Exam 1: Introduction to Managerial Accounting

The following information is taken from the financial records of Gunner Manufacturing: Cost of materials used                  $45,000 Direct labor costs                           48,000 Factory overhead                            39,000 Work in process, beginning             18,000 Work in process, ending                 28,000 What is the cost of goods manufactured?

Identify the following costs as a (a) Product Cost or (b) Period Cost for a cake factory. 1. _____ Frosting 2. _____ Baker's wages 3. _____ Advertising fees 4. _____ Transportation out

In most business organizations, the chief accountant is called the treasurer.

Product costs include direct labor and advertising expense.

Finished goods inventory is reported on the

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

A staff department has no direct authority over a line department.

Managerial accounting reports are designed to meet the specific needs of a company's management.

Prime costs consist of factory overhead and direct labor.

A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report.

What is the primary criterion for the preparation of managerial accounting reports?

The Zoe Corporation has the following information for the month March. Determine: (a) cost of goods manufactured (b) cost of goods sold

Which of the following will not be found on the balance sheet of a manufacturing company?

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

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs during the period.  If beginning and ending work in process inventories were $28,000 and $32,000, respectively, the cost of goods manufactured was

The controller's staff consists of management accountants responsible for systems and procedures, general accounting, budgets, taxes, and cost accounting.

Work in process inventory on December 31 is $42,000.  Work in process inventory decreased by 40% during the year.  Total manufacturing costs incurred amount to $260,000.  What is the cost of goods manufactured?

Product costs are not expensed until the product is sold.

Factory overhead is an example of a product cost.

All of the following are examples of indirect labor except