Question 1

Ending raw materials inventory divided by raw materials used multiplied by 365 is the _________________________.

Accepted Answer

days' sale

Question 2

Period costs for a manufacturing company would flow directly to:

Accepted Answer

A) The current income statement. 
B) Factory overhead. 
C) The current balance sheet. 
D) Job cost sheet. 
E) The current manufacturing statement. 
A) The current income statement. 
B) Factory overhead. 
C) The current balance sheet. 
D) Job cost sheet. 
E) The current manufacturing statement.

Question 3

A _________________ cost does not change in proportion to changes in the volume of activity within the relevant range.

Accepted Answer

The answer of A _________________ cost does not change in...

Question 4

The ________________________ aids continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance along four dimensions: (1)financial,(2)customer,(3)internal business processes,and (4)learning and growth.

Accepted Answer

The answer of The ________________________ aids continuous improvement by augmenting...

Question 5

Which of the following items appears only in a manufacturing company's financial statements?

Accepted Answer

A)  Cost of goods sold. 
B)  Cost of goods manufactured. 
C)  Goods available for sale. 
D)  Gross profit. 
E)  Net income. 
A)  Cost of goods sold. 
B)  Cost of goods manufactured. 
C)  Goods available for sale. 
D)  Gross profit. 
E)  Net income.

Question 6

Classifying costs by behavior involves:

Accepted Answer

A)  Identifying fixed cost and variable cost. 
B)  Identifying cost of goods sold and operating costs. 
C)  Identifying all costs. 
D)  Identifying costs in a physical manner. 
E)  Identifying both quantitative and qualitative cost factors. 
A)  Identifying fixed cost and variable cost. 
B)  Identifying cost of goods sold and operating costs. 
C)  Identifying all costs. 
D)  Identifying costs in a physical manner. 
E)  Identifying both quantitative and qualitative cost factors.

Question 7

A company reports raw materials used of $42,750 for a year,with beginning raw materials inventory of $4,000 and an ending raw materials inventory of $4,500.Compute days' sales in raw materials inventory based on this data.

Accepted Answer

A)  10.52 days. 
B)  34.15 days 
C)  10.06 days 
D)  38.42 days 
E)  9.35 days 
A)  10.52 days. 
B)  34.15 days 
C)  10.06 days 
D)  38.42 days 
E)  9.35 days

Question 8

A management concept that encourages all managers and employees to be in tune with the wants and needs of customers,and which leads to flexible product designs and production processes,is called:

Accepted Answer

A)  Continuous improvement. 
B)  Customer orientation. 
C)  Just-in-time. 
D)  Theory of constraints. 
E)  Total quality management. 
A)  Continuous improvement. 
B)  Customer orientation. 
C)  Just-in-time. 
D)  Theory of constraints. 
E)  Total quality management.

Question 9

Whitman Products and Rockland Industries report the following information at December 31:
 $\begin{array}{lrr}
&\text { WHIIMAN }&\text { ROCKLAND }\ 
\text { Accounts receivable } & \$ 41,000 & \$ 68,000 \
\text { Cash } & 6,000 & 7,000 \
\text { Finished goods inventory } & & 25,000 \
\text { Goods in process inventory } & & 40,000 \
\text { Merchandise inventory } & 48,000  \ 
\text { Prepaid expenses } & 1,000 & 2,000 \
\text { Raw materials inventory } & & 21,000
\end{array}$
  
Required:
(a) Which company is a manufacturer? Explain.
(b) Prepare the current asset section of the balance sheet for the manufacturer.

Accepted Answer

(a) Rockland Industries is the manufactu

Question 10

A manufacturing firm's cost of goods manufactured is equivalent to a merchandising firm's:

Accepted Answer

A)  Cost of goods sold. 
B)  Cost of goods purchased. 
C)  Cost of goods available. 
D)  Beginning merchandise inventory. 
E)  Ending merchandise inventory. 
A)  Cost of goods sold. 
B)  Cost of goods purchased. 
C)  Cost of goods available. 
D)  Beginning merchandise inventory. 
E)  Ending merchandise inventory.

Question 11

Assume Back to the Roots used 1 million pounds of raw materials in their most recent accounting year.They started the year with 20,000 pounds of raw materials and ended with 40,000 pounds.
(a) Compute Back to the Roots' raw materials inventory turnover.
(b) Compute Back to the Roots' days' sales in raw materials inventory.
(c) Interpret these results.What can the company do to improve these measures?

Accepted Answer

(a)Raw materials inventory turnover:
1,0

Question 12

A manufacturing statement is also known as a schedule or listing of the:

Accepted Answer

A)  Raw materials processed. 
B)  Factory supplies used. 
C)  Cost of goods manufactured. 
D)  Total finished goods. 
E)  Cost of goods sold. 
A)  Raw materials processed. 
B)  Factory supplies used. 
C)  Cost of goods manufactured. 
D)  Total finished goods. 
E)  Cost of goods sold.

Question 13

Selling and administrative expenses are normally product costs.

Accepted Answer

A) True 
 B)False

Question 14

Use the following data to determine the cost of goods manufactured:
$\begin{array}{lr}
\text { Beginning finished goods inventory } & \$ 10,800 \
\text { Direct labor } & 30,600 \
\text { Beginning goods in process inventory } & 7,200 \
\text { General and administrative expenses } & 13,500 \
\text { Direct materials used } & 40,500 \
\text { Ending goods in process inventory } & 9,000 \
\text { Indirect labor } & 6,300 \
\text { Ending finished goods inventory } & 9,500 \
\text { Indirect materials } & 13,500 \
\text { Depreciation - factory equipment } & 7,500
\end{array}$

Accepted Answer

A)  $102,000 
B)  $110,100 
C)  $ 96,600 
D)  $113,700 
E)  $100,200 
A)  $102,000 
B)  $110,100 
C)  $ 96,600 
D)  $113,700 
E)  $100,200

Question 15

The manufacturing statement must be prepared monthly as it is a required general-purpose financial statement.

Accepted Answer

A) True 
 B)False

Question 16

Define and contrast period costs and product costs.How are they reported in the financial statements of a manufacturing company?

Accepted Answer

Period costs are the costs that are char

Question 17

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

-What is the correct amount of overhead?

Accepted Answer

A)  $192,000. 
B)  $110,500. 
C)  $200,000. 
D)  $150,000. 
E)  $ 77,500. 
A)  $192,000. 
B)  $110,500. 
C)  $200,000. 
D)  $150,000. 
E)  $ 77,500.

Question 18

What are raw materials inventory turnover and days' sales in raw materials inventory? What is the purpose of these measures?

Accepted Answer

To assess how effectively a company mana

Question 19

The manufacturing statement is also known as the schedule of manufacturing activities or the schedule of cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 20

The manufacturing statement is also known as ____________________________.

Accepted Answer

schedule of manufact

Exam 14: Managerial Accounting Concepts and Principles

Ending raw materials inventory divided by raw materials used multiplied by 365 is the _________________________.

Period costs for a manufacturing company would flow directly to:

A _________________ cost does not change in proportion to changes in the volume of activity within the relevant range.

The ________________________ aids continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance along four dimensions: (1)financial,(2)customer,(3)internal business processes,and (4)learning and growth.

Which of the following items appears only in a manufacturing company's financial statements?

Classifying costs by behavior involves:

A company reports raw materials used of $42,750 for a year,with beginning raw materials inventory of $4,000 and an ending raw materials inventory of $4,500.Compute days' sales in raw materials inventory based on this data.

A management concept that encourages all managers and employees to be in tune with the wants and needs of customers,and which leads to flexible product designs and production processes,is called:

A manufacturing firm's cost of goods manufactured is equivalent to a merchandising firm's:

A manufacturing statement is also known as a schedule or listing of the:

Selling and administrative expenses are normally product costs.

The manufacturing statement must be prepared monthly as it is a required general-purpose financial statement.

Define and contrast period costs and product costs.How are they reported in the financial statements of a manufacturing company?

What are raw materials inventory turnover and days' sales in raw materials inventory? What is the purpose of these measures?

The manufacturing statement is also known as the schedule of manufacturing activities or the schedule of cost of goods manufactured.

The manufacturing statement is also known as ____________________________.

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

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