Exam 16: Introduction to Managerial Accounting

In which of the following ways is the management of a company accountable to its communities?

Selected data for Lemon Grass,Inc.for the year are provided below: Factory Utilities \ 1,000 Indirect Materials Used 34,000 Direct Materials Used 292,000 Property Taxes on Factory Building 5,900 Sales Commissions 85,000 Indirect Labor Incurred 22,000 Direct Labor Incurred 150,000 Depreciation on Factory Equipment 6,800 What is the total manufacturing overhead?

Define indirect materials and give two examples of indirect materials for a manufacturing company.

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

Houston Corporation reports the following cost information for March: Cost of Goods Manufactured \ 75,000 Manufacturing Overhead 18,700 Finished Goods Inventory, March 1 4,000 Finished Goods Inventory, March 31 4,000 Work-in-Process Inventory, March 1 9,790 Work-in-Process Inventory, March 31 1,280 Direct Labor 36,800 What is the amount of direct materials used by the company in March?

Star Health,Inc.is a fitness center in Oklahoma City.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 60,000 Depreciation Expense-Equipment 25,000 Office Supplies Expense 30,000 Utilities Expense 89,700 Trainer's Salary 25,000 Required: Prepare Star Health's income statement for the month of October.

The following information relates to Webster,Inc.: Advertising Costs \ 10,600 Administrative Salaries 17,600 Delivery Vehicle Depreciation 1,300 Factory Repair and Maintenance 200 Indirect Labor 10,500 Indirect Materials 10,000 Manufacturing Equipment Depreciation 1,000 Office Rent 51,000 President's Salary 2,500 Sales Revenue 530,000 Sales Salary 4,700 How much were Webster's period costs?

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

Product costs are expensed ________.

Unit product costs can be used to measure operating income and determine the cost of Finished Goods Inventory.

Bloomington,Inc.is a merchandiser of stone ornaments.The company sold 7,000 units during the year.The company has provided the following information: Sales Revenue \ 550,000 Purchases (excluding freight in) 304,000 Selling and Administrative Expenses 69,000 Freight In 15,000 Beginning Merchandise Inventory 43,000 Ending Merchandise Inventory 42,000 What is the cost of goods sold for the year?

Which of the following is most likely a service company?

Merchandising companies,like service companies,do not have a Cost of Goods Sold account.

Which of the following statements is true of the flow of product and period costs for a manufacturer?

Which of the following would be considered a product cost for a manufacturing business?

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

Define planning.List and briefly discuss a planning tool that managers can use.

Given the following information,determine the cost of goods manufactured. Direct Labor Incurred \ 62,000 Manufacturing Overhead Incurred 177,000 Direct Materials Used 151,000 Finished Goods Inventory, Jan. 1 197,000 Finished Goods Inventory, Dec. 31 99,000 Work-in-Process Inventory, Jan. 1 221,000 Work-in-Process Inventory, Dec. 31 108,000

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?

Best,Inc. ,a merchandiser,sells office supplies.The following information summarizes Best's operating activities during the year: Utilities Expense \ 6,000 Rent for Store Expense 8,000 Sales Commissions Expense 4,500 Purchases of Merchandise 54,000 Merchandise Inventory on January 1 30,000 Merchandise Inventory on December 31 20,500 Sales Revenue 108,000 Required: Prepare an income statement for Best,Inc.for the year ended December 31,using the format below. Sales Revenue Cost of Goods Sold: Beginning Inventory Purchases Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Selling Expenses: Sales Commissions Expense Administrative Expenses: Rent Expense Utilities Expense Total Operating Expenses Operating Income