Exam 1: Managerial Accounting Concepts and Principles

Adopting a lean business model should have no effect on cost in a modern manufacturing environment.

Use the following information to compute the cost of goods manufactured. Assume that all raw materials used were traceable to specific units of product: Beginning raw materials 5,500 Ending raw materials 4,000 Direct labor 12,250 Raw material purchases 7,400 Depreciation on factory equipment 6,500 Factory repairs and maintenance 3,300 Beginning finished goods inventory 10,200 Ending finished goods inventory 8,900 Beginning work in process inventory 5,700 Ending work in process inventory 6,300

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

Using the information below, calculate cost of goods sold for the period: Sales revenues for the period \1 ,304,000 Operating expenses for the period 239,000 Finished Goods Inventory, January 1 36,000 Finished Goods Inventory, December 31 41,000 Cost of goods manufactured for the period 540,000

________ reveals how much raw materials inventory is available in terms of the number of days' sales.

Newly completed units are combined with beginning finished goods inventory to make up total ending work in process inventory.

Define fraud and give at least two examples of employee fraud.

A company's prime costs total $3,000,000 and its conversion costs total $7,000,000. If direct materials are $1,000,000 and factory overhead is $5,000,000, then direct labor is:

The management concept of customer orientation encourages a company to set up its production system to produce large quantities of the same product for all customers.

Planning is the process of setting goals and making plans to achieve them.

An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:

________ is the deliberate misuse of the employer's assets for the employee's personal gain.

Factory overhead costs may include all of the following except:

The following cost items relate to the Henning Company. Classify each cost as a variable cost or a fixed cost by placing an X in the appropriate column. Each cost should be evaluated by how it changes in total with changes in the volume of activity. Also indicate with an X for each item if it is a product cost or a period cost.

Jenny, an employee of Toucan Company, used company assets for her own personal gain. This is an example of:

Use the following data to calculate the cost of goods sold for the period: Beginning Raw Materials Inventory \ 30,000 Ending Raw Materials Inventory 70,000 Beginning Work in Process Inventory 40,000 Ending Work in Process Inventory 46,000 Beginning Finished Goods Inventory 72,000 Ending Finished Goods Inventory 68,000 Cost of Goods Manufactured for the period 246,000

Which of the following items appears only in a manufacturing company's financial statements?

Products that have been completed and are ready to be sold by the manufacturer are called:

Place each of the following costs of a Blu-ray disc manufacturer in the appropriate column. Product cost