Exam 1: Managerial Accounting Concepts and Principles

A ________ cost changes in total in proportion to changes in the volume of activity.

Product costs:

Just-in-time manufacturing (JIT) focuses on quality improvement and applies this standard to all aspects of business activities.

An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:

Using the information below, calculate gross profit for the period:

The following items for Neptune Company are used to compute the cost of goods manufactured and the cost of goods sold. Indicate how each item should be used in the calculations by filling in the blanks with "+" if the item is to be added, "-" if the item is to be subtracted, or "0" if the item is not used in the calculation. The first item is completed as an example. Cost of Goods Cost of Goods Beginning finished goods inventory Manufactured Sold Ending finished goods inventory 0 + Direct labor Indirect labor Beginning work in process inventory Ending work in process inventory General and administrative expenses Indirect materials Beginning raw materials inventory Ending raw materials inventory Raw material purchases Depreciation of factory building Cost of goods manufactured

Brotherton Company is a manufacturer of Blu-ray discs. Place each of the following costs in the appropriate column.

The cost of partially completed products is included in the balance of the Work in Process Inventory account.

The following information is available for the year ended December 31: Beginning raw materials inventory \ 11,000 Raw materials purchases 86,000 Ending raw materials inventory 10,400 Manufacturing supplies expense 900 The amount of raw materials used in production for the year is:

Using the information below, calculate gross profit for the period: Sales revenues for the period \1 ,304,000 Operating expenses for the period Finished Goods Irventory, Jaruary 1 Finished Goods Irventory, December 31 41,000 Cost of goods marufactured for the period 540,000

Use the following information to prepare the schedule of cost of goods manufactured for Graffstone Company for the month ended June 30. Work in Process inventory, May 31 \ 12,600 Work in Process inventory, June 30 16,500 Direct materials used during June 21,000 Direct labor used during June 31,000 Factory overhead: Indirect material 6,400 Indirect labor 9,200 Factory rent 12,000 Factory depreciation 15,000 Factory utilities 18,400

Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

Use the following information to compute the cost of goods manufactured. Assume that all raw materials used were traceable to specific units of product. Beginning raw materials \ 5,500 Ending raw materials 4,000 Direct labor 12,250 Raw material purchases 7,400 Depreciation on factory equipment 6,500 Factory repairs and maintenance 3,300 Beginning finished goods inventory 10,200 Ending finished goods inventory 8,900 Beginning work in process inventory 5,700 Ending work in process inventory 6,300

The three major cost components of manufacturing a product are:

A manufacturer's inventory that is not completely finished is called ________ .

Martinez Company makes leather cowboy hats. Each hat requires ½ yard of leather to produce. On December 31, 2014, the company had (a) 75 hats in Finished Goods Inventory and (b) 60 yards of leather at a cost of $12 per yard in Raw Materials Inventory. During 2015, the company purchased 850 more yards of leather at $12 per yard and manufactured 1,600 hats. Determine the unit and dollar amounts of Raw Materials Inventory in leather at December 31, 2015.

The purpose of managerial accounting information is to help ________ users make decisions while the purpose of financial accounting is to help ________ users make decisions.

Total quality management and just-in-time manufacturing focus on quality improvement as well as on time customer deliveries.

For product costs associated with a particular product to be reported on the income statement:

Which of the following items does not represent a difference between financial and managerial accounting?