Exam 14: Managerial Accounting Concepts and Principles

HiFi Sound Systems produces speakers for movie theaters that sell for $1,200 each.Listed below are selected cost items for the production of 600 units. Cost by Behaviar Cost by Function Variable Fixed Product Period Plastic for speaker casings \ 150,000 Assembly labor 200,000 Factory property taxes 22,000 Accourting staff salaries 75,000 Sales officerent 10,000 Sales manager's salary 60,000 Depreciation on factory equipment 23,000 Sales commissions 36,000 Classify each cost as either fixed or variable,and either a product or a period cost.

_____________________ rejects the notions of "good enough" or "acceptable" and challenges employees and managers to continuously experiment with new and improved business practices.

Use the following information to compute the total manufacturing costs incurred during the period: Beginning raw materials \ 5,500 Ending raw materials 4,000 Direct labor 12,250 Raw material purchases 7,400 Depreciation on factory equipment 6,500 Factory repairs and maintenance 3,300 Beginning finished goods inventory 10,200 Ending finished goods inventory 8,900 Beginning goods in process inventory 5,700 Ending goods in process inventory 6,300

Managerial accounting information:

The focus of managerial accounting is on providing ________________ reports while the focus of financial accounting is on providing _____________reports.

An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:

Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

Reference: 14_01 Use the following information from Hardy Co. for the current year: Direct materials used \ 5,000 Direct Labor 7,000 Total Factory overhead 5,100 Beginning goods in process 3,000 Ending goods in process 4,000 -The total of Hardy Co.'s manufacturing costs added during the current year is:

The following items for Titus Company are used to compute the cost of goods manufactured and the cost of goods sold.Indicate how each item should be used in the calculations by filling in the blanks with "+" if the item is to be added,"-" if the item is to be subtracted,or "0" if the item is not used in the calculation.The first item is completed as an example.

Flexibility of practice when applied to managerial accounting means that:

_____________________ involves the use of one's job for personal gain through the deliberate misuse of employer's assets.

Which of the following accounts would appear on a manufacturing statement?

Factory overhead costs normally include all of the following except:

M-Bot,Incorporated produces automatic car starters.The company used $700,000 of raw materials in their most recent accounting year.They started the year with $25,000 of raw materials and ended with $40,000. (a) Compute the company's raw materials inventory turnover. (b) Compute the company's days' sales in raw materials inventory.

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 cost of goods manufactured?

___________________ is the process of setting goals and making plans to achieve them.

Products that have been completed and are ready to be sold by the manufacturer are called:

Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products called are:

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured was $147,000; and the December 31 finished goods inventory was $77,000.What is the cost of goods sold for that year?

Use the following information to compute the cost of goods manufactured: Beginning raw materials \ 5,500 Ending raw materials 4,000 Direct labor 12,250 Raw material purchases 7,400 Depreciation on factory equipment 6,500 Factory repairs and maintenance 3,300 Beginning finished goods inventory 10,200 Ending finished goods inventory 8,900 Beginning goods in process inventory 5,700 Ending goods in process inventory 6,300