Exam 18: Managerial Accounting Concepts and Principles

Managerial accounting is different from financial accounting in that:

What are the three types of inventories that are carried by manufacturers? Describe each type of inventory.

Factory overhead includes selling and administrative expenses because they are indirect costs of a product.

The ________ aids continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance along four dimensions: (1) financial, (2) customer, (3) internal business processes, and (4) learning and growth.

Which of the following represents the correct formula for calculating days' sales in raw materials inventory for a manufacturer?

Marv's Furniture and Fixtures 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.

Using the information below, calculate the cost of goods manufactured for the period: Beginning Raw Materials Inventory \ 25,000 Ending Raw Materials Inventory 30,000 Beginning Work in Process Inventory 55,000 Ending Work in Process Inventory 64,000 Beginning Finished Goods Inventory 80,000 Ending Finished Goods Inventory 67,000 Cost of Goods Sold for the period 540,000 Sales revenues for the period 1,254,000 Operating expenses for the period 232,000

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

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

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured was $147,000; and the December 31 finished goods inventory was $77,000. What is the cost of goods sold for that year?

Information for Stanton, Inc., as of December 31 follows. Prepare a schedule of cost of goods manufactured for the year ended December 31. Administrative salaries \ 35,000 Depreciation of factory equipment 25,000 Depreciation of delivery vehicles 6,000 Direct labor 68,000 Factory supplies used 9,000 Finished goods inventory, January 1 57,000 Finished goods inventory, December 31 ? Factory insurance 15,500 Interest expense 12,000 Factory utilities 14,000 Factory maintenance 7,500 Raw materials inventory, January 1 5,000 Raw materials inventory, December 31 4,000 Raw material purchases 125,000 Rent on factory building 25,000 Repairs of factory equipment 11,500 Sales comrnissions 37,500 Work in Process inventory. January 1 3,500 Work in Process inventory. December 31 2,700

An employee overstates his reimbursable expenses in one period in order to receive needed additional cash. Since he intends to reduce his expenses the next period by the current overstatement, this act is not considered fraudulent.

Use the following information to prepare the schedule of cost of goods manufactured for Graffstone Company for the month ended June 30. Work in Process inventory. May 31 \ 12,600 Work in Procest inventory. June 30 16,500 Direct materials used during June 21,000 Direct labor used during June 31,000 Factory overhead: Indirect material 6,400 Indirect labor 9,200 Factory rent 12,000 Factory depreciation 15,000 Factory utilities 18,400

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

Manufacturers usually have three inventories: raw materials, work in process, and finished goods.

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:

For a manufacturer, the cost of goods sold can be computed by adding the beginning finished goods inventory to ________ and then subtracting the ending finished goods inventory.

Labor costs that are clearly associated with specific units of product because the labor is used to convert raw materials into finished products are called:

The cost of partially completed products is included in the balance of the Work in Process Inventory account.

Total quality management (TQM) focuses on quality improvement and applies this standard to all aspects of business activities.