Exam 16: Introduction to Managerial Accounting

The inventory of a merchandising company consists of Raw Materials Inventory,Work-in-Process Inventory,and Finished Goods Inventory.

The cost of goods sold for Frye Manufacturing in the year was $297,000.The January 1 Finished Goods Inventory balance was $31,600,and the December 31 Finished Goods Inventory balance was $25,600.Calculate the cost of goods manufactured during the year.

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

Ferrell,Inc.used $213,000 of direct materials and incurred $111,000 of direct labor costs during the year.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 Ferrell,Inc.using the format below. Cost of Goods Manufactured Beginning Work-in-Process Inventory Direct Materials Used Direct Labor Manufacturing Overhead: Indirect Labor Used Indirect Materials Utilities 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

Managerial accounting is used in manufacturing and merchandising companies,but not in service companies.

The following information has been provided by New Age,Inc.: Direct Labor \ 25,100 Direct Materials Used 11,000 Raw Materials Purchased 16,710 Cost of Goods Manufactured 49,000 Ending Work-in-Process Inventory 11,200 Corporate Headquarters' Property Taxes 1,500 Manufacturing Overhead 19,350 Calculate the beginning balance of the Work-in-Process Inventory account.

Management accountability is the manager's responsibility to the various stakeholders of the company to maximize profits.

The following information was obtained from MCB Manufacturing,Inc.: Advertising Costs \ 9,900 Indirect Labor 53,000 CEO's Salary 620,000 Direct Labor 40,000 Indirect Materials Used 7,500 Direct Materials Used 65,000 Factory Utilities 760 Factory Janitorial Costs 1,200 Manufacturing Equipment Depreciation 3,100 Delivery Vehicle Depreciation 1,000 Administrative Wages and Salaries 24,000 Calculate MCB Manufacturing's total product costs.

You did not understand what the term accrual meant and failed to accrue the interest due at the end of the year on the company's bonds.Which of the IMA standards appears to have been violated here?

The entire sequence of activities that add value to a company's products and services is called ________.

List the three kinds of inventory accounts that are used by manufacturing companies.Briefly discuss what each account includes.

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

Which of the following would be classified as a prime cost?

If a merchandising company determines that the unit cost to purchase a product is less than the unit cost to manufacture the product,the company should make a decision to begin manufacturing the product

Evanston Manufacturing,Inc.reported the following information for the year: Number of Units Produced 152,000 Number of Units Sold 62,000 Cost of Goods Manufactured \ 268,000 Cost of Goods Sold 52,900 Sales Revenue 130,000 Gross Profit 72,940 Operating Expense 727,000 What was the unit product cost? (Round your answer to the nearest cent. )

Anything for which managers want a separate measurement of cost is called a ________.

Manufacturing companies produce their own products,but merchandising companies do not.

Which of the following correctly describes the accounting for factory depreciation?

In a manufacturing company,advertising and marketing costs are examples of period costs.

Management's accountability to its suppliers and vendors is to ________.