory, ending 18,000 Calculate the cost of goods sold.