Reference: 14_02 The following information is available for Talking Toys, Inc. for the current year: $\begin{array}{lr} \text { Direct materials used } & \$ 12,500 \\ \text { Goods in process, January 1 } & 50,000 \\ \text { Goods in process, December 31 } & 37,000 \\ \text { Total Factory overhead } & 5,500 \\ \text { Direct labor used } & 26,500 \end{array}$ -The total manufacturing costs incurred during the year were:

A) $13,000 B) $44,500 C) $57,500 D) $94,500 E) $89,000 A) $13,000 B) $44,500 C) $57,500 D) $94,500 E) $89,000

Compute cost of goods manufactured for this period given the following amounts. \[\begin{array} { | l | r | } \hline \text { Endinig finished goods inventory } & \$ 66,000 \\ \hline \text { Cost of goods sold } & 54,000 \\ \hline \text { Beginning Finished goods } & 60,000 \\ \text { inventory }\\ \hline \end{array}\]

A) $72,000 B) $48,000 C) $60,000 D) $66,000 E) $180,000. A) $72,000 B) $48,000 C) $60,000 D) $66,000 E) $180,000.

Current information for the Austin Company follows: $\begin{array}{lr} \text { Beginning raw materials inventory } & \$ 15,200 \\ \text { Beginning goods in process inventory } & 22,400 \\ \text { Ending raw materials inventory } & 16,600 \\ \text { Ending goods in process inventory } & 28,000 \\ \text { Direct labor } & 42,800 \\ \text { Total factory overhead } & 30,000 \\ \text { Raw material purchases } & 60,000 \end{array}$ All raw materials used were traceable to specific batches of product.Austin Company's cost of goods manufactured for the year is:

A) $125,800 B) $128,600 C) $131,400 D) $137,000 E) $139,000 A) $125,800 B) $128,600 C) $131,400 D) $137,000 E) $139,000

Reference: 14_02 The following information is available for Talking Toys, Inc. for the current year: $\begin{array}{lr} \text { Direct materials used } & \$ 12,500 \\ \text { Goods in process, January 1 } & 50,000 \\ \text { Goods in process, December 31 } & 37,000 \\ \text { Total Factory overhead } & 5,500 \\ \text { Direct labor used } & 26,500 \end{array}$ -The total cost of goods manufactured for the year was:

A) $13,000 B) $44,500 C) $57,500 D) $94,500. E) $52,000 A) $13,000 B) $44,500 C) $57,500 D) $94,500. E) $52,000

Ajax Company accumulated the following account information for the year: $\begin{array}{ll} \text { Beginning raw materials inventory } & \$ 6,000 \\ \text { Indirect materials cost } & 2,000 \\ \text { Indirect labor cost } & 5,000 \\ \text { Maintenance of factory equipment } & 2,800 \\ \text { Direct labor cost } & 7,000 \end{array}$ Using the above information,total factory overhead costs would be:

A) $9,800 B) $16,800 C) $15,800 D) $13,000 E) $7,800 A) $9,800 B) $16,800 C) $15,800 D) $13,000 E) $7,800

Use the following data to determine the cost of goods manufactured. $\begin{array}{lr} \text { Beginning finished goods inventory } & \$ 6,200 \\ \text { Direct labor } &15,100 \\ \text { Beginning goods in process inventory } & 1,500 \\ \text { General and administrative expenses } & 20,500 \\ \text { Direct materials used } & 20,500 \\ \text { Ending goods in process inventory } & 4,000 \\ \text { Indirect labor } & 7,300 \\ \text { Ending finished goods inventory } & 5,000 \\ \text { Indirect materials } & 3,400\\ \text { Depreciation - factory equipment } &2,000 \end{array}$

A) $65,800 B) $45,800 C) $49,500 D) $52,300 E) $47,100 A) $65,800 B) $45,800 C) $49,500 D) $52,300 E) $47,100

Exam 14: Managerial Accounting Concepts and Principles

Reference: 14_02 The following information is available for Talking Toys, Inc. for the current year: Direct materials used \ 12,500 Goods in process, January 1 50,000 Goods in process, December 31 37,000 Total Factory overhead 5,500 Direct labor used 26,500 -The total manufacturing costs incurred during the year were:

(Multiple Choice)

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Question 81

Compute cost of goods manufactured for this period given the following amounts. Endinig finished goods inventory \ 66,000 Cost of goods sold 54,000 Beginning Finished goods 60,000 inventory

(Multiple Choice)

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Question 82

Bourne Crafts manufactures specialty key chains for tourist attractions.On December 31,2013,the firm had 200 souvenir attraction disks used in the production of the chains that cost $3 each; and 600 completed key chains that cost $6 each.During year 2013 Bourne Crafts purchased 1,500 souvenir disks costing $3 each and produced 1,100 key chains. Required: Determine the total cost of raw materials inventory at December 31,2013.

(Essay)

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Question 83

The management concept of customer orientation encourages a company to set up its production system to produce large quantities of the same product for all customers.

(True/False)

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Question 84

Match the following definitions with the appropriate terms

Costs that flow directly to the current income statement as expenses.

Sunk costs

Costs that change in proportion to changes in volume of activity.

Indirect costs

The potential benefit lost by choosing a specific action from two or more alternatives.

Product costs

Correct Answer:

Verified

Costs that flow directly to the current income statement as expenses.

Costs that change in proportion to changes in volume of activity.

The potential benefit lost by choosing a specific action from two or more alternatives.

Manufacturing expenditures that cannot be separately or readily traced to finished goods.

Expenditures necessary and integral to finished products.

Expenditures incurred in the process of converting raw materials to finished products; include direct labor and factory overhead.

Costs that have already been incurred and cannot be avoided or changed.

Expenditures directly associated with the manufacture of finished products; include direct materials and direct labor.

Costs that do not change with changes in the volume of activity.

Costs that are incurred for the benefit of more than one cost object.

(Matching)

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Question 85

Manufacturers usually have three inventories: raw materials,goods in process,and finished goods.

(True/False)

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Question 86

Current information for the Austin Company follows: Beginning raw materials inventory \ 15,200 Beginning goods in process inventory 22,400 Ending raw materials inventory 16,600 Ending goods in process inventory 28,000 Direct labor 42,800 Total factory overhead 30,000 Raw material purchases 60,000 All raw materials used were traceable to specific batches of product.Austin Company's cost of goods manufactured for the year is:

(Multiple Choice)

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Question 87

Costs may be classified by many different cost classifications.

(True/False)

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Question 88

____________________ inventory consists of products in the process of being manufactured but not yet complete.

(Short Answer)

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Question 89

Reference: 14_02 The following information is available for Talking Toys, Inc. for the current year: Direct materials used \ 12,500 Goods in process, January 1 50,000 Goods in process, December 31 37,000 Total Factory overhead 5,500 Direct labor used 26,500 -The total cost of goods manufactured for the year was:

(Multiple Choice)

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Question 90

Raw materials used divided by average raw materials inventory is the ____________________.

(Short Answer)

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Question 91

An out-of-pocket cost requires a future cash outlay and is relevant for decision making.

(True/False)

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Question 92

Ajax Company accumulated the following account information for the year: Beginning raw materials inventory \ 6,000 Indirect materials cost 2,000 Indirect labor cost 5,000 Maintenance of factory equipment 2,800 Direct labor cost 7,000 Using the above information,total factory overhead costs would be:

(Multiple Choice)

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Question 93

Use the following data to determine the cost of goods manufactured. Beginning finished goods inventory \ 6,200 Direct labor 15,100 Beginning goods in process inventory 1,500 General and administrative expenses 20,500 Direct materials used 20,500 Ending goods in process inventory 4,000 Indirect labor 7,300 Ending finished goods inventory 5,000 Indirect materials 3,400 Depreciation - factory equipment 2,000

(Multiple Choice)

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Question 94

Control is the process of setting goals and determining ways to achieve them.

(True/False)

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Question 95

Total quality management and just-in-time manufacturing are two modern systems designed to improve the quality of management and the products and services offered.

(True/False)

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Question 96

A _________________ cost changes in proportion to changes in the volume of activity.

(Short Answer)

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Question 97

Raw materials that physically become part of the product and can be traced to specific units or batches of product are called:

(Multiple Choice)

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Question 98

The total cost of goods completed during the accounting period for a manufacturer is called:

(Multiple Choice)

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Question 99

The following are all examples of product costs:

(Multiple Choice)

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Question 100

Exam 14: Managerial Accounting Concepts and Principles

Compute cost of goods manufactured for this period given the following amounts. Endinig finished goods inventory \ 66,000 Cost of goods sold 54,000 Beginning Finished goods 60,000 inventory

The management concept of customer orientation encourages a company to set up its production system to produce large quantities of the same product for all customers.

Manufacturers usually have three inventories: raw materials,goods in process,and finished goods.

Costs may be classified by many different cost classifications.

____________________ inventory consists of products in the process of being manufactured but not yet complete.

Raw materials used divided by average raw materials inventory is the ____________________.

An out-of-pocket cost requires a future cash outlay and is relevant for decision making.

Control is the process of setting goals and determining ways to achieve them.

Total quality management and just-in-time manufacturing are two modern systems designed to improve the quality of management and the products and services offered.

A _________________ cost changes in proportion to changes in the volume of activity.

Raw materials that physically become part of the product and can be traced to specific units or batches of product are called:

The total cost of goods completed during the accounting period for a manufacturer is called:

The following are all examples of product costs:

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Job Order Costing and Analysis

Process Costing

Activity-Based Costing and Analysis

Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Decentralization and Performance Measurement

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Accounting With Special Journals

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Filters