Titus Manufacturing,Inc.provided the following information for the year: \[\begin{array} { | l | r | } \hline \text { Purchases - Direct Materials } & \$ 91,000 \\ \hline \text { Plant Utilities and Insurance } & 68,000 \\ \hline \text { Indirect Materials } & 11,170 \\ \hline \text { Indirect Labor } & 4270 \\ \hline \text { Direct Materials Used in Production } & 99,000 \\ \hline \text { Direct Labor } & 117,500 \\ \hline \text { Depreciation on Factory Plant \& Equipment } & 4000 \\ \hline \end{array}\] The inventory account balances as of January 1 are given below. \[\begin{array} { | l | r | } \hline \text { Direct Materials } & \$ 44,000 \\ \hline \text { Work-in-Progress Inventory } & 10,000 \\ \hline \text { Finished Goods Inventory } & 50,000 \\ \hline \end{array}\] What is the ending balance in the Direct Materials account?

A) $135,000 B) $6000 C) $110,170 D) $36,000 A) $135,000 B) $6000 C) $110,170 D) $36,000

Super Tread Inc.is a large manufacturer of auto tires.Super Tread has provided the following information: \[\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 55,000 \\ \hline \text { Beginning Finished Goods Inventory } & 15,500 \\ \hline \text { Cost of Goods Sold } & 37,500 \\ \hline \text { Cost of Goods Manufactured } & 44,500 \\ \hline \end{array}\] Calculate the amount of ending Finished Goods Inventory reported on Super Tread's balance sheet.

A) $10,500 B) $60,000 C) $22,500 D) $7000 A) $10,500 B) $60,000 C) $22,500 D) $7000

The following information has been provided by Crosby Corporation: \[\begin{array} { | l | r | } \hline \text { Direct Labor } & \$ 6000 \\ \hline \text { Direct Materials Used } & 3000 \\ \hline \text { Direct Materials Purchased } & 9000 \\ \hline \text { Cost of Goods Manufactured } & 13,000 \\ \hline \text { Ending Work-in-Process Inventory } & 1400 \\ \hline \text { Corporate Headquarters' Property taxes } & 900 \\ \hline \text { Manufacturing Overhead Incurred } & 400 \\ \hline \end{array}\] The beginning balance of Work-in-Process Inventory account was ________.

A) $4500 B) $5000 C) $21,000 D) $9400 A) $4500 B) $5000 C) $21,000 D) $9400

Viva,Inc.has provided the following information for the year: \[\begin{array} { | l | r | } \hline \text { Cost of Goods Manufactured } & \$ 1,261,000 \\ \hline \text { Beginning Balance - Finished Goods Inventory } & 99,000 \\ \hline \text { Ending Balance - Finished Goods Inventory } & 85,000 \\ \hline \end{array}\] What is the cost of goods sold?

A) $184,000 B) $1,275,000 C) $1,261,000 D) $1,247,000 A) $184,000 B) $1,275,000 C) $1,261,000 D) $1,247,000

Grant's Ironhorse Company manufactures model railroad cars.At the end of October,2019 the accounting records showed the following: \[\begin{array} { | l | r | r | } \hline \text { Dirventories: } & \text { Beginning } &{ \text { Ending } } \\ \hline \text { Direct Materials } & \$ 10,000 & \$ 5,000 \\ \hline \text { Work-in-Process } & 15,000 & 20,000 \\ \hline \text { Finished Goods } & 0 & 5,800 \\ \hline \text { Other Information: } & & \\ \hline \text { Direct Materials Purchases } & & 40,000 \\ \hline \text { Plant maintenance services } & & 6,800 \\ \hline \text { Plant supervisor's salary } & & 31,500 \\ \hline \text { Sales salaries } & & 12,700 \\ \hline \text { Delivery costs } & & 3,100 \\ \hline \text { Sales revenue } & & 236,000 \\ \hline \text { Utilities for plant } & & 10,500 \\ \hline \text { Rent on plant } & & 23,000 \\ \hline \text { Advertising } & & 8,000 \\ \hline \text { Direct labor } & & 30,000 \\ \hline \end{array}\] (a)Prepare a schedule of cost of goods manufactured for Grant's Ironhorse Company and (b)Prepare an income statement for Grant's Ironhorse Company for the year ended October 31,2019

(a) Grant's Ironhorse Company Schedule o

Fire Cat,Inc.selected cost data for the year are shown below: \[\begin{array} { | l | r | } \hline \text { Cost of Goods Manufactured } & \$ 145,500 \\ \hline \text { Work-in-Process Inventory, Jan. 1 } & 19,500 \\ \hline \text { Work-in-Process Inventory, Dec. } 31 & 22,000 \\ \hline \text { Direct Materials Used } & 18,600 \\ \hline \end{array}\] What is the total of manufacturing costs incurred by Fire Cat,Inc.during the year?

A) $148,000 B) $143,000 C) $22,900 D) $38,100 A) $148,000 B) $143,000 C) $22,900 D) $38,100

Exam 16: Introduction to Managerial Accounting

Accuracy Accounting,Inc.sells accounting textbooks.The following information summarizes Accuracy Accounting's operating activities for the year: Merchandise Inventory, January 1 \ 10,000 Merchandise Inventory, December 31 7,000 Purchases 95,000 Selling and Administrative Expenses 65,000 Sales Revenue 180,000 Required: Prepare Accuracy Accounting,Inc.'s income statement for the year ended December 31.

(Essay)

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Question 101

For a manufacturing company,which of the following is a period cost?

(Multiple Choice)

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Question 102

Titus Manufacturing,Inc.provided the following information for the year: Purchases - Direct Materials \ 91,000 Plant Utilities and Insurance 68,000 Indirect Materials 11,170 Indirect Labor 4270 Direct Materials Used in Production 99,000 Direct Labor 117,500 Depreciation on Factory Plant \& Equipment 4000 The inventory account balances as of January 1 are given below. Direct Materials \ 44,000 Work-in-Progress Inventory 10,000 Finished Goods Inventory 50,000 What is the ending balance in the Direct Materials account?

(Multiple Choice)

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Question 103

Super Tread Inc.is a large manufacturer of auto tires.Super Tread has provided the following information: Sales Revenue \ 55,000 Beginning Finished Goods Inventory 15,500 Cost of Goods Sold 37,500 Cost of Goods Manufactured 44,500 Calculate the amount of ending Finished Goods Inventory reported on Super Tread's balance sheet.

(Multiple Choice)

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Question 104

The following information has been provided by Crosby Corporation: Direct Labor \ 6000 Direct Materials Used 3000 Direct Materials Purchased 9000 Cost of Goods Manufactured 13,000 Ending Work-in-Process Inventory 1400 Corporate Headquarters' Property taxes 900 Manufacturing Overhead Incurred 400 The beginning balance of Work-in-Process Inventory account was ________.

(Multiple Choice)

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Question 105

The cost of goods sold for Frye Manufacturing in the year was $297,000.The January 1 Finished Goods Inventory balance was $31,600,and the December 31 Finished Goods Inventory balance was $25,600.Calculate the cost of goods manufactured during the year.

(Multiple Choice)

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Question 106

A company's president or chief executive officer (CEO)is selected by the stockholders.

(True/False)

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Question 107

Define indirect materials and give two examples of indirect materials for a manufacturing company.

(Essay)

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Question 108

How does a service company calculate unit cost per service? Why do managers need to know the unit cost per service?

(Essay)

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Question 109

Which of the following represents the combined sum of direct materials costs and direct labor costs?

(Multiple Choice)

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Question 110

Indirect labor costs might include the salary of the production manager.

(True/False)

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Question 111

The jobs that are directly involved in providing goods or services to customers are called ________.

(Multiple Choice)

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Question 112

All costs incurred in the manufacture of completed products are product costs.

(True/False)

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Question 113

Product costs,such as direct materials costs,are expensed in the period they are incurred.

(True/False)

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Question 114

Viva,Inc.has provided the following information for the year: Cost of Goods Manufactured \ 1,261,000 Beginning Balance - Finished Goods Inventory 99,000 Ending Balance - Finished Goods Inventory 85,000 What is the cost of goods sold?

(Multiple Choice)

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Question 115

Service companies do not have product costs,so they often consider all operating expenses as part of their cost of service.

(True/False)

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Question 116

Managerial accounting includes the planning function.Which of the following items would be part of the planning function of a business's managerial accounting?

(Multiple Choice)

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Question 117

Grant's Ironhorse Company manufactures model railroad cars.At the end of October,2019 the accounting records showed the following: Dirventories: Beginning Ending Direct Materials \ 10,000 \ 5,000 Work-in-Process 15,000 20,000 Finished Goods 0 5,800 Other Information: Direct Materials Purchases 40,000 Plant maintenance services 6,800 Plant supervisor's salary 31,500 Sales salaries 12,700 Delivery costs 3,100 Sales revenue 236,000 Utilities for plant 10,500 Rent on plant 23,000 Advertising 8,000 Direct labor 30,000 (a)Prepare a schedule of cost of goods manufactured for Grant's Ironhorse Company and (b)Prepare an income statement for Grant's Ironhorse Company for the year ended October 31,2019

(Essay)

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Question 118

Fire Cat,Inc.selected cost data for the year are shown below: Cost of Goods Manufactured \ 145,500 Work-in-Process Inventory, Jan. 1 19,500 Work-in-Process Inventory, Dec. 31 22,000 Direct Materials Used 18,600 What is the total of manufacturing costs incurred by Fire Cat,Inc.during the year?

(Multiple Choice)

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Question 119

Nurix,Inc.is a business consulting firm.During the month of February,Nurix earned $55,600 of revenues by providing services to 47 clients.Operating costs for February were $8500 and non-operating costs were $6000.What is the unit cost per service? (Round your answer to the nearest cent.)

(Multiple Choice)

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Question 120

For a manufacturing company,which of the following is a period cost?

The cost of goods sold for Frye Manufacturing in the year was $297,000.The January 1 Finished Goods Inventory balance was $31,600,and the December 31 Finished Goods Inventory balance was $25,600.Calculate the cost of goods manufactured during the year.

A company's president or chief executive officer (CEO)is selected by the stockholders.

Define indirect materials and give two examples of indirect materials for a manufacturing company.

How does a service company calculate unit cost per service? Why do managers need to know the unit cost per service?

Which of the following represents the combined sum of direct materials costs and direct labor costs?

Indirect labor costs might include the salary of the production manager.

The jobs that are directly involved in providing goods or services to customers are called ________.

All costs incurred in the manufacture of completed products are product costs.

Product costs,such as direct materials costs,are expensed in the period they are incurred.

Viva,Inc.has provided the following information for the year: Cost of Goods Manufactured \ 1,261,000 Beginning Balance - Finished Goods Inventory 99,000 Ending Balance - Finished Goods Inventory 85,000 What is the cost of goods sold?

Service companies do not have product costs,so they often consider all operating expenses as part of their cost of service.

Managerial accounting includes the planning function.Which of the following items would be part of the planning function of a business's managerial accounting?

Fire Cat,Inc.selected cost data for the year are shown below: Cost of Goods Manufactured \ 145,500 Work-in-Process Inventory, Jan. 1 19,500 Work-in-Process Inventory, Dec. 31 22,000 Direct Materials Used 18,600 What is the total of manufacturing costs incurred by Fire Cat,Inc.during the year?

Nurix,Inc.is a business consulting firm.During the month of February,Nurix earned $55,600 of revenues by providing services to 47 clients.Operating costs for February were $8500 and non-operating costs were $6000.What is the unit cost per service? (Round your answer to the nearest cent.)

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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