Exam 1: Managerial Accounting Concepts and Principles

Waters, Inc. reported the following data regarding costs and inventories for the current year: beginning finished goods inventory, $5,000; cost of goods manufactured, $21,500; ending finished goods inventory, $4,000. Cost of goods sold for Waters, Inc. equals ________.

The following information pertains to the Frameworks Corporation for May. Calculate the cost of goods sold for the period:

Product costs can refer to expenditures necessary to finish products and to the administrative support during the time period.

All of the following statements regarding manufacturing costs are true except:

When the attitude of continuous improvement exists throughout an organization, every manager and employee is challenged to continuously experiment with new and improved business practices.

Prime costs consist of direct materials and direct labor.

Jenny, an employee of Toucan Company, used company assets for her own personal gain. This is an example of:

________ inventory consists of completed products ready for sale by a manufacturer.

Which of the following items is not a management concept that was created to improve companies' performances?

Information for Maxim Manufacturing is presented below. Compute both the cost of goods manufactured and the cost of goods sold for Maxim Manufacturing. Beginning raw materials inventory \ 36,800 Beginning work in process inventory 21,200 Direct labor 81,00 Beginning finished goods inventory 64,000 Total factory overhead 126,000 Raw materials purchased 21,500 Ending raw materials inventory 40,000 Ending work in process inventory 20,000 Ending finished goods inventory 46,000

What are prime costs? What are conversion costs?

Which of the following items appears only in a manufacturing company's financial statements?

The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the manufacturer includes cost of goods manufactured rather than cost of goods purchased.

Newly completed units are combined with beginning finished goods inventory to make up total ending work in process inventory.

Managerial accounting is an activity that helps managers determine costs of products and services, plan future activities, and compare actual to planned results.

Which of the following is not part of the production activity in the flow of manufacturing activities?

Information for Eastman Industries is presented below. Compute the cost of goods manufactured. Beginning work in process inventory 21,200 Ending work in process inventory 20,000 Raw materials used in production \ 46,800 Direct labor 81,000 Total factory overhead 106,000

Prime costs consist of direct labor and factory overhead.

Just-in-time manufacturing (JIT) is a system that acquires inventory and produces only when needed.

Information for Underwood Industries is presented below. Compute the cost of goods manufactured. Beginning Ending Raw materials inventory \ 26,800 30,100 Work in process inventory 41,200 39,000 Finished goods inventory 54,000 53,500 Raw materials purchased 93,500 Direct labor 61,000 Total factory overhead 117,300