The following information has been provided by New Age, Inc.: \[\begin{array} { | l | r |} \hline \text { Direct Labor } & \$ 25,100 \\ \hline \text { Direct Materials Used } & 11,000 \\ \hline \text { Direct Materials Purchased } & 16,710 \\ \hline \text { Cost of Goods Manufactured } & 49,000 \\ \hline \text { Ending Work-in-Process Inventory } & 11,200 \\ \hline \text { Corporate Headquarters' Property Taxes } & 1500 \\ \hline \text { Manufacturing Overhead } & 19,350 \\ \hline \end{array}\] Calculate the beginning balance of the Work-in-Process Inventory account.

A) $93,250 B) $60,200 C) $4750 D) $44,250 A) $93,250 B) $60,200 C) $4750 D) $44,250

Enzo Design Corporation reports the following cost information for March: \[\begin{array} { | l | r | } \hline \text { Cost of Goods Manufactured } & \$ 75,000 \\ \hline \text { Finished Goods Inventory, March 1 } & 4000 \\ \hline \text { Finished Goods Inventory, March 31 } & 2650 \\ \hline \text { Work-in-Process Inventory, March 1 } & 9670 \\ \hline \text { Work-in-Process Inventory, March 31 } & 1000 \\ \hline \text { Direct Labor } & 36,000 \\ \hline \text { Direct Materials Used } & 16,900 \\ \hline \end{array}\] What is the amount of manufacturing overhead incurred by the company in March?

A) $30,330 B) $138,570 C) $13,430 D) $12,430 A) $30,330 B) $138,570 C) $13,430 D) $12,430

The following information relates to Myer, Inc.: \[\begin{array} { | l | r | } \hline \text { Advertising Costs } & \$ 10,600 \\ \hline \text { Sales Salary } & 10,000 \\ \hline \text { Sales Revenue } & 500,000 \\ \hline \text { President's Salary } & 230,000 \\ \hline \text { Office Rent } & 60,500 \\ \hline \text { Manufacturing Equipment Depreciation } & 1200 \\ \hline \text { Indirect Materials Used } & 800 \\ \hline \text { Indirect Labor } & 13,000 \\ \hline \text { Factory Repair and Maintenance } & 920 \\ \hline \text { Direct Materials Used } & 27,500 \\ \hline \text { Direct Labor } & 36,000 \\ \hline \text { Delivery Vehicle Depreciation } & 1550 \\ \hline \text { Administrative Salaries } & 22,000 \\ \hline \end{array}\] How much were Myer's product costs?

A) $604,650 B) $252,000 C) $510,600 D) $86,620 A) $604,650 B) $252,000 C) $510,600 D) $86,620

Darius Manufacturing, Inc. provided the following information for the year: \[\begin{array} { | l | r | } \hline \text { Purchases - Direct Materials } & \$ 90,000 \\ \hline \text { Plant Utilities and Insurance } & 67,500 \\ \hline \text { Indirect Materials Used } & 11,040 \\ \hline \text { Indirect Labor } & 4420 \\ \hline \text { Direct Materials Used in Production } & 99,000 \\ \hline \text { Direct Labor } & 119,500 \\ \hline \text { Depreciation on Factory Plant and Equipment } & 5000 \\ \hline \text { Cost of Goods Manufactured } & 291,500 \\ \hline \end{array}\] The inventory account balances as of January 1 are given below. \[\begin{array} { | l | r | } \hline \text { Direct Materials } & \$ 46,000 \\ \hline \text { Work-in-Process Inventory } & 1000 \\ \hline \text { Finished Goods Inventory } & 50,000 \\ \hline \end{array}\] What is the ending balance in the Work-in-Process Inventory account?

A) $15,960 B) $1000 C) $50,000 D) $45,000 A) $15,960 B) $1000 C) $50,000 D) $45,000

Keegan Corporation reports the following cost information for March: \[\begin{array} { | l | r | } \hline \text { Cost of Goods Manufactured } & \$ 76,000 \\ \hline \text { Manufacturing Overhead } & 18,900 \\ \hline \text { Finished Goods Inventory, March 1 } & 4000 \\ \hline \text { Finished Goods Inventory, March 31 } & 300 \\ \hline \text { Work-in-Process Inventory, March 1 } & 9690 \\ \hline \text { Work-in-Process Inventory, March 31 } & 1200 \\ \hline \text { Direct Labor } & 37,000 \\ \hline \end{array}\] What is the amount of direct materials used by the company in March?

A) $11,610 B) $8490 C) $18,100 D) $20,100 A) $11,610 B) $8490 C) $18,100 D) $20,100

Artisan Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 8000 units during the year. The company has provided the following information: \[\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 593,000 \\ \hline \text { Purchases (excluding Freight In) } & 304,000 \\ \hline \text { Selling and Administrative Expenses } & 68,000 \\ \hline \text { Freight In } & 14,000 \\ \hline \text { Beginning Merchandise Inventory } & 46,000 \\ \hline \text { Ending Merchandise Inventory } & 42,000 \\ \hline \end{array}\] What is the operating income for the year? (Round your answer to the nearest whole dollar.)

A) $203,000 B) $322,000 C) $271,000 D) $525,000 A) $203,000 B) $322,000 C) $271,000 D) $525,000

Exam 16: Introduction to Managerial Accounting

The following information has been provided by New Age, Inc.: Direct Labor \ 25,100 Direct Materials Used 11,000 Direct Materials Purchased 16,710 Cost of Goods Manufactured 49,000 Ending Work-in-Process Inventory 11,200 Corporate Headquarters' Property Taxes 1500 Manufacturing Overhead 19,350 Calculate the beginning balance of the Work-in-Process Inventory account.

(Multiple Choice)

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Question 121

Noble, Inc. purchases each unit of product X for $100 and can sell it in the market for $135. The price of the product for Noble would be $100.

(True/False)

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Question 122

Which of the following will be included in manufacturing overhead costs?

(Multiple Choice)

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Question 123

The primary activity of manufacturing companies is to purchase goods from a wholesaler and resell them.

(True/False)

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Question 124

Which of the following is a focus of managerial accounting?

(Multiple Choice)

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Question 125

Enzo Design Corporation reports the following cost information for March: Cost of Goods Manufactured \ 75,000 Finished Goods Inventory, March 1 4000 Finished Goods Inventory, March 31 2650 Work-in-Process Inventory, March 1 9670 Work-in-Process Inventory, March 31 1000 Direct Labor 36,000 Direct Materials Used 16,900 What is the amount of manufacturing overhead incurred by the company in March?

(Multiple Choice)

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Question 126

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

(Multiple Choice)

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Question 127

The following information relates to Myer, Inc.: Advertising Costs \ 10,600 Sales Salary 10,000 Sales Revenue 500,000 President's Salary 230,000 Office Rent 60,500 Manufacturing Equipment Depreciation 1200 Indirect Materials Used 800 Indirect Labor 13,000 Factory Repair and Maintenance 920 Direct Materials Used 27,500 Direct Labor 36,000 Delivery Vehicle Depreciation 1550 Administrative Salaries 22,000 How much were Myer's product costs?

(Multiple Choice)

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Question 128

Darius Manufacturing, Inc. provided the following information for the year: Purchases - Direct Materials \ 90,000 Plant Utilities and Insurance 67,500 Indirect Materials Used 11,040 Indirect Labor 4420 Direct Materials Used in Production 99,000 Direct Labor 119,500 Depreciation on Factory Plant and Equipment 5000 Cost of Goods Manufactured 291,500 The inventory account balances as of January 1 are given below. Direct Materials \ 46,000 Work-in-Process Inventory 1000 Finished Goods Inventory 50,000 What is the ending balance in the Work-in-Process Inventory account?

(Multiple Choice)

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Question 129

All costs incurred in the manufacture of completed products are product costs.

(True/False)

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Question 130

Keegan Corporation reports the following cost information for March: Cost of Goods Manufactured \ 76,000 Manufacturing Overhead 18,900 Finished Goods Inventory, March 1 4000 Finished Goods Inventory, March 31 300 Work-in-Process Inventory, March 1 9690 Work-in-Process Inventory, March 31 1200 Direct Labor 37,000 What is the amount of direct materials used by the company in March?

(Multiple Choice)

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Question 131

For a manufacturing company, which of the following is a period cost?

(Multiple Choice)

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Question 132

At the end of the year, Mary's supervisor asked her to record sales transactions for products that would not ship until the following year, and she complied. Mary has violated IMA ethical standards.

(True/False)

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Question 133

Which of the following would be considered a product cost for a manufacturing company?

(Multiple Choice)

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Question 134

Manufacturing overhead includes all manufacturing costs, such as direct labor and direct materials.

(True/False)

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Question 135

The salary of a manufacturing plant manager will be included in manufacturing overhead.

(True/False)

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Question 136

Which of the following is most likely a service company?

(Multiple Choice)

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Question 137

The cost of direct materials cannot easily be traced to the manufactured product, and therefore, it is a component of manufacturing overhead.

(True/False)

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Question 138

Artisan Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 8000 units during the year. The company has provided the following information: Sales Revenue \ 593,000 Purchases (excluding Freight In) 304,000 Selling and Administrative Expenses 68,000 Freight In 14,000 Beginning Merchandise Inventory 46,000 Ending Merchandise Inventory 42,000 What is the operating income for the year? (Round your answer to the nearest whole dollar.)

(Multiple Choice)

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Question 139

Seria, Inc. has received a bulk order from an overseas client. As a result, the reported earnings of this year are expected to be significantly higher than the estimates of financial analysts. Joshua, an accountant at Seria, tells this to one of his friends. Which of the IMA standards has Joshua violated?

(Multiple Choice)

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Question 140

Noble, Inc. purchases each unit of product X for $100 and can sell it in the market for $135. The price of the product for Noble would be $100.

Which of the following will be included in manufacturing overhead costs?

The primary activity of manufacturing companies is to purchase goods from a wholesaler and resell them.

Which of the following is a focus of managerial accounting?

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

All costs incurred in the manufacture of completed products are product costs.

For a manufacturing company, which of the following is a period cost?

At the end of the year, Mary's supervisor asked her to record sales transactions for products that would not ship until the following year, and she complied. Mary has violated IMA ethical standards.

Which of the following would be considered a product cost for a manufacturing company?

Manufacturing overhead includes all manufacturing costs, such as direct labor and direct materials.

The salary of a manufacturing plant manager will be included in manufacturing overhead.

Which of the following is most likely a service company?

The cost of direct materials cannot easily be traced to the manufactured product, and therefore, it is a component of manufacturing overhead.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Investments

Current Liabilities and Payroll

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based Just-In-Time

Cost Volume Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Understanding Accounting Information Systems and their Components

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