The following information relates to Webster,Inc.: \[\begin{array} { | l | r | } \hline \text { Advertising Costs } & \$ 11,000 \\ \hline \text { Administrative Salaries } & 15,600 \\ \hline \text { Delivery Vehicle Depreciation } & 1,900 \\ \hline \text { Factory Repair and Maintenance } & 200 \\ \hline \text { Indirect Labor } & 19,500 \\ \hline \text { Indirect Materials } & 10,000 \\ \hline \text { Manufacturing Equipment Depreciation } & 1,000 \\ \hline \text { Office Rent } & 50,000 \\ \hline \text { President's Salary } & 2,200 \\ \hline \text { Sales Revenue } & 530,000 \\ \hline \text { Sales Salary } & 4,500 \\ \hline \end{array}\] How much were Webster's period costs?

A) $85,200 B) $30,700 C) $534,500 D) $6,700 A) $85,200 B) $30,700 C) $534,500 D) $6,700 A

Selected data for Lemon Grass,Inc.for the year are provided below: \[\begin{array} { | l | r | } \hline \text { Factory Utilities } & \$ 1,200 \\ \hline \text { Indirect Materials Used } & 34,000 \\ \hline \text { Direct Materials Used } & 289,000 \\ \hline \text { Property Taxes on Factory Building } & 6,000 \\ \hline \text { Sales Commissions } & 80,000 \\ \hline \text { Indirect Labor Incurred } & 21,000 \\ \hline \text { Direct Labor Incurred } & 150,000 \\ \hline \text { Depreciation on Factory Equipment } & 6,100 \\ \hline \end{array}\] What is the total manufacturing overhead?

A) $439,000 B) $55,000 C) $68,300 D) $13,300 A) $439,000 B) $55,000 C) $68,300 D) $13,300

Houston Corporation reports the following cost information for March: \[\begin{array} { | l | r | } \hline \text { Cost of Goods Manufactured } & \$ 71,000 \\ \hline \text { Manufacturing Overhead } & 19,000 \\ \hline \text { Finished Goods Inventory, March 1 } & 8,000 \\ \hline \text { Finished Goods Inventory, March 31 } & 2,000 \\ \hline \text { Work-in-Process Inventory, March 1 } & 9,660 \\ \hline \text { Work-in-Process Inventory, March 31 } & 1,260 \\ \hline \text { Direct Labor } & 36,500 \\ \hline \end{array}\] What is the amount of direct materials used by the company in March?

A) $7,100 B) $8,400 C) $17,500 D) $15,500 A) $7,100 B) $8,400 C) $17,500 D) $15,500

Crystal,Inc.is a merchandiser of stone ornaments.The company sold 6,000 units during the year.The company has provided the following information: \[\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 589,000 \\ \hline \text { Purchases (excluding Freight In) } & 305,000 \\ \hline \text { Selling and Administrative Expenses } & 69,000 \\ \hline \text { Freight In } & 15,000 \\ \hline \text { Beginning Merchandise Inventory } & 44,000 \\ \hline \text { Ending Merchandise Inventory } & 42,000 \\ \hline \end{array}\] What is the operating income for the year? (Round your answer to the nearest whole dollar.)

A) $198,000 B) $322,000 C) $267,000 D) $520,000 A) $198,000 B) $322,000 C) $267,000 D) $520,000

Exam 18: Introduction to Managerial Accounting

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

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

The balance sheet of a ________ company will include Work-in-Process Inventory as a line item.

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

The following information relates to Webster,Inc.: Advertising Costs \ 11,000 Administrative Salaries 15,600 Delivery Vehicle Depreciation 1,900 Factory Repair and Maintenance 200 Indirect Labor 19,500 Indirect Materials 10,000 Manufacturing Equipment Depreciation 1,000 Office Rent 50,000 President's Salary 2,200 Sales Revenue 530,000 Sales Salary 4,500 How much were Webster's period costs?

Free

(Multiple Choice)

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Question 3

Correct Answer:

Verified

Which of the following is a product cost?

(Multiple Choice)

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Question 4

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

(True/False)

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Question 5

Dreams Manufacturing,Inc.provided the following information for the year: Purchases-Raw Materials \ 270,000 Plant Utilities and Insurance 202,500 Indirect Materials 35,250 Indirect Labor 14,250 Ending Balance - Work-in-Process Inventory 42,000 Ending Balance - Raw Materials Inventory 45,000 Direct Labor 352,500 Depreciation on Factory Plant and Equipment 18,000 Beginning Balance - Work-in-Process Inventory 18,000 Beginning Balance - Raw Materials Inventory 63,000 Required: Prepare a statement of the cost of goods manufactured using the following format: $Dreams Manufacturing,Inc.provided the following information for the year: \begin{array}{|l|r} \hline \text { Purchases-Raw Materials } & \$ 270,000 \\ \hline \text { Plant Utilities and Insurance } & 202,500 \\ \hline \text { Indirect Materials } & 35,250 \\ \hline \text { Indirect Labor } & 14,250 \\ \hline \text { Ending Balance - Work-in-Process Inventory } & 42,000 \\ \hline \text { Ending Balance - Raw Materials Inventory } & 45,000 \\ \hline \text { Direct Labor } & 352,500 \\ \hline \text { Depreciation on Factory Plant and Equipment } & 18,000 \\ \hline \text { Beginning Balance - Work-in-Process Inventory } & 18,000 \\ \hline \text { Beginning Balance - Raw Materials Inventory } & 63,000 \\ \hline \end{array} Required: Prepare a statement of the cost of goods manufactured using the following format:$

(Essay)

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Question 6

For external reporting purposes,GAAP requires companies to treat period costs as assets.

(True/False)

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Question 7

Selected data for Lemon Grass,Inc.for the year are provided below: Factory Utilities \ 1,200 Indirect Materials Used 34,000 Direct Materials Used 289,000 Property Taxes on Factory Building 6,000 Sales Commissions 80,000 Indirect Labor Incurred 21,000 Direct Labor Incurred 150,000 Depreciation on Factory Equipment 6,100 What is the total manufacturing overhead?

(Multiple Choice)

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Question 8

Describe the flow of product costs for a manufacturer.

(Essay)

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Question 9

Which of the following statements is true of managerial accounting?

(Multiple Choice)

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Question 10

Service companies sell their time,skills,and knowledge.

(True/False)

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Question 11

Houston Corporation reports the following cost information for March: Cost of Goods Manufactured \ 71,000 Manufacturing Overhead 19,000 Finished Goods Inventory, March 1 8,000 Finished Goods Inventory, March 31 2,000 Work-in-Process Inventory, March 1 9,660 Work-in-Process Inventory, March 31 1,260 Direct Labor 36,500 What is the amount of direct materials used by the company in March?

(Multiple Choice)

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Question 12

Knowing the unit cost per item helps managers set appropriate selling prices.

(True/False)

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Question 13

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

(True/False)

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Question 14

Crystal,Inc.is a merchandiser of stone ornaments.The company sold 6,000 units during the year.The company has provided the following information: Sales Revenue \ 589,000 Purchases (excluding Freight In) 305,000 Selling and Administrative Expenses 69,000 Freight In 15,000 Beginning Merchandise Inventory 44,000 Ending Merchandise Inventory 42,000 What is the operating income for the year? (Round your answer to the nearest whole dollar.)

(Multiple Choice)

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Question 15

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

(Multiple Choice)

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Question 16

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

(True/False)

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Question 17

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

(Multiple Choice)

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Question 18

Management of a company is accountable to ________ for obeying laws and paying taxes.

(Multiple Choice)

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Question 19

Financial reporting is typically much more detailed than managerial accounting.

(True/False)

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Question 20

Showing 1 - 20 of 210

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

The balance sheet of a ________ company will include Work-in-Process Inventory as a line item.

Which of the following is a product cost?

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

For external reporting purposes,GAAP requires companies to treat period costs as assets.

Describe the flow of product costs for a manufacturer.

Which of the following statements is true of managerial accounting?

Service companies sell their time,skills,and knowledge.

Knowing the unit cost per item helps managers set appropriate selling prices.

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

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

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

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

Management of a company is accountable to ________ for obeying laws and paying taxes.

Financial reporting is typically much more detailed than managerial accounting.

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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