Exam 16: Introduction to Management Accounting

The wages and benefits of the factory janitors are included in manufacturing overhead.

The following information was obtained from Sizzler Company: • Advertising costs: $7,900 • Indirect labor: $9,000 • Direct Labor: $31,000 • Indirect materials: $7,200 • Direct materials: $47,000 • Factory utilities: $3,000 • Factory repair and maintenance: $700 • Factory janitorial costs: $1,900 • Manufacturing equipment depreciation: $1,600 • Delivery vehicle depreciation: $790 • Administrative wages and salaries: $19,000 - How much was Sizzler's factory overhead?

Financial accounting is focused on which of the following objectives?

Which of the following is NOT an objective of management accounting?

The following information was obtained from Sizzler Company: • Advertising costs: $7,900 • Indirect labor: $9,000 • Direct Labor: $31,000 • Indirect materials: $7,200 • Direct materials: $47,000 • Factory utilities: $3,000 • Factory repair and maintenance: $700 • Factory janitorial costs: $1,900 • Manufacturing equipment depreciation: $1,600 • Delivery vehicle depreciation: $790 • Administrative wages and salaries: $19,000 - How much were Sizzler's period costs?

The following information was obtained from Fizz Company: • Advertising costs: $9,900 • Indirect labor: $11,000 • CEO's salary: $49,000 • Direct Labor: $41,000 • Indirect materials: $7,900 • Direct materials: $61,000 • Factory utilities: $700 • Factory janitorial costs: $2,300 • Manufacturing equipment depreciation: $2,100 • Delivery vehicle depreciation: $1,100 • Administrative wages and salaries: $21,000 How much were Fizz's inventoriable product costs?

Factory rent, taxes and insurance are product costs.

Manufacturing businesses have inventory accounts, but service and merchandising businesses do not.

Which of the following describes the cost of goods manufactured?

Which of the following events would NOT be considered unethical under IMA standards?

Which of the following are period costs?

The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012. Purchases \ 126,000 Selling and Administrative Expenses 90,000 Merchandise inventory, 1/1/2012 14,000 Merchandise inventory, 12/31/2012 10,000 Sales Revenue 250,000 - What is the operating income for 2012?

Best Company sells office supplies. The following information summarizes Best's operating activities for 2012: Utilities for store \ 6,000 Rent for store \ 8,000 Sales commissions \ 4,500 Purchases of merchandise \ 54,000 Inventory on January 1,2012 \ 30,000 Inventory on December 31,2012 \ 20,500 Sales revenue \ 108,000 Required: Prepare an income statement for Best Company, a merchandiser, for the year ended December 31, 2012.using the format below. Please include a vertical analysis rounded to the nearest tenth of a percent. Sales revenue Cost of goods sold Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of goods sold Gross profit Selling expenses Sales commissions General expenses Rent expense Utilities expense Total operating expenses Net income/(loss)

Which of the following properly describes the accounting for factory depreciation?

All of the following are examples of manufacturing overhead EXCEPT for:

following information for the year 2012: Beginning balance-work in process inventory \ 12,000 Ending balance-work in process inventory \ 28,000 Beginning balance-direct materials inventory \ 42,000 Ending balance-direct materials inventory \ 30,000 Purchases-direct materials \ 180,000 Direct labor \ 235,000 Indirect materials \ 23,500 Indirect labor \ 9,500 Depreciation on factory plant \& equipment \ 12,000 Plant utilities \& insurance \ 135,000 - What was the amount of the cost of goods manufactured for the year?

following information for the year 2012: Beginning balance-work in process inventory \ 12,000 Ending balance-work in process inventory \ 28,000 Beginning balance-direct materials inventory \ 42,000 Ending balance-direct materials inventory \ 30,000 Purchases-direct materials \ 180,000 Direct labor \ 235,000 Indirect materials \ 23,500 Indirect labor \ 9,500 Depreciation on factory plant \& equipment \ 12,000 Plant utilities \& insurance \ 135,000 - Please refer to the T-accounts below which show the beginning balances for the year. Use the T-accounts to record the transactions for the year. What is the ending balance in the Direct materials account?

Which of the following costs would appear on the income statements for both a merchandiser and a manufacturer?

Best Company sells office supplies. The following information summarizes Best's operating activities for 2012: Utilities for store \ 6,000 Rent for store \ 8,000 Sales commissions \ 4,500 Purchases of merchandise \ 54,000 Inventory on January 1,2012 \ 30,000 Inventory on December 31,2012 \ 20,500 Sales revenue \ 108,000 - Required: Prepare an income statement for Best Company, a merchandiser, for the year ended December 31, 2012.using the format below: Sales revenue Cost of goods sold Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of goods sold Gross profit Selling expenses Sales commissions General expenses Rent expense Utilities expense Total operating expenses Net income/(loss)

Which of the following is an inventory account for a merchandise company?