Question 1

What are the components of the manufacturing statement? Describe each component.

Accepted Answer

The components of the manufacturing stat

Question 2

Managerial accounting information:

Accepted Answer

A) Is used mainly by external users. 
B) Involves gathering information about costs for planning and control decisions. 
C) Is generally the only accounting information available to managers. 
D) Can be used for control purposes but not for planning purposes. 
E) Has little to do with controlling costs. 
A) Is used mainly by external users. 
B) Involves gathering information about costs for planning and control decisions. 
C) Is generally the only accounting information available to managers. 
D) Can be used for control purposes but not for planning purposes. 
E) Has little to do with controlling costs.

Question 3

Use the following information for Acme, Inc., as of December 31 to answer the next questions:
 
-What is the correct amount of cost of goods manufactured?

Accepted Answer

A) $398,500. 
B) $386,000. 
C) $309,000. 
D) $306,000. 
E) $296,500. 
A) $398,500. 
B) $386,000. 
C) $309,000. 
D) $306,000. 
E) $296,500.

Question 4

Assume Back to the Roots used 1 million pounds of raw materials in their most recent accounting year.They started the year with 20,000 pounds of raw materials and ended with 40,000 pounds.
(a)Compute Back to the Roots' raw materials inventory turnover.
(b)Compute Back to the Roots' days' sales in raw materials inventory.
(c)Interpret these results.What can the company do to improve these measures?

Accepted Answer

@#IMG-DLM&
@#IMG-DLM&
(c)These results show that Back to the

Question 5

Expenditures that flow directly to the current income statement and are not reported as assets are ___________________ costs.

Accepted Answer

The answer of Expenditures that flow directly to the current...

Question 6

Which of the following costs would not be classified as factory overhead?

Accepted Answer

A) Property taxes on maintenance machinery. 
B) Expired insurance on factory equipment. 
C) Wages of the factory janitor. 
D) Metal doorknobs used on wood cabinets produced. 
E) Small tools used in production. 
A) Property taxes on maintenance machinery. 
B) Expired insurance on factory equipment. 
C) Wages of the factory janitor. 
D) Metal doorknobs used on wood cabinets produced. 
E) Small tools used in production.

Question 7

A sunk cost has already been incurred and cannot be avoided or changed, so it is irrelevant to decision making.

Accepted Answer

A) True 
 B)False

Question 8

Products that have been completed and are ready to be sold by the manufacturer are called:

Accepted Answer

A) Finished goods inventory. 
B) Goods in process inventory. 
C) Raw materials inventory. 
D) Cost of goods sold. 
E) Factory supplies. 
A) Finished goods inventory. 
B) Goods in process inventory. 
C) Raw materials inventory. 
D) Cost of goods sold. 
E) Factory supplies.

Question 9

For each item shown below, indicate whether it is a product cost or a period cost, by placing an X in the appropriate column.For each item that is a product cost, also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.

Accepted Answer

@#IMG-DLM&_TB6311_00

Question 10

Use the following information to compute the cost of goods manufactured:

Accepted Answer

A) $63,000 
B) $105,000 
C) $107,000 
D) $90,000 
E) $109,000 
A) $63,000 
B) $105,000 
C) $107,000 
D) $90,000 
E) $109,000

Question 11

Costs that flow directly to the current income statement are called:

Accepted Answer

A) Period costs. 
B) Product costs. 
C) General costs. 
D) Balance sheet costs. 
E) Capitalized costs. 
A) Period costs. 
B) Product costs. 
C) General costs. 
D) Balance sheet costs. 
E) Capitalized costs.

Question 12

A _________________ cost changes in proportion to changes in the volume of activity.

Accepted Answer

The answer of A _________________ cost changes in proportion to...

Question 13

Which of the following accounts would appear on a manufacturing statement?

Accepted Answer

A) Raw materials, factory insurance expired, indirect labor. 
B) Raw materials, goods in process, finished goods. 
C) Factory buildings, delivery equipment, and depreciation on factory equipment. 
D) Direct labor, indirect labor, sales salaries. 
E) Direct labor, factory repairs and maintenance, wages payable. 
A) Raw materials, factory insurance expired, indirect labor. 
B) Raw materials, goods in process, finished goods. 
C) Factory buildings, delivery equipment, and depreciation on factory equipment. 
D) Direct labor, indirect labor, sales salaries. 
E) Direct labor, factory repairs and maintenance, wages payable.

Question 14

Compute cost of goods manufactured for this period given the following amounts.

Accepted Answer

A) $72,000 
B) $48,000 
C) $60,000 
D) $66,000 
E) $180,000. 
A) $72,000 
B) $48,000 
C) $60,000 
D) $66,000 
E) $180,000.

Question 15

Which of the following is not a characteristic of all fraud?

Accepted Answer

A) It is done to provide direct or indirect benefit to the employee. 
B) It violates the employee's duties to his employer. 
C) It costs the employer money. 
D) It is secret. 
E) Can be intentional or unintentional. 
A) It is done to provide direct or indirect benefit to the employee. 
B) It violates the employee's duties to his employer. 
C) It costs the employer money. 
D) It is secret. 
E) Can be intentional or unintentional.

Question 16

Product costs are expenditures necessary and integral to finished products.

Accepted Answer

A) True 
 B)False

Question 17

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable.

Accepted Answer

A) True 
 B)False

Question 18

Expenditures incurred in the process of converting raw materials to finished goods, that include direct labor and factory overhead are known as _________________________.

Accepted Answer

The answer of Expenditures incurred in the process of converting...

Question 19

Horton Foods bakes and sells 1,000 dozen bagels each week to food service operations.Among the costs are bakers' salaries, $24,000; production management salaries, $16,000; production equipment operating costs, $32,000; and flour and ingredient costs, $15,000.
Required:
(a)Calculate prime costs
(b)Calculate conversion costs.

Accepted Answer

@#IMG-DLM&_TB6311_00

Question 20

Ending raw materials inventory divided by raw materials used multiplied by 365 is the _________________________.

Accepted Answer

days' sale

What are the components of the manufacturing statement? Describe each component.

Managerial accounting information:

Use the following information for Acme, Inc., as of December 31 to answer the next questions: -What is the correct amount of cost of goods manufactured?

Expenditures that flow directly to the current income statement and are not reported as assets are ___________________ costs.

Which of the following costs would not be classified as factory overhead?

A sunk cost has already been incurred and cannot be avoided or changed, so it is irrelevant to decision making.

Products that have been completed and are ready to be sold by the manufacturer are called:

For each item shown below, indicate whether it is a product cost or a period cost, by placing an X in the appropriate column.For each item that is a product cost, also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.

Use the following information to compute the cost of goods manufactured:

Costs that flow directly to the current income statement are called:

A _________________ cost changes in proportion to changes in the volume of activity.

Which of the following accounts would appear on a manufacturing statement?

Compute cost of goods manufactured for this period given the following amounts.

Which of the following is not a characteristic of all fraud?

Product costs are expenditures necessary and integral to finished products.

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable.

Expenditures incurred in the process of converting raw materials to finished goods, that include direct labor and factory overhead are known as _________________________.

Ending raw materials inventory divided by raw materials used multiplied by 365 is the _________________________.

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

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Exam 1: Managerial Accounting Concepts and Principles

What are the components of the manufacturing statement? Describe each component.

Managerial accounting information:

Use the following information for Acme, Inc., as of December 31 to answer the next questions: -What is the correct amount of cost of goods manufactured?

Expenditures that flow directly to the current income statement and are not reported as assets are ___________________ costs.

Which of the following costs would not be classified as factory overhead?

A sunk cost has already been incurred and cannot be avoided or changed, so it is irrelevant to decision making.

Products that have been completed and are ready to be sold by the manufacturer are called:

For each item shown below, indicate whether it is a product cost or a period cost, by placing an X in the appropriate column.For each item that is a product cost, also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.

Use the following information to compute the cost of goods manufactured:

Costs that flow directly to the current income statement are called:

A _________________ cost changes in proportion to changes in the volume of activity.

Which of the following accounts would appear on a manufacturing statement?

Compute cost of goods manufactured for this period given the following amounts.

Which of the following is not a characteristic of all fraud?

Product costs are expenditures necessary and integral to finished products.

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable.

Expenditures incurred in the process of converting raw materials to finished goods, that include direct labor and factory overhead are known as _________________________.

Ending raw materials inventory divided by raw materials used multiplied by 365 is the _________________________.

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters