Exam 16: Introduction to Managerial Accounting

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

Rios Corporation reports costs for the year as follows: Direct Materials Used \ 780,000 Wages to Line Workers 245,000 Office Rent 33,000 Indirect Materials Used 800,000 How much is the total product costs for the year?

Doggie Delights manufactures its own brand of pet toys. At the end of June, 2019 the accounting records showed the following: Inventories: Beginning Ending Direct Materials \ 14,200 \ 9,600 Work-in-Process 0 3,600 Finished Goods 0 6,800 Other Information: Direct materials purchases 40,000 Plant janitorial services 4,200 Sales salaries 6,000 Delivery costs 2,900 Sales revenue 206,000 Utilities for plant 10,000 Rent on plant 27,000 Customer service hotline costs 3,000 Direct labor 29,000 (a) Prepare a schedule of cost of goods manufactured for Doggie Delights and (b) Prepare an income statement for Doggie Delights for the year ended June 30, 2019

The officer of the company who has the ultimate responsibility for implementing the company's long and short-term goals is the ________.

Lakeshore Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 30,000 Beginning Finished Goods Inventory 17,000 Ending Finished Goods Inventory 11,500 Cost of Goods Manufactured 12,600 Compute gross profit.

Yoga Universe, Inc. is a fitness center in Tampa, Florida. In October, the company earned $550,000 in revenues and incurred the following operating costs from 340 customers: Manager's salary \ 50,000 Gym Rent Expense 60,000 Depreciation Expense-Equipment 25,000 Office Supplies Expense 30,000 Utilities Expense 89,700 Trainer's Salary 25,000 Required: Prepare Yoga Universe's income statement for the month of October, 2019.

Which of the following is one of the key standards of ethical practice published by the Institute of Management Accountants (IMA)?

Unit cost per service is calculated by dividing total costs by the total number of services provided.

In a manufacturing company, accounting, legal, and administrative costs are typical examples of product costs.

Goods that are produced by a manufacturing company and are ready to sell are recorded in the _______ account.

Managerial accounting is used in manufacturing and merchandising companies, but not in service companies.

Which of the following correctly describes the accounting for indirect labor costs?

Identify each cost as a period cost or a product cost. -Depreciation on manufacturing equipment

The IMA standards of ethical practice require managerial accountants to maintain their professional competence.

The following information was obtained from Durand, Inc.: Advertising Costs \ 11,600 Indirect Labor 8000 CEO's Salary 470,000 Direct Labor 53,000 Indirect Materials Used 8000 Direct Materials Used 390,000 Factory Utilities 840 Factory Janitorial Costs 1000 Manufacturing Equipment Depreciation 1700 Delivery Vehicle Depreciation 2110 Administrative Wages and Salaries 22,300 How much were Durand's period costs?

Varda, Inc. used $213,000 of direct materials and incurred $111,000 of direct labor costs during the year. Indirect labor amounted to $8,100, while indirect materials used totaled $4,800. Other operating costs pertaining to the factory included utilities of $9,300; maintenance of $13,500; repairs of $5,400; depreciation of $23,700; and property taxes of $7,800. There was no beginning or ending finished goods inventory. The Work-in-Process Inventory account reflected a balance of $16,500 at the beginning of the period and $22,500 at the end of the period. Required: Prepare a schedule of cost of goods manufactured for Varda, Inc. using the format below. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Schedule of Cost of Goods Manufactured }$ Beginning Work-in-Process Inventory Direct Materials Used Direct Labor Manufacturing Overhead: Indirect Labor Used Indirect Materials Utilities Maintenance Repairs Depreciation Property Taxes 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

Accuracy Accounting, Inc. sells accounting textbooks. The following information summarizes Accuracy Accounting's operating activities for the year: Merchandise Inventory, January 1 \ 10,000 Merchandise Inventory, December 31 7,000 Purchases 95,000 Selling and Administrative Expenses 65,000 Sales Revenue 180,000 Required: Prepare Accuracy Accounting, Inc.'s income statement for the year ended December 31.

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

In the income statements of both manufacturing and merchandising companies, the Cost of Goods Sold account is usually the largest expense.

For decision-making purposes, ________ are often divided into prime costs and conversion costs.