Exam 18: Managerial Accounting Concepts and Principles

If the cost of the beginning work in process inventory is $60,000, direct materials cost is $350,000, direct labor cost is $216,000, and overhead cost is $319,000, and the ending work in process inventory is $55,000, calculate the cost of goods manufactured:

A company's prime costs total $3,000,000 and its conversion costs total $7,000,000. If direct materials are $1,000,000 and factory overhead is $5,000,000, then direct labor is:

A lean business model aims to eliminate waste while satisfying the customer and providing a positive return to the company.

Both financial and managerial accounting affect user's decisions and actions.

________ is the process of monitoring planning decisions and evaluating an organization's activities and employees.

Jenny, an employee of Toucan Company, used company assets for her own personal gain. This is an example of:

Which of the following is not part of the materials activity in the flow of manufacturing activities?

The Institute of Management Accountants (IMA) Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

Total quality management and just-in-time manufacturing focus on quality improvement as well as on time customer deliveries.

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

Under a just-in-time manufacturing system, large quantities of inventory are accumulated throughout the factory to be certain that components are available each time that they are needed.

Flexibility of practice when applied to managerial accounting means that:

Product costs can be classified as one of three types: direct materials, direct labor, or overhead.

The following information is available for the year ended December 31: Beginning raw materials inventory \ 21,500 Raw materials purchases 74,000 Ending raw materials inventory 23,000 Offes supplies expense 2,400 The amount of raw materials used in production for the year is:

Which of the following should not be included in direct materials costs?

Which of the following represents the correct formula for calculating raw materials inventory turnover for a manufacturer?

The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is the ________.

Which of the following statements is true regarding product and period costs?

The following items for Neptune Company are used to compute the cost of goods manufactured and the cost of goods sold. Indicate how each item should be used in the calculations by filling in the blanks with "+" if the item is to be added, "-" if the item is to be subtracted, or "0" if the item is not used in the calculation. The first item is completed as an example. Cost of Goods Cost of Goods Beginning finished goods inventory Manufactured Sold Ending finished goods inventory 0 + Direct labor Indirect labor Beginning work in process inventory Ending work in process inventory General and administrative expenses Indirect materials Beginning raw materials inventory Ending raw materials inventory Raw material purchases Depreciation of factory building Cost of goods manufactured

An employee is dissatisfied with the resolution of an ethical conflict with his supervisor at his place of employment. According to the Institute of Management Accountants, the employee's next step should be to: