FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 18: Managerial Accounting Concepts and Principles

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

Indirect labor refers to the cost of the workers whose efforts are directly related to specific units of product.

A) True
B) False

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

A management concept that seeks to uncover and eliminate waste in all aspects of business activities is called:

A) Just-in-time.
B) Theory of constraints.
C) Continuous operations.
D) Lean business model.
E) Customer orientation.

F) All of the above
G) D) and E)

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

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

A ________ cost changes in total in proportion to changes in the volume of activity.

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

The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Duerr Company follows: $\begin{array} { l | l } \text { Beginging raw materials inventory } & \$ 8,000 \\\hline \text { Ending raw materials inventory } & 11,000 \\\hline \text { Raw material purchases } & 85,000 \\\hline \text { Beginging work in process inventory } & 20,000 \\\hline \text { Ending work in process inventory } & 30,000 \\\hline \text { Direct labor } & 110,000 \\\hline \text { Total factory overhead } & 85,000 \\\hline \text { Beginging finished goods inventory } & 60,000 \\\hline \text { Ending finithed goods inventory } & 40,000\end{array}$ The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:

Using the information below, calculate cost of goods sold for the period: $\begin{array}{lr}\text { Sales revenues for the period }&\$1,304,000\\\\\text { Operating expenses for the period } & 239,000 \\\text { Finished Goods Inventory, January } 1 & 36,000 \\\text { Finished Goods Inventory, December } 31 & 41,000 \\\text { Cost of goods manufactured for the period } & 540,000\end{array}$

Current information for the Healey Company follows: $\begin{array} { l | r } \text { Beginning raw materials inventory } & \$ 15,200 \\\hline \text { Raw material purchases } & 60,000 \\\hline \text { Ending raw materials inventory } & 16,600 \\\hline \text { Beginning work in process inventory } & 22,400 \\\hline \text { Ending work in process inventory } & 28,000 \\\hline \text { Direct labor } & 42,800 \\\hline \text { Total factory overhead } & 30,000\end{array}$ All raw materials used were traceable to specific units of product. - All raw materials used were traceable to specific units of product. Healey Company's Cost of Goods Manufactured for the year is:

Policies and procedures used by management to monitor and control business activities are known as ________.

The sales commission incurred based on units of product sold during the month is an example of a product cost.

Costs are important to managers because they impact both the financial position and profitability of a business.

Using the information below for Singing Dolls, Inc., determine the total manufacturing costs incurred during the year: $\begin{array} { l | r } \text { Work in Process, January 1 } & 50,000 \\\hline \text { Work in Process, December 31 } & 37,000 \\\hline \text { Direct materials used } & \$ 12,500 \\\hline \text { Total Factory overhead } & 5,500 \\\hline \text { Direct labor used } & 26,500\end{array}$

Mustang Corporation has accumulated the following accounting data for the month of April: $\begin{array}{ll}\text { Finished goods inventory, January 1 } & \$ 3,200 \\\text { Finished goods inventory, December } 31 & 4,000 \\\text { Total cost of goods sold } & 14,200\end{array}$ The cost of goods sold for the year is:

Straight-line depreciation, rent, and manager salaries are examples of variable costs.

Information for Maxim Manufacturing is presented below. Compute both the cost of goods manufactured and the cost of goods sold for Maxim Manufacturing. $\begin{array} { l | l } \text { Beginning raw materials inventory } & \$ 36,800 \\\hline \text { Beginning work in process inventory } & 21,200 \\\hline \text { Direct labor } & 81,000 \\\hline \text { Beginning finished goods inventory } & 64,000 \\\hline \text { Total factory overhead } & 126,000 \\\hline \text { Raw materials purchased } & 21,500 \\\hline \text { Ending raw materials inventory } & 40,000 \\\hline \text { Ending work in process inventory } & 20,000 \\\hline \text { Ending finished goods inventory } & 46,000\end{array}$

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

Direct labor refers to the cost of the workers whose efforts are directly related to specific units of product.

Crane, Inc. reported the following data regarding costs and inventories for the current year: beginning goods-in-process inventory, $4,000; beginning finished goods inventory, $2,000; cost of goods manufactured, $11,500; operating expenses, $3,000; ending finished goods inventory,$1,000; ending goods-in-process inventory, $1,500. Cost of goods sold for Crane, Inc. equals________.

The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.

Indirect materials are accounted for as factory overhead because they are not clearly identified with specific product units.