Exam 18: Introduction to Managerial Accounting

The following information has been provided by New Age,Inc.: Direct Labor \ 25,100 Direct Materials Used 11,000 Direct Materials Purchased 16,710 Cost of Goods Manufactured 49,000 Ending Work-in-Process Inventory 11,200 Corporate Headquarters' Property Taxes 1500 Manufacturing Overhead 19,350 Calculate the beginning balance of the Work-in-Process Inventory account.

Define direct cost.

Service companies sell their time,skills,and knowledge.

Castillo Corporation,a manufacturer,reports costs for the year as follows: Direct Materials Used \ 735,000 Wages to Line Workers 510,000 Office Rent 26,000 Indirect Materials Used 700,000 How much is the total period costs for Castillo?

If work-in-process units are incomplete,the costs remain in Work-in-Process Inventory and are reported on the balance sheet.

Which of the following would be included as manufacturing overhead for a manufacturing company?

Enzo Design Corporation reports the following cost information for March: Cost of Goods Manufactured \ 75,000 Finished Goods Inventory, March 1 4000 Finished Goods Inventory, March 31 2650 Work-in-Process Inventory, March 1 9670 Work-in-Process Inventory, March 31 1000 Direct Labor 36,000 Direct Materials Used 16,900 What is the amount of manufacturing overhead incurred by the company in March?

Most companies structure their organizations along departments or divisions.

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

Artisan Inspiration,Inc.is a merchandiser of stone ornaments.The company sold 8000 units during the year.The company has provided the following information: Sales Revenue \ 593,000 Purchases (excluding Freight In) 304,000 Selling and Administrative Expenses 68,000 Freight In 14,000 Beginning Merchandise Inventory 46,000 Ending Merchandise Inventory 42,000 What is the operating income for the year? (Round your answer to the nearest whole dollar.)

In order to reach new markets,many companies are moving operations to other countries.

Which of the following formulas represent cost of goods sold for a merchandising business?

Define indirect cost.

Manufacturing companies produce their own products,but merchandising companies do not.

Haggan Manufacturing,Inc.provided the following information for the year: Purchases - Direct Materials \ 270,000 Plant Utilities and Insurance 202,500 Indirect Materials 35,250 Indirect Labor 14,250 Ending Balance - Work-in-Process Inventory 42,000 Ending Balance - Direct Materials 45,000 Direct Labor 352,500 Depreciation on Factory Plant and Equipment 18,000 Beginning Balance - Work-in-Process Inventory 18,000 Beginning Balance - Direct Materials 63,000 Required: Prepare a schedule of the cost of goods manufactured using the following format: Srhedule of Cast af Gadds Manufartured Beginning Work-in-Process Inventory Direct Materials Used: Beginning Direct Materials Purchases of Direct Materials Direct Materials Available for Use Ending Direct Materials Direct Materials Used Direct Labor Manufacturing Overhead: Indirect Materials Indirect Labor Depreciation-Plant and Equipment Plant Utilities and Insurance 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

Silver Crafts,Inc.purchases and sells bracelets.The following information summarizes the company's operating activities for the year: Selling and Administrative Expenses \ 5300 Purchases 157,000 Sales Revenue 785,000 Merchandise Inventory, January 1 2350 Merchandise Inventory, December 31 38,350 If the company sold 7900 units of bracelets during the year,how much is the cost for one bracelet? (Round your answer to the nearest cent.)

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

In the income statements of both manufacturing and merchandising companies,the Cost of Goods Sold account is usually the largest expense.

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

The primary activity of manufacturing companies is to purchase goods from a wholesaler and resell them.