Exam 18: Introduction to Managerial Accounting

Define product cost.How does a merchandising company treat these costs?

Crabapples,Inc.purchases and sells boxes of dried fruit.The following information summarizes its operating activities for the year: What is the cost per box of dry fruits if Crabapples sold 4,000 boxes of dry fruit during the year? (Round your answer to the nearest cent. )

Service companies do not have product costs,so they often consider all operating expenses as part of their cost of service.

Which of the following is an example of direct labor cost in a factory?

________ is a philosophy of continuous improvement of products and processes.

A.S.Design Corporation reports the following cost information for March: What is the amount of manufacturing overhead incurred by the company in March?

In a manufacturing company,wages and benefits of assembly line workers are period costs.

In a manufacturing company,administrative costs are included in period costs.

Define indirect labor and give two examples of indirect labor for a manufacturing company.

Management's accountability to its suppliers and vendors is to ________.

Ferrell,Inc.used $213,000 of direct materials and incurred $111,000 of direct labor costs during the year.Indirect labor amounted to $8,100,while indirect materials used totaled $4,800.Other operating costs pertaining to the factory included utilities of $9,300;maintenance of $13,500;repairs of $5,400;depreciation of $23,700;and property taxes of $7,800.There was no beginning or ending finished goods inventory.The Work-in-Process Inventory account reflected a balance of $16,500 at the beginning of the period and $22,500 at the end of the period. Required: Prepare a schedule of cost of goods manufactured for Ferrell,Inc.using the format below. Cost of Goods Manufactured

Define planning.List and briefly discuss a planning tool that managers can use.

Regarding the flow of costs through the inventory accounts,which of the following statements is incorrect?

Define indirect cost.

The cost of goods manufactured includes selling expenses,administrative expenses,and manufacturing overhead.

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

Manufacturing companies have inventory accounts,but merchandising companies do not.

In a manufacturing company,advertising and marketing costs are included in manufacturing overhead.

Which of the following is true of Finished Goods Inventory?

The cost of goods sold is added to net sales revenue to determine gross profit.