Exam 18: Introduction to Managerial Accounting

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

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

The following information relates to Carried Away Hot Air Balloons,Inc.: Sdvertising Costs \ 16,800 Sales Salary 15,200 Sales Revenue 570,000 President's Salary 51,000 Office Rent 55,000 Manufacturing Equipment Depreciation 1,500 Indirect Materials Used 5,700 Indirect Labor 10,300 Factory Repair and Maintenance 860 Direct Materials Used 23,710 Direct Labor 34,600 Delivery Vehicle Depreciation 930 Administrative Salaries 22,400 How much was Carried Away's manufacturing overhead?

Jasper,Inc.reports the following cost information for March: Cost of Goods Manufactured \ 74,100 Manufacturing Overhead 18,800 Finished Goods Inventory, March 1 4,500 Finished Goods Inventory, March 31 2,000 Work-in-Process Inventory, March 1 9,100 Work-in-Process Inventory, March 31 1,100 Direct Materials Used 25,600 What is the cost of goods sold for March?

Which of the following is true of Finished Goods Inventory?

Which of the following is the primary objective of managerial accounting?

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

For decision-making purposes,________ costs are often divided into prime costs and conversion costs.

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

Excellent,Inc.sells accounting textbooks.The following information summarizes Excellent's operating activities for the year: Merchandise Inventory, January 1 \ 10,000 Merchandise Inventory, December 31 7,000 Purchases 95,000 Selling and Administrative Expenses 65,000 Sales Revenue 180,000 Required: Prepare Excellent,Inc.'s income statement for the year ended December 31.

The IMA Standards of Ethical Practice include confidentiality,competence,credibility,and integrity.

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 300 customers: Manager's Salary \ 5,400 Gym Rent 1,400 Depreciation Expense-Equipment 7,000 Office Supplies Expense 2,450 Utilities Expense 1,600 Trainer's Salary 22,500 How much is the unit cost per customer? (Round your answer to the nearest cent.)

Fire Cat,Inc.selected cost data for the year are shown below: Cost of Goods Manufactured \ 146,800 Work-in-Process Inventory, Jan. 1 20,000 Work-in-Process Inventory, Dec. 31 23,000 Direct Materials Used 17,400 What is the total of manufacturing costs incurred by Fire Cat,Inc.during the year?

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

The cost of goods manufactured includes selling expenses,administrative expenses,and manufacturing overhead.

In a manufacturing company,wages and benefits of factory managers are considered as product costs.

The wages of manufacturing plant janitors are considered to be non-manufacturing overhead costs as these costs are not directly related to the manufacturing process.

Five Seasons is a merchandiser of packed foods.The company provides the following information for the year: Sales Revenue \ 141,000 Cost of Goods Sold 60,000 Operating Expenses 66,000 Net Income 15,000 Number of Units Sold 23,000 How much was the unit cost per item of product sold? (Round your answer to the nearest cent.)

Partial income statements of Company A and Company B are provided below: Company A Revenue \ 80,000 Expenses: Utilities Expense \ 5,000 Salaries Expense 15,000 Rent Expense Total Expenses Operating Income \ 56,300 Company B Revenue \ 50,000 Cost of Goods Sold: Beginning Merchandise Inventory \ 4,000 Purchases and Freight In 23,000 Ending Merchandise Inventory \ 5,500 Cost of Goods Sold 21,500 Gross Profit \ 28,500 Which of the following statements is true?

Red Tail Manufacturing,Inc.provided the following information for the year: Purchases-Raw Materials \ 91,000 Plant Utilities and Insurance 67,000 Indirect Materials Used 11,000 Indirect Labor 4,100 Direct Materials Used in Production 97,000 Direct Labor 117,000 Depreciation on Factory Plant and Equipment 7,000 Cost of Goods Manufactured 291,000 Cost of Goods Sold 290,000 The inventory account balances as of January 1 are given below. Raw Materials Inventory \ 46,000 Work-in-Progress Inventory 11,000 Finished Goods Inventory 304,600 What is the ending balance in the Finished Goods Inventory?