Exam 18: Managerial Accounting Concepts and Principles

The management concept of customer orientation motivates a company to spend large amounts on advertising to convince customers to buy the company's standard products.

The schedule of cost of goods manufactured is divided into four parts consisting of all of the following except:

An employee devises a payroll scheme that costs the employer $150. The employer discovers the fraud but decides not to confront the employee since the amount of the fraud is small. Discuss why this course of action is not advisable.

Product costs are capitalized as inventory on the balance sheet and period costs are expensed on the income statement.

A manufacturing company has a beginning finished goods inventory of $28,300, cost of goods manufactured of $58,500, and an ending finished goods inventory of $27,600. The cost of goods sold for this company is:

Information for the Deuce Manufacturing Company follows. Compute the cost of goods manufactured for this company. Begining raw materials inventory \ 53,200 Beginging work in process, inventory 78,400 Ending raw materials inventory 58,100 Ending work in process, inventory 98,000 Direct labor 149,800 Total factory overhead 105,000 Raw material purchases 210,000