Exam 15: Introduction to Managerial Accounting

Jensen Company reports the following: -Jensen Company's period costs are

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

The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Prime costs consist of factory overhead and direct labor.

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Managerial accounting uses only past data in reports to aid management in the decision-making process.

Work in process inventory on December 31 of the current year is $44,000. Work in process inventory increased by 60% during the year. Cost of goods manufactured amounts to $275,000. The total manufacturing costs incurred in the current year are

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

Match the items below to the appropriate term (a-d). -Sales supplies used A)Direct materials B)Selling and administrative expense C)Factory overhead D)Direct labor

Managerial accounting provides useful information to managers on product costs.

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

Match the items below to the appropriate term (a-d). -Insurance expired on factory equipment A)Direct materials B)Selling and administrative expense C)Factory overhead D)Direct labor

Taylor Industries had a fire and some of its accounting records were destroyed. Available information is presented below for the year ended December 31. Additional information: Factory overhead is 150% of direct labor cost.Finished goods inventory decreased by $18,000 during the year.Work in process inventory increased by $12,000 during the year.Determine: a. Materials inventory, January 1 b. Direct labor cost c. Factory overhead incurred d. Cost of goods sold

ShadyPalms Hotel has 100 rooms. During the month of February, it had 500 guests, each staying 5 nights. The occupancy rate for ShadyPalms Hotel for the month of February (not a leap year) was closest to

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

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

Which of the following is most associated with managerial accounting?

Match the items below to the type of cost (a or b). -Indirect materials used A)Product cost B)Period cost

Accounting designed to meet the needs of decision makers inside the business is