Exam 1: Managerial Accounting Concepts and Principles

If beginning and ending work in process inventories are $5,000 and $15,000, respectively, and cost of goods manufactured is $170,000, what is the total manufacturing cost for the period?

To be certified under ISO 9000 standards, companies must use a quality control system and document that it achieves the desired quality level.

________ is the deliberate misuse of the employer's assets for the employee's personal gain.

Using the information below, compute the Days' sales in raw materials inventory:

Using the information below, compute the Days' sales in raw materials inventory:

Last year, Wesson Company sold 10,000 units of its only product. If sales increase by 12% in the current year, how will unit variable cost and unit fixed cost be affected?

Adopting a lean business model should have no effect on cost in a modern manufacturing environment.

Current information for the Healey Company follows: Beginning raw materials inventory \ 15,200 Raw material purchases 60,000 Ending raw materials inventory 16,600 Beginning work in process inventory 22,400 Ending work in process inventory 28,000 Direct labor 42,800 Total factory overhead 30,000 All raw materials used were traceable to specific units of product. Healey Company's total manufacturing costs for the year are:

Explain what is meant by the "lean business model" and why many businesses have adopted it.

Walter Products and Sandburg Industries report the following information at December 31: Required: (a) Which company is a manufacturer? Explain. (b) Prepare the Current Asset Section of the Balance Sheet for the manufacturer.

A fixed cost:

A company's prime costs total $3,000,000 and its conversion costs total $7,000,000. If direct materials are $1,000,000 and factory overhead is $5,000,000, then direct labor is:

Using the information below, calculate net income for the period: Sales reverues for the period \ 1,304,000 Operating expenses for the period 239,000 Finished Goods Irventory, Jaruary 1 Finished Goods Irventory, Decernber 31 41,000 Cost of goods marufactured for the period 540,000

An employee is dissatisfied with the resolution of an ethical conflict with his supervisor at his place of employment. According to the Institute of Management Accountants, the employee's next step should be to:

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

A lean business model aims to eliminate waste while satisfying the customer and providing a positive return to the company.

The Tacky Company manufactures staples. Costs for October were direct labor, $84,000; indirect labor, $36,700; direct materials, $55,900; factory maintenance, $4,800; factory utilities, $3,200; and insurance on plant and equipment, $700. What is Tacky Company's factory overhead for October?

Which one of the following items is normally not a manufacturing cost?

The process of identifying costs as direct or indirect is referred to as classifying costs by ________.

Four factors come together in production activity: beginning work in process inventory, raw materials, direct labor, and factory overhead.