Question 1

Direct materials become a cost of the finished goods manufactured when they are acquired, not when they are used.

Accepted Answer

A) True 
 B)False

Question 2

Directing includes

Accepted Answer

A) providing a framework for management to have criteria to terminate employees when needed. 
B) running a department under quality control standards universally accepted. 
C) coordinating a company's diverse activities and human resources to produce a smooth-running operation. 
D) developing a complex performance ranking system to give certain high performers good raises. 
A) providing a framework for management to have criteria to terminate employees when needed. 
B) running a department under quality control standards universally accepted. 
C) coordinating a company's diverse activities and human resources to produce a smooth-running operation. 
D) developing a complex performance ranking system to give certain high performers good raises.

Question 3

The managerial function of controlling

Accepted Answer

A) is performed only by the controller of a company. 
B) is only applicable when the company sustains a loss. 
C) is concerned mainly with operating a manufacturing segment. 
D) includes performance evaluation by management. 
A) is performed only by the controller of a company. 
B) is only applicable when the company sustains a loss. 
C) is concerned mainly with operating a manufacturing segment. 
D) includes performance evaluation by management.

Question 4

In determining whether planned goals are being met, a manager is performing the function of

Accepted Answer

A) planning. 
B) follow-up. 
C) directing. 
D) controlling. 
A) planning. 
B) follow-up. 
C) directing. 
D) controlling.

Question 5

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 6

Indirect materials and indirect labor are both inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 7

Benson Inc.'s accounting records reflect the following inventories: $$\begin{array} { l c c } 
& \text { Dec. 31,2012 } & \text { Dec. 31,2013 } \
\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \
\text { Work in process inventory } & 104,000 & 116,000 \
\text { Finished goods inventory } & 100,000 & 92,000
\end{array}$$ During 2013, Benson purchased $1,160,000 of raw materials, incurred direct labor costs of $200,000, and incurred manufacturing overhead totaling $128,000. 
-How much raw materials were transferred to production during 2013 for Benson?

Accepted Answer

A) $1,392,000 
B) $1,176,000 
C) $1,160,000 
D) $1,144,000 
A) $1,392,000 
B) $1,176,000 
C) $1,160,000 
D) $1,144,000

Question 8

Managerial accounting is also called

Accepted Answer

A) management accounting. 
B) controlling. 
C) analytical accounting. 
D) inside reporting. 
A) management accounting. 
B) controlling. 
C) analytical accounting. 
D) inside reporting.

Question 9

Wood Company has beginning work in process inventory of $128,000 and total manufacturing costs of $477,000.If cost of goods manufactured is $480,000, what is the cost of the ending work in process inventory?

Accepted Answer

A) $110,000. 
B) $131,000. 
C) $140,000. 
D) $125,000. 
A) $110,000. 
B) $131,000. 
C) $140,000. 
D) $125,000.

Question 10

Using $2,500,000 as the total manufacturing costs, compute the cost of goods manufactured using the following information.. $\begin{array}{lll}
\text { Raw materials inventory, January } 1 & \$  20,000 \
\text { Raw materials inventory, December } 31 & 40,000 \
\text { Work in process, January } 1 & 18,000 \
\text { Work in process, December } 31 & 12,000 \
\text { Finished goods, January 1 } & 40,000 \
\text { Finished goods, December } 31 & 32,000\
\text { Raw materials purchases } & 1,400,000 \
\text { Direct labor } & 560,000 \
\text { Factory utilities } & 150,000 \
\text { Indirect labor } & 50,000 \
\text { Factory depreciation } & 400,000 \
\text { Operating expenses } & 420,000
\end{array}$

Accepted Answer

A) $2,492,000. 
B) $2,494,000. 
C) $2,506,000. 
D) $2,508,000. 
A) $2,492,000. 
B) $2,494,000. 
C) $2,506,000. 
D) $2,508,000.

Question 11

If the total manufacturing costs are greater than the cost of goods manufactured, which of the following is correct?

Accepted Answer

A) Work in Process Inventory has increased. 
B) Finished Goods Inventory has increased. 
C) Work in Process Inventory has decreased. 
D) Finished Goods Inventory has decreased. 
A) Work in Process Inventory has increased. 
B) Finished Goods Inventory has increased. 
C) Work in Process Inventory has decreased. 
D) Finished Goods Inventory has decreased.

Question 12

Which of the following is not a manufacturing cost category?

Accepted Answer

A) Cost of goods sold 
B) Direct materials 
C) Direct labor 
D) Manufacturing overhead 
A) Cost of goods sold 
B) Direct materials 
C) Direct labor 
D) Manufacturing overhead

Question 13

Raw materials inventory shows the cost of completed goods available for sale to customers.

Accepted Answer

A) True 
 B)False

Question 14

Raw materials are equal to direct materials minus indirect materials.

Accepted Answer

A) True 
 B)False

Question 15

The sum of the direct materials costs, direct labor costs, and beginning work in process is the total manufacturing costs for the year.

Accepted Answer

A) True 
 B)False

Question 16

Managerial accounting is applicable to

Accepted Answer

A) service entities. 
B) manufacturing entities. 
C) not-for-profit entities. 
D) all of these. 
A) service entities. 
B) manufacturing entities. 
C) not-for-profit entities. 
D) all of these.

Question 17

A manager that is establishing objectives is performing which management function?

Accepted Answer

A) Controlling 
B) Directing 
C) Planning 
D) Constraining 
A) Controlling 
B) Directing 
C) Planning 
D) Constraining

Question 18

Given the following data for Mehring Company, compute (A) total manufacturing costs and (B) cost of goods manufactured: $\begin{array}{llll}
\text { Direct materials used } & \$ 230,000&\text { Beginning work IN} \
\text { process } & \$ 30,000\
\text { Direct labor } & 150,000 & \text { Ending work in process } & 15,000 \
\text { Manufacturing overhead } & 225,000 & \text { Beginning finished goods } & 38,000 \
\text { Operating expenses } & 263,000 & \text { Ending finished goods } & 23,000
\end{array}$

$\begin{array}{lll}&(A)&(B)\
\text { a. } & \$ 590,000 & \$ 620,000 \
\text { b. } & \$ 605,000 & \$ 590,000 \
\text { c. } & \$ 605,000 & \$ 620,000 \
\text { d. } & \$ 620,000 & \$ 635,000
\end{array}$

Accepted Answer

The answer of Given the following data for Mehring Company,...

Question 19

A manufacturing company calculates cost of goods sold as follows:

Accepted Answer

A) Beginning FG inventory + cost of goods purchased - ending FG inventory. 
B) Ending FG inventory - cost of goods manufactured + beginning FG inventory. 
C) Beginning FG inventory - cost of goods manufactured - ending FG inventory. 
D) Beginning FG inventory + cost of goods manufactured - ending FG inventory. 
A) Beginning FG inventory + cost of goods purchased - ending FG inventory. 
B) Ending FG inventory - cost of goods manufactured + beginning FG inventory. 
C) Beginning FG inventory - cost of goods manufactured - ending FG inventory. 
D) Beginning FG inventory + cost of goods manufactured - ending FG inventory.

Question 20

On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n)

Accepted Answer

A) addition to raw materials purchases. 
B) addition to raw materials available for use. 
C) subtraction from raw materials available for use. 
D) subtraction from raw materials purchases. 
A) addition to raw materials purchases. 
B) addition to raw materials available for use. 
C) subtraction from raw materials available for use. 
D) subtraction from raw materials purchases.

Direct materials become a cost of the finished goods manufactured when they are acquired, not when they are used.

Directing includes

The managerial function of controlling

In determining whether planned goals are being met, a manager is performing the function of

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

Indirect materials and indirect labor are both inventoriable costs.

Managerial accounting is also called

Wood Company has beginning work in process inventory of $128,000 and total manufacturing costs of $477,000.If cost of goods manufactured is $480,000, what is the cost of the ending work in process inventory?

If the total manufacturing costs are greater than the cost of goods manufactured, which of the following is correct?

Which of the following is not a manufacturing cost category?

Raw materials inventory shows the cost of completed goods available for sale to customers.

Raw materials are equal to direct materials minus indirect materials.

The sum of the direct materials costs, direct labor costs, and beginning work in process is the total manufacturing costs for the year.

Managerial accounting is applicable to

A manager that is establishing objectives is performing which management function?

A manufacturing company calculates cost of goods sold as follows:

On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n)

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

Direct materials become a cost of the finished goods manufactured when they are acquired, not when they are used.

Directing includes

The managerial function of controlling

In determining whether planned goals are being met, a manager is performing the function of

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

Indirect materials and indirect labor are both inventoriable costs.

Managerial accounting is also called

Wood Company has beginning work in process inventory of $128,000 and total manufacturing costs of $477,000.If cost of goods manufactured is $480,000, what is the cost of the ending work in process inventory?

If the total manufacturing costs are greater than the cost of goods manufactured, which of the following is correct?

Which of the following is not a manufacturing cost category?

Raw materials inventory shows the cost of completed goods available for sale to customers.

Raw materials are equal to direct materials minus indirect materials.

The sum of the direct materials costs, direct labor costs, and beginning work in process is the total manufacturing costs for the year.

Managerial accounting is applicable to

A manager that is establishing objectives is performing which management function?

A manufacturing company calculates cost of goods sold as follows:

On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n)

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