Exam 1: Managerial Accounting Concepts and Principles

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending Raw materials inventory \ 547,000 \ 610,000 The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to:

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

The schedule of cost of goods manufactured is also known as a manufacturing statement.

Marshall Corporation incurred costs for materials and labor needed to manufacture its products. These costs are examples of:

Which one of the following items is not a manufacturing cost?

Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines.

One of the usual differences between financial and managerial accounting is the timeliness of the information reported.

Beginning finished goods inventory plus cost of goods manufactured minus ending finished goods inventory equals cost of goods sold.

Product costs are capitalized as inventory on the balance sheet and period costs are expensed on the income statement.

A manufacturing firm's cost of goods manufactured is equivalent to a merchandising firm's:

Using the information below, compute the days' sales in raw materials inventory: Raw materials used \1 21,600 Beginning raw materials inventory 18,000 Ending raw materials inventory 20,200

The purpose of managerial accounting information is to help ________ users make decisions while the purpose of financial accounting is to help ________ users make decisions.

Factory overhead is charged to expense as it is incurred because it is a period cost.

Langston Company manufactures coats. Costs for February were as follows: Direct materials \ 19,650 Direct labor 15,210 Factory insurance 950 Sales commissions 4,700 Corporate executive salaries 5,500 Factory supervisor salary 3,500 Indirect materials 1,920 Required: Calculate the total manufacturing cost for February.

What does the days' sales in raw materials inventory ratio reveal?

Shemekia Co. produces seats for movie theaters. Listed below are selected cost items for the seat production. Classify each cost as either fixed or variable, and either a product or a period cost by placing an x in the appropriate boxes. Cost by behavior Cost by function Variable Fixed Product Period Fabric for seats Assembly labor Factory property taxes Accounting staff salaries Sales office rent Sales manager's salary Depreciation on factory equipment Sales commissions

Use the cost information below for Laurels Company to determine the cost of goods manufactured during the current year: Direct materials used 5,000 Direct labor 7,000 Total factory overhead 5,100 Beginning work in process 3,000 Ending work in process 4,000

Using the information below, compute the raw materials inventory turnover: Raw materials used \1 21,600 Beginning raw materials inventory 18,000 Ending raw materials inventory 20,200

What are the three types of inventories that are carried by manufacturers? Describe each type of inventory.

If the cost of the beginning work in process inventory is $60,000, direct materials cost is $350,000, direct labor cost is $216,000, and overhead cost is $319,000, and the ending work in process inventory is $55,000, calculate the cost of goods manufactured.