Exam 15: Introduction to Managerial Accounting

A diagram of the operating structure of an organization is called an organization chart.

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Sprinkles for decoration (indirect material) A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

Which of the following manufacturing costs is an indirect cost of producing a product?

Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current year. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of $7,900, and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance.​ Prepare a statement of cost of goods manufactured.

Manufacturers use machinery and labor to convert direct materials into finished products.

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given.a.Direct b.Indirect -The factory supervisor's salary for the bar stool factory

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Baker's wages A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

Match the items below for a bakery to the type of cost (a-d). -Cupcake mix A)Direct materials B)Direct labor C)Factory overhead D)Nonmanufacturing cost

Match the items below to the type of cost (a-c). -Office equipment depreciation A)Direct B)Indirect C)Neither direct nor indirect

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

Watson Company has the following data: Determine the amount of direct materials used.

Match the items below for a cake factory to the type of cost (a-c). -Sprinkles for the topping (considered an indirect material) A)Prime cost B)Conversion cost C)Both prime cost and conversion cost

Match the items below to the appropriate term (a-d). -Wages of assembly line personnel A)Direct materials B)Selling and administrative expense C)Factory overhead D)Direct labor

Match the items below to the appropriate term (a-d). -Cost of primary material used to make a product A)Direct materials B)Selling and administrative expense C)Factory overhead D)Direct labor

Nearly _____ of U.S. economic activity is represented by services.

Which of the following is the principal reason for preparing managerial accounting reports?

SunnyRest Hotel has 300 rooms. During the month of March, it had 7,200 guests, each staying a single night. The occupancy rate for SunnyRest Hotel for the month of March was closest to

Match the items below for a bakery to the type of cost (a-d). -Depreciation expense-factory A)Direct materials B)Direct labor C)Factory overhead D)Nonmanufacturing cost

Which of the following is not true with regard to direct materials for a bakery?

Match the items below for a lawn mower manufacturer to the type of cost (a-d). -Wheels A)Direct materials B)Direct labor C)Factory overhead D)Nonmanufacturing cost