Question 1

Which one of the following costs would not be inventoriable?

Accepted Answer

A) Period costs 
B) Factory insurance costs 
C) Indirect materials 
D) Indirect labor costs 
A) Period costs 
B) Factory insurance costs 
C) Indirect materials 
D) Indirect labor costs A

Question 2

In a manufacturing company balance sheet, manufacturing inventories are reported in the current assets section in the order of their expected use in production.

Accepted Answer

A) True 
 B)False  False

Question 3

A manufacturing process requires small amounts of glue.The glue used in the production process is classified as a(n)

Accepted Answer

A) period cost. 
B) indirect material. 
C) direct material. 
D) miscellaneous expense. 
A) period cost. 
B) indirect material. 
C) direct material. 
D) miscellaneous expense. B

Question 4

The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 5

Ending finished goods inventory appears on both the balance sheet and the income statement of a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 6

Direct materials and direct labor are the only product costs.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) purchases. 
B) cost of goods purchased. 
C) merchandise inventory. 
D) raw materials inventory. 
A) purchases. 
B) cost of goods purchased. 
C) merchandise inventory. 
D) raw materials inventory.

Question 8

Direct materials and direct labor of a company total $8,000,000.If manufacturing overhead is $4,000,000, what is direct labor cost?

Accepted Answer

A) $4,000,000 
B) $8,000,000 
C) $0 
D) Cannot be determined from the information provided 
A) $4,000,000 
B) $8,000,000 
C) $0 
D) Cannot be determined from the information provided

Question 9

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

Accepted Answer

A) period costs. 
B) nonmanufacturing costs. 
C) selling and administrative expenses. 
D) manufacturing overhead. 
A) period costs. 
B) nonmanufacturing costs. 
C) selling and administrative expenses. 
D) manufacturing overhead.

Question 10

The principal difference between a merchandising and a manufacturing income statement is the

Accepted Answer

A) cost of goods sold section. 
B) extraordinary item section. 
C) operating expense section. 
D) revenue section. 
A) cost of goods sold section. 
B) extraordinary item section. 
C) operating expense section. 
D) revenue section.

Question 11

Walker Company reported the following year-end information: $\begin{array}{lr}
\text { Beginning work in process inventory } & \$ 46,000 \
\text { Beginning raw materials inventory } & 24,000 \
\text { Ending work in process inventory } & 50,000 \
\text { Ending raw materials inventory } & 20,000 \
\text { Raw materials purchased } & 830,000 \
\text { Direct labor } & 240,000 \
\text { Manufacturing overhead } & 100,000
\end{array}$ How much is Walker's cost of goods manufactured for the year?

Accepted Answer

A) $834,000 
B) $1,174,000 
C) $1,170,000 
D) $1,178,000 
A) $834,000 
B) $1,174,000 
C) $1,170,000 
D) $1,178,000

Question 12

Using the following information, compute the direct materials used. $\begin{array}{lll}
\text { Raw materials inventory, January } 1 & \$  20,000 \
\text { Raw materials inventory, December } 31 & 40,000 \
\text { Work in process, January } 1 & 18,000 \
\text { Work in process, December } 31 & 12,000 \
\text { Finished goods, January 1 } & 40,000 \
\text { Finished goods, December } 31 & 32,000\
\text { Raw materials purchases } & 1,400,000 \
\text { Direct labor } & 560,000 \
\text { Factory utilities } & 150,000 \
\text { Indirect labor } & 50,000 \
\text { Factory depreciation } & 400,000 \
\text { Operating expenses } & 420,000
\end{array}$

Accepted Answer

A) $1,460,000. 
B) $1,420,000. 
C) $1,400,000. 
D) $1,380,000. 
A) $1,460,000. 
B) $1,420,000. 
C) $1,400,000. 
D) $1,380,000.

Question 13

Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively.If direct materials used were $290,000, what was the cost of raw materials purchased?

Accepted Answer

A) $290,000. 
B) $310,000. 
C) $274,000. 
D) $306,000. 
A) $290,000. 
B) $310,000. 
C) $274,000. 
D) $306,000.

Question 14

Penner Company reported total manufacturing costs of $410,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000.How much is direct labor cost?

Accepted Answer

A) Cannot be determined from the information provided. 
B) $584,000 
C) $174,000 
D) $236,000 
A) Cannot be determined from the information provided. 
B) $584,000 
C) $174,000 
D) $236,000

Question 15

Decision-making is an integral part of the planning, directing, and controlling functions.

Accepted Answer

A) True 
 B)False

Question 16

If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

Accepted Answer

A) True 
 B)False

Question 17

A distinguishing feature of managerial accounting is

Accepted Answer

A) external users. 
B) general-purpose reports. 
C) very detailed reports. 
D) quarterly and annual reports. 
A) external users. 
B) general-purpose reports. 
C) very detailed reports. 
D) quarterly and annual reports.

Question 18

Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.

Accepted Answer

A) True 
 B)False

Question 19

Managerial accounting information is generally prepared for

Accepted Answer

A) stockholders. 
B) creditors. 
C) managers. 
D) regulatory agencies. 
A) stockholders. 
B) creditors. 
C) managers. 
D) regulatory agencies.

Question 20

Sales commissions are classified as

Accepted Answer

A) overhead costs 
B) period costs. 
C) product costs. 
D) indirect labor. 
A) overhead costs 
B) period costs. 
C) product costs. 
D) indirect labor.

Which one of the following costs would not be inventoriable?

In a manufacturing company balance sheet, manufacturing inventories are reported in the current assets section in the order of their expected use in production.

A manufacturing process requires small amounts of glue.The glue used in the production process is classified as a(n)

The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company.

Ending finished goods inventory appears on both the balance sheet and the income statement of a manufacturing company.

Direct materials and direct labor are the only product costs.

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

Direct materials and direct labor of a company total $8,000,000.If manufacturing overhead is $4,000,000, what is direct labor cost?

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

The principal difference between a merchandising and a manufacturing income statement is the

Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively.If direct materials used were $290,000, what was the cost of raw materials purchased?

Penner Company reported total manufacturing costs of $410,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000.How much is direct labor cost?

Decision-making is an integral part of the planning, directing, and controlling functions.

If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

A distinguishing feature of managerial accounting is

Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.

Managerial accounting information is generally prepared for

Sales commissions are classified as

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Time Value of Money and Present Value Calculations

Filters

Exam 1: Introduction to Financial Statements

Which one of the following costs would not be inventoriable?

In a manufacturing company balance sheet, manufacturing inventories are reported in the current assets section in the order of their expected use in production.

A manufacturing process requires small amounts of glue.The glue used in the production process is classified as a(n)

The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company.

Ending finished goods inventory appears on both the balance sheet and the income statement of a manufacturing company.

Direct materials and direct labor are the only product costs.

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

Direct materials and direct labor of a company total $8,000,000.If manufacturing overhead is $4,000,000, what is direct labor cost?

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

The principal difference between a merchandising and a manufacturing income statement is the

Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively.If direct materials used were $290,000, what was the cost of raw materials purchased?

Penner Company reported total manufacturing costs of $410,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000.How much is direct labor cost?

Decision-making is an integral part of the planning, directing, and controlling functions.

If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

A distinguishing feature of managerial accounting is

Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.

Managerial accounting information is generally prepared for

Sales commissions are classified as

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Time Value of Money and Present Value Calculations

Filters