Exam 15: Managerial Accounting Concepts and Principles

The following information is available for Carter Corporation for 2012: 1) Materials inventory decreased $4,000 during 2012. 2) Materials inventory on December 31, 2012, was 50% of materials inventory on January 1, 2012. 3) Beginning work in process inventory was $145,000. 4) Ending finished goods inventory was $65,000. 5) Purchases of direct materials were $154,700. 6) Direct materials used were 2.5 times the cost of direct labor. 7) Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $156,000 less than cost of goods sold. Compute: a) finished goods inventory on January 1, 2012 b) work in process inventory on December 31, 2012 c) direct labor incurred d) factory overhead incurred e) direct materials used f) materials inventory on January 1, 2012 g) materials inventory on December 31, 2012 Note to students: The answers are not necessarily calculated in alphabetical order.

Goods that are partially completed by a manufacturer are referred to as:

Classify the following costs as direct, indirect, or neither:

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?

Which of the following costs are referred to as conversion costs?

Magnus Industries has the following data:

Beginning work in process is equal to:

Period costs include direct materials and direct labor.

Period costs can be found in the balance sheet.

Period costs include:

Work in process inventory on December 31, 2011, is $44,000. Work in process inventory increased by 60% during 2011. Cost of goods manufactured for 2011 amounts to $275,000. What are the total manufacturing costs incurred in 2011?

Which of the following is not a factory overhead cost?

Costs which are reported on the income statement as part of cost of goods sold are referred to as:

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as:

Product costs

Conversion costs consist of product costs and period costs.

What is the amount of Raw Materials Used?

Which of the following is an example of direct labor cost for an airplane manufacturer?

Managerial accountants would most likely prepare all of the following reports except: