Exam 1: Introduction to Managerial Accounting

Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information: Sales Revenue \ 557,000 Purchases (excluding freight in) 300,000 Selling and Administrative Expenses 69,000 Freight In 15,000 Beginning Merchandise Inventory 45,000 Ending Merchandise Inventory 55,700 What is the cost of goods sold for 2015?

Which of the following is one of the key standards of ethical practice published by the IMA?

Sales commissions are included in manufacturing overhead.

A company that uses labor, equipment, supplies, and facilities to convert raw materials into finished products is a:

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

Which of the following statements is true of management accounting?

Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed when customer orders need to be filled?

Service companies include companies that provide health care, communication, banking, and other important benefits to society.

One of the primary activities of Rex Inc. is to purchase hats from Viva Inc. in Texas and sell them to its customers in Washington for a profit. It is likely that Rex is a:

Management's accountability to its suppliers and vendors is to:

Managerial accounting can be used to calculate costs for service and merchandising companies.

At the beginning of 2015, Swift Company's Work-in-Process Inventory account had a balance of $120,000. During 2015, $250,000 of direct materials were used in production, and $75,000 of direct labor costs were incurred. Manufacturing overhead amounted to $850,000. The cost of goods manufactured was $675,000. What is the balance in the Work-in-Process Inventory account on December 31, 2015?

Which of the following will most likely be considered an indirect material cost for a bakery?

Barricades Corporation provided the following information for the year 2015: Beginning Balance - Work-in-Process Inventory \ 24,000 Ending Balance - Work-in-Process Inventory 56,000 Beginning Balance - Raw Materials Inventory 84,000 Ending Balance - Raw Materials Inventory 60,000 Purchases - Raw Materials 460,000 Direct Labor 470,000 Indirect Materials 47,000 Indirect Labor 19,000 Depreciation on Factory Plant \& Equipment 24,000 Plant Utilities \& Insurance 270,00 -What was the amount of the cost of goods manufactured for the year 2015?

The IMA Standards of Ethical Practice include confidentiality, competence, credibility, and integrity.

Given the following information, determine the cost of goods sold. Direct Labor Incurred \ 63,000 Manufacturing Overhead Incurred 179,500 Direct Materials Used 150,000 Finished Goods Inventory, 1/1/2015 197,500 Finished Goods Inventory, 12/31/2015 221,000 Work-in-Process Inventory, 1/1/2015 96,500 Work-in-Process Inventory, 12/31/2015 109,000

The following information was obtained from Fizz Company: Advertising Costs \ 9,900 Indirect Labor 11,000 CEO's Salary 49,000 Direct Labor 41,000 Indirect Materials 7,900 Direct Materials Used 61,000 Factory Utilities 700 Factory Janitorial Costs 2,300 Manufacturing Equipment Depreciation 2,100 Delivery Vehicle Depreciation 1,100 Administrative Wages and Salaries 21,000 -How much were Fizz's period costs?

Dreams Manufacturing Company provided the following information for the year 2015: Purchases - Raw Materials \ 270,000 Plant Utilities \& Insurance 202,500 Indirect Materials 35,250 Indirect Labor 14,250 Ending Balance - Work-in-Process Inventory 42,000 Ending Balance - Raw Materials Inventory 45,000 Direct Labor 352,500 Depreciation on Factory Plant \& Equipment 18,000 Beginning Balance - Work-in-Process Inventory 18,000 Beginning Balance - Raw Materials Inventory 63,000 Required: Prepare a statement of the cost of goods manufactured using the following format: COST OF GOODS MFGD Beginning Work-in-Process Inventory Direct Materials Used: Beginning Raw Materials Inventory Purchases of Raw Materials Raw Materials Available for Use Ending Raw Materials Inventory Direct Materials Used Direct Labor Manufacturing Overhead: Indirect Materials Indirect Labor Depreciation-Plant \& Equip. Plant utilities \& 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

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

Viva Inc. has provided the following information for the year 2015: Cost of Goods Manufactured \ 1,234,000 Beginning Balance - Finished Goods Inventory 99,000 Ending Balance - Finished Goods Inventory 84,000 How much is the cost of goods sold?