The following information was obtained from Durand,Inc.: \[\begin{array} { | l | r | } \hline \text { Advertising Costs } & \$ 11,600 \\ \hline \text { Indirect Labor } & 8000 \\ \hline \text { CEO's Salary } & 470,000 \\ \hline \text { Direct Labor } & 53,000 \\ \hline \text { Indirect Materials Used } & 8000 \\ \hline \text { Direct Materials Used } & 390,000 \\ \hline \text { Factory Utilities } & 840 \\ \hline \text { Factory Janitorial Costs } &1000\\ \hline \text { Manufacturing Equipment Depreciation } & 1700 \\ \hline \text { Delivery Vehicle Depreciation } & 2110\\ \hline \text { Administrative Wages and Salaries } & 22,300\\ \hline \end{array}\] How much were Durand's period costs?

A) $462,540 B) $506,010 C) $13,710 D) $503,900 A) $462,540 B) $506,010 C) $13,710 D) $503,900

Garrett Corporation provided the following information for the year: \[\begin{array} { | l | r | } \hline \text { Beginning Balance - Work-in-Process Inventory } & \$ 27,000 \\ \hline \text { Ending Balance - Work-in-Process Inventory } & 56,000 \\ \hline \text { Beginning Balance - Direct Materials } & 83,000 \\ \hline \text { Ending Balance - Direct Materials } & 60,000 \\ \hline \text { Purchases - Direct Materials } & 360,000 \\ \hline \text { Direct Labor } & 471,000 \\ \hline \text { Indirect Labor } & 18,000 \\ \hline \text { Depreciation on Factory Plant and Equipment } & 25,000 \\ \hline \text { Plant Utilities and Insurance } & 271,000 \\ \hline \end{array}\] What was the amount of direct materials used in production during the year?

A) $66,000 B) $360,000 C) $383,000 D) $831,000 A) $66,000 B) $360,000 C) $383,000 D) $831,000

The following information was obtained from Moreau Manufacturing,Inc.: \[\begin{array} { | l | r | } \hline \text { Advertising Costs } & \$ 9900 \\ \hline \text { Indirect Labor } & 53,000 \\ \hline \text { CEO's Salary } & 620,000 \\ \hline \text { Direct Labor } & 40,000 \\ \hline \text { Indirect Materials Used } & 7500 \\ \hline \text { Direct Materials Used } & 65,000 \\ \hline \text { Factory Utilities } & 760 \\ \hline \text { Factory Janitorial Costs } & 1200 \\ \hline \text { Manufacturing Equipment Depreciation } & 3100 \\ \hline \text { Delivery Vehicle Depreciation } & 1000 \\ \hline \text { Administrative Wages and Salaries } & 24,000 \\ \hline \end{array}\] Calculate Moreau Manufacturing's total product costs.

A) $170,560 B) $654,900 C) $105,000 D) $165,500 A) $170,560 B) $654,900 C) $105,000 D) $165,500

Star Health,Inc.is a fitness center in Oklahoma City.In October,the company earned $550,000 in revenues and incurred the following operating costs from 300 customers: \[\begin{array} { | l | r | } \hline \text { Manager's Salary } & \$ 5500 \\ \hline \text { Gym Rent } & 1800 \\ \hline \text { Depreciation Expense-Equipment } & 7000 \\ \hline \text { Office Supplies Expense } & 2300 \\ \hline \text { Utilities Expense } & 1600 \\ \hline \text { Trainer's Salary } & 22,500 \\ \hline \end{array}\] How much is the unit cost per customer? (Round your answer to the nearest cent.)

A) $93.33 B) $19.00 C) $1833.33 D) $135.67 A) $93.33 B) $19.00 C) $1833.33 D) $135.67

Fire Cat,Inc.selected cost data for the year are shown below: \[\begin{array} { | l | r | } \hline \text { Cost of Goods Manufactured } & \$ 145,500 \\ \hline \text { Work-in-Process Inventory, Jan. 1 } & 19,500 \\ \hline \text { Work-in-Process Inventory, Dec. 31 } & 22,000 \\ \hline \text { Direct Materials Used } & 18,600 \\ \hline \end{array}\] What is the total of manufacturing costs incurred by Fire Cat,Inc.during the year?

A) $148,000 B) $143,000 C) $22,900 D) $38,100 A) $148,000 B) $143,000 C) $22,900 D) $38,100

Oaktree,Inc.is a merchandiser of inlaid wooden boxes.The company sold 7000 units during the year.The company has provided the following information: \[\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 550,000 \\ \hline \text { Purchases (excluding freight in) } & 304,000 \\ \hline \text { Selling and Administrative Expenses } & 69,000 \\ \hline \text { Freight In } & 15,000 \\ \hline \text { Beginning Merchandise Inventory } & 43,000 \\ \hline \text { Ending Merchandise Inventory } & 42,000 \\ \hline \end{array}\] What is the cost of goods sold for the year?

A) $362,000 B) $320,000 C) $318,000 D) $305,000 A) $362,000 B) $320,000 C) $318,000 D) $305,000

Exam 18: Introduction to Managerial Accounting

The following information was obtained from Durand,Inc.: Advertising Costs \ 11,600 Indirect Labor 8000 CEO's Salary 470,000 Direct Labor 53,000 Indirect Materials Used 8000 Direct Materials Used 390,000 Factory Utilities 840 Factory Janitorial Costs 1000 Manufacturing Equipment Depreciation 1700 Delivery Vehicle Depreciation 2110 Administrative Wages and Salaries 22,300 How much were Durand's period costs?

(Multiple Choice)

4.8/5

(41)

Question 101

Garrett Corporation provided the following information for the year: Beginning Balance - Work-in-Process Inventory \ 27,000 Ending Balance - Work-in-Process Inventory 56,000 Beginning Balance - Direct Materials 83,000 Ending Balance - Direct Materials 60,000 Purchases - Direct Materials 360,000 Direct Labor 471,000 Indirect Labor 18,000 Depreciation on Factory Plant and Equipment 25,000 Plant Utilities and Insurance 271,000 What was the amount of direct materials used in production during the year?

(Multiple Choice)

4.8/5

(39)

Question 102

Indirect materials costs are included in manufacturing overhead.

(True/False)

5.0/5

(37)

Question 103

Identify each cost as a period cost or a product cost. -Depreciation on manufacturing equipment

(Multiple Choice)

4.8/5

(33)

Question 104

Varda,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 Varda,Inc.using the format below. Schedule of 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 Fotal Manufacturing Costs to Account Ending Work-in-Process Inventory Cost of Goods Manufactured

(Essay)

4.8/5

(43)

Question 105

Managerial accounting information for a company is primarily used by ________.

(Multiple Choice)

4.9/5

(44)

Question 106

The jobs that are directly involved in providing goods or services to customers are called ________.

(Multiple Choice)

4.9/5

(43)

Question 107

The following information was obtained from Moreau Manufacturing,Inc.: Advertising Costs \ 9900 Indirect Labor 53,000 CEO's Salary 620,000 Direct Labor 40,000 Indirect Materials Used 7500 Direct Materials Used 65,000 Factory Utilities 760 Factory Janitorial Costs 1200 Manufacturing Equipment Depreciation 3100 Delivery Vehicle Depreciation 1000 Administrative Wages and Salaries 24,000 Calculate Moreau Manufacturing's total product costs.

(Multiple Choice)

4.8/5

(34)

Question 108

Star Health,Inc.is a fitness center in Oklahoma City.In October,the company earned $550,000 in revenues and incurred the following operating costs from 300 customers: Manager's Salary \ 5500 Gym Rent 1800 Depreciation Expense-Equipment 7000 Office Supplies Expense 2300 Utilities Expense 1600 Trainer's Salary 22,500 How much is the unit cost per customer? (Round your answer to the nearest cent.)

(Multiple Choice)

4.9/5

(31)

Question 109

Fire Cat,Inc.selected cost data for the year are shown below: Cost of Goods Manufactured \ 145,500 Work-in-Process Inventory, Jan. 1 19,500 Work-in-Process Inventory, Dec. 31 22,000 Direct Materials Used 18,600 What is the total of manufacturing costs incurred by Fire Cat,Inc.during the year?

(Multiple Choice)

4.8/5

(36)

Question 110

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

(Multiple Choice)

4.9/5

(28)

Question 111

In a manufacturing company,wages and benefits of assembly line workers are period costs.

(True/False)

4.8/5

(39)

Question 112

The chief financial officer,controller,and treasurer are all examples of staff positions.

(True/False)

4.7/5

(33)

Question 113

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

(True/False)

4.8/5

(35)

Question 114

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

(True/False)

4.8/5

(37)

Question 115

Monitoring operations and keeping the company on track is part of the ________.

(Multiple Choice)

4.7/5

(47)

Question 116

Product costs,such as manufacturing overhead,should be treated as an asset in an inventory account until the product is sold.

(True/False)

4.9/5

(33)

Question 117

Oaktree,Inc.is a merchandiser of inlaid wooden boxes.The company sold 7000 units during the year.The company has provided the following information: Sales Revenue \ 550,000 Purchases (excluding freight in) 304,000 Selling and Administrative Expenses 69,000 Freight In 15,000 Beginning Merchandise Inventory 43,000 Ending Merchandise Inventory 42,000 What is the cost of goods sold for the year?

(Multiple Choice)

4.9/5

(38)

Question 118

Which of the following is an example of direct labor cost in a factory?

(Multiple Choice)

4.9/5

(42)

Question 119

Period costs are the ________.

(Multiple Choice)

4.9/5

(32)

Question 120

Indirect materials costs are included in manufacturing overhead.

Identify each cost as a period cost or a product cost. -Depreciation on manufacturing equipment

Managerial accounting information for a company is primarily used by ________.

The jobs that are directly involved in providing goods or services to customers are called ________.

Fire Cat,Inc.selected cost data for the year are shown below: Cost of Goods Manufactured \ 145,500 Work-in-Process Inventory, Jan. 1 19,500 Work-in-Process Inventory, Dec. 31 22,000 Direct Materials Used 18,600 What is the total of manufacturing costs incurred by Fire Cat,Inc.during the year?

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

In a manufacturing company,wages and benefits of assembly line workers are period costs.

The chief financial officer,controller,and treasurer are all examples of staff positions.

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

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

Monitoring operations and keeping the company on track is part of the ________.

Product costs,such as manufacturing overhead,should be treated as an asset in an inventory account until the product is sold.

Which of the following is an example of direct labor cost in a factory?

Period costs are the ________.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets,natural Resources,and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

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