Exam 18: Managerial Accounting Concepts and Principles

The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year. Required: (Present all reports and calculations in thousands of dollars) (a) What was the cost of the raw materials used in production during the year? (b) What was the cost of goods manufactured (finished) for the year? (c) What was the cost of goods sold for the year? (d) What was the net income for the year?

A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report.

Which of the following is most associated with managerial accounting?

Sienna Company has the following information for January. Show your calculations to find the cost of goods manufactured.

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

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

Sineath Industries had a fire and some of its accounting records were destroyed. Available information is presented below for the year ended December 31, 2011. Additional information is as follows: Factory overhead is 150% of direct labor cost. Finished goods inventory decreased by $18,000 during the year. Work in process inventory increased by $12,000 during the year. Calculate: a) materials inventory, January 1, 2011 b) direct labor cost c) factory overhead incurred d) cost of goods sold

A product cost is:

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Which of the following is not a factory overhead cost?

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

Which of the following are basic phases of the management process?

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

Work in process inventory increased by $20,000 during 2011. Cost of goods manufactured was $180,000. Total manufacturing costs incurred in 2011 are:

All of the following would be reported on the balance sheet as a current asset except:

Which of the following is not a prime cost?

Prime costs consists of direct materials, indirect materials, and direct labor.

The Zoe Corporation has the following information for the month of March. Prepare a (a) schedule of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) prepare only the inventory section of the balance sheet.

A performance report that identifies the amount of employee downtime is a financial accounting report.

Keeton Company had the following data: Cost of Materials Used $60,000 Direct Labor costs $58,000 Factory Overhead $33,000 Work in Process, beg. $29,000 Work in Process, end. $18,000 Finished Goods,beg. $32,000 Finished Goods, end. $18,000 Show your calculations to determine the Cost of Goods Sold.