Exam 18: Introduction to Managerial Accounting

Davis Manufacturing Company had the following data:?? January 1 December 31 Accounts receivable \ 27,000 \ 33,000 Materials inventory 22,500 6,000 Work in process inventory 70,200 48,000 Finished goods inventory 3,000 15,000 Collections on account were $625,000.Cost of goods sold was 68% of sales.Direct materials purchased amounted to $90,000.Factory overhead was 300% of the cost of direct labor. Compute: (a)Sales revenue (all sales were on account) (b)Cost of goods sold (c)Cost of goods manufactured (d)Direct materials used (e)Direct labor incurred (f)Factory overhead incurred

For each of the following costs, classify them as either: -Materials not traceable to specific products

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.

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. -Lubricants used on the bar stool manufacturing equipment

Period costs include

What is the purpose of the statement of cost of goods manufactured?

Indirect costs can be specifically traced to a cost object.

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except

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

For each of the following costs, classify them as either: -Salespersons' salaries

What is the primary criterion for the preparation of managerial accounting reports?

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

Match the items below for a bakery to the type of cost (a-d). Answers may be used more than once. -Sprinkles for decoration (indirect material)

If the cost of a direct material is a small portion of total production cost, it may be classified as part of

Which of the following is an example of direct labor cost for a cell phone manufacturer?

Manufacturers use machinery and labor to convert direct materials into finished products.

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given. -Depreciation on store equipment

A staff department has no direct authority over a line department.

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

A company sells goods for $150,000 that cost $54,000 to manufacture. Which of the following statements is true?