Exam 1: Introduction to Managerial Accounting

Given the following data: Cost of materials used                       $45,000 Direct labor costs                               48,000 Factory overhead                                39,000 Work in process, beginning                 28,000 Work in process, ending                     18,000 Finished goods, beginning                   28,000 Finished goods, ending                        18,000 What is cost of goods sold?

What is the purpose of the statement of cost of goods manufactured?

The plant manager's salary in a manufacturing business would be considered an indirect cost.

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Managers use managerial information to evaluate performance of a company's operation.

Indirect costs can be specifically traced to a cost object.

At the beginning of the current year, the Grant Company's work in process inventory account had a balance of $30,000.  During the year, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred.  Factory overhead for the year amounted to $90,000. Cost of goods manufactured is $230,000.  The balance in work in process inventory on December 31 is

All of the following would be reported on the balance sheet as a current asset except

Prime costs are

Sustainability information only benefits internal financial statement users in their decision making.

Another term for factory overhead is