Exam 16: Introduction to Managerial Accounting

Define indirect cost.

Financial reporting is typically much more detailed than managerial accounting.

One of the primary activities of Perez,Inc.is to purchase hats from Toppers,Inc.in Texas and sell them to its customers in New York for a profit.It is likely that Toppers is a ________.

Which of the following is true of Finished Goods Inventory?

Which of the following is an example of direct labor cost in a factory?

List the three kinds of inventory accounts that are used by manufacturing companies.Briefly discuss what each account includes.

A company's organizational chart shows the relationships between departments and divisions and the managers that are responsible for each section.

Managerial accounting focuses on providing information for internal planning and control.

The accountant for Myra Lido deliberately recorded operating expenses as operating assets in order to record a higher net income for the company.As long as the amount of the misstatement was not material,this would not be considered unethical behavior.

Onyx Corporation has provided the following information about its operating activities for the year: Merchandise Inventory, January 1 \ 150,000 Merchandise Inventory, December 31 75,000 Purchases 854,000 Selling and Administrative Expenses 65,000 Sales Revenue 1,000,000 Required: Prepare Onyx's income statement for the year ended December 31,including the heading.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

Samson,Inc.reported the following information for the year: Service Revenue \ 60,000 Operating Expenses 21,000 Net Income 39,000 Number of Services Provided for the Year 10,500 How much was the unit cost per service? (Round your answer to the nearest cent.)

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

Poodle Grooming Salon provides dog grooming services.In March,the business groomed 245 dogs,earned $10,300 in revenues,and incurred the following operating costs: Grooming Supplies Expense \ 485 Wages Expense 3,260 Utilities Expense 285 Rent Expense 1,200 Depreciation Expense - Equipment 500 Compute the cost of one grooming.(Round to two decimal places.)

Which of the following is a period cost for a manufacturing company?

In a manufacturing company,wages and benefits of factory managers are treated as product costs.

The balance sheet of a ________ company will include Work-in-Process Inventory as a line item.

Value added activities which begin in research and development through product design and production are called ________.

Varda,Inc.used $213,000 of direct materials and incurred $111,000 of direct labor costs during the year.Indirect labor amounted to $8,100,while indirect materials used totaled $4,800.Other operating costs pertaining to the factory included utilities of $9,300; maintenance of $13,500; repairs of $5,400; depreciation of $23,700; and property taxes of $7,800.There was no beginning or ending finished goods inventory.The Work-in-Process Inventory account reflected a balance of $16,500 at the beginning of the period and $22,500 at the end of the period. Required: Prepare a schedule of cost of goods manufactured for Varda,Inc.using the format below. $\text { Schedule of Cost of Goods Manufactured }$ Beginning Work-in-Process Inventory Direct Materials Used Direct Labor Manufacturing Overhead: Indirect Labor Used Indirect Materials Utilities Maintenance Repairs Depreciation Property Taxes Total Manufacturing Overhead Total Manufacturing Costs Incurred during the Year Total Manufacturing Costs to Account For Ending Work-in-Process Inventory Cost of Goods Manufactured

Which of the following will be classified as a conversion cost?

Selected data for Lemon Grass,Inc.for the year are provided below: Factory Utilities \ 1000 Indirect Materials Used 34,000 Direct Materials Used 292,000 Property Taxes on Factory Building 5900 Sales Commissions 85,000 Indirect Labor Incurred 22,000 Direct Labor Incurred 150,000 Depreciation on Factory Equipment 6800 What is the total manufacturing overhead?