KRD Supplies Corporation provided the following information for the year: \[\begin{array} { | l | r | } \hline \text { Beginning Balance - Work-in-Process Inventory } & \$ 24,000 \\ \hline \text { Ending Balance-Work-in-Process Inventory } & 56,000 \\ \hline \text { Beginning Balance - Raw Materials Inventory } & 83,000 \\ \hline \text { Ending Balance-Raw Materials Inventory } & 60,000 \\ \hline \text { Purchases - Raw Materials } & 362,000 \\ \hline \text { Direct Labor } & 470,000 \\ \hline \text { Indirect Labor } & 18,000 \\ \hline \text { Depreciation on Factory Plant and Equipment } & 24,000 \\ \hline \text { Plant Utilities and Insurance } & 272,000 \\ \hline \end{array}\] What was the amount of the manufacturing overhead costs?

A) $314,000 B) $42,000 C) $296,000 D) $488,000 A) $314,000 B) $42,000 C) $296,000 D) $488,000

The following information relates to Washington,Inc.: \[\begin{array} { | l | r |} \hline \text { Sdvertising Costs } & \$ 19,000 \\ \hline \text { Sales Salary } & 14,000 \\ \hline \text { Sales Revenue } & 530,000 \\ \hline \text { President's Salary } & 340,000 \\ \hline \text { Office Rent } & 64,500 \\ \hline \text { Manufacturing Equipment Depreciation } & 1,400 \\ \hline \text { Indirect Materials Used } & 7,600 \\ \hline \text { Indirect Labor } & 12,000 \\ \hline \text { Factory Repair and Maintenance } & 920 \\ \hline \text { Direct Materials Used } & 30,000 \\ \hline \text { Direct Labor } & 41,000 \\ \hline \text { Delivery Vehicle Depreciation } & 1,750 \\ \hline \text { Administrative Salaries } & 29,000 \\ \hline \end{array}\] How much were Washington's product costs?

A) $658,250 B) $369,000 C) $549,000 D) $92,920 A) $658,250 B) $369,000 C) $549,000 D) $92,920

Reed Productions has provided the following information for the year: \[\begin{array} { | l | r | } \hline \text { Direct Labor } & \$ 153,000 \\ \hline \text { Beginning Work-in-Process Inventory } & 62,000 \\ \hline \text { Direct Materials Used } & 269,000 \\ \hline \text { Ending Work-in-Process Inventory } & 52,800 \\ \hline \text { Manufacturing Overhead } & 132,500 \\ \hline \end{array}\] During the year,Reed produced 72,960 units of product.Calculate the unit product cost.(Round your answer to the nearest cent.)

A) $7.73 B) $6.63 C) $7.60 D) $8.45 A) $7.73 B) $6.63 C) $7.60 D) $8.45

Kentucky,Inc.purchases and sells widgets.The following information summarizes the company's operating activities for the year: \[\begin{array} { | l | r | } \hline \text { Selling and Administrative Expenses } & \$ 5,300 \\ \hline \text { Purchases } & 156,000 \\ \hline \text { Sales Revenue } & 783,000 \\ \hline \text { Merchandise Inventory, January 1 } & 2,300 \\ \hline \text { Merchandise Inventory, December 31 } & 38,800 \\ \hline \end{array}\] If the company sold 7,000 units of widgets during the year,how much is the cost for one widget? (Round your answer to the nearest cent.)

A) $22.29 B) $17.07 C) $22.61 D) $5.87 A) $22.29 B) $17.07 C) $22.61 D) $5.87

Riverside Manufacturing provided the following information for the month ended March 31: \[\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 27,000 \\ \hline \text { Beginning Finished Goods Inventory } & 14,000 \\ \hline \text { Ending Finished Goods Inventory } & 10,500 \\ \hline \text { Cost of Goods Manufactured } & 14,600 \\ \hline \end{array}\] Compute gross profit.

A) $8,900 B) $12,400 C) $15,900 D) $1,900 A) $8,900 B) $12,400 C) $15,900 D) $1,900

Poolside Manufacturing provided the following information for the month ended March 31: \[\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 17,000 \\ \hline \text { Beginning Finished Goods Inventory } & 12,000 \\ \hline \text { Ending Finished Goods Inventory } & 10,500 \\ \hline \text { Cost of Goods Manufactured } & 19,600 \\ \hline \end{array}\] Compute cost of goods sold.

A) $19,600 B) $18,100 C) $21,100 D) $30,100 A) $19,600 B) $18,100 C) $21,100 D) $30,100

Lakeside Manufacturing provided the following information for the month ended March 31: \[\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 23,000 \\ \hline \text { Beginning Finished Goods Inventory } & 7,000 \\ \hline \text { Ending Finished Goods Inventory } & 9,500 \\ \hline \text { Cost of Goods Manufactured } & 13,600 \\ \hline \end{array}\] Compute cost of goods available for sale.

A) $13,600 B) $23,100 C) $20,600 D) $11,100 A) $13,600 B) $23,100 C) $20,600 D) $11,100

Exam 18: Introduction to Managerial Accounting

KRD Supplies Corporation provided the following information for the year: Beginning Balance - Work-in-Process Inventory \ 24,000 Ending Balance-Work-in-Process Inventory 56,000 Beginning Balance - Raw Materials Inventory 83,000 Ending Balance-Raw Materials Inventory 60,000 Purchases - Raw Materials 362,000 Direct Labor 470,000 Indirect Labor 18,000 Depreciation on Factory Plant and Equipment 24,000 Plant Utilities and Insurance 272,000 What was the amount of the manufacturing overhead costs?

(Multiple Choice)

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Question 81

The following information relates to Washington,Inc.: Sdvertising Costs \ 19,000 Sales Salary 14,000 Sales Revenue 530,000 President's Salary 340,000 Office Rent 64,500 Manufacturing Equipment Depreciation 1,400 Indirect Materials Used 7,600 Indirect Labor 12,000 Factory Repair and Maintenance 920 Direct Materials Used 30,000 Direct Labor 41,000 Delivery Vehicle Depreciation 1,750 Administrative Salaries 29,000 How much were Washington's product costs?

(Multiple Choice)

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Question 82

Managerial accounting provides financial statements that report results of operations,financial position,and cash flows both to managers and to external stockholders.

(True/False)

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Question 83

Reed Productions has provided the following information for the year: Direct Labor \ 153,000 Beginning Work-in-Process Inventory 62,000 Direct Materials Used 269,000 Ending Work-in-Process Inventory 52,800 Manufacturing Overhead 132,500 During the year,Reed produced 72,960 units of product.Calculate the unit product cost.(Round your answer to the nearest cent.)

(Multiple Choice)

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Question 84

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

(Multiple Choice)

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Question 85

Merchandising companies,like service companies,do not have a Cost of Goods Sold account.

(True/False)

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Question 86

In a manufacturing company,wages and benefits of assembly line workers are included in manufacturing overhead.

(True/False)

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Question 87

In a manufacturing company,administrative costs are included in period costs.

(True/False)

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Question 88

Kentucky,Inc.purchases and sells widgets.The following information summarizes the company's operating activities for the year: Selling and Administrative Expenses \ 5,300 Purchases 156,000 Sales Revenue 783,000 Merchandise Inventory, January 1 2,300 Merchandise Inventory, December 31 38,800 If the company sold 7,000 units of widgets during the year,how much is the cost for one widget? (Round your answer to the nearest cent.)

(Multiple Choice)

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Question 89

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

(True/False)

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Question 90

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

(Essay)

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Question 91

Define indirect cost.

(Essay)

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Question 92

Riverside Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 27,000 Beginning Finished Goods Inventory 14,000 Ending Finished Goods Inventory 10,500 Cost of Goods Manufactured 14,600 Compute gross profit.

(Multiple Choice)

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Question 93

Poolside Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 17,000 Beginning Finished Goods Inventory 12,000 Ending Finished Goods Inventory 10,500 Cost of Goods Manufactured 19,600 Compute cost of goods sold.

(Multiple Choice)

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Question 94

In a manufacturing plant,indirect materials costs such as lubricants and cleaning fluids are product costs.

(True/False)

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Question 95

Define indirect labor and give two examples of indirect labor for a manufacturing company.

(Essay)

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Question 96

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

(Multiple Choice)

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Question 97

Define product cost.How does a merchandising company treat these costs?

(Essay)

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Question 98

Lakeside Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 23,000 Beginning Finished Goods Inventory 7,000 Ending Finished Goods Inventory 9,500 Cost of Goods Manufactured 13,600 Compute cost of goods available for sale.

(Multiple Choice)

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Question 99

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

(Multiple Choice)

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Question 100

Managerial accounting provides financial statements that report results of operations,financial position,and cash flows both to managers and to external stockholders.

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

Merchandising companies,like service companies,do not have a Cost of Goods Sold account.

In a manufacturing company,wages and benefits of assembly line workers are included in manufacturing overhead.

In a manufacturing company,administrative costs are included in period costs.

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

Define indirect cost.

Riverside Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 27,000 Beginning Finished Goods Inventory 14,000 Ending Finished Goods Inventory 10,500 Cost of Goods Manufactured 14,600 Compute gross profit.

Poolside Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 17,000 Beginning Finished Goods Inventory 12,000 Ending Finished Goods Inventory 10,500 Cost of Goods Manufactured 19,600 Compute cost of goods sold.

In a manufacturing plant,indirect materials costs such as lubricants and cleaning fluids are product costs.

Define indirect labor and give two examples of indirect labor for a manufacturing company.

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

Define product cost.How does a merchandising company treat these costs?

Lakeside Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 23,000 Beginning Finished Goods Inventory 7,000 Ending Finished Goods Inventory 9,500 Cost of Goods Manufactured 13,600 Compute cost of goods available for sale.

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

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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