Exam 16: Introduction to Managerial Accounting

Selling and administrative expenses are subtracted from gross profit to obtain operating income.

Titus Manufacturing, Inc. provided the following information for the year: Purchases - Direct Materials \ 91,000 Plant Utilities and Insurance 68,000 Indirect Materials 11,170 Indirect Labor 4270 Direct Materials Used in Production 99,000 Direct Labor 117,500 Depreciation on Factory Plant \& Equipment 4000 The inventory account balances as of January 1 are given below. Direct Materials \ 44,000 Work-in-Progress Inventory 10,000 Finished Goods Inventory 50,000 What is the ending balance in the Direct Materials account?

Stone Beauty, Inc. is a merchandiser of stone ornaments. The company sold 8000 units during the year. The company has provided the following information: Sales Revenue \ 559,000 Purchases (excluding freight in) 303,000 Selling and Administrative Expenses 67,000 Freight In 14,000 Beginning Merchandise Inventory 46,000 Ending Merchandise Inventory 43,000 What is the cost of goods available for sale for the year?

Partial income statements of Company A and Company B are provided below: Company A Revenue \ 80,000 Expenses: Utilities Expense \ 5,000 Salaries Expense 15,000 Rent Expense Total Expenses Operating Income \ 56,300 Company B Revenue \ 50,000 Cost of Goods Sold: Beginning Merchandise Inventory \ 4,000 Purchases and Freight In Cost of Goods Available for Sale 27,000 Ending Merchandise Inventory Cost of Goods Sold 21,500 Gross Profit \ 28,500 Which of the following statements is true?

The income statement of a service company will most likely include ________.

Samson, Inc. reported the following information for the year: Service Revenue \ 60,000 Operating Expenses 21,000 Net Income 39,000 Number of Services Provided for the Year 10,500 How much was the unit cost per service? (Round your answer to the nearest cent.)

Argento Supplies, Inc. selected cost data for the year are shown below: Work-in-Process Inventory, Jan. 1 \ 5920 Direct Materials Used 101,000 Work-in-Process Inventory, Dec. 31 2860 Cost of Goods Manufactured 193,100 Assuming manufacturing overhead costs of $27,800, what is the amount of direct labor incurred by Argento Supplies, Inc. during the year?

The jobs that are directly involved in providing goods or services to customers are called ________.

How does a service company calculate unit cost per service? Why do managers need to know the unit cost per service?

Mars Supplies Company provided the following information for the year: Beginning Balance - Work-in-Process Inventory \ 24,000 Ending Balance - Work-in-Process Inventory 58,000 Beginning Balance - Direct Materials Inventory 85,000 Ending Balance - Direct Materials Inventory 61,000 Purchases - Direct Materials 359,000 Direct Labor 470,000 Indirect Labor 21,000 Depreciation on Factory Plant and Equipment 24,000 Plant Utilities and Insurance 268,000 What was the amount of the manufacturing overhead costs?

Match each term with its correct definition. -The Board of Directors is shown at the top of this diagram.

A company's organizational chart shows the relationships between departments and divisions and the managers that are responsible for each section.

List the three kinds of inventory accounts that are used by manufacturing companies. Briefly discuss what each account includes.

The following information has been provided by Crosby Corporation: Direct Labor \ 6000 Direct Materials Used 3000 Direct Materials Purchased 9000 Cost of Goods Manufactured 13,000 Ending Work-in-Process Inventory 1400 Corporate Headquarters' Property taxes 900 Manufacturing Overhead Incurred 400 The beginning balance of Work-in-Process Inventory account was ________.

The following information relates to Carried Away Hot Air Balloons, Inc.: Advertising Costs \ 10,400 Sales Salary 13,800 Sales Revenue 630,000 President's Salary 52,000 Office Rent 67,000 Manufacturing Equipment Depreciation 3000 Indirect Materials Used 660 Indirect Labor 13,300 Factory Repair and Maintenance 820 Direct Materials Used 31,070 Direct Labor 31,900 Delivery Vehicle Depreciation 810 Administrative Salaries 24,700 How much was Carried Away's manufacturing overhead?

Match each term with its correct definition. -An accounting field that is required to follow Generally Accepted Accounting Principles.

Which of the following is a prime cost and a conversion cost?

Indirect materials costs are included in manufacturing overhead.

Which of the following is a product cost for a manufacturing company?

Velasco Productions has provided the following information for the year: Direct Labor \ 150,000 Beginning Work-in-Process Inventory 63,000 Direct Materials Used 269,000 Ending Work-in-Process Inventory 52,900 Manufacturing Overhead 135,000 During the year, Velasco produced 71,220 units of product. Calculate the unit product cost. (Round your answer to the nearest cent.)