Exam 14: Managerial Accounting Concepts and Principles

Expenditures that flow directly to the current income statement and are not reported as assets are ___________________ costs.

Managerial accounting is different from financial accounting in that:

Period costs are incurred by purchasing merchandise or manufacturing finished goods.

The Malcolm Baldrige Award was established by:

Managerial accounting is an activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

The Ticky Company manufactures tacks.Costs for September were direct labor,$84,000; indirect labor,$36,700; direct materials,$55,900; factory maintenance,$4,800; factory utilities,$3,200; and insurance on plant and equipment,$700.What is Ticky Company's factory overhead for September?

The beginning and ending finished goods inventories of a company were $91,000 and $94,000 respectively.If cost of goods sold equaled $800,000,what is the amount of cost of goods manufactured for this period?

Which of the following costs would not be classified as factory overhead?

When the attitude of continuous improvement exists throughout an organization,every manager and employee seeks to continuously experiment with new and improved business practices.

Information for the Ace Manufacturing Company follows: Beginning raw materials inventory \ 53,200 Beginning goods in process, inventory 78,400 Ending raw materials inventory 58,100 Ending goods in process, inventory 98,000 Direct labor 149,800 Total factory overhead 105,000 Raw material purchases 210,000 Calculate the cost of goods manufactured for this company.

Fraud affects all business.

Figure 14_03 Use the following information for Acme, Inc., as of December 31 Administrative salaries \ 32,000 Depreciation of factory equipment 25,000 Depreciation of delivery vehicles 9,000 Direct labor 68,000 Factory supplies used 12,000 Finished goods inventory, January 1 57,000 Finished goods inventory, December 31 68,000 Factory insurance 15,500 Interest expense 12,000 Factory utilities 14,000 Factory maintenance 7,500 Raw materials inventory, January 1 8,000 Raw materials inventory, December 31 4,000 Raw material purchases 125,000 Rent on factory building 25,000 Repairs of factory equipment 11,500 Sales commissions 37,500 Goods in process inventory, January 1 3,500 Goods in process inventory, December 31 2,000 -What is the correct amount of direct materials used?

Information for Gifford,Inc.,as of December 31 follows: Administrative salaries \ 35,000 Depreciation of factory equipment 25,000 Depreciation of delivery vehicles 6,000 Direct labor 68,000 Factory supplies used 9,000 Finished goods inventory, January 1 57,000 Finished goods inventory, December 31 ? Factory insurance 15,500 Interest expense 12,000 Factory utilities 14,000 Factory maintenance 7,500 Raw materials inventory, January 1 5,000 Raw materials inventory, December 31 4,000 Raw material purchases 125,000 Rent on factory building 25,000 Repairs of factory equipment 11,500 Sales commissions 37,500 Goods in process inventory, January 1 3,500 Goods in process inventory, December 31 2,700 Prepare a manufacturing statement for the year ended December 31.

Ringle Company is a manufacturer of compact disks (CDs).Place each of the following costs in the appropriate column. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Product Cost }$ Period Direct Direct Factory Cost Item Cost Materials Labor Overhead a. Factory maintenance salary, \ 40,000 b. Salary of factory supervisor, \ 70,000 c. Salary of production worker, \ 42,000 d. Salary of the company's president, \ 100,000 e. Television advertising, \ 25,000 f. Property tax on factory, \ 15,000 g. Sales commissions, \ 65,000 h. Depreciation on factory equipment, \ 17,000 i. Plastic used in the manufacture of the CDs \ 14000

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

How does fraud affect managerial accounting?

What is managerial accounting and how is it used to aid decision makers?

The series of activities that add value to a company's products or services is called a value chain.

Both financial and managerial accounting report monetary information; managerial accounting also reports considerable nonmonetary information.

The beginning and ending finished goods inventories of the Prize Ring manufacturing company were $75,000 and $73,000 respectively.If cost of goods sold equaled $66,000,what is the amount of cost of goods manufactured for this period?