Managerial accounting applies to each of the following types of businesses except Show
a. service firms. b. merchandising firms. c. manufacturing firms. d. Managerial accounting applies to all types of firms. Managerial accounting applies to all types of firms. Managerial accounting information is generally prepared for a. stockholders. b. creditors. c. managers. d. regulatory agencies. Managerial accounting information a. pertains to the entity as a whole and is highly aggregated. b. pertains to subunits of the entity and may be very detailed. c. is prepared only once a year. d. is constrained by the requirements of generally accepted accounting principles. pertains to subunits of the entity and may be very detailed. The major reporting standard for presenting managerial accounting information is a. relevance. b. generally accepted accounting principles. c. the cost principle. d. the current tax law. Managerial accounting is also called a. management accounting. b. controlling. c. analytical accounting. d. inside reporting. Which of the following is not an internal user? a. Creditor b. Department manager c. Controller d. Treasurer Managerial accounting does not encompass a. calculating product cost. b. calculating earnings per share. c. determining cost behavior. d. profit planning. calculating earnings per share. Managerial accounting is applicable to a. service entities. b. manufacturing entities. c. not-for-profit entities. d. all of these answer choices. all of these answer choices. Management accountants would not a. assist in budget planning. b. prepare reports primarily for external users. c. determine cost behavior. d. be concerned with the impact of cost and volume on profits. prepare reports primarily for external users. Internal reports must be communicated a. daily. b. monthly. c. annually. d. as needed. Financial statements for external users can be described as a. user-specific. b. general-purpose. c. special-purpose. d. managerial reports. Managerial accounting reports can be described as a. general-purpose. b. macro-reports. c. special-purpose. d. classified financial statements.
The reporting standard for external financial reports is a. industry-specific. b. company-specific. c. generally accepted accounting principles. d. department-specific. generally accepted accounting principles. Which of the following statements about internal reports is not true? a. The content of internal reports may extend beyond the double-entry accounting system. b. Internal reports may show all amounts at market values. c. Internal reports may discuss prospective events. d. Most internal reports are summarized rather than detailed. Most internal reports are summarized rather than detailed. In an analogous sense, external user is to internal user as generally accepted accounting principles are to a. timely. b. special-purpose. c. relevance to decision. d. SEC. Internal reports are generally a. aggregated. b. detailed. c. regulated. d. unreliable. A distinguishing feature of managerial accounting is a. external users. b. general-purpose reports. c. very detailed reports. d. quarterly and annual reports. What activities and responsibilities are not associated with management's functions? a. Planning b. Accountability c. Controlling d. Directing Planning is a function that involves a. hiring the right people for a particular job. b. coordinating the accounting information system. c. setting goals and objectives for an entity. d. analyzing financial statements. setting goals and objectives for an entity. The managerial function of controlling a. is performed only by the controller of a company. b. is only applicable when the company sustains a loss. c. is concerned mainly with operating a manufacturing segment. d. includes performance evaluation by management. includes performance evaluation by management. Which of the following is not a management function? a. Constraining b. Planning c. Controlling d. Directing A manager that is establishing objectives is performing which management function? a. Controlling b. Directing c. Planning d. Constraining The management function that requires managers to look ahead and establish objectives is a. controlling. b. directing. c. planning. d. constraining. In determining whether planned goals are being met, a manager is performing the function of a. planning. b. follow-up. c. directing. d. controlling. Which of the following is not a separate management function? a. Planning b. Directing c. Decision-making d. Controlling Directing includes a. providing a framework for management to have criteria to terminate employees when needed. b. running a department under quality control standards universally accepted. c. coordinating a company's diverse activities and human resources to produce a smooth-running operation. d. developing a complex performance ranking system to give certain high performers good raises. coordinating a company's diverse activities and human resources to produce a smooth-running operation. Both direct materials and indirect materials are a. raw materials. b. manufacturing overhead. c. merchandise inventory. d. sold directly to customers by a manufacturing company. The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is a. manufacturing overhead. b. indirect materials. c. indirect labor. d. direct labor Which one of the following would not be classified as manufacturing overhead? a. Indirect labor b. Direct materials c. Insurance on factory building d. Indirect materials Manufacturing costs include a. direct materials and direct labor only. b. direct materials and manufacturing overhead only. c. direct labor and manufacturing overhead only. d. direct materials, direct labor, and manufacturing overhead. direct materials, direct labor, and manufacturing overhead. Which one of the following is not a direct material? a. A tire used for a lawn mower b. Plastic used in the covered case for a home PC c. Steel used in the manufacturing of steel-radial tires d. Lubricant for a ball-bearing joint for a large crane Lubricant for a ball-bearing joint for a large crane Which one of the following is not a cost element in manufacturing a product? a. Manufacturing overhead b. Direct materials c. Office salaries d. Direct labor A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n) a. period cost. b. indirect material. c. direct material. d. miscellaneous expense. The wages of a timekeeper in the factory would be classified as a. a period cost. b. direct labor. c. indirect labor. d. compliance costs. Which one of the following is not considered as material costs? a. Partially completed motor engines for a motorcycle plant b. Bolts used in manufacturing the compressor of an engine c. Rivets for the wings of a new commercial jet aircraft d. Lumber used to build tables Partially completed motor engines for a motorcycle plant Which of the following is not a manufacturing cost category? a. Cost of goods sold b. Direct materials c. Direct labor d. Manufacturing overhead As current technology changes manufacturing processes, it is likely that direct a. labor will increase. b. labor will decrease. c. materials will increase. d. materials will decrease. For the work of factory employees to be considered as direct labor, the work must be conveniently and a. materially associated with raw materials conversion. b. periodically associated with raw materials conversion. c. physically associated with raw materials conversion. d. promptly associated with raw materials conversion. physically associated with raw materials conversion. Which of the following is not classified as direct labor? a. Bottlers of beer in a brewery b. Copy machine operators at a copy shop c. Wages of supervisors d. Bakers in a bakery Cotter pins and lubricants used irregularly in a production process are classified as a. miscellaneous expense. b. direct materials. c. indirect materials. d. nonmaterial materials. Which of the following is not another name for the term manufacturing overhead? a. Factory overhead b. Pervasive costs c. Burden d. Indirect manufacturing costs Because of automation, which component of product cost is declining? a. Direct labor b. Direct materials c. Manufacturing overhead d. Advertising The product cost that is most difficult to associate with a product is a. direct materials. b. direct labor. c. manufacturing overhead. d. advertising. Manufacturing costs that cannot be classified as either direct materials or direct labor are known as a. period costs. b. nonmanufacturing costs. c. selling and administrative expenses. d. manufacturing overhead. Which one of the following is an example of a period cost? a. A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer b. Workers' compensation insurance on factory workers' wages allocated to the factory c. A box cost associated with computers d. A manager's salary for work that is done in the corporate head office A manager's salary for work that is done in the corporate head office Which one of the following costs would not be inventoriable? a. Period costs b. Factory insurance costs c. Indirect materials d. Indirect labor costs Direct materials and direct labor of a company total $9,000,000. If manufacturing overhead is $4,000,000, what is direct labor cost? a. $5,000,000 b. $9,000,000 c. $0 d. Cannot be determined from the information provided Cannot be determined from the information provided Which of the following are period costs? a. Raw materials b. Direct materials and direct labor c. Direct labor and manufacturing overhead d. Selling expenses Sales commissions are classified as a. overhead costs b. period costs. c. product costs. d. indirect labor. Product costs consist of a. direct materials and direct labor only. b. direct materials, direct labor, and manufacturing overhead. c. selling and administrative expenses. d. period costs. direct materials, direct labor, and manufacturing overhead. Which one of the following represents a period cost? a. The VP of Sales' salary and benefits b. Overhead allocated to the manufacturing operations c. Labor costs associated with quality control d. Fringe benefits associated with factory workers The VP of Sales' salary and benefits Product costs are also called a. direct costs. b. overhead costs. c. inventoriable costs. d. capitalizable costs. For inventoriable costs to become expenses under the expense recognition principle, a. the product must be finished and in stock. b. the product must be expensed based on its percentage-of-completion. c. the product to which they attach must be sold. d. all accounts payable must be settled. the product to which they attach must be sold. As inventoriable costs expire, they become a. selling expenses. b. gross profit. c. cost of goods sold. d. sales revenue. A manufacturing company calculates cost of goods sold as follows: a. Beginning FG inventory + cost of goods purchased – ending FG inventory. b. Ending FG inventory – cost of goods manufactured + beginning FG inventory. c. Beginning FG inventory – cost of goods manufactured – ending FG inventory. d. Beginning FG inventory + cost of goods manufactured – ending FG inventory. Beginning FG inventory + cost of goods manufactured – ending FG inventory. A manufacturing company reports cost of goods manufactured as a(n) a. current asset on the balance sheet. b. administrative expense on the income statement. c. component in the calculation of cost of goods sold on the income statement. d. component of the raw materials inventory on the balance sheet. component in the calculation of cost of goods sold on the income statement. The subtotal, "Cost of goods manufactured" appears on a. a merchandising company's income statement. b. a manufacturing company's income statement. c. both a manufacturing and a merchandising company's income statement. d. neither a merchandising nor a manufacturing company's income statement. a manufacturing company's income statement. Cost of goods manufactured in a manufacturing company is analogous to a. Ending inventory in a merchandising company. b. Beginning inventory in a merchandising company. c. Cost of goods available for sale in a merchandising company. d. Cost of goods purchased in a merchandising company. Cost of goods purchased in a merchandising company. Cost of goods sold a. only appears on merchandising companies' income statements. b. only appears on manufacturing companies' income statements. c. appears on both manufacturing and merchandising companies' income statements. d. is calculated exactly the same for merchandising and manufacturing companies. appears on both manufacturing and merchandising companies' income statements. Agale Combines, Inc. has $40,000 of ending finished goods inventory as of December 31, 2014. If beginning finished goods inventory was $25,000 and cost of goods sold was $75,000, how much would Agale report for cost of goods manufactured? a. $90,000 b. $15,000 c. $115,000 d. $65,000 Cost of goods manufactured is calculated as follows: a. Beginning WIP + direct materials used + direct labor + manufacturing overhead + ending WIP. b. Direct materials used + direct labor + manufacturing overhead – beginning WIP + ending WIP. c. Beginning WIP + direct materials used + direct labor + manufacturing overhead – ending WIP. d. Direct materials used + direct labor + manufacturing overhead – ending WIP – beginning WIP. Beginning WIP + direct materials used + direct labor + manufacturing overhead – ending WIP. If the amount of "Cost of goods manufactured" during a period exceeds the amount of "Total manufacturing costs" for the period, then a. ending work in process inventory is greater than or equal to the amount of the beginning work in process inventory. b. ending work in process is greater than the amount of the beginning work in process inventory. c. ending work in process is equal to the cost of goods manufactured. d. ending work in process is less than the amount of the beginning work in process inventory. ending work in process is less than the amount of the beginning work in process inventory. On the costs of goods manufactured schedule, depreciation on factory equipment a. is not listed because it is included with Depreciation Expense on the income statement. b. appears in the manufacturing overhead section. c. is not listed because it is not a product cost. d. is not an inventoriable cost. appears in the manufacturing overhead section. On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n) a. addition to raw materials purchases. b. addition to raw materials available for use. c. subtraction from raw materials available for use. d. subtraction from raw materials purchases. subtraction from raw materials available for use. Myles Manufacturing Company's accounting records reflect the following inventories: Dec. 31, 2014 Dec. 31, 2013 Raw materials inventory $620,000 $520,000 Work in process inventory 600,000 320,000 Finished goods inventory 380,000 300,000 During 2014, $900,000 of raw materials were purchased, direct labor costs amounted to $1,000,000, and manufacturing overhead incurred was $960,000. The total raw materials available for use during 2014 for Myles Manufacturing Company is a. $1,420,000. b. $620,000. c. $800,000. d. $1,520,000. Myles Manufacturing Company's accounting records reflect the following inventories: Dec. 31, 2014 Dec. 31, 2013 Raw materials inventory $620,000 $520,000 Work in process inventory 600,000 320,000 Finished goods inventory 380,000 300,000 During 2014, $900,000 of raw materials were purchased, direct labor costs amounted to $1,000,000, and manufacturing overhead incurred was $960,000. Myles Manufacturing Company's total manufacturing costs incurred in 2014 amounted to a. $2,860,000. b. $2,680,000. c. $2,480,000. d. $2,760,000. ($520,000 + $900,000 - $620,000) + $1,000,000 + $960,000 =
$2,760,000 Myles Manufacturing Company's accounting records reflect the following inventories: Dec. 31, 2014 Dec. 31, 2013 Raw materials inventory $620,000 $520,000 Work in process inventory 600,000 220,000 Finished goods inventory 380,000 100,000 During 2014, $900,000 of raw materials were purchased, direct labor costs amounted to $1,000,000, and manufacturing overhead incurred was $960,000. If Myles Manufacturing Company's cost of goods manufactured for 2014 amounted to $2,760,000, its cost of goods sold for the year is a. $2,400,000. b. $2,480,000. c. $2,300,000. d. $2,660,000. : ($100,000 + $2,760,000 - $380,000) = $2,480,000 What is work in process inventory generally described as? a. Costs applicable to units that have been started in production but are only partially completed b. Costs associated with the end stage of manufacturing that are almost always complete and ready for customers c. Costs strictly associated with direct labor d. Beginning stage production costs associated with labor costs dealing with bringing in raw materials from the shipping docks Costs applicable to units that have been started in production but are only partially completed Knox Manufacturing Company reported the following year-end information: beginning work in process inventory, $270,000; cost of goods manufactured, $1,074,000; beginning finished goods inventory, $380,000; ending work in process inventory, $330,000; and ending finished goods inventory, $409,000. Knox Manufacturing Company's cost of goods sold for the year is a. $1,483,000. b. $1,454,000. c. $1,103,000. d. $1,045,000. ($380,000 + $1,074,000 - $409,000) = $1,045,000 Gruffin Manufacturing Company reported the following year-end information: Beginning work in process inventory $1,420,000 Beginning raw materials inventory 400,000 Ending work in process inventory 1,200,000 Ending raw materials inventory 640,000 Raw materials purchased 1,250,000 Direct labor 1,300,000 Manufacturing overhead 960,000 Gruffin Manufacturing Company's cost of goods manufactured for the year is a. $3,270,000. b. $4,690,000. c. $2,900,000. d. $3,490,000. $1,420,000 + (($400,000 + $1,250,000 - $640,000) + $1,300,000 + $960,000) - 1,200,000 = $3,490,000 Sandor Manufacturing Inc.'s accounting records reflect the following inventories: Dec. 31, 2013 Dec. 31, 2014 Raw materials inventory $110,000 $ 90,000 Work in process inventory 156,000 174,000 Finished goods inventory 138,000 150,000 During 2014, Sandor purchased $1,440,000 of raw materials, incurred direct labor costs of $300,000, and incurred manufacturing overhead totaling $192,000. How much is raw materials transferred to production during 2014 for Sandor Manufacturing? a. $1,530,000 b. $1,420,000 c. $1,460,000 d. $1,550,000 ($110,000 + $1,440,000 - $90,000) = $1,460,000 Sandor Manufacturing Inc.'s accounting records reflect the following inventories: Dec. 31, 2013 Dec. 31, 2014 Raw materials inventory $110,000 $ 90,000 Work in process inventory 156,000 174,000 Finished goods inventory 138,000 150,000 During 2014, Sandor purchased $1,440,000 of raw materials, incurred direct labor costs of $300,000, and incurred manufacturing overhead totaling $184,000. How much is total manufacturing costs incurred during 2014 for Sandor? a. $1,944,000 b. $1,904,000 c. $1,924,000 d. $1,936,000 ($110,000 + $1,440,000 - $90,000) + $300,000 + $184,000 = $1,944,000 Sandor Manufacturing Inc.'s accounting records reflect the following inventories: Dec. 31, 2013 Dec. 31, 2014 Raw materials inventory $110,000 $ 90,000 Work in process inventory 156,000 174,000 Finished goods inventory 138,000 150,000 During 2014, Sandor purchased $1,440,000 of raw materials, incurred direct labor costs of $300,000, and incurred manufacturing overhead totaling $84,000. Assume Sandor Manufacturing’s cost of goods manufactured for 2014 amounted to $1,740,000. How much would it report as cost of goods sold for the year? a. $1,752,000 b. $1,878,000 c. $1,878,000 d. $1,728,000 ($138,000 + $1,740,000 - $150,000) = $1,728,000 Bekins Manufacturing Company reported the following year-end information: Beginning work in process inventory $ 46,000 Beginning raw materials inventory 24,000 Ending work in process inventory 50,000 Ending raw materials inventory 20,000 Raw materials purchased 640,000 Direct labor 250,000 Manufacturing overhead 120,000 How much is Bekins Manufacturing’s cost of goods manufactured for the year? a. $1,014,000 b. $1,060,000 c. $1,064,000 d. $1,010,000 (($24,000 + $640,000 - $20,000) + $250,000 + $120,000) + $46,000 - $50,000 = $1,010,000 Thorpe Manufacturing Inc.'s accounting records reflect the following inventories: Dec. 31, 2013 Dec. 31, 2014 Raw materials inventory $180,000 $145,000 Work in process inventory 260,000 235,000 Finished goods inventory 225,000 207,000 During 2014, Thorpe purchased $1,400,000 of raw materials, incurred direct labor costs of $230,000, and incurred manufacturing overhead totaling $290,000. How much is total manufacturing costs incurred during 2014 for Thorpe? a. $1,910,000 b. $1,885,000 c. $1,980,000 d. $1,955,000 ($180,000 + $1,400,000 - $145,000) + $230,000 + $290,000 = $1,955,000 Thorpe Manufacturing Inc.'s accounting records reflect the following inventories: Dec. 31, 2013 Dec. 31, 2014 Raw materials inventory $180,000 $145,000 Work in process inventory 260,000 235,000 Finished goods inventory 225,000 207,000 During 2014, Thorpe purchased $1,400,000 of raw materials, incurred direct labor costs of $230,000, and incurred manufacturing overhead totaling $290,000. How much would Thorpe Manufacturing report as cost of goods manufactured for 2014? a. $1,885,000 b. $1,859,000 c. $1,980,000 d. $1,955,000 $260,000 + ($180,000 + $1,400,000 - $145,000) + $230,000 + $290,000) - $235,000 = $1,980,000 Turnbull Manufacturing Company reported the following year-end information: Beginning work in process inventory $ 35,000 Beginning raw materials inventory 20,000 Ending work in process inventory 40,000 Ending raw materials inventory 10,000 Raw materials purchased 560,000 Direct labor 180,000 Manufacturing overhead 150,000 How much is Turnbull Manufacturing’s total cost of work in process for the year? a. $900,000 b. $895,000 c. $935,000 d. $885,000 Hermiston Manufacturing Company reported the following year-end information: beginning work in process inventory, $80,000; cost of goods manufactured, $780,000; beginning finished goods inventory, $40,000; ending work in process inventory, $70,000; and ending finished goods inventory, $50,000. How much is Hermiston’s cost of goods sold for the year? a. $770,000 b. $790,000 c. $780,000 d. $800,000 Using the following information, compute the direct materials used. Raw materials inventory, January 1 $ 40,000 Raw materials inventory, December 31 20,000 Work in process, January 1 18,000 Work in process, December 31 12,000 Finished goods, January 1 40,000 Finished goods, December 31 32,000 Raw materials purchases 1,200,000 Direct labor 560,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000 a. $1,240,000. b. $1,220,000. c. $1,200,000. d. $1,180,000. Assuming that the direct materials used is $1,100,000, compute the total manufacturing costs using the following information. Raw materials inventory, January 1 $ 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 22,000 Work in process, December 31 28,000 Finished goods, January 1 42,000 Finished goods, December 31 30,000 Raw materials purchases 1,200,000 Direct labor 560,000 Factory utilities 160,000 Indirect labor 90,000 Factory depreciation 400,000 Operating expenses 420,000 a. $2,316,000. b. $2,310,000. c. $2,736,000. d. $2,730,000. ($1,100,000 + $560,000 + $160,000 + $90,000 + $400,000) = $2,310,000 Using $2,400,000 as the total manufacturing costs, compute the cost of goods manufactured using the following information. Raw materials inventory, January 1 $ 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 22,000 Work in process, December 31 28,000 Finished goods, January 1 42,000 Finished goods, December 31 30,000 Raw materials purchases 1,200,000 Direct labor 560,000 Factory utilities 160,000 Indirect labor 90,000 Factory depreciation 400,000 Operating expenses 420,000 a. $2,394,000. b. $2,406,000. c. $2,422,000. d. $2,380,000. ($22,000 + $2,400,000 - $28,000) = $2,394,000 Using $2,380,000 as the cost of goods manufactured, compute the cost of goods sold using the following information. Raw materials inventory, January 1 $ 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 22,000 Work in process, December 31 28,000 Finished goods, January 1 42,000 Finished goods, December 31 30,000 Raw materials purchases 1,200,000 Direct labor 560,000 Factory utilities 160,000 Indirect labor 90,000 Factory depreciation 400,000 Operating expenses 420,000 a. $2,422,000. b. $2,368,000. c. $2,392,000. d. $2,350,000. ($42,000 + $2,380,000 - $30,000) = $2,392,000 Using the following information, compute the cost of direct materials used. Raw materials inventory, January 1 $ 35,000 Raw materials inventory, December 31 50,000 Work in process, January 1 18,000 Work in process, December 31 27,000 Finished goods, January 1 48,000 Finished goods, December 31 60,000 Raw materials purchases 1,100,000 Direct labor 700,000 Factory utilities 225,000 Indirect labor 105,000 Factory depreciation 500,000 Operating expenses 630,000 a. $1,115,000. b. $1,135,000. c. $1,085,000. d. $1,100,000. ($35,000 + $1,100,000 - $50,000) = $1,085,000 Assuming the cost of direct materials used is $1,170,000, compute the total manufacturing costs using the information below. Raw materials inventory, January 1 $ 35,000 Raw materials inventory, December 31 50,000 Work in process, January 1 18,000 Work in process, December 31 27,000 Finished goods, January 1 48,000 Finished goods, December 31 60,000 Raw materials purchases 1,100,000 Direct labor 700,000 Factory utilities 225,000 Indirect labor 105,000 Factory depreciation 500,000 Operating expenses 630,000 a. $2,500,000. b. $2,700,000. c. $2,300,000. d. $3,330,000. ($1,170,000 + $700,000 + $225,000 + $105,000 + $500,000) = $2,700,000 Assuming that the total manufacturing costs are $2,560,000, compute the cost of goods manufactured using the information below. Raw materials inventory, January 1 $ 35,000 Raw materials inventory, December 31 50,000 Work in process, January 1 18,000 Work in process, December 31 27,000 Finished goods, January 1 48,000 Finished goods, December 31 60,000 Raw materials purchases 1,100,000 Direct labor 700,000 Factory utilities 225,000 Indirect labor 105,000 Factory depreciation 500,000 Operating expenses 630,000 a. $2,548,000. b. $2,569,000. c. $2,578,000. d. $2,551,000 ($18,000 + $2,560,000 - $27,000) = $2,551,000 Assuming that the cost of goods manufactured is $2,590,000 compute the cost of goods Sold using the following information. Raw materials inventory, January 1 $ 35,000 Raw materials inventory, December 31 50,000 Work in process, January 1 18,000 Work in process, December 31 27,000 Finished goods, January 1 48,000 Finished goods, December 31 60,000 Raw materials purchases 1,100,000 Direct labor 700,000 Factory utilities 225,000 Indirect labor 105,000 Factory depreciation 500,000 Operating expenses 630,000 a. $2,638,000. b. $2,578,000. c. $2,530,000. d. $2,602,000. Duggan Company reported total manufacturing costs of $305,000, manufacturing overhead totaling $58,000, and direct materials totaling $62,000. How much is direct labor cost? a. Cannot be determined from the information provided. b. $425,000 c. $185,000 d. $120,000 Given the following data for Beeing Company, compute (A) total manufacturing costs and (B) cost of goods manufactured: Direct materials used $225,000 Beginning work in process $15,000 Direct labor 170,000 Ending work in process 30,000 Manufacturing overhead 235,000 Beginning finished goods 38,000 Operating expenses 263,000 Ending finished goods 23,000 (A) (B) a. $675,000 $615,000 b. $630,000 $615,000 c. $630,000 $645,000 d. $615,000 $645,000 Reimer Company reported total manufacturing costs of $425,000, manufacturing overhead totaling $80,000, and direct materials totaling $100,000. How much is direct labor cost? a. Cannot be determined from the information provided. b. $245,000 c. $180,000 d. $605,000 Given the following data for Good man Company, compute (A) total manufacturing costs and (B) costs of goods manufactured: Direct materials used $345,000 Beginning work in process $30,000 Direct labor 305,000 Ending work in process 60,000 Manufacturing overhead 450,000 Beginning finished goods 75,000 Operating expenses 525,000 Ending finished goods 45,000 (A) (B) a. $1,100,000 $1,070,000 b. $1,130,000 $1,070,000 c. $1,130,000 $1,070,000 d. $1,070,000 $1,130,000 Perry Company has beginning work in process inventory of $216,000 and total manufacturing costs of $954,000. If cost of goods manufactured is $960,000, what is the cost of the ending work in process inventory? a. $208,000. b. $210,000. c. $216,000. d. $204,000. Lenand Company has beginning and ending raw materials inventories of $130,000 and $170,000, respectively. If direct materials used were $530,000, what was the cost of raw materials purchased? a. $530,000. b. $660,000. c. $570,000. d. $700,000. Medina Company has beginning and ending work in process inventories of $265,000 and $300,000 respectively. If total manufacturing costs are $1,250,000, what is the total cost of goods manufactured? a. $1,515,000. b. $1,550,000. c. $1,285,000. d. $1,215,000. Barkley Company has beginning and ending raw materials inventories of $192,000 and $250,000, respectively. If direct materials used were $800,000, what was the cost of raw materials purchased? a. $1,050,000. b. $1,020,000. c. $742,000. d. $858,000. Lionel Company has beginning work in process inventory of $220,000 and total manufacturing costs of $950,000. If cost of goods manufactured is $940,000, what is the cost of the ending work in process inventory? a. $210,000. b. $230,000. c. $240,000. d. $206,000. Given the following data for E-Z Company, compute cost of goods manufactured: Direct materials used $130,000 Beginning work in process $10,000 Direct labor 210,000 Ending work in process 20,000 Manufacturing overhead 160,000 Beginning finished goods 25,000 Operating expenses 175,000 Ending finished goods 15,000 a. $500,000 b. $510,000 c. $480,000 d. $490,000 Which one of the following does not appear on the balance sheet of a manufacturing company? a. Finished goods inventory b. Work in process inventory c. Cost of goods manufactured d. Raw materials inventory Cost of goods manufactured The equivalent of finished goods inventory for a merchandising firm is referred to as a. purchases. b. cost of goods purchased. c. inventory. d. raw materials inventory. How have many companies significantly lowered inventory levels and costs? a. They use activity-based costing. b. They utilize a balanced scorecard system. c. They have a just-in-time method. d. They focus on a total quality management system. They have a just-in-time method. What term describes all activities associated with providing a product or service? a. The manufacturing chain b. The product chain c. The supply chain d. The value chain Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion? a. Balanced scorecard b. Just-in-time inventory c. Activity-based costing d. Total-quality management What is “balanced” in the balanced scorecard approach? a. The number of products produced b. The emphasis on financial and non-financial performance measurements c. The amount of costs allocated to products d. The number of defects found on each product The emphasis on financial and non-financial performance measurements Which one of the following characteristics would likely be associated with a just-in-time inventory method? a. Ending inventory of work in process that would allow several production runs b. A backlog of inventory orders not yet shipped c. Minimal finished goods inventory on hand d. An understanding with customers that they may come to the showroom and select from inventory on hand Minimal finished goods inventory on hand Some companies implement systems to reduce defects in finished products with the goal of achieving zero defects. What are these systems called? a. Activity-based costing systems b. Balanced scorecard systems c. Value chain systems d. Total quality management systems Total quality management systems Financial and managerial accounting are similar in that both a. have the same primary users. b. produce general-purpose reports. c. have reports that are prepared quarterly and annually. d. deal with the economic events of an enterprise. deal with the economic events of an enterprise. The function that pertains to keeping the activities of the enterprise on track is a. planning. b. directing. c. controlling. d. accounting. Property taxes on a manufacturing plant are an element of a Product Cost Period Cost a. Yes No b. Yes Yes c. No Yes d. No No For a manufacturing company, which of the following is an example of a period cost rather than a product cost? a. Depreciation on factory equipment b. Wages of salespersons c. Wages of machine operators d. Insurance on factory equipment For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to a. cost of goods purchased. b. cost of goods manufactured. c. net purchases. d. total manufacturing costs. cost of goods manufactured. If the cost of goods manufactured is less than the cost of goods sold, which of the following is correct? a. Finished Goods Inventory has increased. b. Work in Process Inventory has increased. c. Finished Goods Inventory has decreased. d. Work in Process Inventory has decreased. Finished Goods Inventory has decreased. The principal difference between a merchandising and a manufacturing income statement is the a. cost of goods sold section. b. extraordinary item section. c. operating expense section. d. revenue section. cost of goods sold section. If the total manufacturing costs are greater than the cost of goods manufactured, which of the following is correct? a. Work in Process Inventory has increased. b. Finished Goods Inventory has increased. c. Work in Process Inventory has decreased. d. Finished Goods Inventory has decreased. Work in Process Inventory has increased. The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the a. cost of goods manufactured. b. total manufacturing overhead. c. total manufacturing costs. d. total cost of work in process. total manufacturing costs. The inventory accounts that show the cost of completed goods on hand and the costs applicable to production that is only partially completed are, respectively a. Work in Process Inventory and Raw Materials Inventory. b. Finished Goods Inventory and Raw Materials Inventory. c. Finished Goods Inventory and Work in Process Inventory. d. Raw Materials Inventory and Work in Process Inventory. Finished Goods Inventory and Work in Process Inventory. What is the general content of a statement of cost of goods manufactured what is its relationship to the income statement?The statement of cost of goods manufactured supports the cost of goods sold figure on the income statement. The two most important numbers on this statement are the total manufacturing cost and the cost of goods manufactured.
How are goods available for sale classified differently between a merchandising company and a manufacturing company?How is the value of goods available for sale classified differently between a merchandising company and a manufacturing company? It is called Inventory for a merchandising company but Finished Goods Inventory for a manufacturing company.
Which are cost elements reported on the statement of cost of goods manufactured?1. The three costs of elements ordinarily included in the inventoriable cost of a manufactured product are direct materials, direct labor, and marketing costs.
What is the purpose of the statement of cost of goods manufactured quizlet?The schedule of cost of goods manufactured details the costs of direct material, direct labor, and manufacturing overhead applied to work in process during the period and shows the change in Work-in-Process Inventory.
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Cost of goods manufactured is to a manufacturing enterprise as is to a merchandising enterprise
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