Exam 14: Managerial Accounting Concepts and Principles

For a manufacturer,the cost of goods sold can be computed by adding the beginning finished goods inventory to ________________________ and then subtracting the ending finished goods inventory.

The three major cost components of a manufactured product are:

Juliet Corporation has accumulated the following accounting data for the year: Finished goods inventory, January 1 \3 ,200 Finished goods inventory, December 31 4,000 Total cost of goods sold 4,200 The cost of goods manufactured for the year is:

Use the following information to compute the cost of goods manufactured: Beginning finished goods inventory \ 9,250 Beginning goods in process inventory 8,700 Beginning raw materials 7,500 Depreciation on factory equipment 6,000 Direct labor 75,000 Ending finished goods inventory 8,750 Ending goods in process inventory 9,300 Ending raw materials 8,500 Factory Supervisor's salary 50,000 Raw material purchases 14,000

Raw materials inventory includes only direct materials.

A manufacturer's inventory that is not completely finished is called __________________ .

The cost of partially completed products is included in the balance of the Goods in Process Inventory account.

Which of the following is never included in direct materials costs?

Continuous improvement:

Materials that are used in support of the production process but that do not become a part of the product and are not clearly identified with units or batches of product are called:

Which of the following is not a characteristic of all fraud?

For each item shown below,indicate whether it is a product cost or a period cost,by placing an X in the appropriate column.For each item that is a product cost,also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text {Product or Period Cost? \quad Direct or Indirect Cost: Cost?}$ Cost Item Product Period Direct Indirect Administrative salaries Direct labor Advertising Property tax on the factory Factory maintenance Direct materials Depreciation on factory equipment Interest expense Factory supplies

The following information for Baldwin Company,as of December 31,is provided. Administrative salaries \ 24,000 Depreciation of factory equipment 18,750 Depreciation of delivery vehicles 6,000 Direct labor 51,000 Factory supplies used 9,000 Finished goods inventory, January 1 42,750 Finished goods inventory, December 31 52,000 Factory insurance 11,625 Interest expense 10,000 Factory utilities 10,500 Factory maintenance 5,625 Raw materials inventory, January 1 7,000 Raw materials inventory, December 31 3,500 Raw material purchases 94,000 Rent on factory equipment 18,750 Repairs of factory equipment 8,600 Sales commissions 28,150 Goods in process inventory, January 1 4,000 Goods in process inventory, December 31 2,500 A. Calculate the direct material used during the period. B. Calculate the total manufacturing costs incurred during the period. C. Calculate the Cost of Goods Manufactured during the period. D. Calculate the Cost of Goods Sold during the period.

Both financial and managerial accounting affect people's decisions and actions.

The concept of total quality management focuses on continuous improvement.

The management concept of customer orientation causes a company to spend large amounts on advertising to convince customers to buy the company's standard products.

What is the main difference between the income statement of a manufacturer and that of a merchandiser?

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

Indirect labor refers to the cost of the workers whose efforts are directly traceable to specific units or batches of product.

Another title for goods in process inventory is: