Question 1

What are period costs?

Accepted Answer

"Period costs are expensed in the period

Question 2

Manufacturing firms and merchandising firms generally include all the same expenses as product costs.

Accepted Answer

A) True 
 B)False

Question 3

Work in Process Inventory was $4,000 at the beginning of the period, and $5,000 at the end of the period. Total Manufacturing costs for the period were $27,500. Cost of Goods Sold for the period was $35,000. 
If the beginning balance of Finished Goods Inventory was $10,000, what is the ending balance in Finished Goods Inventory?

Accepted Answer

Ending Finished Goods Inventory
= Beginn

Question 4

Because the cost of Indirect Materials is included in Manufacturing Overhead, these materials are not included in Materials Inventory.

Accepted Answer

A) True 
 B)False

Question 5

Mabel's Tees (MT) is a sole proprietorship owned and operated by Mabel Taylor. MT's takes plain t-shirts and prints or sews logos and designs on them for customers. Taylor is required to file financial statements with her bank each month in order to keep the company's credit line open. MT reported the following results for March:
   The bank is especially concerned about the Working Capital ratio, so they want to be sure that MT is reporting its assets fairly.
What was MT's Ending Work in Process Inventory for the period?

Accepted Answer

Direct Materials Used = Beginning RM + P

Question 6

Cost of goods manufactured = Ending Work in Process + Beginning Work in Process - Total Manufacturing Costs.

Accepted Answer

A) True 
 B)False

Question 7

Quincy Manufacturing, Inc. makes kitchen appliance replacement parts. In May, Quincy produced 2000 units. Costs incurred were as follows:
  Given this data, the per-unit Conversion Cost for the month of May was:

Accepted Answer

A)  $12 
B)  $30 
C)  $70 
D)  $72 
E)  $62 
A)  $12 
B)  $30 
C)  $70 
D)  $72 
E)  $62

Question 8

What is the entry to record the incurrence of factory payroll?

Accepted Answer

Work in Process Inve

Question 9

Finished Goods inventory includes all items that have been completed but have not yet been sold to customers.

Accepted Answer

A) True 
 B)False

Question 10

Cost of Goods Sold can be calculated in the following manner:

Accepted Answer

A)  Beginning Work in Process + Cost of Goods Manufactured - Ending Work in Process 
B)  Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods 
C)  Ending Materials Inventory + Ending Work in Process + Ending Finished Goods 
D)  Ending Finished Goods - Beginning Finished Goods - Manufacturing Overhead 
A)  Beginning Work in Process + Cost of Goods Manufactured - Ending Work in Process 
B)  Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods 
C)  Ending Materials Inventory + Ending Work in Process + Ending Finished Goods 
D)  Ending Finished Goods - Beginning Finished Goods - Manufacturing Overhead

Question 11

What type of inventory accounts are usually found on the financial statements of service firms?

Accepted Answer

"Service firms typically have

Question 12

Which of the following are not included in the Work in Process Inventory?

Accepted Answer

A)  Direct Materials that have been put into production 
B)  Direct Labor incurred in production 
C)  Manufacturing Overhead allocated to units of production 
D)  All of the above are included in Work in Process Inventory 
A)  Direct Materials that have been put into production 
B)  Direct Labor incurred in production 
C)  Manufacturing Overhead allocated to units of production 
D)  All of the above are included in Work in Process Inventory

Question 13

Rebel Sound Inc. produced 30,000 audio devices last month. Rebel started the month with $10,000 worth of inventory in Finished Goods. The company incurred $15,000 of various utility and rent charges on their factory, paid $50,000 for raw materials to use in production, and paid employees $60,000 in wages. During the month, inventory costing $120,000 was completed and transferred to the Finished Goods Inventory. At the end of the month, Rebel had $5,000 of Inventory in Finished Goods, $6,000 in Materials Inventory, and $24,000 still in Work in Process. 
What was Rebel's Cost of Goods Sold for the month?

Accepted Answer

Cost of Goods Sold =
Beginning

Question 14

Service firms generally include which of the following as product or job costs:

Accepted Answer

A)  Supervisor salaries 
B)  Direct labor wages 
C)  Utilities 
D)  Service firms do not track job costs 
A)  Supervisor salaries 
B)  Direct labor wages 
C)  Utilities 
D)  Service firms do not track job costs

Question 15

Cost of Goods Manufactured is the cost of items transferred from Work in Process Inventory to Finished Goods Inventory.

Accepted Answer

A) True 
 B)False

Question 16

Where does the Cost of Goods Sold for a period appear on a company's financial statements?

Accepted Answer

On the Inc

Question 17

What is the entry to record factory equipment depreciation?

Accepted Answer

Manufacturing Overhe

Question 18

What is the entry to record the use of materials (direct and indirect) in production?

Accepted Answer

Work in Process Inve

Question 19

A variable cost is one that varies both in total (with respect to the amount of items produced) and per unit.

Accepted Answer

A) True 
 B)False

Question 20

Service firms typically do not have a Finished Goods Inventory.

Accepted Answer

A) True 
 B)False

What are period costs?

Manufacturing firms and merchandising firms generally include all the same expenses as product costs.

Because the cost of Indirect Materials is included in Manufacturing Overhead, these materials are not included in Materials Inventory.

Cost of goods manufactured = Ending Work in Process + Beginning Work in Process - Total Manufacturing Costs.

Quincy Manufacturing, Inc. makes kitchen appliance replacement parts. In May, Quincy produced 2000 units. Costs incurred were as follows: Given this data, the per-unit Conversion Cost for the month of May was:

What is the entry to record the incurrence of factory payroll?

Finished Goods inventory includes all items that have been completed but have not yet been sold to customers.

Cost of Goods Sold can be calculated in the following manner:

What type of inventory accounts are usually found on the financial statements of service firms?

Which of the following are not included in the Work in Process Inventory?

Service firms generally include which of the following as product or job costs:

Cost of Goods Manufactured is the cost of items transferred from Work in Process Inventory to Finished Goods Inventory.

Where does the Cost of Goods Sold for a period appear on a company's financial statements?

What is the entry to record factory equipment depreciation?

What is the entry to record the use of materials (direct and indirect) in production?

A variable cost is one that varies both in total (with respect to the amount of items produced) and per unit.

Service firms typically do not have a Finished Goods Inventory.

Overview of Managerial Accounting

Cost Accounting Systems: Job Order Costing

Cost Accounting Systems: Process Costing

Activity-Based Costing

Cost-Volume-Profit Relationships

Variable Costing: A Tool for Decision Making

Relevant Costs and Short-Term Decision Making

Planning and Budgeting

Standard Costing and Variance Analysis

Flexible Budgets, Segment Analysis, and Performance Reporting

Capital Budgeting

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Appendix: Accounting and the Time Value of Money

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Exam 2: Managerial Accounting Concepts and Cost Flows

What are period costs?

Manufacturing firms and merchandising firms generally include all the same expenses as product costs.

Because the cost of Indirect Materials is included in Manufacturing Overhead, these materials are not included in Materials Inventory.

Cost of goods manufactured = Ending Work in Process + Beginning Work in Process - Total Manufacturing Costs.

Quincy Manufacturing, Inc. makes kitchen appliance replacement parts. In May, Quincy produced 2000 units. Costs incurred were as follows: Given this data, the per-unit Conversion Cost for the month of May was:

What is the entry to record the incurrence of factory payroll?

Finished Goods inventory includes all items that have been completed but have not yet been sold to customers.

Cost of Goods Sold can be calculated in the following manner:

What type of inventory accounts are usually found on the financial statements of service firms?

Which of the following are not included in the Work in Process Inventory?

Service firms generally include which of the following as product or job costs:

Cost of Goods Manufactured is the cost of items transferred from Work in Process Inventory to Finished Goods Inventory.

Where does the Cost of Goods Sold for a period appear on a company's financial statements?

What is the entry to record factory equipment depreciation?

What is the entry to record the use of materials (direct and indirect) in production?

A variable cost is one that varies both in total (with respect to the amount of items produced) and per unit.

Service firms typically do not have a Finished Goods Inventory.

Overview of Managerial Accounting

Cost Accounting Systems: Job Order Costing

Cost Accounting Systems: Process Costing

Activity-Based Costing

Cost-Volume-Profit Relationships

Variable Costing: A Tool for Decision Making

Relevant Costs and Short-Term Decision Making

Planning and Budgeting

Standard Costing and Variance Analysis

Flexible Budgets, Segment Analysis, and Performance Reporting

Capital Budgeting

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Appendix: Accounting and the Time Value of Money

Filters