Kyanite Corporation, a manufacturer reports costs for 2015 as follows: \[\begin{array} { | l | r | } \hline \text { Raw Materials } & \$ 50,000 \\ \hline \text { Wages to Line Workers } & 25,000 \\ \hline \text { Office Rent } & 14,000 \\ \hline \text { Indirect Materials } & 30,000 \\ \hline \end{array}\] How much is the total period costs of Kyanite?

A) $30,000 B) $80,000 C) $39,000 D) $14,000 A) $30,000 B) $80,000 C) $39,000 D) $14,000

Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information: \[\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 557,000 \\ \hline \text { Purchases (excluding freight in) } & 300,000 \\ \hline \text { Selling and Administrative Expenses } & 69,000 \\ \hline \text { Freight In } & 15,000 \\ \hline \text { Beginning Merchandise Inventory } & 45,000 \\ \hline \text { Ending Merchandise Inventory } & 55,700 \\ \hline \end{array}\] What is the cost of goods sold for 2015?

A) $360,000 B) $304,300 C) $358,300 D) $330,000 A) $360,000 B) $304,300 C) $358,300 D) $330,000

Amoeba Manufacturing Company provided the following information for the year 2015: \[\begin{array} { l | r | } \hline \text { Purchases-Raw Materials } & \$ 90,000 \\ \hline \text { Plant Utilities \& Insurance } & 67,500 \\ \hline \text { Indirect Materials } & 11,750 \\ \hline \text { Indirect Labor } & 4,750 \\ \hline \text { Direct Materials Used in Production } & 96,000 \\ \hline \text { Direct Labor } & 117,500 \\ \hline \text { Depreciation on Factory Plant \& Equipment } & 6,000 \\ \hline \text { Cost of Goods Manufactured } & 290,850 \\ \hline \text { Cost of Goods Sold } & 304,550 \\ \hline \end{array}\] The inventory account balances as of January 1st 2015 are given below. \[\begin{array} { | l | r | } \hline \text { Raw Materials Inventory } & \$ 42,000 \\ \hline \text { Work-in-Process Inventory } & 12,000 \\ \hline \text { Finished Goods Inventory } & 49,500 \\ \hline \end{array}\] What is the ending balance in the finished goods inventory?

A) $49,500 B) $63,200 C) $35,800 D) $24,650 A) $49,500 B) $63,200 C) $35,800 D) $24,650

Jasper Corporation reports the following cost information for March: \[\begin{array} { | l | r | } \hline \text { Cost of Goods Manufactured } & \$ 75,000 \\ \hline \text { Direct Materials Used } & 16,850 \\ \hline \text { Finished Goods Inventory, March 1 } & 4,500 \\ \hline \text { Finished Goods Inventory, March 31 } & 2,650 \\ \hline \text { Work-in-Process Inventory, March 1 } & 9,670 \\ \hline \text { Work-in-Process Inventory, March 31 } & 1,250 \\ \hline \text { Direct Labor } & 36,300\\ \hline \end{array}\] What is the amount of manufacturing overhead incurred by Jasper in March?

A) $20,000 B) $30,270 C) $13,430 D) $136,570 A) $20,000 B) $30,270 C) $13,430 D) $136,570

Best Company, a merchandiser, sells office supplies. The following information summarizes Best's operating activities during 2015: \[\begin{array} { | l | r | } \hline \text { Utilities Expense } & \$ 6,000 \\ \hline \text { Rent for Store Expense } & 8,000 \\ \hline \text { Sales Commissions Expense } & 4,500 \\ \hline \text { Purchases of Merchandise } & 54,000 \\ \hline \text { Inventory on January 1, 2015 } & 30,000 \\ \hline \text { Inventory on December 31, 2015 } & 20,500 \\ \hline \text { Sales Revenue } & 108,000 \\ \hline \end{array}\] Required: Prepare an income statement for Best Company for the year ended December 31, 2015, using the format below. \[\begin{array} { | l | l | l | } \hline \text { Sales Revenue } & & \\ \hline \text { Cost of Goods Sold } &\quad \quad \quad & \quad \quad\quad \\ \hline \text { Beginning Inventory } & & \\ \hline \text { Purchases } & & \\ \hline \text { Cost of Goods Available for Sale } & & \\ \hline \text { Ending Inventory } & & \\ \hline \text { Cost of Goods Sold } & & \\ \hline \text { Gross Profit } & & \\ \hline \text { Selling Expenses } & & \\ \hline \text { Sales Commissions Expense } & & \\ \hline \text { Administrative Expenses } & & \\ \hline \text { Rent Expense } & & \\ \hline \text { Utilities Expense } & & \\ \hline \text { Total Operating Expenses } & & \\ \hline \text { Operating Income } & & \\ \hline \end{array}\]

Sales Revenue @#LAT-DLM& @#LAT-DLM& @#LAT-DLM& @#LAT-DLM& @#LAT-DLM&$108,000 Cost of G

Barricades Corporation provided the following information for the year 2015: \[\begin{array} { | l | r | } \hline \text { Beginning Balance - Work-in-Process Inventory } & \$ 24,000 \\ \hline \text { Ending Balance - Work-in-Process Inventory } & 56,000 \\ \hline \text { Beginning Balance - Raw Materials Inventory } & 84,000 \\ \hline \text { Ending Balance - Raw Materials Inventory } & 60,000 \\ \hline \text { Purchases-Raw Materials } & 360,000 \\ \hline \text { Direct Labor } & 470,000 \\ \hline \text { Indirect Materials } & 47,000 \\ \hline \text { Indirect Labor } & 19,000 \\ \hline \text { Depreciation on Factory Plant \& Equipment } & 24,000 \\ \hline \text { Plant Utilities \& Insurance } & 270,000\\ \hline \end{array}\] What was the amount of manufacturing overhead costs?

A) $360,000 B) $313,000 C) $90,000 D) $336,000 A) $360,000 B) $313,000 C) $90,000 D) $336,000

Exam 18: Introduction to Managerial Accounting

Kyanite Corporation, a manufacturer reports costs for 2015 as follows: Raw Materials \ 50,000 Wages to Line Workers 25,000 Office Rent 14,000 Indirect Materials 30,000 How much is the total period costs of Kyanite?

(Multiple Choice)

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Question 61

Which of the following describes the cost of goods manufactured?

(Multiple Choice)

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Question 62

Management accounting information of a company is primarily used by:

(Multiple Choice)

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Question 63

In a manufacturing firm, administrative costs are included in period costs.

(True/False)

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Question 64

Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information: Sales Revenue \ 557,000 Purchases (excluding freight in) 300,000 Selling and Administrative Expenses 69,000 Freight In 15,000 Beginning Merchandise Inventory 45,000 Ending Merchandise Inventory 55,700 What is the cost of goods sold for 2015?

(Multiple Choice)

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Question 65

Wages and benefits of assembly line workers are period costs.

(True/False)

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Question 66

Amoeba Manufacturing Company provided the following information for the year 2015: Purchases-Raw Materials \ 90,000 Plant Utilities \& Insurance 67,500 Indirect Materials 11,750 Indirect Labor 4,750 Direct Materials Used in Production 96,000 Direct Labor 117,500 Depreciation on Factory Plant \& Equipment 6,000 Cost of Goods Manufactured 290,850 Cost of Goods Sold 304,550 The inventory account balances as of January 1^st 2015 are given below. Raw Materials Inventory \ 42,000 Work-in-Process Inventory 12,000 Finished Goods Inventory 49,500 What is the ending balance in the finished goods inventory?

(Multiple Choice)

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Question 67

Transportation costs paid to ship raw materials to a company warehouse are considered product costs.

(True/False)

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Question 68

Service companies include companies that provide health care, communication, banking, and other important benefits to society.

(True/False)

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Question 69

Sales commissions are included in manufacturing overhead.

(True/False)

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Question 70

Which of the following is the primary objective of managerial accounting?

(Multiple Choice)

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Question 71

Jasper Corporation reports the following cost information for March: Cost of Goods Manufactured \ 75,000 Direct Materials Used 16,850 Finished Goods Inventory, March 1 4,500 Finished Goods Inventory, March 31 2,650 Work-in-Process Inventory, March 1 9,670 Work-in-Process Inventory, March 31 1,250 Direct Labor 36,300 What is the amount of manufacturing overhead incurred by Jasper in March?

(Multiple Choice)

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Question 72

Amber Corporation has provided the following information of its operating activities for 2015: Merchandise Inventory, January 1, 2015 \ 150,000 Merchandise Inventory, December 31,2015 75,000 Purchases 854,000 Selling and Administrative Expenses 65,000 Sales Revenue 1,000,000 Required: Prepare Amber's income statement for the year ended December 31, 2015. Use the format provided 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 and Administrative Expenses Operating Income

(Essay)

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Question 73

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

(True/False)

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Question 74

Best Company, a merchandiser, sells office supplies. The following information summarizes Best's operating activities during 2015: Utilities Expense \ 6,000 Rent for Store Expense 8,000 Sales Commissions Expense 4,500 Purchases of Merchandise 54,000 Inventory on January 1, 2015 30,000 Inventory on December 31, 2015 20,500 Sales Revenue 108,000 Required: Prepare an income statement for Best Company for the year ended December 31, 2015, 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 Expense Administrative Expenses Rent Expense Utilities Expense Total Operating Expenses Operating Income

(Essay)

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Question 75

Product costs, such as factory overhead, should be treated as an asset until the product is sold.

(True/False)

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Question 76

Barricades Corporation provided the following information for the year 2015: Beginning Balance - Work-in-Process Inventory \ 24,000 Ending Balance - Work-in-Process Inventory 56,000 Beginning Balance - Raw Materials Inventory 84,000 Ending Balance - Raw Materials Inventory 60,000 Purchases-Raw Materials 360,000 Direct Labor 470,000 Indirect Materials 47,000 Indirect Labor 19,000 Depreciation on Factory Plant \& Equipment 24,000 Plant Utilities \& Insurance 270,000 What was the amount of manufacturing overhead costs?

(Multiple Choice)

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Question 77

Selling and administrative expenses are subtracted from the cost of goods sold to obtain operating profit.

(True/False)

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Question 78

The primary activity of manufacturing businesses is to purchase goods from a wholesaler and resell them.

(True/False)

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Question 79

Goods that are produced by a manufacturing company and are ready to sell are recorded in the:

(Multiple Choice)

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Question 80

Kyanite Corporation, a manufacturer reports costs for 2015 as follows: Raw Materials \ 50,000 Wages to Line Workers 25,000 Office Rent 14,000 Indirect Materials 30,000 How much is the total period costs of Kyanite?

Which of the following describes the cost of goods manufactured?

Management accounting information of a company is primarily used by:

In a manufacturing firm, administrative costs are included in period costs.

Wages and benefits of assembly line workers are period costs.

Transportation costs paid to ship raw materials to a company warehouse are considered product costs.

Service companies include companies that provide health care, communication, banking, and other important benefits to society.

Sales commissions are included in manufacturing overhead.

Which of the following is the primary objective of managerial accounting?

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

Product costs, such as factory overhead, should be treated as an asset until the product is sold.

Selling and administrative expenses are subtracted from the cost of goods sold to obtain operating profit.

The primary activity of manufacturing businesses is to purchase goods from a wholesaler and resell them.

Goods that are produced by a manufacturing company and are ready to sell are recorded in the:

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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