Exam 18: Introduction to Managerial Accounting

Which of the following will be included in manufacturing overhead costs?

Goods that have been started in the manufacturing process but are not yet complete are included in the ________.

Which of the following is a part of manufacturing overhead?

A company's president or chief executive officer (CEO)is selected by the stockholders.

Fontana Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 26,000 Beginning Finished Goods Inventory 3000 Ending Finished Goods Inventory 13,500 Cost of Goods Manufactured 15,600 Compute cost of goods available for sale.

The following information is available from Avery Company,a manufacturer of security cameras: Cost of Goods Manufactured \ 312,000 Total Units Produced 1200 Number of Units Sold 850 Cost of Goods Sold \ 275,000 The unit product cost for a security camera is:

Managerial accounting focuses on providing information for internal planning and control.

Manufacturing overhead includes indirect manufacturing costs,such as insurance and depreciation on the factory building.

Beckett,Inc.reports the following cost information for March: Cost of Goods Manufactured \ 75,000 Manufacturing Overhead 19,000 Finished Goods Inventory, March 1 5000 Finished Goods Inventory, March 31 2000 Work-in-Process Inventory, March 1 9980 Work-in-Process Inventory, March 31 1160 Direct Materials Used 25,400 What is the amount of direct labor incurred by Beckett,Inc.in March?

Which of the following correctly describes the accounting for indirect labor costs?

Payton Corporation provided the following information for the year: Beginning Balance - Work-in-Process Inventory \ 26,000 Ending Balance - Work-in-Process Inventory 55,000 Beginning Balance - Direct Materials 81,000 Ending Balance - Direct Materials 59,000 Purchases - Direct Materials 360,000 Direct Labor 471,000 Indirect Labor 19,000 Depreciation on Factory Plant and Equipment 24,000 Plant Utilities and Insurance 268,000 What was the amount of the cost of goods manufactured for the year?

Which of the following is TRUE of Finished Goods Inventory?

The inventory of a merchandising company consists of Raw Materials Inventory,Work-in-Process Inventory,and Finished Goods Inventory.

Selling and administrative expenses are subtracted from gross profit to obtain operating income.

Which of the following is most likely a service company?

Onyx Corporation has provided the following information about its operating activities for the year: Merchandise Inventory, January 1 \ 150,000 Merchandise Inventory, December 31 75,000 Purchases 854,000 Selling and Administrative Expenses 65,000 Sales Revenue 1,000,000 Required: Prepare Onyx's income statement for the year ended December 31,including the heading.Use the format provided below: Sales Revenue Cost of Goods Sold Beginning Inventory Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income

Direct materials and direct labor are prime costs.

The following information relates to Carried Away Hot Air Balloons,Inc.: Advertising Costs \ 10,400 Sales Salary 13,800 Sales Revenue 630,000 President's Salary 52,000 Office Rent 67,000 Manufacturing Equipment Depreciation 3000 Indirect Materials Used 660 Indirect Labor 13,300 Factory Repair and Maintenance 820 Direct Materials Used 31,070 Direct Labor 31,900 Delivery Vehicle Depreciation 810 Administrative Salaries 24,700 How much was Carried Away's manufacturing overhead?

In a manufacturing company,advertising and marketing costs are included in manufacturing overhead.

The managerial role that involves the day-to-day running of the business is the ________.