Exam 18: Introduction to Managerial Accounting

Unit product costs can be used to measure operating income and determine the cost of Finished Goods Inventory.

Product costs,such as factory overhead,should be treated as an asset until the product is sold.

Service companies do not have product costs,so they often consider all operating expenses as part of their cost of service.

Which of the following will be classified as a conversion cost?

An Enterprise Resource Planning system (ERP)________.

List the three kinds of inventory accounts that are used by manufacturing companies.Briefly discuss what each account includes.

If a merchandising company determines that the unit cost to purchase a product is less than the unit cost to manufacture the product,the company should make a decision to begin manufacturing the product

Which of the following correctly describes the accounting for factory depreciation?

Repair and maintenance costs of vehicles used to deliver products to the customers are included in manufacturing overhead.

Which of the following would appear as a line item on the income statements of both a merchandiser and a manufacturer?

Manufacturing costs flow from Work-in-Process Inventory to Cost of Goods Sold to Finished Goods Inventory.

Planet Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 22,000 Beginning Finished Goods Inventory 7,000 Ending Finished Goods Inventory 6,500 Cost of Goods Manufactured 10,600 Selling and Administrative Expenses 5,125 Prepare the income statement.

Which of the following is true of Just-in-Time (JIT)Management?

Unlike merchandising companies,income statements of service companies include cost of goods sold as a line item.

Managerial accounting includes the planning function.Which of the following items would be part of the planning function of a business's managerial accounting?

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

The cost of goods sold is added to net sales revenue to determine gross profit.

Barricades Corporation provided the following information for the year: Beginning Balance - Work-in-Process Inventory \ 25,000 Ending Balance-Work-in-Process Inventory 56,000 Beginning Balance - Raw Materials Inventory 84,000 Ending Balance-Raw Materials Inventory 59,000 Purchases - Raw Materials 361,000 Direct Labor 468,000 Indirect Labor 19,000 Depreciation on Factory Plant and Equipment 25,000 Plant Utilities and Insurance 270,000 What was the amount of direct materials used in production during the year?

Goods that are produced by a manufacturing company and are ready to sell are recorded in the _______ account.

At the beginning of the year,Swift,Inc.'s Work-in-Process Inventory account had a balance of $123,000.During the year,$250,000 of direct materials were used in production,and $71,000 of direct labor costs were incurred.Manufacturing overhead amounted to $829,000.The cost of goods manufactured was $670,000.What is the balance in the Work-in-Process Inventory account on December 31?