Question 1

Define planning.List and briefly discuss a planning tool that managers can use.

Accepted Answer

Planning is the process of choosing goal

Question 2

South State,Inc.used $150,000 of direct materials and incurred $63,000 of direct labor costs during the year.Indirect labor amounted to $270,000,while indirect materials used totaled $52,500.Other operating costs pertaining to the factory included utilities of $133,500; maintenance of $74,880; repairs of $53,100; depreciation of $131,000; and property taxes of $74,120.There was no beginning or ending finished goods inventory,but Work-in-Process inventory began the year with a $5,600 balance and ended the year with a $7,500 balance. How much is the cost of goods manufactured?

Accepted Answer

A)  $13,100 
B)  $1,000,200 
C)  $1,007,700 
D)  $1,002,100 
A)  $13,100 
B)  $1,000,200 
C)  $1,007,700 
D)  $1,002,100

Question 3

The following information has been provided by Squash Corporation: $$\begin{array} { | l | r | } 
\hline \text { Direct Labor } & \$ 6,300 \
\hline \text { Direct Materials Used } & 2,700 \
\hline \text { Raw Materials Purchased } & 8,000 \
\hline \text { Cost of Goods Manufactured } & 18,000 \
\hline \text { Ending Work-in-Process Inventory } & 1,200 \
\hline \text { Corporate Headquarters' Property taxes } & 300 \
\hline \text { Manufacturing Overhead Incurred } & 510 \
\hline
\end{array}$$ The beginning balance of Work-in-Process Inventory account was ________.

Accepted Answer

A)  $9,900 
B)  $9,690 
C)  $26,310 
D)  $9,510 
A)  $9,900 
B)  $9,690 
C)  $26,310 
D)  $9,510

Question 4

Managerial accounting can be used to calculate costs for service and merchandising companies.

Accepted Answer

A) True 
 B)False

Question 5

Financial accounting prepares reports for internal purposes,whereas managerial accounting provides information to external stakeholders.

Accepted Answer

A) True 
 B)False

Question 6

D&I Supplies,Inc.selected cost data for the year are shown below: $$\begin{array} { | l | r | } 
\hline \text { Work-in-Process Inventory, Jan. 1 } & \$ 5,860 \
\hline \text { Direct Materials Used } & 102,000 \
\hline \text { Work-in-Process Inventory, Dec. 31 } & 2,870 \
\hline \text { Cost of Goods Manufactured } & 193,800 \
\hline
\end{array}$$
 Assuming manufacturing overhead costs of $27,820,what is the amount of direct labor incurred by D&I Supplies,Inc.during the year?

Accepted Answer

A)  $63,980 
B)  $190,810 
C)  $60,990 
D)  $129,820 
A)  $63,980 
B)  $190,810 
C)  $60,990 
D)  $129,820

Question 7

For a manufacturing company,which of the following is a period cost?

Accepted Answer

A)  direct materials used 
B)  office rent 
C)  wages expense of factory workers 
D)  indirect materials used 
A)  direct materials used 
B)  office rent 
C)  wages expense of factory workers 
D)  indirect materials used

Question 8

Classify each cost of a furniture manufacturer as either product cost (PR)or period cost (PE).
 $$\begin{array} { | l | l | } 
\hline { \text { Cost } } & \text { PR or PE } \
\hline \text { Nice president of marketing's salary } & \
\hline \text { Delivery expense } & \
\hline \text { Wood used to make tables } & \
\hline \text { Depreciation on office equipment } & \
\hline \text { Production supervisor's salary } & \
\hline \text { Factory insurance } & \
\hline \text { Corporate office rent } & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | l | } 
\hline {

Question 9

Daryl Corporation reports costs for the year as follows: $$\begin{array} { | l | r | } 
\hline \text { Direct Materials Used } & \$ 390,000 \
\hline \text { Wages to Line Workers } & 225,000 \
\hline \text { Office Rent } & 53,500 \
\hline \text { Indirect Materials Used } & 785,000 \
\hline
\end{array}$$ 
How much is the total product costs for the year?

Accepted Answer

A)  $785,000 
B)  $1,400,000 
C)  $1,453,500 
D)  $615,000 
A)  $785,000 
B)  $1,400,000 
C)  $1,453,500 
D)  $615,000

Question 10

Regarding the flow of costs through the inventory accounts,which of the following statements is incorrect?

Accepted Answer

A)  The final amount at each stage is added at the beginning of the next stage. 
B)  The costs flow from Raw Materials Inventory to Work-in-Process Inventory to Finished Goods Inventory. 
C)  Purchases and freight in are debited to the Work-in-Process Inventory account. 
D)  The format for computing the amount used, manufactured, or sold is the same for all three inventory accounts. 
A)  The final amount at each stage is added at the beginning of the next stage. 
B)  The costs flow from Raw Materials Inventory to Work-in-Process Inventory to Finished Goods Inventory. 
C)  Purchases and freight in are debited to the Work-in-Process Inventory account. 
D)  The format for computing the amount used, manufactured, or sold is the same for all three inventory accounts.

Question 11

Period costs are the ________.

Accepted Answer

A)  product costs that must be paid in the accounting period in which they are incurred 
B)  costs that are incurred and expensed during the same accounting period 
C)  costs related to production of products the company purchases and sells 
D)  same as manufacturing overhead costs 
A)  product costs that must be paid in the accounting period in which they are incurred 
B)  costs that are incurred and expensed during the same accounting period 
C)  costs related to production of products the company purchases and sells 
D)  same as manufacturing overhead costs

Question 12

The income statement of a manufacturing company separates the product costs from the period costs.

Accepted Answer

A) True 
 B)False

Question 13

Given the following information,determine the cost of goods manufactured. $$\begin{array} { | l | r | } 
\hline \text { Direct Labor Incurred } & \$ 60,000 \
\hline \text { Manufacturing Overhead Incurred } & 177,000 \
\hline \text { Direct Materials Used } & 150,000 \
\hline \text { Finished Goods Inventory, Jan. 1 } & 199,000 \
\hline \text { Finished Goods Inventory, Dec. 31 } & 98,500 \
\hline \text { Work-in-Process Inventory, Jan. 1 } & 221,000 \
\hline \text { Work-in-Process Inventory, Dec. 31 } & 108,000 \
\hline
\end{array}$$

Accepted Answer

A)  $387,000 
B)  $500,000 
C)  $279,000 
D)  $189,500 
A)  $387,000 
B)  $500,000 
C)  $279,000 
D)  $189,500

Question 14

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

Accepted Answer

A)  salary of the sales manager 
B)  salary of the CEO 
C)  salaries of the accounting staff 
D)  salary of the production manager 
A)  salary of the sales manager 
B)  salary of the CEO 
C)  salaries of the accounting staff 
D)  salary of the production manager

Question 15

In a manufacturing company,accounting,legal,and administrative costs are typical examples of product costs.

Accepted Answer

A) True 
 B)False

Question 16

All costs incurred in the manufacture of final products are product costs.

Accepted Answer

A) True 
 B)False

Question 17

Manufacturing companies have inventory accounts,but merchandising companies do not.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  research and development 
B)  property taxes on the factory 
C)  advertising 
D)  delivery costs 
A)  research and development 
B)  property taxes on the factory 
C)  advertising 
D)  delivery costs

Question 19

Which of the following is a product cost for a manufacturing company?

Accepted Answer

A)  salary of administrative staff 
B)  wages paid to factory janitor 
C)  commissions paid to sales staff 
D)  depreciation on corporate building 
A)  salary of administrative staff 
B)  wages paid to factory janitor 
C)  commissions paid to sales staff 
D)  depreciation on corporate building

Question 20

Repair and maintenance costs of vehicles used to deliver products to customers are product costs.

Accepted Answer

A) True 
 B)False

Define planning.List and briefly discuss a planning tool that managers can use.

Managerial accounting can be used to calculate costs for service and merchandising companies.

Financial accounting prepares reports for internal purposes,whereas managerial accounting provides information to external stakeholders.

For a manufacturing company,which of the following is a period cost?

Classify each cost of a furniture manufacturer as either product cost (PR)or period cost (PE). Cost PR or PE Nice president of marketing's salary Delivery expense Wood used to make tables Depreciation on office equipment Production supervisor's salary Factory insurance Corporate office rent

Daryl Corporation reports costs for the year as follows: Direct Materials Used \ 390,000 Wages to Line Workers 225,000 Office Rent 53,500 Indirect Materials Used 785,000 How much is the total product costs for the year?

Regarding the flow of costs through the inventory accounts,which of the following statements is incorrect?

Period costs are the ________.

The income statement of a manufacturing company separates the product costs from the period costs.

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

In a manufacturing company,accounting,legal,and administrative costs are typical examples of product costs.

All costs incurred in the manufacture of final products are product costs.

Manufacturing companies have inventory accounts,but merchandising companies do not.

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

Which of the following is a product cost for a manufacturing company?

Repair and maintenance costs of vehicles used to deliver products to customers are product costs.

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

Filters

Exam 18: Introduction to Managerial Accounting

Define planning.List and briefly discuss a planning tool that managers can use.

Managerial accounting can be used to calculate costs for service and merchandising companies.

Financial accounting prepares reports for internal purposes,whereas managerial accounting provides information to external stakeholders.

For a manufacturing company,which of the following is a period cost?

Classify each cost of a furniture manufacturer as either product cost (PR)or period cost (PE). Cost PR or PE Nice president of marketing's salary Delivery expense Wood used to make tables Depreciation on office equipment Production supervisor's salary Factory insurance Corporate office rent

Daryl Corporation reports costs for the year as follows: Direct Materials Used \ 390,000 Wages to Line Workers 225,000 Office Rent 53,500 Indirect Materials Used 785,000 How much is the total product costs for the year?

Regarding the flow of costs through the inventory accounts,which of the following statements is incorrect?

Period costs are the ________.

The income statement of a manufacturing company separates the product costs from the period costs.

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

In a manufacturing company,accounting,legal,and administrative costs are typical examples of product costs.

All costs incurred in the manufacture of final products are product costs.

Manufacturing companies have inventory accounts,but merchandising companies do not.

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

Which of the following is a product cost for a manufacturing company?

Repair and maintenance costs of vehicles used to deliver products to customers are product costs.

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

Filters