Exam 15: Managerial Accounting and Cost Concepts

As the management accountant for Bynami Enterprises Inc. ,you have been asked to prepare a statement of cost of goods manufactured at the end of the second quarter.Account balances at that time were as follows: June 30 inventories were as follows: materials,$540,200;work in process,$795,400;and finished goods,$604,100.Prepare the statement of cost of goods manufactured for the second quarter.

A supply chain includes only processes and services that add value to the final product or service.

If a management accountant confides to a relative that his or her company has a confidential plan to merge with another company in the near future,the accountant has

Velocity Ltd.is a sports car manufacturer.Which of the following is a value-adding cost for Velocity?

Some period costs can be found in inventory accounts on the balance sheet.

Property taxes and equipment depreciation are examples of indirect manufacturing costs.

Management accounting differs from financial accounting in many ways.Indicate with an "X" in the appropriate column whether each of the following characteristics relates to financial accounting,management accounting,or neither.

Product costs for a manufacturing company consist of cost of direct materials,direct labor,and overhead.

Managerial accounting information is primarily used by

Product unit cost is computed by dividing the cost of goods sold by the number of units sold.

Management accounting information is determined objectively and is verifiable,whereas financial accounting is more subjective.

Management accounting reports are

Which of the following costs is not an inventoriable cost?

Which of the following statements is true of financial and managerial accounting?

In a manufacturing environment,direct labor costs initially flow

Dale,Smith,and Associates,a CPA firm,is trying to determine the hourly cost of its junior accountants in the auditing department.The following data have been gathered. Assuming 40 percent of the monthly overhead costs for the auditing department are attributable to the junior accountants,compute the hourly cost of their services.(Round your answer to two decimal places. )

Wages of machine operators and other workers involved in actually shaping the product are classified as indirect labor costs.

Recorded costs for the DC5 Division,which manufactured 6,000 units of Product DC5 during the month,are as follows: The per-unit cost of manufacturing Product DC5 this month is

Which of the following is a source document for purchase of materials?

All product costs are expensed in the period in which they are paid in cash.