Exam 16: Introduction to Managerial Accounting

Haggan Manufacturing, Inc. provided the following information for the year: Purchases - Direct Materials \ 270,000 Plant Utilities and Insurance 202,500 Indirect Materials 35,250 Indirect Labor 14,250 Ending Balance - Work-in-Process Inventory 42,000 Ending Balance - Direct Materials 45,000 Direct Labor 352,500 Depreciation on Factory Plant and Equipment 18,000 Beginning Balance - Work-in-Process Inventory 18,000 Beginning Balance - Direct Materials 63,000 Required: Prepare a schedule of the cost of goods manufactured using the following format: $\quad$ $\quad$ $\quad$ $\quad$$\text { Schedule of Cast af Gogds Manufertured }$ Beginning Work-in-Process Inventory Direct Materials Used: Beginning Direct Materials Purchases of Direct Materials Direct Materials Available for Use Ending Direct Materials Direct Materials Used Direct Labor Manufacturing Overhead: Indirect Materials Indirect Labor Depreciation - Plant and Equipment Plant Utilities and Insurance Total Manufacturing Overhead Total Manufacturing Costs Incurred During the Year Total Manufacturing Costs to Account For Ending Work-in-Process Inventory Cost of Goods Manufactured

Mason Cabinet Company sells standard kitchen cabinets. The following information summarizes Mason's operating activities for the year: Selling and Administrative Expenses \ 42,750 Purchases 85,700 Sales Revenue 154,500 Merchandise Inventory, January 1 12,500 Merchandise Inventory, December 31 16,200 Mason sold 950 cabinets during the year. Calculate the operating income for the year. Compute the unit cost for one cabinet (Round to two decimal places.)

Direct costs and indirect costs can be easily traced directly to a cost object.

Identify each cost as a period cost or a product cost. -Production supervisor's salary

Staff positions are directly involved in providing goods or services to customers.

Fontana Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 26,000 Beginning Finished Goods Inventory 8000 Ending Finished Goods Inventory 13,500 Cost of Goods Manufactured 15,600 Compute cost of goods available for sale.

Which of the following correctly describes the accounting for advertising costs?

The entire sequence of activities that add value to a company's products and services is called ________.

Knowing the unit cost per item helps managers set appropriate selling prices.

Five Seasons is a merchandiser of packed foods. The company provides the following information for the year: Sales Revenue \ 145,000 Cost of Goods Sold 64,000 Operating Expenses 67,000 Net Income 14,000 Number of Units Sold 29,000 How much was the unit cost per item of product sold? (Round your answer to the nearest cent.)

Which of the following represents the combined sum of direct labor costs and manufacturing overhead costs?

Which of the following is the primary focus of managerial accounting?

Which of the following is an example of direct labor cost in a factory?

The cost of goods sold for Frye Manufacturing in the year was $297,000. The January 1 Finished Goods Inventory balance was $31,600, and the December 31 Finished Goods Inventory balance was $25,600. Calculate the cost of goods manufactured during the year.

The value chain includes both the upstream and downstream activities of a business.

How does a manufacturing company calculate unit product cost? Why do managers need to know the unit product cost?

A corporation used $34,000 of direct materials. It incurred $74,000 in direct labor costs and $112,500 in manufacturing overhead costs during the period. What is the cost of goods manufactured if the beginning and ending Work-in-Process Inventories were $27,500 and $20,500, respectively?

Which of the following would be included as indirect manufacturing costs for a manufacturing company?

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

Match each term with its correct definition. -An accounting field that helps managers plan and control operations.