Exam 1: Introduction to Managerial Accounting

In a manufacturing firm, administrative costs are included in period costs.

Goods that have been started in the manufacturing process but are not yet complete are included in:

How is the management of a company accountable to its employees?

For a manufacturing business, which of the following would be included as indirect manufacturing 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 total manufacturing cost incurred during the year 2015?

Managerial accounting focuses on providing information for internal planning and control.

Nurix Inc. is a business consulting firm. During the month of February, Nurix earned $55,400 of revenues by providing services to 45 clients. Operating expenses for February were $8,500 and non-operating expenses were $4,500. What is the cost per service?

Which of the following is the primary focus of financial accounting?

Managerial accounting includes the planning function. Which of the following items would be part of the planning function of a business's managerial accounting?

Opal Company used $213,000 of direct materials and incurred $111,000 of direct labor costs during 2015. 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 Opal Company using the format below. COST OF GOODS MFGD Beginning Work-in-Process Inventory Direct Materials Used Direct Labor Manufacturing Overhead: Indirect Labor Indirect Materials Utility Expenses 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

Which of the following will be classified as a conversion cost?

Crabapples Inc. purchases and sells dry fruit boxes. The following information summarizes its operating activities for 2015: Selling Expenses \ 9,375 Inventory on December 31,2015 32,500 Inventory on January 1,2015 46,875 Purchases of merchandise 84,375 Rent for store 12,500 Sales commissions 7,031 Sales revenue 168,750 If Crabapples sold 5,000 boxes of dry fruits during the year, what is the cost per box of dry fruits?

For a manufacturing business, which of the following would be considered a product cost?

Fireox Company's selected cost data for 2015 are shown below: Work-in-Process Inventory, Jan. 1, 2015 \ 5,640 Direct Materials Used 105,000 Work-in-Process Inventory, Dec. 31, 2015 2,870 Cost of Goods Manufactured 193,200 Assuming manufacturing overhead costs of $27,850, what is the amount of direct labor incurred by Fireox Company in 2015?

The whole sequence of activities that add value to a company's products and services is called:

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

Selling and administrative expenses are subtracted from the cost of goods sold to obtain operating profit.

The following information relates to Webster Inc.: Advertising Costs \ 10,270 Sales Salary 4,500 Sales Revenue 450,000 President's Salary 40,300 Office Rent 61,100 Manufacturing Equipment Depreciation 2,080 Indirect Materials 9,360 Indirect Labor 11,700 Factory Repair and Maintenance 910 Direct Materials 28,080 Direct Labor 35,100 Delivery Vehicle Depreciation 1,027 Administrative Salaries 24,700 -How much were Webster's product costs?

Unlike merchandising companies, income statements of service companies include cost of goods sold as a line item.