Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) indirect materials 
B) factory utilities 
C) direct labor 
D) sales salaries 
A) indirect materials 
B) factory utilities 
C) direct labor 
D) sales salaries

Question 3

Partial income statements of Company A and Company B are provided below: Company A
$$\begin{array} { | l | r | r | } 
\hline \text { Revenue } & & \$ 80,000 \
\hline \text { Expenses: } & & \
\hline \text { Utilities Expense } & \$ 5,000 & \
\hline \text { Salaries Expense } & 15,000 & \
\hline \text { Rent Expense } & \underline { 3,2000 } & \
\hline \text { Total Expenses } & & \underline { 23,700 } \
\hline \text { Operating Income } & & \$ 56,300 \
\hline
\end{array}$$ Company B
$$\begin{array} { | l | r | r | } 
\hline \text { Revenue } & & \$ 50,000 \
\hline \text { Cost of Goods Sold: } & & \
\hline \text { Beginning Merchandise Inventory } & \$ 4,000 & \
\hline \text { Purchases and Freight In } & 23,000 & \
\hline \text { Ending Merchandise Inventory } & \$ 5,500 & \
\hline \text { Cost of Goods Sold } & & 21,500 \
\hline \text { Gross Profit } & & \$ 28,500 \
\hline
\end{array}$$ Which of the following statements is true?

Accepted Answer

A) Company A is a merchandising company. 
B) Company B is a manufacturing company. 
C) Company A is a manufacturing company. 
D) Company A is a service company. 
A) Company A is a merchandising company. 
B) Company B is a manufacturing company. 
C) Company A is a manufacturing company. 
D) Company A is a service company.

Question 4

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

Accepted Answer

A) objectivity 
B) environmental sensitivity 
C) technicality 
D) confidentiality 
A) objectivity 
B) environmental sensitivity 
C) technicality 
D) confidentiality

Question 5

D&I Supplies,Inc.selected cost data for the year are shown below: $$\begin{array} { | l | r | } 
\hline \text { Work-in-Process Inventory, Jan. 1 } & \$ 5,920 \
\hline \text { Direct Materials Used } & 101,000 \
\hline \text { Work-in-Process Inventory, Dec. 31 } & 2,860 \
\hline \text { Cost of Goods Manufactured } & 193,100 \
\hline
\end{array}$$ Assuming manufacturing overhead costs of $27,800,what is the amount of direct labor incurred by D&I Supplies,Inc.during the year?

Accepted Answer

A) $64,300 
B) $190,040 
C) $61,240 
D) $128,800 
A) $64,300 
B) $190,040 
C) $61,240 
D) $128,800

Question 6

The Work-in-Process Inventory account includes the ________.

Accepted Answer

A) goods that are ready to be sold 
B) goods that are partially completed 
C) goods that have been sold in the market 
D) goods that are damaged during production 
A) goods that are ready to be sold 
B) goods that are partially completed 
C) goods that have been sold in the market 
D) goods that are damaged during production

Question 7

Which of the following is an example of direct labor cost in a factory?

Accepted Answer

A) wages of assembly line personnel 
B) salary of vice president of production 
C) wages of factory security guard 
D) salary of production manager 
A) wages of assembly line personnel 
B) salary of vice president of production 
C) wages of factory security guard 
D) salary of production manager

Question 8

Amoeba Manufacturing,Inc.provided the following information for the year: $$\begin{array} { | l | r | } 
\hline \text { Purchases-Raw Materials } & \$ 91,000 \
\hline \text { Plant Utilities and Insurance } & 66,000 \
\hline \text { Indirect Materials } & 11,240 \
\hline \text { Indirect Labor } & 4,340 \
\hline \text { Direct Materials Used in Production } & 99,000 \
\hline \text { Direct Labor } & 119,500 \
\hline \text { Depreciation on Factory Plant \& Equipment } & 5,000 \
\hline
\end{array}$$ The inventory account balances as of January 1 are given below.
$$\begin{array} { | l | r | } 
\hline \text { Raw Materials Inventory } & \$ 44,000 \
\hline \text { Work-in-Progress Inventory } & 11,000 \
\hline \text { Finished Goods Inventory } & 50,000 \
\hline
\end{array}$$ What is the ending balance in the Raw Materials Inventory account?

Accepted Answer

A) $135,000 
B) $6,000 
C) $110,240 
D) $24,760 
A) $135,000 
B) $6,000 
C) $110,240 
D) $24,760

Question 9

Define product cost.How does a merchandising company treat these costs?

Accepted Answer

Product cost is the cost of pu

Question 10

Which of the following represents the combined sum of direct labor and manufacturing overhead?

Accepted Answer

A) conversion costs 
B) period costs 
C) prime costs 
D) fixed costs 
A) conversion costs 
B) period costs 
C) prime costs 
D) fixed costs

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

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

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

The Work-in-Process Inventory account includes the ________.

Which of the following is an example of direct labor cost in a factory?

Define product cost.How does a merchandising company treat these costs?

Which of the following represents the combined sum of direct labor and 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, and Quality Management Systems

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

Accounting Information Systems

Filters

Exam 16: Introduction to Managerial Accounting

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

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

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

The Work-in-Process Inventory account includes the ________.

Which of the following is an example of direct labor cost in a factory?

Define product cost.How does a merchandising company treat these costs?

Which of the following represents the combined sum of direct labor and 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, and Quality Management Systems

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

Accounting Information Systems

Filters