Mason Cabinet Company sells standard kitchen cabinets.The following information summarizes Mason's operating activities for the year: \[\begin{array} { | l | r | } \hline \text { Selling and Administrative Expenses } & \$ 42,750 \\ \hline \text { Purchases } & 85,700 \\ \hline \text { Sales Revenue } & 154,500 \\ \hline \text { Merchandise Inventory, January 1 } & 12,500 \\ \hline \text { Merchandise Inventory, December 31 } & 16,200 \\ \hline \end{array}\] Mason sold 950 cabinets during the year. Calculate the operating income for the year. Compute the unit cost for one cabinet (Round to two decimal places. )

Operating income for the year Mason Cabi

Malibu Corporation provided the following information for the year: \[\begin{array} { | l | r | } \hline \text { Beginning Balance - Work-in-Process Inventory } & \$ 26,000 \\ \hline \text { Ending Balance-Work-in-Process Inventory } & 55,000 \\ \hline \text { Beginning Balance - Raw Materials Inventory } & 81,000 \\ \hline \text { Ending Balance-Raw Materials Inventory } & 59,000 \\ \hline \text { Purchases - Raw Materials } & 360,000 \\ \hline \text { Direct Labor } & 471,000 \\ \hline \text { Indirect Labor } & 19,000 \\ \hline \text { Depreciation on Factory Plant and Equipment } & 24,000 \\ \hline \text { Plant Utilities and Insurance } & 268,000 \\ \hline \end{array}\] What was the amount of the cost of goods manufactured for the year?

A) $1,363,000 B) $1,164,000 C) $1,135,000 D) $1,193,000 A) $1,363,000 B) $1,164,000 C) $1,135,000 D) $1,193,000

Daryl Corporation reports costs for the year as follows: \[\begin{array} { | l | r | } \hline \text { Direct Materials Used } & \$ 780,000 \\ \hline \text { Wages to Line Workers } & 245,000 \\ \hline \text { Office Rent } & 33,000 \\ \hline \text { Indirect Materials Used } & 800,000 \\ \hline \end{array}\] How much is the total product costs for the year?

A) $800,000 B) $1,825,000 C) $1,858,000 D) $1,025,000 A) $800,000 B) $1,825,000 C) $1,858,000 D) $1,025,000

The following information was obtained from Fizz,Inc.: \[\begin{array} { | l | r | } \hline \text { Advertising Costs } & \$ 11,600 \\ \hline \text { Indirect Labor } & 8,000 \\ \hline \text { CEO's Salary } & 470,000 \\ \hline \text { Direct Labor } & 53,000 \\ \hline \text { Indirect Materials Used } & 8,000 \\ \hline \text { Direct Materials Used } & 390,000 \\ \hline \text { Factory Utilities } & 840\\ \hline \text { Factory Janitorial Costs } &1,000 \\ \hline \text { Manufacturing Equipment Depreciation } & 1,700 \\ \hline \text { Delivery Vehicle Depreciation } & 2,110\\ \hline \text { Administrative Wages and Salaries } & 22,300\\ \hline \end{array}\] How much were Fizz's period costs?

A) $462,540 B) $506,010 C) $13,710 D) $503,900 A) $462,540 B) $506,010 C) $13,710 D) $503,900

Exam 16: Introduction to Managerial Accounting

Mason Cabinet Company sells standard kitchen cabinets.The following information summarizes Mason's operating activities for the year: Selling and Administrative Expenses \ 42,750 Purchases 85,700 Sales Revenue 154,500 Merchandise Inventory, January 1 12,500 Merchandise Inventory, December 31 16,200 Mason sold 950 cabinets during the year. Calculate the operating income for the year. Compute the unit cost for one cabinet (Round to two decimal places. )

(Essay)

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Question 141

Planet Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 22,000 Beginning Finished Goods Inventory 7,000 Ending Finished Goods Inventory 6,500 Cost of Goods Manufactured 10,600 Selling and Administrative Expenses 5,125 Prepare the income statement.

(Essay)

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Question 142

In a manufacturing company,the salary of the sales staff is an example of period cost.

(True/False)

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Question 143

Direct materials and direct labor are prime costs.

(True/False)

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Question 144

Malibu Corporation provided the following information for the year: Beginning Balance - Work-in-Process Inventory \ 26,000 Ending Balance-Work-in-Process Inventory 55,000 Beginning Balance - Raw Materials Inventory 81,000 Ending Balance-Raw Materials Inventory 59,000 Purchases - Raw Materials 360,000 Direct Labor 471,000 Indirect Labor 19,000 Depreciation on Factory Plant and Equipment 24,000 Plant Utilities and Insurance 268,000 What was the amount of the cost of goods manufactured for the year?

(Multiple Choice)

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Question 145

For a manufacturer,rent paid for an office building is an example of a period cost.

(True/False)

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Question 146

Comparing actual performance to previously budgeted amounts is part of the ________.

(Multiple Choice)

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Question 147

Product costs,such as direct materials,are expensed in the period they are paid.

(True/False)

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Question 148

Which of the following statements is true of managerial accounting?

(Multiple Choice)

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Question 149

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?

(Multiple Choice)

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Question 150

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

(Multiple Choice)

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Question 151

Direct costs and indirect costs can be easily traced directly to a cost object.

(True/False)

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Question 152

Daryl Corporation reports costs for the year as follows: Direct Materials Used \ 780,000 Wages to Line Workers 245,000 Office Rent 33,000 Indirect Materials Used 800,000 How much is the total product costs for the year?

(Multiple Choice)

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Question 153

The income statement of a service company will most likely include ________.

(Multiple Choice)

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Question 154

The following information was obtained from Fizz,Inc.: Advertising Costs \ 11,600 Indirect Labor 8,000 CEO's Salary 470,000 Direct Labor 53,000 Indirect Materials Used 8,000 Direct Materials Used 390,000 Factory Utilities 840 Factory Janitorial Costs 1,000 Manufacturing Equipment Depreciation 1,700 Delivery Vehicle Depreciation 2,110 Administrative Wages and Salaries 22,300 How much were Fizz's period costs?

(Multiple Choice)

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Question 155

Which of the following would be included as manufacturing overhead for a manufacturing company?

(Multiple Choice)

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Question 156

Factory rent,as well as factory property taxes and insurance,are included in manufacturing overhead.

(True/False)

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Question 157

Selling and administrative expenses are subtracted from gross profit to obtain operating income.

(True/False)

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Question 158

Indirect materials costs are included in manufacturing overhead.

(True/False)

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Question 159

Which of the following will be included in manufacturing overhead costs?

(Multiple Choice)

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Question 160

Exam 16: Introduction to Managerial Accounting

Planet Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 22,000 Beginning Finished Goods Inventory 7,000 Ending Finished Goods Inventory 6,500 Cost of Goods Manufactured 10,600 Selling and Administrative Expenses 5,125 Prepare the income statement.

In a manufacturing company,the salary of the sales staff is an example of period cost.

Direct materials and direct labor are prime costs.

For a manufacturer,rent paid for an office building is an example of a period cost.

Comparing actual performance to previously budgeted amounts is part of the ________.

Product costs,such as direct materials,are expensed in the period they are paid.

Which of the following statements is true of managerial accounting?

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?

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

Direct costs and indirect costs can be easily traced directly to a cost object.

Daryl Corporation reports costs for the year as follows: Direct Materials Used \ 780,000 Wages to Line Workers 245,000 Office Rent 33,000 Indirect Materials Used 800,000 How much is the total product costs for the year?

The income statement of a service company will most likely include ________.

Which of the following would be included as manufacturing overhead for a manufacturing company?

Factory rent,as well as factory property taxes and insurance,are included in manufacturing overhead.

Selling and administrative expenses are subtracted from gross profit to obtain operating income.

Indirect materials costs are included in manufacturing overhead.

Which of the following will be included in manufacturing overhead costs?

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