Exam 1: Managerial Accounting Concepts and Principles

Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines.

Which of the following represents the correct formula for calculating raw materials inventory turnover for a manufacturer?

Use the following data to compute total manufacturing costs for the month: Sales commissions ....................... \ 10,800 Direct labor 39,600 Indirect materials ......................... 15,200 Factory manager salaries 7,200 Factory supplies 9,000 Indirect labor 6,300 Depreciation-office equipment..................... 5,000 Direct materials .............. 40,500 Dorporate office salaries 42,500 Depreciation-factory equipment 7,500

Using the information below for Sundar Company; determine the total manufacturing costs added during the current year: Direct materials used \ 19,000 Direct labor used 24,500 Factory overhead 55,100 Beginning work in process 10,700 Ending work in process 11,300

An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:

Which of the following costs is not included in factory overhead?

A management concept based on an understanding of the changing wants and needs of customers, and which leads to flexible product designs and production processes, is called:

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Using the information below, compute the raw materials inventory turnover:

Total manufacturing costs incurred during the year do not include:

Information for Stanton, Inc., as of December 31 follows. Prepare a schedule of cost of goods manufactured for the year ended December 31.

The cost of workers who assist in, or supervise, the manufacturing process, not linked to specific units of product is called:

Using the information below for Sundar Company; determine the cost of goods manufactured during the current year: Direct materials used \ 19,000 Direct labor used 24,500 Factory overhead 55,100 Beginning work in process 10,700 Ending work in process 11,300

The schedule of cost of goods manufactured must be prepared monthly as it is a required general-purpose financial statement.

Labor costs that are clearly associated with specific units of product because the labor is used to convert raw materials into finished products are called:

A management concept that seeks to uncover and eliminate waste in all aspects of business activities is called:

Just-in-time manufacturing techniques can be useful in _____________ days' sales in raw materials inventory.

The Work in Process Inventory account is found only in the ledgers of manufacturing companies.

Asteroid Industries accumulated the following cost information for the year: Direct materials \ 16,000 Indirect materials 4,000 Indirect labor 8,500 Factory depreciation 12,800 Direct labor 37,000 Using the above information, total factory overhead costs would be:

Using the information below, calculate cost of goods sold for the period: