Exam 1: Managerial Accounting Concepts and Principles

Information for Jersey Metalworks as of December 31 follows. Prepare (a) the company's schedule of cost of goods manufactured for the year ended December 31; (b) prepare the company's income statement that reports separate categories for selling and general and administrative expenses.

Wesson Company sold 10,000 units of its only product in the first half of the year. If sales decrease by 15% in the second half of the year, which cost will not change?

What are the components of the schedule of cost of goods manufactured? Describe each component.

Continuous improvement:

A manufacturer's total cost of making and finishing products in the period is called:

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

The schedule of cost of goods manufactured is divided into four parts consisting of all of the following except:

Compute the ending work in process inventory for a manufacturer with the following information. Raw materials purchased \ 131,700 Direct materials used in production 65,400 Direct labor used 44,000 Total factory overhead used 101,600 Work in process inventory, beginning of year 32,500 Cost of goods manufactured 212,900

For a manufacturer, the cost of goods sold can be computed by adding the beginning finished goods inventory to ________ and then subtracting the ending finished goods inventory.

For product costs associated with a particular product to be reported on the income statement:

Managerial accounting is different from financial accounting in that:

Which of the following statements is correct concerning the days' sales in raw materials inventory ratio?

Total quality management and just-in-time manufacturing focus on quality improvement as well as on time customer deliveries.

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

Just-in-time manufacturing (JIT) is a system that acquires inventory and produces only when needed.

A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:

Just-in-time manufacturing techniques can be useful in ________ days' sales in raw materials inventory.

Which of the following statements is true regarding product and period costs?

Feedback provided by the control function allows managers to revise their plans.

Both financial and managerial accounting affect user's decisions and actions.