Exam 18: Managerial Accounting Concepts and Principles

A company's prime costs total $4,500,000 and its conversion costs total $5,500,000. If direct materials are $2,000,000, calculate the overhead costs:

The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year: The raw materials used in manufacturing during the year totaled $118,000. Raw materials purchased during the year amount to:

Managerial accounting is different from financial accounting in that

Four factors come together in the manufacturing process: beginning goods in process inventory, direct materials, direct labor, and factory overhead.

Product costs are expenditures necessary and integral to finished products.

Match the following terms to the appropriate definitions.

Bourne Crafts manufactures specialty key chains for tourist attractions. On January 1, the firm had 200 souvenir attraction disks used in the production of the chains that cost $3 each; and 600 completed key chains that cost $6 each. During the year Bourne Crafts purchased 1,500 souvenir disks costing $3 each and produced 1,100 key chains. Compute the total cost of raw materials inventory at December 31.

The following items for Titus Company are used to compute the cost of goods manufactured and the cost of goods sold. Indicate how each item should be used in the calculations by filling in the blanks with "+" if the item is to be added, "-" if the item is to be subtracted, or "0" if the item is not used in the calculation. The first item is completed as an example.

The following information pertains to the Hewett Corporation. Calculate the cost of goods sold for the period:

An _____________________ cost requires the future outlay of cash and is relevant for decision making.

What is the main difference between the income statement of a manufacturer and that of a merchandiser?

The Ticky Company manufactures tacks. Costs for September were direct labor, $84,000; indirect labor, $36,700; direct materials, $55,900; factory maintenance, $4,800; factory utilities, $3,200; and insurance on plant and equipment, $700. What is Ticky Company's factory overhead for September?

When the attitude of continuous improvement exists throughout an organization, every manager and employee seeks to continuously experiment with new and improved business practices.

Which of the following represents the correct formula for calculating cost of goods manufactured?

Information for Reedy Manufacturing is presented below. Compute both the cost of goods manufactured and the cost of goods sold for Reedy Manufacturing.

_____________________ rejects the notions of "good enough" or "acceptable" and challenges employees and managers to continuously experiment with new and improved business practices.

Which of the following costs would not be classified as factory overhead?

Expenditures necessary and integral to the manufacture of finished products are ________________ costs.

The manufacturing statement must be prepared monthly as it is a required general-purpose financial statement.