Exam 16: Introduction to Management Accounting

Which of the following is NOT a period cost?

Which of the following describes the term cost object?

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 corporate headquarters' property taxes?

Product costs, such as direct materials, are expensed during the period that they were incurred.

Management accounting is influenced significantly by rules of GAAP and guidelines of the Securities Exchange Commission.

Manufacturing overhead includes all manufacturing costs, such as direct labor and direct materials.

T-accounts for the inventory accounts of the Arturo Manufacturing Company are shown below. This data represents transactions for the year of 2012. -Based on the data shown here, what was the amount of direct materials used in production? (NOTE: This is not covered in Chapter 16.)

Wright Company reports production costs for 2012 as follows: Direct materials used \ 375,000 Direct labor incurred \ 250,000 Manufacturing overhead incurred \ 400,000 Operating expenses \ 145,000 - How much are Wright Company's inventoriable product costs for 2009?

Which of the following applies to goods that are partially completed?

Harrison Company reports the following cost information for August: Cost of goods manufactured \ 135,800 Manufacturing overhead 42,600 Work in process inventory, Aug. 1 22,500 Work in process inventory, Aug. 31 18,500 Direct labor incurred 63,900 - What is the amount of direct materials used by Harrison Company in August?

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

Financial reporting is typically much more detailed than managerial accounting.

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 gross profit for 2012?

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 -Arturo Manufacturing Company provided the What was the amount of manufacturing costs incurred during the year?

The wages and benefits of the factory manager are product costs.

Which of the following costs do NOT go directly into the work in process account?

Which of the following formulas represents cost of goods sold for a merchandising business?

Repair and maintenance costs of vehicles used to deliver products to the customers are included in manufacturing overhead.

T-accounts for the inventory accounts of the Arturo Manufacturing Company are shown below. This data represents transactions for the year of 2012. -Based on the data shown here, what was the amount of the cost of goods sold?