Exam 1: Introduction to Managerial Accounting

________ is a philosophy of continuous improvement of products and processes.

The Work-in-Process Inventory account includes the:

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

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

Five Seasons is a merchandiser of packed foods. The company provides the following information for the year 2015: Sales Revenue \ 140,000 Cost of Goods Sold \ 63,000 Operating Expenses \ 67,500 Net Income \ 9,500 Number of Units Sold 27,000 How much was the unit cost per unit of product sold?

Which of the following is a philosophy designed to integrate all organizational areas in order to provide customers with superior products and services, while meeting organizational goals throughout the value chain?

Kentucky purchases and sells widgets. The following information summarizes Kentucky's operating activities for 2015: Selling and Administrative Expenses \ 4,500 Purchases 157,000 Sales Revenue 785,000 Merchandise Inventory, January 1, 2015 38,250 Merchandise Inventory, December 31, 2015 79,000 If Kentucky sold 7,500 units of widgets during 2015, how much is the cost for one widget?

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

The three categories of period costs are direct materials, direct labor, and manufacturing overhead.

Goods that are produced by a manufacturing company and are ready to sell are recorded in the:

Financial statements prepared for investors and creditors often include forward-looking information because they make decisions based on a company's future prospects.

Cost per service is calculated by dividing total costs by total number of services provided.

The following information has been provided by Nugget Company: Direct Labor \ 25,000 Direct Materials Used 10,000 Raw Materials Purchased 16,750 Cost of Goods Manufactured 49,750 Ending Work-in-Process Inventory 11,500 Corporate Headquarters' Property Taxes 1,500 Manufacturing Overhead 19,750 Calculate the beginning balance of the Work-in-Process Inventory account.

Repair and maintenance costs for factory equipment are product costs.

Direct materials and direct labor are prime costs.

The cost of goods sold for Frye Manufacturing in 2015 was $233,000. The January 1, 2015, finished goods inventory balance was $31,600, and the December 31, 2015, finished goods inventory balance was $24,200. Calculate the cost of goods manufactured during 2015.

Jasper Corporation reports the following cost information for March: Cost of Goods Manufactured \ 75,000 Manufacturing Overhead 18,250 Finished Goods Inventory, March 1 4,500 Finished Goods Inventory, March 31 2,650 Work-in-Process Inventory, March 1 9,670 Work-in-Process Inventory, March 31 1,250 Direct Labor 36,300 What is the amount of direct materials used by Jasper in March?

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

Indirect materials costs such as lubes and cleaning fluids are product costs.

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 270,000 What was the amount of direct materials used in production during 2015?