Five Seasons is a merchandiser of packed foods.The company provides the following information for the year: \[\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 145,000 \\ \hline \text { Cost of Goods Sold } & 64,000 \\ \hline \text { Operating Expenses } & 67,000 \\ \hline \text { Net Income } & 14,000 \\ \hline \text { Number of Units Sold } & 29,000\\\hline \end{array}\] How much was the unit cost per item of product sold? (Round your answer to the nearest cent.)

A) $4.52 B) $5.00 C) $2.21 D) $100.48 A) $4.52 B) $5.00 C) $2.21 D) $100.48

For each of the following,indicate whether the statement relates to managerial accounting (MA)or financial accounting (FA): \[\begin{array} { | l | l | } \hline \textbf { Statement } & \begin{array} { c } \textbf { Applies to } \\ \textbf { MA or FA } \end{array} \\ \hline \begin{array} { l } \text { How reports will affect employee behavior is a } \\ \text { concern. } \end{array} & \\ \hline \text { Summary reports are prepared primarily on the } \\ \text { company as a whole, usually on a quarterly or annual } \\ \text { basis. } & \\ \hline \text { Relevant information and focus on the future. } & \\ \hline \text { Primary users include investors, creditors, and } & \\ \text { government authorities. } & \\ \hline \text { There is no requirement to follow GAAP. } & \\ \hline \end{array}\]

\[\begin{array} { | l | c | } \hline \t

Beckett,Inc.reports the following cost information for March: $\begin{array}{|l|r|} \hline\text { Cost of Goods Manufactured } & \$ 75,000 \\ \hline \text { Manufacturing Overhead } & 19,000 \\ \hline \text { Finished Goods Inventory, March 1 } & 5000 \\ \hline \text { Finished Goods Inventory, March 31 } & 2000\\\hline \text { Work-in-Process Inventory, March 1 } & 9980 \\ \hline \text { Work-in-Process Inventory, March 31 } & 1160 \\ \hline \text { Direct Materials Used } & 25,400\\\hline \end{array}$ What is the amount of direct labor incurred by Beckett,Inc.in March?

A) $66,180 B) $6400 C) $75,000 D) $21,780 A) $66,180 B) $6400 C) $75,000 D) $21,780

Fontana Manufacturing provided the following information for the month ended March 31: $\begin{array}{|l|r|} \hline\text { Sales Revenue } & \$ 26,000 \\ \hline \text { Beginning Finished Goods Inventory } & 8000 \\ \hline \text { Ending Finished Goods Inventory } & 13,500 \\ \hline \text { Cost of Goods Manufactured } & 15,600\\\hline \end{array}$ Compute cost of goods available for sale.

A) $15,600 B) $29,100 C) $23,600 D) $10,100 A) $15,600 B) $29,100 C) $23,600 D) $10,100

Belstone,Inc.is a merchandiser of stone ornaments.It sold 15,000 units during the year.The company has provided the following information: \[\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 525,000 \\ \hline \text { Purchases (excluding Freight In) } & 347,000 \\ \hline \text { Selling and Administrative Expenses } & 36,500 \\ \hline \text { Freight In } & 15,500 \\ \hline \text { Beginning Merchandise Inventory } & 42,000 \\ \hline \text { Ending Merchandise Inventory } & 55,500 \\ \hline \end{array}\] How much is the gross profit for the year?

A) $212,500 B) $349,000 C) $176,000 D) $178,000 A) $212,500 B) $349,000 C) $176,000 D) $178,000

Garrett Corporation provided the following information for the year: $\begin{array}{|l|r|} \hline \text { Beginning Balance - Work-in-Process Inventory } & \$ 27,000 \\ \hline \text { Ending Balance - Work-in-Process Inventory } & 56,000 \\ \hline \text { Beginning Balance - Direct Materials } & 83,000 \\ \hline \text { Ending Balance - Direct Materials } & 60,000 \\ \hline \text { Purchases - Direct Materials } & 360,000 \\\hline \text { Direct Labor } & 471,000 \\ \hline \text { Indirect Labor } & 18,000 \\ \hline \text { Depreciation on Factory Plant and Equipment } & 25,000 \\ \hline \text { Plant Utilities and Insurance } & 271,000\\ \hline \end{array}$ What was the amount of direct materials used in production during the year?

A) $66,000 B) $360,000 C) $383,000 D) $831,000 A) $66,000 B) $360,000 C) $383,000 D) $831,000

Crabapples,Inc.purchases and sells boxes of dried fruit.The following information summarizes its operating activities for the year: \[\begin{array} { | l | r | } \hline \text { Selling Expenses } & \$ 10,000 \\ \hline \text { Merchandise Inventory on December 31 } & 32,000 \\ \hline \text { Merchandise Inventory on January 1 } & 46,000 \\ \hline \text { Purchases of merchandise } & 82,500 \\ \hline \text { Rent for store } & 12,700 \\ \hline \text { Sales commissions } & 7100 \\ \hline \text { Sales revenue } & 168,000 \\ \hline \end{array}\] What is the cost per box of dry fruits if Crabapples sold 4000 boxes of dry fruit during the year? (Round your answer to the nearest cent.)

A) $8.00 B) $42.00 C) $32.13 D) $24.13 A) $8.00 B) $42.00 C) $32.13 D) $24.13

Exam 16: Introduction to Managerial Accounting

Five Seasons is a merchandiser of packed foods.The company provides the following information for the year: Sales Revenue \ 145,000 Cost of Goods Sold 64,000 Operating Expenses 67,000 Net Income 14,000 Number of Units Sold 29,000 How much was the unit cost per item of product sold? (Round your answer to the nearest cent.)

(Multiple Choice)

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Question 81

For each of the following,indicate whether the statement relates to managerial accounting (MA)or financial accounting (FA): Statement Applies to MA or FA How reports will affect employee behavior is a concern. Summary reports are prepared primarily on the company as a whole, usually on a quarterly or annual basis. Relevant information and focus on the future. Primary users include investors, creditors, and government authorities. There is no requirement to follow GAAP.

(Essay)

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Question 82

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

(True/False)

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Question 83

Which of the following is one of the key standards of ethical practice published by the Institute of Management Accountants (IMA)?

(Multiple Choice)

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Question 84

In a manufacturing company,wages and benefits of assembly line workers are included in manufacturing overhead.

(True/False)

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Question 85

Which of the following is a focus of managerial accounting?

(Multiple Choice)

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Question 86

Beckett,Inc.reports the following cost information for March: Cost of Goods Manufactured \ 75,000 Manufacturing Overhead 19,000 Finished Goods Inventory, March 1 5000 Finished Goods Inventory, March 31 2000 Work-in-Process Inventory, March 1 9980 Work-in-Process Inventory, March 31 1160 Direct Materials Used 25,400 What is the amount of direct labor incurred by Beckett,Inc.in March?

(Multiple Choice)

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Question 87

In a manufacturing company,the salary of the sales staff is an example of a period cost.

(True/False)

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Question 88

Fontana Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 26,000 Beginning Finished Goods Inventory 8000 Ending Finished Goods Inventory 13,500 Cost of Goods Manufactured 15,600 Compute cost of goods available for sale.

(Multiple Choice)

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Question 89

Merchandising companies,like service companies,do not use a Cost of Goods Sold account.

(True/False)

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Question 90

Which of the following will be included in manufacturing overhead costs?

(Multiple Choice)

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Question 91

Vermont State,Inc.used $153,000 of direct materials and incurred $63,000 of direct labor costs during the year.Indirect labor amounted to $270,000,while indirect materials used totaled $53,000.Other operating costs pertaining to the factory included utilities of $135,500; maintenance of $70,260; repairs of $53,400; depreciation of $133,000; and property taxes of $74,640.There was no beginning or ending finished goods inventory,but Work-in-Process inventory began the year with a $5000 balance and ended the year with a $7400 balance. How much is the cost of goods manufactured?

(Multiple Choice)

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Question 92

The cost of goods manufactured includes selling expenses,administrative expenses,and manufacturing overhead.

(True/False)

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Question 93

The United States Bureau of Labor Statistics predicts that the manufacturing sector will account for the majority of projected job growth from 2014-2024.

(True/False)

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Question 94

Belstone,Inc.is a merchandiser of stone ornaments.It sold 15,000 units during the year.The company has provided the following information: Sales Revenue \ 525,000 Purchases (excluding Freight In) 347,000 Selling and Administrative Expenses 36,500 Freight In 15,500 Beginning Merchandise Inventory 42,000 Ending Merchandise Inventory 55,500 How much is the gross profit for the year?

(Multiple Choice)

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Question 95

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

(Multiple Choice)

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Question 96

Garrett Corporation provided the following information for the year: Beginning Balance - Work-in-Process Inventory \ 27,000 Ending Balance - Work-in-Process Inventory 56,000 Beginning Balance - Direct Materials 83,000 Ending Balance - Direct Materials 60,000 Purchases - Direct Materials 360,000 Direct Labor 471,000 Indirect Labor 18,000 Depreciation on Factory Plant and Equipment 25,000 Plant Utilities and Insurance 271,000 What was the amount of direct materials used in production during the year?

(Multiple Choice)

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Question 97

Which of the following describes the cost of goods manufactured?

(Multiple Choice)

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Question 98

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

(Multiple Choice)

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Question 99

Crabapples,Inc.purchases and sells boxes of dried fruit.The following information summarizes its operating activities for the year: Selling Expenses \ 10,000 Merchandise Inventory on December 31 32,000 Merchandise Inventory on January 1 46,000 Purchases of merchandise 82,500 Rent for store 12,700 Sales commissions 7100 Sales revenue 168,000 What is the cost per box of dry fruits if Crabapples sold 4000 boxes of dry fruit during the year? (Round your answer to the nearest cent.)

(Multiple Choice)

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Question 100

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

Which of the following is one of the key standards of ethical practice published by the Institute of Management Accountants (IMA)?

In a manufacturing company,wages and benefits of assembly line workers are included in manufacturing overhead.

Which of the following is a focus of managerial accounting?

In a manufacturing company,the salary of the sales staff is an example of a period cost.

Fontana Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 26,000 Beginning Finished Goods Inventory 8000 Ending Finished Goods Inventory 13,500 Cost of Goods Manufactured 15,600 Compute cost of goods available for sale.

Merchandising companies,like service companies,do not use a Cost of Goods Sold account.

Which of the following will be included in manufacturing overhead costs?

The cost of goods manufactured includes selling expenses,administrative expenses,and manufacturing overhead.

The United States Bureau of Labor Statistics predicts that the manufacturing sector will account for the majority of projected job growth from 2014-2024.

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

Which of the following describes the cost of goods manufactured?

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

Accounting Information Systems

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

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