Question 1

Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

Accepted Answer

A) True 
 B)False

Question 2

Raw materials that are tangible components of the finished product and can be separately and readily traced through the manufacturing process are called:

Accepted Answer

A)  Direct materials. 
B)  Chargeable materials. 
C)  Work in process. 
D)  Raw materials sold. 
E)  Indirect materials. 
A)  Direct materials. 
B)  Chargeable materials. 
C)  Work in process. 
D)  Raw materials sold. 
E)  Indirect materials.

Question 3

Both financial and managerial accounting report monetary information; managerial accounting also reports considerable nonmonetary information.

Accepted Answer

A) True 
 B)False

Question 4

________ are beliefs that distinguish right from wrong.

Accepted Answer

The answer of ________ are beliefs that distinguish right from...

Question 5

Calculate the cost of goods sold using the following information:$\begin{array} { l c } 
\text { Direct materials } & \$ 298,500 \
\text { Direct labor } & 132,000 \
\text { Factory overhead costs } & 264,000 \
\text { General and administrative expenses } & 85,500 \
\text { Selling expenses } & 48,800 \
\text { Work in Process inventory, January } & 1118,500 \
\text { Work in Process inventory, December 31 } & 125,900 \
\text { Finished goods inventory, January 1 } & 232,100 \
\text { Finished goods inventory, December 31 } & 238,700
\end{array}$

Accepted Answer

A)  $701,900. 
B)  $680,500. 
C)  $772,600. 
D)  $674,600. 
E)  $687,100. 
A)  $701,900. 
B)  $680,500. 
C)  $772,600. 
D)  $674,600. 
E)  $687,100.

Question 6

________ inventory consists of products in the process of being manufactured but not yet complete.

Accepted Answer

Work in pr

Question 7

Information for Underwood Industries is presented below. Compute the cost of goods manufactured.
 $$\begin{array} { l | l | l } 
& \text { Beginning } & \text { Ending } \
\hline \text { Raw materials inventory } & \$ 26,800 & 30,100 \
\hline \text { Work in procests inventory } & 41,200 & 39,000 \
\hline \text { Firished goods inventory } & 54,000 & 53,500 \
\hline & & \
\hline \text { Raw materials purchased } & 93,500 & \
\hline \text { Direct labor } & 61,000 & \
\hline \text { Total factory overhead } & 117,300 &
\end{array}$$

Accepted Answer

\[\begin{array} { l | l | l } 
\text { C

Question 8

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

Accepted Answer

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

Question 9

When the attitude of continuous improvement exists throughout an organization, every manager and employee is challenged to continuously experiment with new and improved business practices.

Accepted Answer

A) True 
 B)False

Question 10

Using the information below for Laurels Company; determine the manufacturing costs added during the current year: $$\begin{array} { l | r } 
\text { Direct materials used } & \$ 5,000 \
\hline \text { Direct Labor } & 7,000 \
\hline \text { Total Factory overhead } & 5,100 \
\hline \text { Beginning work in process } & 3,000 \
\hline \text { Ending work in process } & 4,000
\end{array}$$

Accepted Answer

A)  $18,100. 
B)  $17,100. 
C)  $13,600. 
D)  $12,000. 
E)  $16,100. 
A)  $18,100. 
B)  $17,100. 
C)  $13,600. 
D)  $12,000. 
E)  $16,100.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

What is the main difference between the income statement of a manufacturer and that of a merchandiser?

Accepted Answer

In the calculation of cost of goods sold

Question 13

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 14

Use the following data to compute total manufacturing costs for the month:  
$$\begin{array} { l | l } 
\text { Sales commissions } && \$ 10,800 \
\hline \text { Direct labor } & 39,600 \
\hline \text { Indirect materials } &&{ 15,200 } \
\hline \text { Factory manager salaries } & 7,200 \
\hline \text { Factory supplies } & 9,000
\end{array}$$ $$\begin{array} { l | l } 
\text { Sales commis sions } && { \$ 10,800 } \
\hline \text { Direct labor } & 39,600 \
\hline \text { Indirect materials }  && 15,200 \
\hline \text { Factory manager salaries } & 7,200 \
\hline \text { Factory supplies } & 9,000
\end{array}$$  $\begin{array}{|l|c}
\hline \text { Factory supplies } & 9,000 \
\hline \text { Indirect labor } && 6,300 \
\hline \text { Depreciation -office equipment} & 5,000 \
\hline \text { Direct materials} & 40,500 \
\hline \text { Corporate office salaries } & 42,500 \
\hline\text { Depreciation -factory equipment }&&7,500
\end{array}$

Accepted Answer

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

Question 15

The following information relates to the manufacturing operations of the JNR Printing Company for the year: $$\begin{array} { l r r } 
& \text { Beginning }&\text { Ending } \ 
\text { Raw materials inventory } & \$ 57,000 & \$ 60,000 \
\text { Finithed goods } & 68,000 & 60,000
\end{array}$$ The raw materials used in manufacturing during the year totaled $118,000. Raw materials purchased during the year amount to:

Accepted Answer

A)  $115,000. 
B)  $121,000. 
C)  $107,000. 
D)  $118,000. 
E)  $126,000. 
A)  $115,000. 
B)  $121,000. 
C)  $107,000. 
D)  $118,000. 
E)  $126,000.

Question 16

Define and contrast period costs and product costs. How are they reported in the financial statements of a manufacturing company?

Accepted Answer

Period costs are the expenditures that a

Question 17

Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Accepted Answer

A) True 
 B)False

Question 18

Period costs for a manufacturing company would flow directly to:

Accepted Answer

A)  The balance sheet as inventory. 
B)  The income statement as an expense. 
C)  Factory overhead. 
D)  The current schedule of cost of goods manufactured. 
E)  Cost of goods sold on the income statement. 
A)  The balance sheet as inventory. 
B)  The income statement as an expense. 
C)  Factory overhead. 
D)  The current schedule of cost of goods manufactured. 
E)  Cost of goods sold on the income statement.

Question 19

Managerial accounting information:

Accepted Answer

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

Question 20

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...

Exam 18: Managerial Accounting Concepts and Principles

Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

Raw materials that are tangible components of the finished product and can be separately and readily traced through the manufacturing process are called:

Both financial and managerial accounting report monetary information; managerial accounting also reports considerable nonmonetary information.

________ are beliefs that distinguish right from wrong.

________ inventory consists of products in the process of being manufactured but not yet complete.

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

When the attitude of continuous improvement exists throughout an organization, every manager and employee is challenged to continuously experiment with new and improved business practices.

Using the information below for Laurels Company; determine the manufacturing costs added during the current year: Direct materials used \ 5,000 Direct Labor 7,000 Total Factory overhead 5,100 Beginning work in process 3,000 Ending work in process 4,000

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

What is the main difference between the income statement of a manufacturer and that of a merchandiser?

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.

Define and contrast period costs and product costs. How are they reported in the financial statements of a manufacturing company?

Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Period costs for a manufacturing company would flow directly to:

Managerial accounting information:

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

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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