Exam 1: Introduction to Financial Statements

Which one of the following is not considered as material costs?

Which one of the following represents a period cost?

When the physical association of raw materials with the finished product is too small to trace in terms of cost, they are usually classified as indirect materials.

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is

Assuming the cost of direct materials used is $1,500,000, compute the total manufacturing costs using the information below. Raw materials inventory, January 1 \ 30,000 Raw materials inventory, December 31 60,000 Work in process, January 1 27,000 Work in process, December 31 18,000 Finished goods, January 1 60,000 Finished goods, December 31 48,000 Raw materials purchases 1,500,000 Direct labor 690,000 Factory utilities 225,000 Indirect labor 75,000 Factory depreciation 500,000 Operating expenses 630,000

On the costs of goods manufactured schedule, depreciation on factory equipment

Planning involves coordinating the diverse activities and human resources of a company to produce a smooth running operation.

Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

Given the following data for Glennon Company, compute (A) total manufacturing costs and (B) costs of goods manufactured: Direct materials used \ 270,000 Beginning work in process \ 40,000 Direct labor 200,000 Ending work in process 20,000 Manufacturing overhead 300,000 Beginning finished goods 50,000 Operating expenses 350,000 Ending finished goods 30,000 (A) (B) a. \ 750,000 \ 790,000 b. \ 770,000 \ 750,000 c. \ 770,000 \ 790,000 d. \ 790,000 \ 810,000

Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $816,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000.Worth Company's cost of goods sold for the year is

Benson Inc.'s accounting records reflect the following inventories: Dec. 31,2012 Dec. 31,2013 Raw materials inventory \ 80,000 \ 64,000 Work in process inventory 104,000 116,000 Finished goods inventory 100,000 92,000 During 2013, Benson purchased $1,160,000 of raw materials, incurred direct labor costs of $200,000, and incurred manufacturing overhead totaling $128,000. - Assume Benson's cost of goods manufactured for 2013 amounted to $1,360,000.How much would it report as cost of goods sold for the year?

Cost of goods manufactured in a manufacturing company is analogous to

The subtotal, "Cost of goods manufactured" appears on

Given the following data for Harder Company, compute cost of goods manufactured: Direct materials used \ 120,000 Beginning work in process \ 20,000 Direct labor 200,000 Ending work in process 10,000 Manufacturing overhead 150,000 Beginning finished goods 25,000 Operating expenses 175,000 Ending finished goods 15,000

Management accountants would not

Both direct labor cost and indirect labor cost are product costs.

Which of the following is not another name for the term manufacturing overhead?

Which of the following are period costs?

Assuming that the total manufacturing costs are $2,900,000, compute the cost of goods manufactured using the information below. Raw materials inventory, January 1 \ 30,000 Raw materials inventory, December 31 60,000 Work in process, January 1 27,000 Work in process, December 31 18,000 Finished goods, January 1 60,000 Finished goods, December 31 48,000 Raw materials purchases 1,500,000 Direct labor 690,000 Factory utilities 225,000 Indirect labor 75,000 Factory depreciation 500,000 Operating expenses 630,000

Benson Inc.'s accounting records reflect the following inventories: Dec. 31,2012 Dec. 31,2013 Raw materials inventory \ 80,000 \ 64,000 Work in process inventory 104,000 116,000 Finished goods inventory 100,000 92,000 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 is total manufacturing costs incurred during 2013 for Benson?