Exam 16: Introduction to Management Accounting

At the beginning of 2011, the Taylor Company's work in process inventory account had a balance of $30,000. During 2011, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Manufacturing overhead in 2011 amounted to $90,000. The cost of goods manufactured was $220,000 in 2011. What is the balance in work in process inventory on December 31, 2011?

Repair and maintenance costs of vehicles used to deliver products to the customers are product costs.

The accountant for Spiral Supplies deliberately post-dated a check to pay for business expenses in order to record a higher net income for the company. As long as the amount was not material, this would not be considered unethical behavior.

Managerial accounting is focused on which of the following objectives?

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

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

You did not understand what the term accrual meant and failed to accrue the interest due at the end of the year on the company's bonds. Which IMA guideline has been violated?

The IMA standards of ethical practice provide that accountants should continually develop their knowledge and skills.

The following information has been provided by LeMaire Company: The beginning work in process was:

Excellent Company sells accounting textbooks. The following information summarizes Excellent's operating activities for 2012: Required: Prepare an income statement for the year ended December 31, 2012. Please use the format provided below, and include a vertical analysis showing percentages rounded to the nearest tenth of a percent.

For a manufacturing business, which of the following would be considered an inventoriable product cost?

Which of the following properly describes the accounting for indirect labor costs?

Manufacturing overhead includes indirect costs, such as insurance and depreciation on the factory building.

A manufacturer's inventory consists of merchandise inventory, work in process inventory, and finished goods inventory.

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

Budget preparation is a part of the planning process.

Management is accountable to its employees in which of the following ways?

Advertising and marketing costs are product costs.

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in manufacturing overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $21,000 respectively. What is the cost of goods manufactured?

Which of the following properly describes the accounting for corporate headquarters' property taxes?