Question 1

Riverside Manufacturing provided the following information for the month ended March 31:
 
Compute gross profit.

Accepted Answer

A) $8,900 
B) $12,400 
C) $15,900 
D) $1,900 
A) $8,900 
B) $12,400 
C) $15,900 
D) $1,900 A

Question 2

Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed when customer orders need to be filled?

Accepted Answer

A) Supply Chain Management (SCM) 
B) Just-in-Time (JIT)Management 
C) Enterprise Resource Planning (ERP) 
D) Total Quality Management (TQM) 
A) Supply Chain Management (SCM) 
B) Just-in-Time (JIT)Management 
C) Enterprise Resource Planning (ERP) 
D) Total Quality Management (TQM) B

Question 3

Managerial accounting reporting by a public firm is required to follow the rules of GAAP and guidelines of the Securities and Exchange Commission.

Accepted Answer

A) True 
 B)False  False

Question 4

At the beginning of the year,Swift,Inc.'s Work-in-Process Inventory account had a balance of $123,000.During the year,$250,000 of direct materials were used in production,and $71,000 of direct labor costs were incurred.Manufacturing overhead amounted to $829,000.The cost of goods manufactured was $670,000.What is the balance in the Work-in-Process Inventory account on December 31?

Accepted Answer

A) $1,150,000 
B) $1,340,000 
C) $670,000 
D) $603,000 
A) $1,150,000 
B) $1,340,000 
C) $670,000 
D) $603,000

Question 5

For a manufacturer,rent paid for an office building is an example of a period cost.

Accepted Answer

A) True 
 B)False

Question 6

The accountant for Myra Lido deliberately recorded operating expenses as operating assets in order to record a higher net income for the company.As long as the amount of the misstatement was not material,this would not be considered unethical behavior.

Accepted Answer

A) True 
 B)False

Question 7

Define period cost.Give three examples of period costs of a merchandising company.

Accepted Answer

Period cost is an operating cost that is

Question 8

Manufacturing overhead includes indirect manufacturing costs,such as insurance and depreciation on the factory building.

Accepted Answer

A) True 
 B)False

Question 9

Unit product costs can be used to measure operating income and determine the cost of Finished Goods Inventory.

Accepted Answer

A) True 
 B)False

Question 10

Bloomington,Inc.is a merchandiser of stone ornaments.The company sold 6,000 units during the year.The company has provided the following information:
 
What is the cost of goods sold for the year?

Accepted Answer

A) $357,000 
B) $314,000 
C) $312,000 
D) $301,000 
A) $357,000 
B) $314,000 
C) $312,000 
D) $301,000

Question 11

Unlike merchandising companies,income statements of service companies include cost of goods sold as a line item.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following describes the cost of goods manufactured?

Accepted Answer

A) the cost of the goods that were sold during the period 
B) the total cost of all goods that were completed,or partially completed during the period 
C) the cost of those goods that were completed during the period 
D) the total costs in inventory at the end of the period 
A) the cost of the goods that were sold during the period 
B) the total cost of all goods that were completed,or partially completed during the period 
C) the cost of those goods that were completed during the period 
D) the total costs in inventory at the end of the period

Question 13

Goods that have been started in the manufacturing process but are not yet complete are included in the ________.

Accepted Answer

A) Finished Goods Inventory account 
B) Work-in-Process Inventory account 
C) Raw Materials Inventory account 
D) Cost of Goods Sold account 
A) Finished Goods Inventory account 
B) Work-in-Process Inventory account 
C) Raw Materials Inventory account 
D) Cost of Goods Sold account

Question 14

In which of the following ways is the management of a company accountable to its communities?

Accepted Answer

A) making timely interest payments to creditors and dividend payments to investors 
B) ensuring the company's environmental impact is not harmful to its community 
C) providing a capital return on the shareholders' investment 
D) repaying principal and interest to the suppliers 
A) making timely interest payments to creditors and dividend payments to investors 
B) ensuring the company's environmental impact is not harmful to its community 
C) providing a capital return on the shareholders' investment 
D) repaying principal and interest to the suppliers

Question 15

Arturo Manufacturing,Inc.provided the following information for the year:
 
How much is the cost of goods manufactured?

Accepted Answer

A) $841,150 
B) $752,650 
C) $903,650 
D) $769,650 
A) $841,150 
B) $752,650 
C) $903,650 
D) $769,650

Question 16

Which of the following would be considered a product cost for a manufacturing business?

Accepted Answer

A) research and development 
B) property taxes on the factory 
C) advertising 
D) delivery costs 
A) research and development 
B) property taxes on the factory 
C) advertising 
D) delivery costs

Question 17

Douban Corporation provided the following information for the year:
 
What was the total manufacturing costs incurred during the year?

Accepted Answer

A) $696,000 
B) $315,000 
C) $849,000 
D) $1,164,000 
A) $696,000 
B) $315,000 
C) $849,000 
D) $1,164,000

Question 18

In a manufacturing company,advertising and marketing costs are examples of period costs.

Accepted Answer

A) True 
 B)False

Question 19

Red Tail Manufacturing,Inc.provided the following information for the year:
 
The inventory account balances as of January 1 are given below.
 
What is the ending balance in the Finished Goods Inventory?

Accepted Answer

A) $304,600 
B) $303,600 
C) $305,600 
D) $595,600 
A) $304,600 
B) $303,600 
C) $305,600 
D) $595,600

Question 20

Which of the following is a product cost for a manufacturing company?

Accepted Answer

A) salary of administrative staff 
B) wages paid to factory janitor 
C) commissions paid to sales staff 
D) depreciation on corporate building 
A) salary of administrative staff 
B) wages paid to factory janitor 
C) commissions paid to sales staff 
D) depreciation on corporate building

Exam 18: Introduction to Managerial Accounting

Riverside Manufacturing provided the following information for the month ended March 31: Compute gross profit.

Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed when customer orders need to be filled?

Managerial accounting reporting by a public firm is required to follow the rules of GAAP and guidelines of the Securities and Exchange Commission.

For a manufacturer,rent paid for an office building is an example of a period cost.

The accountant for Myra Lido deliberately recorded operating expenses as operating assets in order to record a higher net income for the company.As long as the amount of the misstatement was not material,this would not be considered unethical behavior.

Define period cost.Give three examples of period costs of a merchandising company.

Manufacturing overhead includes indirect manufacturing costs,such as insurance and depreciation on the factory building.

Unit product costs can be used to measure operating income and determine the cost of Finished Goods Inventory.

Bloomington,Inc.is a merchandiser of stone ornaments.The company sold 6,000 units during the year.The company has provided the following information: What is the cost of goods sold for the year?

Unlike merchandising companies,income statements of service companies include cost of goods sold as a line item.

Which of the following describes the cost of goods manufactured?

Goods that have been started in the manufacturing process but are not yet complete are included in the ________.

In which of the following ways is the management of a company accountable to its communities?

Arturo Manufacturing,Inc.provided the following information for the year: How much is the cost of goods manufactured?

Which of the following would be considered a product cost for a manufacturing business?

Douban Corporation provided the following information for the year: What was the total manufacturing costs incurred during the year?

In a manufacturing company,advertising and marketing costs are examples of period costs.

Red Tail Manufacturing,Inc.provided the following information for the year: The inventory account balances as of January 1 are given below. What is the ending balance in the Finished Goods Inventory?

Which of the following is a product cost for a manufacturing company?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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