Question 1

The following information relates to Washington,Inc.:
 
How much were Washington's product costs?

Accepted Answer

A) $658,250 
B) $369,000 
C) $549,000 
D) $92,920 
A) $658,250 
B) $369,000 
C) $549,000 
D) $92,920

Question 2

How does a manufacturing company calculate unit product cost? Why do managers need to know the unit product cost?

Accepted Answer

Unit product cost is calculated by divid

Question 3

Which of the following is the primary focus of financial accounting?

Accepted Answer

A) providing information that managers need to make operational decisions 
B) providing summarized information on operational results to investors and creditors 
C) providing budgets for future periods 
D) providing highly detailed information on product lines,regions,and divisions 
A) providing information that managers need to make operational decisions 
B) providing summarized information on operational results to investors and creditors 
C) providing budgets for future periods 
D) providing highly detailed information on product lines,regions,and divisions

Question 4

List the three kinds of inventory accounts that are used by manufacturing companies.Briefly discuss what each account includes.

Accepted Answer

Raw Materials Inventory includes materia

Question 5

Manufacturing companies produce their own products,but merchandising companies do not.

Accepted Answer

A) True 
 B)False

Question 6

The cost of goods sold for Frye Manufacturing in the year was $373,000.The January 1 Finished Goods Inventory balance was $30,200,and the December 31 Finished Goods Inventory balance was $24,000.Calculate the cost of goods manufactured during the year.

Accepted Answer

A) $397,000 
B) $54,200 
C) $366,800 
D) $6,200 
A) $397,000 
B) $54,200 
C) $366,800 
D) $6,200

Question 7

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

Accepted Answer

A) office rent 
B) wages of factory janitor 
C) insurance cost of production equipment 
D) raw materials 
A) office rent 
B) wages of factory janitor 
C) insurance cost of production equipment 
D) raw materials

Question 8

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

Accepted Answer

A) Administrative expenses are product costs and are expensed as incurred. 
B) Administrative expenses are period costs and are expensed as incurred. 
C) Administrative expenses are product costs and are expensed when the manufactured product is sold. 
D) Administrative expenses are period costs and are expensed when the manufactured product is sold. 
A) Administrative expenses are product costs and are expensed as incurred. 
B) Administrative expenses are period costs and are expensed as incurred. 
C) Administrative expenses are product costs and are expensed when the manufactured product is sold. 
D) Administrative expenses are period costs and are expensed when the manufactured product is sold.

Question 9

Which of the following represents the combined sum of direct materials and direct labor?

Accepted Answer

A) conversion costs 
B) period costs 
C) prime costs 
D) fixed costs 
A) conversion costs 
B) period costs 
C) prime costs 
D) fixed costs

Question 10

Excellent,Inc.sells accounting textbooks.The following information summarizes Excellent's operating activities for the year:
   
Required: Prepare Excellent,Inc.'s income statement for the year ended December 31.

Accepted Answer

The answer of Excellent,Inc.sells accounting textbooks.The following information summarizes Excellent's...

Question 11

Managerial accounting provides financial statements that report results of operations,financial position,and cash flows both to managers and to external stockholders.

Accepted Answer

A) True 
 B)False

Question 12

Jasper,Inc.reports the following cost information for March:
 
What is the cost of goods sold for March?

Accepted Answer

A) $2,300 
B) $71,600 
C) $76,600 
D) $78,600 
A) $2,300 
B) $71,600 
C) $76,600 
D) $78,600

Question 13

You did not understand what the term accrual meant and failed to accrue the interest due at the end of the year on the company's bonds.Which of the IMA standards appears to have been violated here?

Accepted Answer

A) integrity 
B) confidentiality 
C) competence 
D) objectivity 
A) integrity 
B) confidentiality 
C) competence 
D) objectivity

Question 14

The following information was obtained from MCB Manufacturing,Inc.:
 
Calculate MCB Manufacturing's total product costs.

Accepted Answer

A) $159,020 
B) $514,500 
C) $115,000 
D) $155,000 
A) $159,020 
B) $514,500 
C) $115,000 
D) $155,000

Question 15

The cost of direct materials cannot easily be traced to the manufactured product,and therefore,it is a component of manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

Indirect materials are used in making a

Question 17

For external reporting purposes,GAAP requires companies to treat period costs as assets.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is true of the flow of product and period costs for a manufacturer?

Accepted Answer

A) When the manufacturing process is completed,the costs are transferred to the Work-in-Process Inventory account. 
B) The cost of the finished goods that the manufacturer sells becomes its Cost of Goods Sold on the income statement. 
C) Period costs remain in inventory accounts on the balance sheet until the product is sold. 
D) All product costs that have been paid are expensed and reported on the income statement at the end of the accounting period. 
A) When the manufacturing process is completed,the costs are transferred to the Work-in-Process Inventory account. 
B) The cost of the finished goods that the manufacturer sells becomes its Cost of Goods Sold on the income statement. 
C) Period costs remain in inventory accounts on the balance sheet until the product is sold. 
D) All product costs that have been paid are expensed and reported on the income statement at the end of the accounting period.

Question 19

Which of the following is true of product costs?

Accepted Answer

A) They are expensed in the period they are paid. 
B) For external reporting,GAAP requires that they be expensed before the products are sold. 
C) They are first recorded in an inventory account. 
D) For merchandising companies,product costs do not include freight costs. 
A) They are expensed in the period they are paid. 
B) For external reporting,GAAP requires that they be expensed before the products are sold. 
C) They are first recorded in an inventory account. 
D) For merchandising companies,product costs do not include freight costs.

Question 20

Reed Productions has provided the following information for the year:
 
During the year,Reed produced 72,960 units of product.Calculate the unit product cost.(Round your answer to the nearest cent. )

Accepted Answer

A) $7.73 
B) $6.63 
C) $7.60 
D) $8.45 
A) $7.73 
B) $6.63 
C) $7.60 
D) $8.45

Exam 18: Introduction to Managerial Accounting

The following information relates to Washington,Inc.: How much were Washington's product costs?

How does a manufacturing company calculate unit product cost? Why do managers need to know the unit product cost?

Which of the following is the primary focus of financial accounting?

List the three kinds of inventory accounts that are used by manufacturing companies.Briefly discuss what each account includes.

Manufacturing companies produce their own products,but merchandising companies do not.

The cost of goods sold for Frye Manufacturing in the year was $373,000.The January 1 Finished Goods Inventory balance was $30,200,and the December 31 Finished Goods Inventory balance was $24,000.Calculate the cost of goods manufactured during the year.

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

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

Which of the following represents the combined sum of direct materials and direct labor?

Excellent,Inc.sells accounting textbooks.The following information summarizes Excellent's operating activities for the year: Required: Prepare Excellent,Inc.'s income statement for the year ended December 31.

Managerial accounting provides financial statements that report results of operations,financial position,and cash flows both to managers and to external stockholders.

Jasper,Inc.reports the following cost information for March: What is the cost of goods sold for March?

You did not understand what the term accrual meant and failed to accrue the interest due at the end of the year on the company's bonds.Which of the IMA standards appears to have been violated here?

The following information was obtained from MCB Manufacturing,Inc.: Calculate MCB Manufacturing's total product costs.

The cost of direct materials cannot easily be traced to the manufactured product,and therefore,it is a component of manufacturing overhead.

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

For external reporting purposes,GAAP requires companies to treat period costs as assets.

Which of the following statements is true of the flow of product and period costs for a manufacturer?

Which of the following is true of product costs?

Reed Productions has provided the following information for the year: During the year,Reed produced 72,960 units of product.Calculate the unit product cost.(Round your answer to the nearest cent. )

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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