Exam 1: Managerial Accounting Concepts and Principles

The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Duerr Company follows: Beginning raw materials inventory \ 8,000 Ending raw materials inventory 11,000 Raw material purchases 85,000 Beginning work in process inventory 20,000 Ending work in process inventory 30,000 Direct labor 110,000 Total factory overhead 85,000 Beginning finished goods inventory 60,000 Ending finished goods inventory 40,000 The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:

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

List the four goals of an internal control system.

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance.

________ reveals how many times a company uses its raw materials inventory in production during a period.

A National Quality Award that encourages an emphasis on quality was established by:

The main goal of the lean business model is the elimination of waste while satisfying the customer and providing a positive return to the company.

One of the main differences between the calculation of cost of goods sold for a merchandiser and that of a manufacturer is that the calculation includes cost of goods purchased for the merchandiser, but the manufacturer replaces that with ________.

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

Use the following data to compute total factory overhead costs for the month:

Using the information below for Singing Dolls, Inc., determine cost of goods manufactured for the year: Work in Process, January 1 50,000 Work in Process, December 31 37,000 Total Factory overhead 5,500 Direct materials used \ 12,500 Direct labor used 26,500

An employee overstates his reimbursable expenses in one period in order to receive needed additional cash. Since he intends to reduce his expenses the next period by the current overstatement, this act is not considered fraudulent.

The schedule of cost of goods manufactured is also known as a manufacturing statement.

The management concept of customer orientation motivates a company to spend large amounts on advertising to convince customers to buy the company's standard products.

A manufacturing firm's cost of goods manufactured is equivalent to a merchandising firm's:

Direct costs are incurred for the benefit of more than one cost object.

The ________ aids continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance along four dimensions: (1) financial, (2) customer, (3) internal business processes, and (4) learning and growth.

Beginning finished goods inventory plus cost of goods manufactured equals cost of goods sold.

Comet Company accumulated the following account information for the year: Beginning raw materials inventory $6,000 Indirect materials cost 2,000 Indirect labor cost 5,000 Maintenance of factory equipment 2,800 Direct labor cost 7,000 Using the above information, total factory overhead costs would be:

Beginning finished goods inventory plus cost of goods manufactured minus ending finished goods inventory equals cost of goods sold.