Question 1

Which one of the following items is not a manufacturing cost?

Accepted Answer

A) Direct materials. 
B) Factory overhead. 
C) General and administrative expenses. 
D) Direct labor. 
E) Conversion cost. 
A) Direct materials. 
B) Factory overhead. 
C) General and administrative expenses. 
D) Direct labor. 
E) Conversion cost. C

Question 2

Waters,Inc.reported the following data regarding costs and inventories for the current year: beginning finished goods inventory,$5,000; cost of goods manufactured,$21,500; ending finished goods inventory,$4,000.Cost of goods sold for Waters,Inc.equals ________.

Accepted Answer

$22,500
Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory; $5,000 + $21,500 - $4,000

Question 3

Planning is the process of setting goals and making plans to achieve them.

Accepted Answer

A) True 
 B)False  True

Question 4

An internal control system consists of the policies and procedures managers use to do all of the following except:

Accepted Answer

A) Urge adherence to company policies. 
B) Promote efficient operations. 
C) Ensure reliable accounting. 
D) Determine pricing for products. 
E) Protect assets. 
A) Urge adherence to company policies. 
B) Promote efficient operations. 
C) Ensure reliable accounting. 
D) Determine pricing for products. 
E) Protect assets.

Question 5

If the cost of the beginning work in process inventory is $60,000,costs of goods manufactured is $890,000,direct materials cost is $330,000,direct labor cost is $210,000,and overhead cost is $315,000,calculate the ending work in process inventory.

Accepted Answer

A) $35,000. 
B) $25,000. 
C) $45,000. 
D) $350,000. 
E) $355,000. 
A) $35,000. 
B) $25,000. 
C) $45,000. 
D) $350,000. 
E) $355,000.

Question 6

Managerial accounting reports and information are used by external users and financial accounting by internal users.

Accepted Answer

A) True 
 B)False

Question 7

Calculate Cost of Goods Sold for the following two companies:

Accepted Answer

The answer of Calculate Cost of Goods Sold for the...

Question 8

A manufacturing company has a beginning finished goods inventory of $14,600,raw material purchases of $18,000,cost of goods manufactured of $32,500,and an ending finished goods inventory of $17,800.The cost of goods sold for this company is:

Accepted Answer

A) $21,200. 
B) $29,300. 
C) $32,500. 
D) $47,100. 
E) $27,600. 
A) $21,200. 
B) $29,300. 
C) $32,500. 
D) $47,100. 
E) $27,600.

Question 9

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

Accepted Answer

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

Question 10

Information for Underwood Industries is presented below.Compute the cost of goods manufactured.

Accepted Answer

The answer of Information for Underwood Industries is presented below.Compute...

Question 11

Product costs are expenditures necessary to manufacture finished products.

Accepted Answer

A) True 
 B)False

Question 12

Product costs can refer to expenditures necessary to manufacture products and to administrative support during the time period.

Accepted Answer

A) True 
 B)False

Question 13

Compute the ending work in process inventory for a manufacturer with the following information.

Accepted Answer

The answer of Compute the ending work in process inventory...

Question 14

The management concept of customer orientation encourages a company to set up its production system to produce large quantities of the same product for all customers.

Accepted Answer

A) True 
 B)False

Question 15

Beginning finished goods inventory plus cost of goods manufactured equals cost of goods available for sale.

Accepted Answer

A) True 
 B)False

Question 16

Wesson Company sold 10,000 units of its only product in the first half of the year.If sales increase by 12% in the second half of the year,which cost will increase?

Accepted Answer

A) Depreciation on equipment. 
B) Wages of administrative staff. 
C) Office rent. 
D) Direct materials. 
E) Property insurance. 
A) Depreciation on equipment. 
B) Wages of administrative staff. 
C) Office rent. 
D) Direct materials. 
E) Property insurance.

Question 17

A manufacturer's cost of goods manufactured is the sum of direct materials,direct labor,and factory overhead costs incurred in producing products.

Accepted Answer

A) True 
 B)False

Question 18

Marshall Corporation incurred costs for materials and labor needed to manufacture its products.These costs are examples of:

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 19

Shemekia Co.produces seats for movie theaters.Listed below are selected cost items for the seat production.Classify each cost as either fixed or variable,and either a product or a period cost by placing an x in the appropriate boxes.

Accepted Answer

The answer of Shemekia Co.produces seats for movie theaters.Listed below...

Question 20

Use the following data to compute total manufacturing costs for the month:

Accepted Answer

A) $141,100. 
B) $125,300. 
C) $45,200. 
D) $84,800. 
E) $58,300. 
A) $141,100. 
B) $125,300. 
C) $45,200. 
D) $84,800. 
E) $58,300.

Exam 14: Managerial Accounting Concepts and Principles

Which one of the following items is not a manufacturing cost?

Waters,Inc.reported the following data regarding costs and inventories for the current year: beginning finished goods inventory,$5,000; cost of goods manufactured,$21,500; ending finished goods inventory,$4,000.Cost of goods sold for Waters,Inc.equals ________.

Planning is the process of setting goals and making plans to achieve them.

An internal control system consists of the policies and procedures managers use to do all of the following except:

If the cost of the beginning work in process inventory is $60,000,costs of goods manufactured is $890,000,direct materials cost is $330,000,direct labor cost is $210,000,and overhead cost is $315,000,calculate the ending work in process inventory.

Managerial accounting reports and information are used by external users and financial accounting by internal users.

Calculate Cost of Goods Sold for the following two companies:

A manufacturing company has a beginning finished goods inventory of $14,600,raw material purchases of $18,000,cost of goods manufactured of $32,500,and an ending finished goods inventory of $17,800.The cost of goods sold for this company is:

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

Information for Underwood Industries is presented below.Compute the cost of goods manufactured.

Product costs are expenditures necessary to manufacture finished products.

Product costs can refer to expenditures necessary to manufacture products and to administrative support during the time period.

Compute the ending work in process inventory for a manufacturer with the following information.

The management concept of customer orientation encourages a company to set up its production system to produce large quantities of the same product for all customers.

Beginning finished goods inventory plus cost of goods manufactured equals cost of goods available for sale.

Wesson Company sold 10,000 units of its only product in the first half of the year.If sales increase by 12% in the second half of the year,which cost will increase?

A manufacturer's cost of goods manufactured is the sum of direct materials,direct labor,and factory overhead costs incurred in producing products.

Marshall Corporation incurred costs for materials and labor needed to manufacture its products.These costs are examples of:

Shemekia Co.produces seats for movie theaters.Listed below are selected cost items for the seat production.Classify each cost as either fixed or variable,and either a product or a period cost by placing an x in the appropriate boxes.

Use the following data to compute total manufacturing costs for the month:

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

Filters