Exam 16: Introduction to Managerial Accounting

Manufacturing companies have inventory accounts,but merchandising companies do not.

Miguel,a manager for Sierra Company,is inspecting the reports provided by his company's accounting department.He wants to decide how to schedule his department's employees in production next week.Miguel is examining ________.

Manufacturing overhead is also referred to as ________.

Rossi,Inc.sells plasticware.The following information summarizes Rossi's operating activities for the year: Utilities Expense \ 65,000 Rent Expense 10,000 Sales Commissions Expense 32,500 Purchases of Merchandise 260,000 Merchandise Inventory on Jantuary 1 65,000 Merchandise Inventory on December 31 97,500 Sales Revenue 650,000 Prepare an income statement for Rossi,Inc.,a merchandiser,for the year ended December 31 using the format below.Include a proper heading. 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

Indirect materials costs are included in manufacturing overhead.

Classify each cost of a furniture manufacturer as either a product cost (PR)or a period cost (PE). Cost PR or PE Vice president of marketing's salary Delivery expense Wood used to make dining tables Depreciation on office equipment Production supervisor's salary Factory insurance Corporate office rent

Which of the following functions might be classified as a staff position as opposed to a line position?

Direct costs and indirect costs can be easily traced directly to a cost object.

Which of the following is a product cost?

A diagram that shows the relationships between departments and divisions,and the managers that are responsible for each section is called a(n)________.

The value chain includes both the upstream and downstream activities of a business.

Given the following information,determine the cost of goods manufactured. Direct Labor Incurred \ 62,000 Manufacturing Overhead Incurred 177,000 Direct Materials Used 151,000 Finished Goods Inventory, Jan. 1 197,000 Finished Goods Inventory, Dec. 31 99,000 Work-in-Process Inventory, Jan. 1 221,000 Work-in-Process Inventory, Dec. 31 108,000

Which of the following would be considered a period cost for a manufacturing company?

Unlike merchandising companies,income statements of service companies include cost of goods sold as a line item.

Stone Beauty,Inc.is a merchandiser of stone ornaments.The company sold 8000 units during the year.The company has provided the following information: Sales Revenue \ 559,000 Purchases (excluding freight in) 303,000 Selling and Administrative Expenses 67,000 Freight In 14,000 Beginning Merchandise Inventory 46,000 Ending Merchandise Inventory 43,000 What is the cost of goods available for sale for the year?

How does a manufacturing company calculate unit product cost? Why do managers need to know the unit product cost?

The following information relates to Carried Away Hot Air Balloons,Inc.: Advertising Costs \ 10,400 Sales Salary 13,800 Sales Revenue 630,000 President's Salary 52,000 Office Rent 67,000 Manufacturing Equipment Depreciation 3000 Indirect Materials Used 6600 Indirect Labor 13,300 Factory Repair and Maintenance 820 Direct Materials Used 31,070 Direct Labor 31,900 Delivery Vehicle Depreciation 810 Administrative Salaries 24,700 How much was Carried Away's manufacturing overhead?

Monitoring operations and keeping the company on track is part of the ________.

Lakeshore Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 30,000 Beginning Finished Goods Inventory 17,000 Ending Finished Goods Inventory 11,500 Cost of Goods Manufactured 12,600 Compute gross profit.

Which of the following would be considered a direct labor cost for a manufacturing company?