Exam 14: Managerial Accounting Concepts and Principles

Compute cost of goods manufactured for this period given the following amounts. Ending finished goods inventory \ 66,000 Cost of goods sold 54,000 Beginning finished goods inventory 60,000

Information for the Ace Manufacturing Company follows: Beginning raw materials inventory \ 53,200 Beginning goods in process, inventory 78,400 Ending raw materials inventory 58,100 Ending goods in process, inventory 98,000 Direct labor 149,800 Total factory overhead 105,000 Raw material purchases 210,000 Calculate the cost of goods manufactured for this company.

The concept of total quality management focuses on continuous improvement.

Ajax Company accumulated the following account information for the year: Beginning raw materials inventory \ 6,000 Indirect materials cost 2,000 Indirect labor cost 5,000 Maintenance of factory equipment 2,800 Direct labor cost 7,000 Using the above information, total factory overhead costs would be:

An opportunity cost is:

Which of the following statements is true?

The beginning and ending finished goods inventories of a company were $91,000 and $94,000 respectively. If cost of goods sold equaled $800,000, what is the amount of cost of goods manufactured for this period?

Use the following information for Hayes, Inc., as of December 31 to answer the next questions: Administrative salaries \ 32,000 Depreciation of factory equipment 25,000 Depreciation of delivery vehicles 8,000 Direct labor 68,000 Factory supplies used 12,000 Finished goods inventory, January 1 57,000 Finished goods inventory, December 31 68,000 Factory insurance 15,500 Interest expense 12,000 Factory utilities 14,000 Factory maintenance 7,500 Raw materials inventory, January 1 8,000 Raw materials inventory, December 31 4,000 Raw material purchases 125,000 Rent on factory building 25,000 Repairs of factory equipment 11,500 Sales commissions 37,500 Goods in process inventory, January 1 3,500 Goods in process inventory, December 31 2,000 -What is the total amount of manufacturing costs added to Goods In Process during the period?

Costs may be classified by many different cost classifications.

One of the main differences between the calculation of cost of goods sold for a merchandiser and that of a manufacturer is that the calculation includes cost of goods purchased for the merchandiser, but the manufacturer replaces that with _____________________________.

The salary paid to the supervisor of an assembly line would normally be classified as:

Managerial accounting is an activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

The following costs are incurred by Estafan Manufacturing Co. Classify each cost item as either a period cost or a product cost. If the cost is a product cost, identify it as a prime and/or conversion cost.

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured was $147,000; and the December 31 finished goods inventory was $77,000. What is the cost of goods sold for that year?

Fraud involves the deliberate or accidental misuse of the employer's assets.

Use the following information for Hayes, Inc., as of December 31 to answer the next questions: Administrative salaries \ 32,000 Depreciation of factory equipment 25,000 Depreciation of delivery vehicles 8,000 Direct labor 68,000 Factory supplies used 12,000 Finished goods inventory, January 1 57,000 Finished goods inventory, December 31 68,000 Factory insurance 15,500 Interest expense 12,000 Factory utilities 14,000 Factory maintenance 7,500 Raw materials inventory, January 1 8,000 Raw materials inventory, December 31 4,000 Raw material purchases 125,000 Rent on factory building 25,000 Repairs of factory equipment 11,500 Sales commissions 37,500 Goods in process inventory, January 1 3,500 Goods in process inventory, December 31 2,000 -What is the correct amount of direct materials used, based on the Hayes Inc. information?

Period costs are incurred by purchasing merchandise or manufacturing finished goods.

The sum of process time plus inspection time plus move time plus wait time is defined as _________________________.

Much of managerial accounting is directed at gathering useful information about costs for planning and control decisions.

Horton Foods bakes and sells 1,000 dozen bagels each week to food service operations. Among the costs are bakers' salaries, $24,000; production management salaries, $16,000; production equipment operating costs, $32,000; and flour and ingredient costs, $15,000. Required: (a) Calculate prime costs. (b) Calculate conversion costs.