Exam 16: Introduction to Managerial Accounting

Which of the following would be classified as a prime cost?

Define period cost.Give three examples of period costs of a merchandising company.

The following information relates to Wagner,Inc.: Advertising Costs \ 10,600 Administrative Salaries 17,600 Delivery Vehicle Depreciation 1300 Factory Repair and Maintenance 200 Indirect Labor 10,500 Indirect Materials 10,000 Manufacturing Equipment Depreciation 1000 Office Rent 51,000 President's Salary 2500 Sales Revenue 530,000 Sales Salary 4700 How much were Wagner's period costs?

ERP systems can integrate all of a company's functions,departments,and data into a single system.

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

Which of the following statements is true of financial accounting?

The following format represents the flow of costs for all three manufacturing inventory accounts: Beginning balance + Additions - Ending balance = Amount used,manufactured,or sold

Managerial accounting is used in manufacturing and merchandising companies,but not in service companies.

Factory rent,as well as factory property taxes and insurance,are included in manufacturing overhead.

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 of the IMA standards appears to have been violated?

Financial statements prepared for investors and creditors often include forward-looking information because they make decisions based on a company's future prospects.

Direct materials and direct labor are prime costs.

Seria,Inc.has received a bulk order from an overseas client.As a result,the reported earnings of this year are expected to be significantly higher than the estimates of financial analysts.Joshua,an accountant at Seria,tells this to one of his friends.Which of the IMA standards has Joshua violated?

Knowing the unit cost per item helps managers set appropriate selling prices.

Payton Corporation provided the following information for the year: Beginning Balance - Work-in-Process Inventory \ 26,000 Ending Balance - Work-in-Process Inventory 55,000 Beginning Balance - Direct Materials 81,000 Ending Balance - Direct Materials 59,000 Purchases - Direct Materials 360,000 Direct Labor 471,000 Indirect Labor 19,000 Depreciation on Factory Plant and Equipment 24,000 Plant Utilities and Insurance 268,000 What was the amount of the cost of goods manufactured for the year?

Keegan Corporation reports the following cost information for March: Cost of Goods Manufactured \ 76,000 Manufacturing Overhead 18,900 Finished Goods Inventory, March 1 4000 Finished Goods Inventory, March 31 3000 Work-in-Process Inventory, March 1 9690 Work-in-Process Inventory, March 31 1200 Direct Labor 37,000 What is the amount of direct materials used by the company in March?

Quinton Corporation provided the following information for the year: Beginning Balance - Work-in-Process Inventory \ 27,000 Ending Balance - Work-in-Process Inventory 57,000 Beginning Balance - Direct Materials 87,000 Ending Balance - Direct Materials 61,000 Purchases - Direct Materials 358,000 Direct Labor 469,000 Indirect Labor 21,000 Depreciation on Factory Plant and Equipment 22,000 Plant Utilities and Insurance 271,000 What was the total manufacturing costs incurred during the year?

At the end of the year,Mary's supervisor asked her to record sales transactions for products that would not ship until the following year,and she complied.Mary has violated IMA ethical standards.

What is Total Quality Management (TQM)?

If work-in-process units are incomplete,the costs remain in Work-in-Process Inventory and are reported on the balance sheet.