Question 1

The Darwin Company reports the following information:   Product costs are

Accepted Answer

A)  $24,500 
B)  $30,300 
C)  $29,200 
D)  $35,000 
A)  $24,500 
B)  $30,300 
C)  $29,200 
D)  $35,000 D

Question 2

All of the following could be considered a direct material except

Accepted Answer

A)  steel 
B)  fabric 
C)  glue 
D)  lumber 
A)  steel 
B)  fabric 
C)  glue 
D)  lumber C

Question 3

Classify the following costs as either a Product Cost or a Period Cost:

Accepted Answer

a) Product 
b) Product 
c) Period 
d) Product 
e) Product 
f) Period 
g) Product 
h) Period 
i) Product 
j) Product 
k) Product 
l) Product

Question 4

Which of the following costs are conversion costs?

Accepted Answer

A)  direct labor cost and factory overhead cost 
B)  direct materials cost and direct labor cost 
C)  factory overhead cost 
D)  direct materials cost and factory overhead cost 
A)  direct labor cost and factory overhead cost 
B)  direct materials cost and direct labor cost 
C)  factory overhead cost 
D)  direct materials cost and factory overhead cost

Question 5

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

Accepted Answer

A)  usefulness to management 
B)  cost of preparation 
C)  clarity 
D)  GAAP 
A)  usefulness to management 
B)  cost of preparation 
C)  clarity 
D)  GAAP

Question 6

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. What are the total manufacturing costs incurred in the current year?

Accepted Answer

A)  $291,500 
B)  $302,000 
C)  $275,750 
D)  $233,750 
A)  $291,500 
B)  $302,000 
C)  $275,750 
D)  $233,750

Question 7

Depreciation on factory plant and equipment is an example of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a prime cost?

Accepted Answer

A)  plant janitor's wages 
B)  direct labor wages 
C)  machine operator wages 
D)  assembly line wages 
A)  plant janitor's wages 
B)  direct labor wages 
C)  machine operator wages 
D)  assembly line wages

Question 9

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 10

Match between columns
                        Premises: Baker's wages
Cupcake mix
Factory rent
Sprinkles for decoration (indirect material)
Salesman commissions
Frosting
Depreciation expense-factory
Depreciation expense-office

Accepted Answer

The Answer of Conversion costs and Neither prime or conversion is...

Question 11

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

Accepted Answer

A)  general accounting 
B)  financial accounting 
C)  managerial accounting 
D)  external accounting 
A)  general accounting 
B)  financial accounting 
C)  managerial accounting 
D)  external accounting

Question 12

The following information is available for Carter Corporation: 
1) Materials inventory decreased $4,000. 
2) Materials inventory on December 31 was 50% of materials inventory on January 1. 
3) Beginning work in process inventory was $145,000. 
4) Ending finished goods inventory was $65,000. 
5) Purchases of direct materials were $154,700. 
6) Direct materials used were 2.5 times the cost of direct labor. 
7) Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $156,000 less than cost of goods sold. 
Compute: 
(a) Finished goods inventory on January 1 
(b) Work in process inventory on December 31 
(c) Direct labor incurred 
(d) Factory overhead incurred 
(e)  Materials inventory on January 1 
(f) M aterials inventory on December 31 
(g) Direct materials used

Accepted Answer

(a) Cost of goods sold = $246,400 + $156

Question 13

Period costs include

Accepted Answer

A)  current assets on the balance sheet 
B)  current liabilities on the balance sheet 
C)  operating costs that are shown on the income statement when products are sold 
D)  operating costs that are shown on the income statement in the period in which they are incurred 
A)  current assets on the balance sheet 
B)  current liabilities on the balance sheet 
C)  operating costs that are shown on the income statement when products are sold 
D)  operating costs that are shown on the income statement in the period in which they are incurred

Question 14

Given the following data:  
Direct materials used is

Accepted Answer

A)  $2,000 
B)  $4,000 
C)  $8,000 
D)  $14,000 
A)  $2,000 
B)  $4,000 
C)  $8,000 
D)  $14,000

Question 15

For a construction contractor, the wages of carpenters would be classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 16

The primary goal of managerial accounting is to provide information to

Accepted Answer

A)  investors 
B)  creditors 
C)  management 
D)  external auditors 
A)  investors 
B)  creditors 
C)  management 
D)  external auditors

Question 17

Cost of goods sold for a manufacturer equals cost of goods manufactured plus

Accepted Answer

A)  beginning work in process inventory less ending work in process inventory 
B)  ending work in process inventory less beginning work in process inventory 
C)  beginning finished goods inventory less ending finished goods inventory 
D)  ending finished goods inventory less beginning finished goods inventory 
A)  beginning work in process inventory less ending work in process inventory 
B)  ending work in process inventory less beginning work in process inventory 
C)  beginning finished goods inventory less ending finished goods inventory 
D)  ending finished goods inventory less beginning finished goods inventory

Question 18

The controller's staff often consists of several management accountants. All of the following would most likely be on the controller's staff except

Accepted Answer

A)  general accountants 
B)  budgets and budget analysts 
C)  investments and shareholder relations managers 
D)  cost accountants 
A)  general accountants 
B)  budgets and budget analysts 
C)  investments and shareholder relations managers 
D)  cost accountants

Question 19

Which of the following is not a factory overhead cost?

Accepted Answer

A)  materials used directly in the manufacturing process of the product 
B)  insurance on factory equipment 
C)  salaries of production supervisors 
D)  property tax on factory building 
A)  materials used directly in the manufacturing process of the product 
B)  insurance on factory equipment 
C)  salaries of production supervisors 
D)  property tax on factory building

Question 20

The Putney Company reports the following information:   
Compute: 
a) product costs 
b) period costs

Accepted Answer

a) product costs = $7,300 + $4

The Darwin Company reports the following information: Product costs are

All of the following could be considered a direct material except

Classify the following costs as either a Product Cost or a Period Cost:

Which of the following costs are conversion costs?

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

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. What are the total manufacturing costs incurred in the current year?

Depreciation on factory plant and equipment is an example of factory overhead cost.

Which of the following is not a prime cost?

Factory overhead includes all manufacturing costs except direct materials and direct labor.

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

Period costs include

Given the following data: Direct materials used is

For a construction contractor, the wages of carpenters would be classified as factory overhead cost.

The primary goal of managerial accounting is to provide information to

Cost of goods sold for a manufacturer equals cost of goods manufactured plus

The controller's staff often consists of several management accountants. All of the following would most likely be on the controller's staff except

Which of the following is not a factory overhead cost?

The Putney Company reports the following information: Compute: a) product costs b) period costs

Job Order Costing

Process Cost Systems

Activity Based Costing

Cost Volume Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

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Exam 1: Introduction to Managerial Accounting

The Darwin Company reports the following information: Product costs are

All of the following could be considered a direct material except

Classify the following costs as either a Product Cost or a Period Cost:

Which of the following costs are conversion costs?

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

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. What are the total manufacturing costs incurred in the current year?

Depreciation on factory plant and equipment is an example of factory overhead cost.

Which of the following is not a prime cost?

Factory overhead includes all manufacturing costs except direct materials and direct labor.

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

Period costs include

Given the following data: Direct materials used is

For a construction contractor, the wages of carpenters would be classified as factory overhead cost.

The primary goal of managerial accounting is to provide information to

Cost of goods sold for a manufacturer equals cost of goods manufactured plus

The controller's staff often consists of several management accountants. All of the following would most likely be on the controller's staff except

Which of the following is not a factory overhead cost?

The Putney Company reports the following information: Compute: a) product costs b) period costs

Job Order Costing

Process Cost Systems

Activity Based Costing

Cost Volume Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters