Question 1

A traditional manufacturing environment does not have which of the following?

Accepted Answer

A)  An automated production process. 
B)  Trained employees. 
C)  Extremely low levels of work in process inventory. 
D)  Product cost information available. 
A)  An automated production process. 
B)  Trained employees. 
C)  Extremely low levels of work in process inventory. 
D)  Product cost information available.

Question 2

In general, costs incurred in the factory those do not qualify as either direct material or direct labor are called:

Accepted Answer

A)  manufacturing costs. 
B)  manufacturing overhead. 
C)  nonmanufacturing costs. 
D)  selling and administrative costs. 
A)  manufacturing costs. 
B)  manufacturing overhead. 
C)  nonmanufacturing costs. 
D)  selling and administrative costs.

Question 3

Identify some of the benefits and risks of a lean production and just-in-time (JIT) environment.

Accepted Answer

Benefits:

Question 4

Provide specific examples of why accurate product or service costing information is important for internal purposes.

Accepted Answer

It may be

Question 5

Jones Manufacturing Inc. Jones Manufacturing Inc. incurred the following costs in November:
  In addition, the following information is also available:
  Refer to the Jones Manufacturing Inc. information above. Net operating income for November is: (Ignore taxes)

Accepted Answer

A)  $371,950. 
B)  $411,950. 
C)  $369,150. 
D)  $382,000. 
A)  $371,950. 
B)  $411,950. 
C)  $369,150. 
D)  $382,000.

Question 6

Briefly describe the difference between a manufacturing and a nonmanufacturing cost.

Accepted Answer

A manufacturing cost is a cost incurred

Question 7

Capital Manufacturing produces a unique souvenir product for various museums around the country. During the year, the company incurred the following costs:
   During the year, 25,000 units were produced out of which 20,000 units were sold for $20 each.
Required:

Accepted Answer

The answer of Capital Manufacturing produces a unique souvenir product...

Question 8

Which of the following is not a manufacturing cost?

Accepted Answer

A)  Direct material costs 
B)  Administrative costs 
C)  Factory overhead costs 
D)  Direct labor costs 
A)  Direct material costs 
B)  Administrative costs 
C)  Factory overhead costs 
D)  Direct labor costs

Question 9

Which of the following is not an example of a manufacturing overhead cost?

Accepted Answer

A)  Shipping charges on finished products 
B)  Indirect materials 
C)  Indirect labor 
D)  Depreciation on factory equipment 
A)  Shipping charges on finished products 
B)  Indirect materials 
C)  Indirect labor 
D)  Depreciation on factory equipment

Question 10

Hillsborough Street Manufacturing Inc. Hillsborough Street Manufacturing Inc. incurred the following costs in 2011:
  45,000 units were produced during the year out of which 38,000 units were sold for $10 each. There was no beginning or ending raw materials or work in process inventory.
Refer to the Hillsborough Street Manufacturing Inc. information above. What is the product cost per unit?

Accepted Answer

A)  $3.67 
B)  $3.20 
C)  $3.10 
D)  $2.70 
A)  $3.67 
B)  $3.20 
C)  $3.10 
D)  $2.70

Question 11

Which of the following statements is true about manufacturing companies over the past 20 years?

Accepted Answer

A)  The grouping of machines into "manufacturing cells" has increased. 
B)  Carrying large amounts of inventory is often less costly than carrying small amounts of inventory. 
C)  They have moved from a "pull" approach to more of a "push" approach. 
D)  The basic production process has changed very little over the past 20 years. 
A)  The grouping of machines into "manufacturing cells" has increased. 
B)  Carrying large amounts of inventory is often less costly than carrying small amounts of inventory. 
C)  They have moved from a "pull" approach to more of a "push" approach. 
D)  The basic production process has changed very little over the past 20 years.

Question 12

In a just-in-time environment, the production process often begins when:

Accepted Answer

A)  products are moved from raw materials to work in process. 
B)  a customer places an order. 
C)  the product is delivered to a customer. 
D)  products are moved from work in process to finished goods. 
A)  products are moved from raw materials to work in process. 
B)  a customer places an order. 
C)  the product is delivered to a customer. 
D)  products are moved from work in process to finished goods.

Question 13

Franklin Street Manufacturing Franklin Street Manufacturing has the following cost information available for 2011:
  20,000 units were produced during the year out of which 19,000 units were sold for $10 each.
Refer to the Franklin Street Manufacturing information above. What is net operating income for 2011? (Ignore taxes)

Accepted Answer

A)  $127,750 
B)  $137,750 
C)  $125,000 
D)  $128,250 
A)  $127,750 
B)  $137,750 
C)  $125,000 
D)  $128,250

Question 14

Jones Manufacturing Inc. Jones Manufacturing Inc. incurred the following costs in November:
  In addition, the following information is also available:
  Refer to the Jones Manufacturing Inc. information above. Cost of goods manufactured in November is:

Accepted Answer

A)  $ 91,000. 
B)  $115,000. 
C)  $155,000. 
D)  $143,000. 
A)  $ 91,000. 
B)  $115,000. 
C)  $155,000. 
D)  $143,000.

Question 15

Which of the following is a effect of using a traditional production environment but not of a lean production and just-in-time (JIT) manufacturing environment?

Accepted Answer

A)  Increase in the need for highly skilled labor. 
B)  Increase in the need for highly reliable suppliers. 
C)  Reduction in the motivation of the work force. 
D)  Reduction in the processing time. 
A)  Increase in the need for highly skilled labor. 
B)  Increase in the need for highly reliable suppliers. 
C)  Reduction in the motivation of the work force. 
D)  Reduction in the processing time.

Question 16

Nate's Novelties, Inc. Nate's Novelties, Inc. has the following information available for July:
  Refer to the Nate's Novelties, Inc. information above. Raw materials used for July is:

Accepted Answer

A)  $21,000. 
B)  $22,000. 
C)  $25,000. 
D)  $28,000. 
A)  $21,000. 
B)  $22,000. 
C)  $25,000. 
D)  $28,000.

Question 17

Identify with an "X" the following costs as either a manufacturing (product) or nonmanufacturing (period) cost. If it is a manufacturing cost, further identify it as either direct material (DM), direct labor (DL), or overhead (OH).

Accepted Answer

The answer of Identify with an "X" the following costs...

Question 18

Under ideal conditions, companies operating in a ____ environment would reduce inventories of raw materials, work in process and finished goods to very low levels or even zero.

Accepted Answer

A)  volatile 
B)  just-in-time 
C)  traditional manufacturing 
D)  favorable 
A)  volatile 
B)  just-in-time 
C)  traditional manufacturing 
D)  favorable

Question 19

Brenda's Bakery has the following information available for October:   How much raw material was purchased in October?

Accepted Answer

A)  $23,000 
B)  $25,000 
C)  $26,000 
D)  $28,000 
A)  $23,000 
B)  $25,000 
C)  $26,000 
D)  $28,000

Question 20

Products and their costs flow through a production facility in the following order:

Accepted Answer

A)  work in process, finished goods, cost of goods sold 
B)  raw materials, work in process, finished goods, cost of goods sold 
C)  work in process, raw materials, cost of goods sold, finished goods 
D)  work-in-process, cost of goods manufactured, cost of goods sold 
A)  work in process, finished goods, cost of goods sold 
B)  raw materials, work in process, finished goods, cost of goods sold 
C)  work in process, raw materials, cost of goods sold, finished goods 
D)  work-in-process, cost of goods manufactured, cost of goods sold

A traditional manufacturing environment does not have which of the following?

In general, costs incurred in the factory those do not qualify as either direct material or direct labor are called:

Identify some of the benefits and risks of a lean production and just-in-time (JIT) environment.

Provide specific examples of why accurate product or service costing information is important for internal purposes.

Jones Manufacturing Inc. Jones Manufacturing Inc. incurred the following costs in November: In addition, the following information is also available: Refer to the Jones Manufacturing Inc. information above. Net operating income for November is: (Ignore taxes)

Briefly describe the difference between a manufacturing and a nonmanufacturing cost.

Capital Manufacturing produces a unique souvenir product for various museums around the country. During the year, the company incurred the following costs: During the year, 25,000 units were produced out of which 20,000 units were sold for $20 each. Required:

Which of the following is not a manufacturing cost?

Which of the following is not an example of a manufacturing overhead cost?

Which of the following statements is true about manufacturing companies over the past 20 years?

In a just-in-time environment, the production process often begins when:

Jones Manufacturing Inc. Jones Manufacturing Inc. incurred the following costs in November: In addition, the following information is also available: Refer to the Jones Manufacturing Inc. information above. Cost of goods manufactured in November is:

Which of the following is a effect of using a traditional production environment but not of a lean production and just-in-time (JIT) manufacturing environment?

Nate's Novelties, Inc. Nate's Novelties, Inc. has the following information available for July: Refer to the Nate's Novelties, Inc. information above. Raw materials used for July is:

Identify with an "X" the following costs as either a manufacturing (product) or nonmanufacturing (period) cost. If it is a manufacturing cost, further identify it as either direct material (DM), direct labor (DL), or overhead (OH).

Under ideal conditions, companies operating in a ____ environment would reduce inventories of raw materials, work in process and finished goods to very low levels or even zero.

Brenda's Bakery has the following information available for October: How much raw material was purchased in October?

Products and their costs flow through a production facility in the following order:

Introduction to Managerial Accounting

Job Costing, Process Costing, and Operations Costing

Activity-Based Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investment Decisions

The Use of Budgets in Planning and Decision Making

Variance Analysis A Tool for Cost Control and Performance Evaluation

Decentralization, Performance Evaluation, and the Balanced Scorecard

Financial Statement Analysis

The Statement of Cash Flows

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Exam 2: Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows

A traditional manufacturing environment does not have which of the following?

In general, costs incurred in the factory those do not qualify as either direct material or direct labor are called:

Identify some of the benefits and risks of a lean production and just-in-time (JIT) environment.

Provide specific examples of why accurate product or service costing information is important for internal purposes.

Jones Manufacturing Inc. Jones Manufacturing Inc. incurred the following costs in November: In addition, the following information is also available: Refer to the Jones Manufacturing Inc. information above. Net operating income for November is: (Ignore taxes)

Briefly describe the difference between a manufacturing and a nonmanufacturing cost.

Capital Manufacturing produces a unique souvenir product for various museums around the country. During the year, the company incurred the following costs: During the year, 25,000 units were produced out of which 20,000 units were sold for $20 each. Required:

Which of the following is not a manufacturing cost?

Which of the following is not an example of a manufacturing overhead cost?

Which of the following statements is true about manufacturing companies over the past 20 years?

In a just-in-time environment, the production process often begins when:

Jones Manufacturing Inc. Jones Manufacturing Inc. incurred the following costs in November: In addition, the following information is also available: Refer to the Jones Manufacturing Inc. information above. Cost of goods manufactured in November is:

Which of the following is a effect of using a traditional production environment but not of a lean production and just-in-time (JIT) manufacturing environment?

Nate's Novelties, Inc. Nate's Novelties, Inc. has the following information available for July: Refer to the Nate's Novelties, Inc. information above. Raw materials used for July is:

Identify with an "X" the following costs as either a manufacturing (product) or nonmanufacturing (period) cost. If it is a manufacturing cost, further identify it as either direct material (DM), direct labor (DL), or overhead (OH).

Under ideal conditions, companies operating in a ____ environment would reduce inventories of raw materials, work in process and finished goods to very low levels or even zero.

Brenda's Bakery has the following information available for October: How much raw material was purchased in October?

Products and their costs flow through a production facility in the following order:

Introduction to Managerial Accounting

Job Costing, Process Costing, and Operations Costing

Activity-Based Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investment Decisions

The Use of Budgets in Planning and Decision Making

Variance Analysis A Tool for Cost Control and Performance Evaluation

Decentralization, Performance Evaluation, and the Balanced Scorecard

Financial Statement Analysis

The Statement of Cash Flows

Filters