Exam 1: Introduction to Financial Statements

Using $2,540,000 as the cost of goods manufactured, compute the cost of goods sold using the following information. Raw materials inventory, January 1 \ 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 18,000 Work in process, December 31 12,000 Finished goods, January 1 40,000 Finished goods, December 31 32,000 Raw materials purchases 1,400,000 Direct labor 560,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000

Barton Company has beginning work in process inventory of $144,000 and total manufacturing costs of $686,000.If cost of goods manufactured is $640,000, what is the cost of the ending work in process inventory?

Dolan Company's accounting records reflect the following inventories: Dec. 31,2013 Dec. 31,2012 Raw materials inventory \ 310,000 \ 260,000 Work in process inventory 300,000 160,000 Finished goods inventory 190,000 150,000 During 2013, $600,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000. - Dolan Company's total manufacturing costs incurred in 2013 amounted to

Raw materials that can be conveniently and directly associated with a finished product are called materials overhead.

The beginning work in process inventory appears on both the balance sheet and the cost of goods manufactured schedule of a manufacturing company.

Managerial accounting does not encompass

The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead costs.

The function that pertains to keeping the activities of the enterprise on track is

Managerial accounting applies to all forms of business organizations.

Managerial accounting is primarily concerned with managers and external users.

What is work in process inventory generally described as?

The inventory accounts that show the cost of completed goods on hand and the costs applicable to production that is only partially completed are, respectively

The wages of a timekeeper in the factory would be classified as

Determining the unit cost of manufacturing a product is an output of financial accounting.

Internal reports are generally

For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to

In an analogous sense, external user is to internal user as generally accepted accounting principles are to

Managerial accounting information

For a manufacturing company, which of the following is an example of a period cost rather than a product cost?

The reporting standard for external financial reports is