Exam 1: Managerial Accounting Concepts and Principles

The following items for Neptune 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 cost of workers who assist in, or supervise, the manufacturing process, not linked to specific units of product is called:

Costs may be classified by many different cost classifications.

Raw materials that are tangible components of the finished product and can be separately and readily traced through the manufacturing process are called:

Current information for the Healey Company follows: All raw materials used were traceable to specific units of product. Healey Company's total manufacturing costs for the year are:

Both financial and managerial accounting report monetary information; managerial accounting also reports considerable nonmonetary information.

A manufacturer's inventory that is not completely finished is called ________ .

Using the information below, compute the days' sales in raw materials inventory: Raw materials used \8 5,500 Beginning raw materials inventory 8,000 Ending raw materials inventory 9,000

Which of the following should not be included in direct materials costs for a bike manufacturer?

Using the information below, calculate gross profit for the period: Beginning Raw Materials Inventory \2 5,000 Ending Raw Materials Inventory 30,000 Beginning Work in Process Inventory 55,000 Ending Work in Process Inventory 64,000 Beginning Finished Goods Inventory 80,000 Ending Finished Goods Inventory 67,000 Cost of Goods Sold for the period 540,000 Sales Revenues for the period 1,254,000 Operating Expenses for the period 232,000

Use the following data to compute total factory overhead costs for the month: Sales commissions \ 10,800 Direct labor 39,600 Indirect materials 15,200 Factory manager salaries 7,200 Factory supplies 9,000 Indirect labor 6,300 Depreciation-office equipment 5,000 Direct materials 40,500 Corporate office salaries 42,500 Depreciation-factory equipment 7,500

Information for Stanton, Inc., as of December 31 follows. Prepare a schedule of cost of goods manufactured for the year ended December 31.

The following information is available for the year ended December 31: Beginning raw materials inventory \ 11,000 Raw materials purchases 86,000 Ending raw materials inventory 10,400 Manufacturing supplies expense 900 The amount of raw materials used in production for the year is:

Use the following information to prepare the schedule of cost of goods manufactured for Graffstone Company for the month ended June 30. Work in Process inventory, May 31 \ 12,600 Work in Process inventory, June 30 16,500 Direct materials used during June 21,000 Direct labor used during June 31,000 Factory overhead: Indirect material 6,400 Indirect labor 9,200 Factory rent 12,000 Factory depreciation 15,000 Factory utilities 18,400

Four factors come together in production activity: beginning work in process inventory, direct materials, direct labor, and factory overhead.

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

What are prime costs? What are conversion costs?

Product costs can refer to expenditures necessary to manufacture products and to administrative support during the time period.

Manufacturers usually have three inventories: raw materials, work in process, and finished goods.

Costs that flow directly to the current income statement and are not reported as assets are ________ costs.