Exam 18: Introduction to Managerial Accounting

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

A corporation used $35,000 of direct materials and incurred $73,000 in direct labor cost,and $112,500 in manufacturing overhead costs during the period.What is the cost of goods manufactured if the beginning and ending Work-in-Process Inventories were $28,000 and $21,500,respectively?

In a manufacturing company,advertising and marketing costs are included in manufacturing overhead.

Which of the following is most likely a service company?

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.

A.S.Design Corporation reports the following cost information for March: Cost of Goods Manufactured \ 80,000 Finished Goods Inventory, March 1 4,500 Finished Goods Inventory, March 31 2,700 Work-in-Process Inventory, March 1 9,670 Work-in-Process Inventory, March 31 1,000 Direct Labor 36,300 Direct Materials Used 16,900 What is the amount of manufacturing overhead incurred by the company in March?

Bentley Manufacturing,Inc.provided the following information for the year: Purchases-Raw Materials \ 91,000 Plant Utilities and Insurance 67,500 Indirect Materials Used 11,940 Indirect Labor 4,490 Direct Materials Used in Production 97,000 Direct Labor 117,000 Depreciation on Factory Plant and Equipment 6,000 Cost of Goods Manufactured 292,000 The inventory account balances as of January 1 are given below. Raw Materials Inventory \ 46,000 Work-in-Progress Inventory 1,100 Finished Goods Inventory 49,500 What is the ending balance in the Work-in-Process Inventory account?

Goods that have been started in the manufacturing process but are not yet complete are included in the ________.

New Hope,Inc.is a merchandiser of stone ornaments.It sold 15,000 units during the year.The company has provided the following information: Sales Revenue \ 535,000 Purchases (excluding Freight In) 347,000 Selling and Administrative Expenses 32,500 Freight In 15,200 Beginning Merchandise Inventory 43,000 Ending Merchandise Inventory 56,500 How much is the gross profit for the year?

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

Which of the following is 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)?

Poodle Grooming Salon provides dog grooming services.In March,the business groomed 245 dogs,earned $10,300 in revenues,and incurred the following operating costs: Grooming Supplies Expense \ 485 Wages Expense 3,260 Utilities Expense 285 Rent Expense 1,200 Depreciation Expense - Equipment 500 Compute the cost of one grooming.(Round to two decimal places.)

Arturo Manufacturing,Inc.provided the following information for the year: Beginning Balance - Work-in-Process Inventory \ 151,000 Ending Balance - Work-in-Process Inventory 62,500 Beginning Balance - Raw Materials Inventory 268,000 Ending Balance - Raw Materials Inventory 53,700 Purchases - Raw Materials 135,500 Direct Labor 73,860 Indirect Materials 53,150 Indirect Labor 131,500 Depreciation on Factory Plant and Equipment 71,500 Plant Utilities and Insurance 72,840 How much is the cost of goods manufactured?

Which of the following statements is true of financial accounting?

The cost of goods sold for Frye Manufacturing in the year was $373,000.The January 1 Finished Goods Inventory balance was $30,200,and the December 31 Finished Goods Inventory balance was $24,000.Calculate the cost of goods manufactured during the year.

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?

In manufacturing,the cost objects are often units of product.

Sales commissions are included in manufacturing overhead.

Define period cost.Give three examples of period costs of a merchandising company.