Managerial Ch 1 – Flashcards

Managerial accounting information is generally prepared for Entry field with correct answer creditors. stockholders. managers. regulatory agencies.

Management accountants would not Entry field with correct answer be concerned with the impact of cost and volume on profits. prepare reports primarily for external users. determine cost behavior. assist in budget planning.

Which one of the following would not be classified as manufacturing overhead? Entry field with correct answer Insurance on factory building Indirect materials Indirect labor Direct materials

Manufacturing costs include Entry field with correct answer direct labor and manufacturing overhead only. direct materials and direct labor only. direct materials and manufacturing overhead only. direct materials, direct labor, and manufacturing overhead.

A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n) Entry field with correct answer miscellaneous expense. indirect material. direct material. period cost.

Which of the following is not classified as direct labor? Entry field with correct answer Wages of supervisors Bakers in a bakery Bottlers of beer in a brewery Copy machine operators at a copy shop

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as Entry field with correct answer selling and administrative expenses. manufacturing overhead. nonmanufacturing costs. period costs.

Which one of the following costs would not be inventoriable? Entry field with correct answer Period costs Factory insurance costs Indirect materials Indirect labor costs

Which of the following are period costs? Entry field with correct answer Direct labor and manufacturing overhead Selling expenses Raw materials Direct materials and direct labor

For inventoriable costs to become expenses under the matching principle, Entry field with correct answer the product must be finished and in stock. the product to which they attach must be sold. the product must be expensed based on its percentage-of-completion. all accounts payable must be settled.

Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2013. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured? Entry field with correct answer $70,000 $10,000 $40,000 $60,000

Dolan Company's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 Raw materials inventory $310,000 $260,000 Work in process inventory 300,000 160,000 Finished goods inventory 190,000 150,000 During 2017, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000. Dolan Company's total manufacturing costs incurred in 2017 amounted to Entry field with incorrect answer $2,020,000. $2,110,000. $1,920,000. $2,060,000.

Dolan Company's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 Raw materials inventory $310,000 $260,000 Work in process inventory 300,000 160,000 Finished goods inventory 190,000 150,000 During 2017, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000. If Dolan Company's cost of goods manufactured for 2017 amounted to $1,890,000, its cost of goods sold for the year is Entry field with correct answer $1,750,000. $1,930,000. $1,850,000. $2,000,000.

Laflin Company reported the following year-end information: Beginning work in process inventory $1,080,000 Beginning raw materials inventory 300,000 Ending work in process inventory 900,000 Ending raw materials inventory 480,000 Raw materials purchased 960,000 Direct labor 900,000 Manufacturing overhead 720,000 Laflin Company's cost of goods manufactured for the year is Entry field with correct answer $2,220,000. $2,760,000. $2,400,000. $2,580,000.

Benson Inc.'s accounting records reflect the following inventories: Dec. 31, 2016 Dec. 31, 2017 Raw materials inventory $ 80,000 $ 64,000 Work in process inventory 104,000 116,000 Finished goods inventory 100,000 92,000 During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much raw materials were transferred to production during 2017 for Benson? Entry field with correct answer $1,466,000 $1,450,000 $1,434,000 $1,386,000

Samson Company reported total manufacturing costs of $320,000, manufacturing overhead totaling $52,000, and direct materials totaling $64,000. How much is direct labor cost? Entry field with correct answer $268,000 Cannot be determined from the information provided. $256,000 $204,000

Given the following data for Glennon Company, compute (A) total manufacturing costs and (B) costs of goods manufactured: Direct materials used $270,000 Beginning work in process $40,000 Direct labor 200,000 Ending work in process 20,000 Manufacturing overhead 250,000 Beginning finished goods 50,000 Operating expenses 350,000 Ending finished goods 30,000 (A) (B) Entry field with correct answer $720,000 $700,000 $720,000 $740,000 $740,000 $760,000 $700,000 $740,000

Given the following data for Harder Company, compute cost of goods manufactured: Direct materials used $120,000 Beginning work in process $20,000 Direct labor 200,000 Ending work in process 10,000 Manufacturing overhead 180,000 Beginning finished goods 25,000 Operating expenses 175,000 Ending finished goods 15,000 Entry field with correct answer $500,000 $520,000 $490,000 $510,000

Which one of the following does not appear on the balance sheet of a manufacturing company? Entry field with correct answer Finished goods inventory Raw materials inventory Work in process inventory Cost of goods manufactured

If the cost of goods manufactured is less than the cost of goods sold, which of the following is correct? Entry field with correct answer Finished Goods Inventory has increased. Work in Process Inventory has increased. Work in Process Inventory has decreased. Finished Goods Inventory has decreased.

Direct materials are a Product Cost Manufacturing Overhead Period Cost Entry field with correct answer Yes Yes Yes No No No Yes Yes No Yes No No

Which of the following costs would a computer manufacturer include in manufacturing overhead? Entry field with correct answer The cost of the memory chips. Depreciation on testing equipment. The cost of the disk drives. The wages earned by computer assemblers.

Which of the following costs are classified as a period cost? Entry field with correct answer Wages paid to an assembly worker. Wages paid to a production department supervisor. Wages paid to a factory custodian. Wages paid to a cost accountant department supervisor.