Question 1

Costs on the income statement for both a merchandiser and a manufacturer would include:

Accepted Answer

A)  operating expenses 
B)  direct materials 
C)  direct labor incurred 
D)  cost of goods manufactured 
A)  operating expenses 
B)  direct materials 
C)  direct labor incurred 
D)  cost of goods manufactured

Question 2

Managerial accounting information includes both historical and estimated data.

Accepted Answer

A) True 
 B)False

Question 3

Conversion costs are

Accepted Answer

A)  direct materials and direct labor 
B)  direct materials and factory overhead 
C)  factory overhead and direct labor 
D)  direct materials and indirect labor 
A)  direct materials and direct labor 
B)  direct materials and factory overhead 
C)  factory overhead and direct labor 
D)  direct materials and indirect labor

Question 4

Cost of Materials Used $45,000 Direct Labor costs $48,000
Factory Overhead $39,000
Work in Process, beg. $28,000
Work in Process, end. $18,000
What is Cost of Goods Manufactured?

Accepted Answer

A)  $178,000 
B)  $132,000 
C)  $122,000 
D)  $142,000 
A)  $178,000 
B)  $132,000 
C)  $122,000 
D)  $142,000

Question 5

Rosalba Manufacturing Company had the following account balance for 2012:
   Collections on account were $625,000 in 2012.
Cost of goods sold was 68% of sales.
Direct materials purchased amounted to $90,000.
Factory overhead was 300% of the cost of direct labor.
Compute:
a) sales revenue (all sales were on account)
b) cost of goods sold
c) cost of goods manufactured
d) direct labor incurred
e) direct materials used
f) factory overhead incurred

Accepted Answer

a) $33,000 + $625,000 - $27,000 = $631,0

Question 6

Control is the process of monitoring operating results and comparing actual results with the expected results.

Accepted Answer

A) True 
 B)False

Question 7

Rent expense incurred on a factory building would be treated as a(n):

Accepted Answer

A)  indirect cost 
B)  period cost 
C)  product cost 
D)  both A and C are correct 
A)  indirect cost 
B)  period cost 
C)  product cost 
D)  both A and C are correct

Question 8

Cost of Materials Used $45,000 Direct Labor costs $48,000
Factory Overhead $39,000
Work in Process, beg. $28,000
Work in Process, end. $18,000
Finished Goods,beg. $28,000
Finished Goods, end. $18,000
What is Cost of Goods Sold?

Accepted Answer

A)  $152,000 
B)  $142,000 
C)  $10,000 
D)  $128,000 
A)  $152,000 
B)  $142,000 
C)  $10,000 
D)  $128,000

Question 9

Match between columns
                        Premises: salespersons’ commissions
advertising expense
plant insurance expired
indirect labor incurred
salary of plant manager
indirect materials used
factory utilities
factory machinery repairs and maintenance
depreciation on factory machinery
direct materials used
direct labor incurred
depreciation on store equipment

Accepted Answer

The Answer of period cost and product cost is...

Question 10

What is the amount of Raw Materials Used?

Accepted Answer

A)  $5,000 
B)  $65,000 
C)  $75,000 
D)  $30,000 
A)  $5,000 
B)  $65,000 
C)  $75,000 
D)  $30,000

Question 11

Product costs include direct labor and advertising expense.

Accepted Answer

A) True 
 B)False

Question 12

Magnus Industries has the following data:
  Show how you would calculate Raw Materials Used.

Accepted Answer

$75,000 + $40,000 -

Question 13

Product costs are not expensed until the product is sold.

Accepted Answer

A) True 
 B)False

Question 14

Nonmanufacturing costs are classified into two categories: selling and administrative.

Accepted Answer

A) True 
 B)False

Question 15

The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 16

For a construction contractor, the wages of carpenters would be classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 17

A cost can be a payment of cash for the purpose of generating revenues.

Accepted Answer

A) True 
 B)False

Question 18

Managerial information is for external as well as internal stakeholders.

Accepted Answer

A) True 
 B)False

Question 19

What is the amount of Direct Materials used?

Accepted Answer

A)  $2,000 
B)  $4,000 
C)  $8,000 
D)  $14,000 
A)  $2,000 
B)  $4,000 
C)  $8,000 
D)  $14,000

Question 20

Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory.
1. _____ Frosting
2. _____ Wages of the baker
3. _____ Sprinkles for the topping (considered an indirect material)
4. _____ Depreciation on oven

Accepted Answer

The answer of Identify the following costs as (a) prime...

Exam 16: Managerial Accounting Concepts and Principles

Costs on the income statement for both a merchandiser and a manufacturer would include:

Managerial accounting information includes both historical and estimated data.

Conversion costs are

Cost of Materials Used $45,000 Direct Labor costs $48,000 Factory Overhead $39,000 Work in Process, beg. $28,000 Work in Process, end. $18,000 What is Cost of Goods Manufactured?

Control is the process of monitoring operating results and comparing actual results with the expected results.

Rent expense incurred on a factory building would be treated as a(n):

Cost of Materials Used $45,000 Direct Labor costs $48,000 Factory Overhead $39,000 Work in Process, beg. $28,000 Work in Process, end. $18,000 Finished Goods,beg. $28,000 Finished Goods, end. $18,000 What is Cost of Goods Sold?

What is the amount of Raw Materials Used?

Product costs include direct labor and advertising expense.

Magnus Industries has the following data: Show how you would calculate Raw Materials Used.

Product costs are not expensed until the product is sold.

Nonmanufacturing costs are classified into two categories: selling and administrative.

The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

For a construction contractor, the wages of carpenters would be classified as factory overhead cost.

A cost can be a payment of cash for the purpose of generating revenues.

Managerial information is for external as well as internal stakeholders.

What is the amount of Direct Materials used?

Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory. 1. _____ Frosting 2. _____ Wages of the baker 3. _____ Sprinkles for the topping (considered an indirect material) 4. _____ Depreciation on oven

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

Filters

Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory. 1. ___ Frosting 2. _ Wages of the baker 3. _ Sprinkles for the topping (considered an indirect material) 4. ___ Depreciation on oven