Question 1

________ inventory consists of completed products ready for sale by a manufacturer.

Accepted Answer

The answer of ________ inventory consists of completed products ready...

Question 2

What does the days' sales in raw materials inventory ratio reveal?

Accepted Answer

Days' Sales in raw materials i

Question 3

Using the information below, calculate net income for the period: $\begin{array}{lr}
\text { Sales revenues for the period }&\$1,304,000\
\
\text { Operating expenses for the period } & 239,000 \
\text { Finished Goods Inventory, January } 1 & 36,000 \
\text { Finished Goods Inventory, December } 31 & 41,000 \
\text { Cost of goods manufactured for the period } & 540,000
\end{array}$

Accepted Answer

A)  $774,000. 
B)  $535,000. 
C)  $769,000. 
D)  $448,000. 
E)  $530,000. 
A)  $774,000. 
B)  $535,000. 
C)  $769,000. 
D)  $448,000. 
E)  $530,000.

Question 4

The following cost items relate to the Henning Company. Classify each cost as a variable cost or a fixed cost by placing an X in the appropriate column. Each cost should be evaluated in terms of the volume of units of finished products produced. Also indicate with an X for each item if it is a product cost or a period cost.

Accepted Answer

The answer of The following cost items relate to the...

Question 5

Using the information below for Singing Dolls, Inc., determine cost of goods manufactured for the year: $$\begin{array} { l | r } 
\hline \text { Work in Procest, January 1 } & 50,000 \
\hline \text { Work in Process, December 31 } & 37,000 \
\hline \text { Total Factory overhead } & 5,500 \
\hline \text { Direct materials used } & \$ 12,500 \
\hline \text { Direct labor used } & 26,500
\end{array}$$

Accepted Answer

A)  $44,500. 
B)  $94,500. 
C)  $13,000. 
D)  $57,500. 
E)  $52,000. 
A)  $44,500. 
B)  $94,500. 
C)  $13,000. 
D)  $57,500. 
E)  $52,000.

Question 6

The concept of total quality management focuses on continuous improvement.

Accepted Answer

A) True 
 B)False

Question 7

Control is the process of setting goals and determining ways to achieve them.

Accepted Answer

A) True 
 B)False

Question 8

Beginning finished goods inventory plus cost of goods manufactured minus ending finished goods inventory equals cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 9

Indirect costs cannot be easily and cost-beneficially traced to a single cost object.

Accepted Answer

A) True 
 B)False

Question 10

Explain what is meant by the "lean business model" and why many businesses have adopted it.

Accepted Answer

The lean business model is a model whose

Question 11

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: 
 $\begin{array}{llr}
 & \text {Beginning}& \text {Ending}\
 \text {Raw materials inventory  } & \$ 547,000 & \$ 610.100\
\end{array}$
 The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to:

Accepted Answer

A)  $955,000. 
B)  $892,000. 
C)  $1,081,000. 
D)  $408,000. 
E)  $1,565,000. 
A)  $955,000. 
B)  $892,000. 
C)  $1,081,000. 
D)  $408,000. 
E)  $1,565,000.

Question 12

Costs may be classified by many different cost classifications.

Accepted Answer

A) True 
 B)False

Question 13

List the four goals of an internal control system.

Accepted Answer

An internal control system is the polici

Question 14

What are prime costs? What are conversion costs?

Accepted Answer

Prime costs are expenditures directly as

Question 15

The Work in Process Inventory account is found only in the ledgers of merchandising companies.

Accepted Answer

A) True 
 B)False

Question 16

Duncan Crafts manufactures specialty key chains for tourist attractions. On January 1, the firm had 300 souvenir attraction disks used in the production of the chains that cost $3 each; and 600 completed key chains that cost $6 each. During the year Duncan Crafts purchased 1,500 souvenir disks costing $3 each and produced 1,100 key chains. Compute the total cost of raw materials inventory at December 31.

Accepted Answer

None

Question 17

Prime costs consist of direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 18

Romeo Corporation has accumulated the following accounting data for the year: $\begin{array}{ll}
\text { Finished goods inventory, January 1 } & \$ 3,200 \
\text { Finished goods inventory, December } 31 & 4,000 \
\text { Total cost of goods sold } & 14,200
\end{array}$ 
The cost of goods manufactured for the year is:

Accepted Answer

A)  $11,000. 
B)  $21,400. 
C)  $17,400. 
D)  $10,200. 
E)  $15,000. 
A)  $11,000. 
B)  $21,400. 
C)  $17,400. 
D)  $10,200. 
E)  $15,000.

Question 19

Using the information below, calculate gross profit for the period:$\begin{array}{lr}
\text { Sales revenues for the period }&\$1,304,000\
\
\text { Operating expenses for the period } & 239,000 \
\text { Finished Goods Inventory, January } 1 & 36,000 \
\text { Finished Goods Inventory, December } 31 & 41,000 \
\text { Cost of goods manufactured for the period } & 540,000
\end{array}$

Accepted Answer

A)  $769,000. 
B)  $535,000. 
C)  $448,000. 
D)  $530,000. 
E)  $774,000. 
A)  $769,000. 
B)  $535,000. 
C)  $448,000. 
D)  $530,000. 
E)  $774,000.

Question 20

Match between columns
                        Premises:  Direct materials
 Indirect costs
 Product costs
 Prime costs
 Fixed costs
 Direct labor
 Period costs
 Conversion costs
 Factory overhead
 Variable costs

Accepted Answer

The Answer of Costs that flow directly to the current is...

Exam 18: Managerial Accounting Concepts and Principles

________ inventory consists of completed products ready for sale by a manufacturer.

What does the days' sales in raw materials inventory ratio reveal?

Using the information below, calculate net income for the period: Sales revenues for the period \1 ,304,000 Operating expenses for the period 239,000 Finished Goods Inventory, January 1 36,000 Finished Goods Inventory, December 31 41,000 Cost of goods manufactured for the period 540,000

Using the information below for Singing Dolls, Inc., determine cost of goods manufactured for the year: Work in Procest, January 1 50,000 Work in Process, December 31 37,000 Total Factory overhead 5,500 Direct materials used \ 12,500 Direct labor used 26,500

The concept of total quality management focuses on continuous improvement.

Control is the process of setting goals and determining ways to achieve them.

Beginning finished goods inventory plus cost of goods manufactured minus ending finished goods inventory equals cost of goods sold.

Indirect costs cannot be easily and cost-beneficially traced to a single cost object.

Explain what is meant by the "lean business model" and why many businesses have adopted it.

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending Raw materials inventory \ 547,000 \ 610.100 The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to:

Costs may be classified by many different cost classifications.

List the four goals of an internal control system.

What are prime costs? What are conversion costs?

The Work in Process Inventory account is found only in the ledgers of merchandising companies.

Prime costs consist of direct materials and direct labor.

Romeo Corporation has accumulated the following accounting data for the year: Finished goods inventory, January 1 \ 3,200 Finished goods inventory, December 31 4,000 Total cost of goods sold 14,200 The cost of goods manufactured for the year is:

Using the information below, calculate gross profit for the period: Sales revenues for the period \1 ,304,000 Operating expenses for the period 239,000 Finished Goods Inventory, January 1 36,000 Finished Goods Inventory, December 31 41,000 Cost of goods manufactured for the period 540,000

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets Natural Resoures and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Present and Future Values in Accounting

Activity-Based Costing

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