Question 1

Product costs include direct labor and advertising expense.

Accepted Answer

A) True 
 B)False

Question 2

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.
-Factory machinery repairs and maintenance

Accepted Answer

A) Product 
B) Period 
A) Product 
B) Period

Question 3

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

Accepted Answer

A) Direct materials 
B) Direct labor 
C) Factory overhead 
D) Nonmanufacturing cost
Challenging 
A) Direct materials 
B) Direct labor 
C) Factory overhead 
D) Nonmanufacturing cost
Challenging

Question 4

Period 
(nonmanufacturing) costs are classified into two categories: selling and administrative.

Accepted Answer

A) True 
 B)False

Question 5

A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report.

Accepted Answer

A) True 
 B)False

Question 6

The following information is available for Carter Corporation:?
(1)Materials inventory decreased $4,000.
(2)Materials inventory on December 31 was 50% of materials inventory on January 1.
(3)Beginning work in process inventory was $145,000.
(4)Ending finished goods inventory was $65,000.
(5)Purchases of direct materials were $154,700.
(6)Direct materials used were 2.5 times the cost of direct labor.
(7)Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $156,000 less than cost of goods sold.?

Compute:
(a)Finished goods inventory on January 1
(b)Work in process inventory on December 31
(c)Direct labor incurred
(d)Factory overhead incurred
(e)Materials inventory on January 1
(f)Direct materials used

Accepted Answer

The answer of The following information is available for Carter...

Question 7

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Accepted Answer

A) True 
 B)False

Question 8

Sienna Company has the following information for January:​ $\begin{array}{lr}
\text { Cost of materials used in production } & \$ 20,000 \
\text { Direct labor } & 15,000 \
\text { Factory overhead } & 24,000 \
\text { Work in process inventory, January 1 } & 2,900 \
\text { Work in process inventory, January 31 } & 3,500
\end{array}$ Calculate the cost of goods manufactured.

Accepted Answer

The answer of Sienna Company has the following information for...

Question 9

Which of the following may not be a factory overhead cost?

Accepted Answer

A)  materials used directly in the manufacturing process of the product 
B)  insurance on factory equipment 
C)  salaries of production supervisors 
D)  property tax on factory building 
A)  materials used directly in the manufacturing process of the product 
B)  insurance on factory equipment 
C)  salaries of production supervisors 
D)  property tax on factory building

Question 10

The primary goal of managerial accounting is to provide information to

Accepted Answer

A)  investors 
B)  creditors 
C)  management 
D)  external auditors 
A)  investors 
B)  creditors 
C)  management 
D)  external auditors

Question 11

Managers use managerial information to evaluate performance of a company's operation.

Accepted Answer

A) True 
 B)False

Question 12

Match the items below for a bakery to the type of cost (a-d). Answers may be used more than once.
-Salesperson commissions

Accepted Answer

A) Direct materials 
B) Direct labor 
C) Factory overhead 
D) Nonmanufacturing cost
Challenging 
A) Direct materials 
B) Direct labor 
C) Factory overhead 
D) Nonmanufacturing cost
Challenging

Question 13

For each of the following costs, classify them as either:
-Materials traceable to specific products

Accepted Answer

A) Direct costs 
B) Indirect costs 
C) Neither direct nor indirect costs 
A) Direct costs 
B) Indirect costs 
C) Neither direct nor indirect costs

Question 14

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 factory machinery

Accepted Answer

A) Product 
B) Period 
A) Product 
B) Period

Question 15

The Sustainability Accounting Standards Board 
(SASB) standards are required, just as GAAP standards are required.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) Product 
B) Period 
A) Product 
B) Period

Question 17

Given the following data:?? $\begin{array}{lr}
\text { Cost of materials used } & \$ 45,000 \
\text { Direct labor costs } & 48,000 \
\text { Factory overhead } & 39,000 \
\text { Work in process, beginning } & 28,000 \
\text { Work in process, ending } & 18,000 \
\text { Finished goods, beginning } & 28,000 \
\text { Finished goods, ending } & 18,000
\end{array}$ What is the cost of goods sold?

Accepted Answer

A)  $152,000 
B)  $142,000 
C)  $10,000 
D)  $128,000 
A)  $152,000 
B)  $142,000 
C)  $10,000 
D)  $128,000

Question 18

Prime costs are the combination of direct materials and direct labor costs.

Accepted Answer

A) True 
 B)False

Question 19

Accounting designed to meet the needs of decision makers inside the business is

Accepted Answer

A)  general accounting 
B)  financial accounting 
C)  managerial accounting 
D)  external accounting 
A)  general accounting 
B)  financial accounting 
C)  managerial accounting 
D)  external accounting

Question 20

The following are costs incurred by a lawn mower manufacturer. Identify them as either:
-Wages of assemblers

Accepted Answer

A) Direct materials 
B) Direct labor 
C) Factory overhead 
A) Direct materials 
B) Direct labor 
C) Factory overhead

Exam 18: Introduction to Managerial Accounting

Product costs include direct labor and advertising expense.

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given. -Factory machinery repairs and maintenance

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

Period (nonmanufacturing) costs are classified into two categories: selling and administrative.

A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report.

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Sienna Company has the following information for January:​ Cost of materials used in production \ 20,000 Direct labor 15,000 Factory overhead 24,000 Work in process inventory, January 1 2,900 Work in process inventory, January 31 3,500 Calculate the cost of goods manufactured.

Which of the following may not be a factory overhead cost?

The primary goal of managerial accounting is to provide information to

Managers use managerial information to evaluate performance of a company's operation.

Match the items below for a bakery to the type of cost (a-d). Answers may be used more than once. -Salesperson commissions

For each of the following costs, classify them as either: -Materials traceable to specific 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 factory machinery

The Sustainability Accounting Standards Board (SASB) standards are required, just as GAAP standards are required.

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

Given the following data:?? Cost of materials used \ 45,000 Direct labor costs 48,000 Factory overhead 39,000 Work in process, beginning 28,000 Work in process, ending 18,000 Finished goods, beginning 28,000 Finished goods, ending 18,000 What is the cost of goods sold?

Prime costs are the combination of direct materials and direct labor costs.

Accounting designed to meet the needs of decision makers inside the business is

The following are costs incurred by a lawn mower manufacturer. Identify them as either: -Wages of assemblers

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

Sienna Company has the following information for January: Cost of materials used in production \ 20,000 Direct labor 15,000 Factory overhead 24,000 Work in process inventory, January 1 2,900 Work in process inventory, January 31 3,500 Calculate the cost of goods manufactured.