Exam 14: Managerial Accounting Concepts and Principles

arrow
  • Select Tags
search iconSearch Question
flashcardsStudy Flashcards
  • Select Tags

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)
4.8/5
(38)

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)
4.7/5
(39)

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)
4.8/5
(29)

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)
4.9/5
(36)
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
Premises:
Responses:
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
Manufacturing expenditures that cannot be separately or readily traced to finished goods.
Prime costs
Expenditures necessary and integral to finished products.
Fixed costs
Expenditures incurred in the process of converting raw materials to finished products; include direct labor and factory overhead.
Opportunity costs
Costs that have already been incurred and cannot be avoided or changed.
Period costs
Expenditures directly associated with the manufacture of finished products; include direct materials and direct labor.
Conversion costs
Costs that do not change with changes in the volume of activity.
Factory overhead
Costs that are incurred for the benefit of more than one cost object.
Variable costs
(Matching)
4.8/5
(38)

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

(True/False)
4.9/5
(35)

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)
4.8/5
(42)

Costs may be classified by many different cost classifications.

(True/False)
4.9/5
(35)

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

(Short Answer)
4.8/5
(41)

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)
4.9/5
(40)

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

(Short Answer)
4.9/5
(40)

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

(True/False)
4.8/5
(48)

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)
4.9/5
(41)

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)
4.7/5
(38)

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

(True/False)
4.8/5
(36)

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)
4.9/5
(32)

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

(Short Answer)
4.7/5
(43)

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

(Multiple Choice)
4.8/5
(39)

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

(Multiple Choice)
4.9/5
(46)

The following are all examples of product costs:

(Multiple Choice)
4.8/5
(34)
Showing 81 - 100 of 198
close modal

Filters

  • Essay(0)
  • Multiple Choice(0)
  • Short Answer(0)
  • True False(0)
  • Matching(0)