FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Managerial Accounting Concepts and Principles

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 101

Short Answer

Review LaterAdd Note

Review Later

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

Correct Answer

verified

Continuous...

View Answer

Show Answer

Question 102

Short Answer

Review LaterAdd Note

Review Later

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

Correct Answer

verified

Show Answer

Question 103

Essay

Review LaterAdd Note

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

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

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

The following information is available for the year ended December 31: $\begin{array}{lr}\text { Beginning raw materials inventory } & \$ 11,000 \\\text { Raw materials purchases } & 86,000 \\\text { Ending raw materials inventory } & 10,400 \\\text { Manufacturing supplies expense } & 900\end{array}$ The amount of raw materials used in production for the year is:

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

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

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

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

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

Using the information below, calculate gross profit for the period: $\begin{array}{lr}\text {Beginning Raw Materials Inventory }&\$25,000\\\text { Ending Raw Materials Inventory }&30,000\\\text { Beginning Work in Process Inventory }&55,000\\\text { Ending Work in Process Inventory }&64,000\\\text { Beginning Finished Goods Inventory }&80,000\\\text { Ending Finished Goods Inventory }&67,000\\\text { Cost of Goods Sold for the period }&540,000\\\text { Sales Revenues for the period }&1,254,000\\\text { Operating Expenses for the period }&232,000\end{array}$

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

Costs may be classified by many different cost classifications.

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.

Using the information below, compute the days' sales in raw materials inventory: $\begin{array}{lr}\text {Raw materials used }&\$85,500\\\text {Beginning raw materials inventory }&8,000\\\text { Ending raw materials inventory}&9,000\\\end{array}$

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

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.

What are prime costs? What are conversion costs?