Question 1

Which one of the following is not considered as material costs?

Accepted Answer

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 
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

Question 2

Managerial accounting is applicable to

Accepted Answer

A) service entities. 
B) manufacturing entities. 
C) not-for-profit entities. 
D) all of these. 
A) service entities. 
B) manufacturing entities. 
C) not-for-profit entities. 
D) all of these.

Question 3

Laflin Company reported the following year-end information: $$\begin{array} { l r } 
\text { Beginning work in process inventory } & \$ 1,080,000 \
\text { Beginning raw materials inventory } & 300,000 \
\text { Ending work in process inventory } & 900,000 \
\text { Ending raw materials inventory } & 480,000 \
\text { Raw materials purchased } & 960,000 \
\text { Direct labor } & 900,000 \
\text { Manufacturing overhead } & 720,000
\end{array}$$ Laflin Company's cost of goods manufactured for the year is

Accepted Answer

A) $2,400,000. 
B) $2,580,000. 
C) $2,220,000. 
D) $2,760,000. 
A) $2,400,000. 
B) $2,580,000. 
C) $2,220,000. 
D) $2,760,000.

Question 4

Assuming that the total manufacturing costs are $3,400,000, compute the cost of goods manufactured using the information below. $\begin{array}{lr}
\text { Raw materials inventory, January 1 } & 30,000 \
\text { Raw materials inventory, December 31 } & 60,000 \
\text { Work in process, January 1 } & 27,000 \
\text { Work in process, December } 31 & 18,000 \
\text { Finished goods, January 1 } & 60,000 \
\text { Finished goods, December } 31 & 48,000 \
\text { Raw materials purchases } & 1,800,000\\text { Direct labor } & 890,000 \
\text { Factory utilities } & 225,000 \
\text { Indirect labor } & 75,000 \
\text { Factory depreciation } & 500,000 \
\text { Operating expenses } & 630,000
\end{array}$

Accepted Answer

A) $3,421,000. 
B) $3,391,000. 
C) $3,409,000. 
D) $3,142,000. 
A) $3,421,000. 
B) $3,391,000. 
C) $3,409,000. 
D) $3,142,000.

Question 5

Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively. If direct materials used were $310,000, what was the cost of raw materials purchased?

Accepted Answer

A) $310,000. 
B) $330,000. 
C) $294,000. 
D) $326,000. 
A) $310,000. 
B) $330,000. 
C) $294,000. 
D) $326,000.

Question 6

Which of the following is not a manufacturing cost category?

Accepted Answer

A) Cost of goods sold 
B) Direct materials 
C) Direct labor 
D) Manufacturing overhead 
A) Cost of goods sold 
B) Direct materials 
C) Direct labor 
D) Manufacturing overhead

Question 7

Direct materials and direct labor are the only product costs.

Accepted Answer

A) True 
 B)False

Question 8

In an analogous sense, external user is to internal user as generally accepted accounting principles are to

Accepted Answer

A) timely. 
B) special-purpose. 
C) relevance to decision. 
D) SEC. 
A) timely. 
B) special-purpose. 
C) relevance to decision. 
D) SEC.

Question 9

Managerial accounting is primarily concerned with managers and external users.

Accepted Answer

A) True 
 B)False

Question 10

Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 11

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

Accepted Answer

A) period costs. 
B) nonmanufacturing costs. 
C) selling and administrative expenses. 
D) manufacturing overhead. 
A) period costs. 
B) nonmanufacturing costs. 
C) selling and administrative expenses. 
D) manufacturing overhead.

Question 12

Which of the following is not a separate management function?

Accepted Answer

A) Planning 
B) Directing 
C) Decision-making 
D) Controlling 
A) Planning 
B) Directing 
C) Decision-making 
D) Controlling

Question 13

Managerial accounting applies to each of the following types of businesses except

Accepted Answer

A) service firms. 
B) merchandising firms. 
C) manufacturing firms. 
D) Managerial accounting applies to all types of firms. 
A) service firms. 
B) merchandising firms. 
C) manufacturing firms. 
D) Managerial accounting applies to all types of firms.

Question 14

Molina Company has beginning and ending work in process inventories of $130,000 and $145,000 respectively. If total manufacturing costs are $680,000, what is the total cost of goods manufactured?

Accepted Answer

A) $810,000. 
B) $825,000. 
C) $665,000. 
D) $695,000. 
A) $810,000. 
B) $825,000. 
C) $665,000. 
D) $695,000.

Question 15

Cost of goods manufactured in a manufacturing company is analogous to

Accepted Answer

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. 
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.

Question 16

Using the following information, compute the cost of direct materials used. $\begin{array}{ll}
\text { Raw materials inventory, January 1 } & \$ 30,000 \
\text { Raw materials inventory, December 31 } & 60,000 \
\text { Work in process, January 1 } & 27,000 \
\text { Work in process, December 31 } & 18,000 \
\text { Finished goods, January 1 } & 60,000 \
\text { Finished goods, December 31 } & 48,000\
\text { Raw materials purchases } & 1,800,000 \
\text { Direct labor } & 890,000 \
\text { Factory utilities } & 225,000 \
\text { Indirect labor } & 75,000 \
\text { Factory depreciation } & 500,000 \
\text { Operating expenses } & 630,000
\end{array}$

Accepted Answer

A) $1,740,000. 
B) $1,830,000. 
C) $1,800,000. 
D) $1,770,000. 
A) $1,740,000. 
B) $1,830,000. 
C) $1,800,000. 
D) $1,770,000.

Question 17

The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the

Accepted Answer

A) cost of goods manufactured. 
B) total manufacturing overhead. 
C) total manufacturing costs. 
D) total cost of work in process. 
A) cost of goods manufactured. 
B) total manufacturing overhead. 
C) total manufacturing costs. 
D) total cost of work in process.

Question 18

Which of the following is not another name for the term manufacturing overhead?

Accepted Answer

A) Factory overhead 
B) Pervasive costs 
C) Burden 
D) Indirect manufacturing costs 
A) Factory overhead 
B) Pervasive costs 
C) Burden 
D) Indirect manufacturing costs

Question 19

Dolan Company's accounting records reflect the following inventories: $\begin{array}{lrr}&\text { Dec.31,2017 } &\text { Dec. 31,2016 }\
\text { Raw materials inventory } & \$ 310,000 & \$ 260,000 \
\text { Work in process inventory } & 300,000 & 160,000 \
\text { Finished qoods inventory } & 190,000 & 150,000
\end{array}$ 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

Accepted Answer

A) $2,000,000. 
B) $1,750,000. 
C) $1,850,000. 
D) $1,930,000. 
A) $2,000,000. 
B) $1,750,000. 
C) $1,850,000. 
D) $1,930,000.

Question 20

As inventoriable costs expire, they become

Accepted Answer

A) selling expenses. 
B) gross profit. 
C) cost of goods sold. 
D) sales revenue. 
A) selling expenses. 
B) gross profit. 
C) cost of goods sold. 
D) sales revenue.

Which one of the following is not considered as material costs?

Managerial accounting is applicable to

Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively. If direct materials used were $310,000, what was the cost of raw materials purchased?

Which of the following is not a manufacturing cost category?

Direct materials and direct labor are the only product costs.

In an analogous sense, external user is to internal user as generally accepted accounting principles are to

Managerial accounting is primarily concerned with managers and external users.

Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

Which of the following is not a separate management function?

Managerial accounting applies to each of the following types of businesses except

Molina Company has beginning and ending work in process inventories of $130,000 and $145,000 respectively. If total manufacturing costs are $680,000, what is the total cost of goods manufactured?

Cost of goods manufactured in a manufacturing company is analogous to

The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the

Which of the following is not another name for the term manufacturing overhead?

As inventoriable costs expire, they become

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters

Exam 13: Managerial Accounting

Which one of the following is not considered as material costs?

Managerial accounting is applicable to

Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively. If direct materials used were $310,000, what was the cost of raw materials purchased?

Which of the following is not a manufacturing cost category?

Direct materials and direct labor are the only product costs.

In an analogous sense, external user is to internal user as generally accepted accounting principles are to

Managerial accounting is primarily concerned with managers and external users.

Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

Which of the following is not a separate management function?

Managerial accounting applies to each of the following types of businesses except

Molina Company has beginning and ending work in process inventories of $130,000 and $145,000 respectively. If total manufacturing costs are $680,000, what is the total cost of goods manufactured?

Cost of goods manufactured in a manufacturing company is analogous to

The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the

Which of the following is not another name for the term manufacturing overhead?

As inventoriable costs expire, they become

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters