Question 1

Both direct materials and indirect materials are

Accepted Answer

A) raw materials. 
B) manufacturing overhead. 
C) merchandise inventory. 
D) sold directly to customers by a manufacturing company. 
A) raw materials. 
B) manufacturing overhead. 
C) merchandise inventory. 
D) sold directly to customers by a manufacturing company.

Question 2

The wages of a timekeeper in the factory would be classified as

Accepted Answer

A) a period cost. 
B) direct labor. 
C) indirect labor. 
D) compliance costs. 
A) a period cost. 
B) direct labor. 
C) indirect labor. 
D) compliance costs.

Question 3

What is work in process inventory generally described as?

Accepted Answer

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 
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

Question 4

Assuming that the direct materials used are $1,700,000, compute the total manufacturing costs using the following information. $\begin{array}{lr}
\text { Raw materials inventory, January 1 } & 20,000 \
\text { Raw materials inventory, December 31 } & 40,000 \
\text { Work in process, January 1 } & 18,000 \
\text { Work in process, December 31 } & 12,000 \
\text { Finished goods, January 1 } & 40,000 \
\text { Finished goods, December 31 } & 32,000 \
\text { Raw materials purchases } & 1,700,000\
\text { Direct labor } & 760,000 \
\text { Factory utilities } & 150,000 \
\text { Indirect labor } & 50,000 \
\text { Factory depreciation } & 400,000 \
\text { Operating expenses } & 420,000
\end{array}$

Accepted Answer

A) $3,060,000. 
B) $3,066,000. 
C) $2,860,000. 
D) $3,480,000. 
A) $3,060,000. 
B) $3,066,000. 
C) $2,860,000. 
D) $3,480,000.

Question 5

Which of the following statements about internal reports is not true?

Accepted Answer

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. 
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.

Question 6

Ending finished goods inventory appears on both the balance sheet and the income statement of a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 7

A distinguishing feature of managerial accounting is

Accepted Answer

A) external users. 
B) general-purpose reports. 
C) very detailed reports. 
D) quarterly and annual reports. 
A) external users. 
B) general-purpose reports. 
C) very detailed reports. 
D) quarterly and annual reports.

Question 8

Direct materials become a cost of the finished goods manufactured when they are acquired, not when they are used.

Accepted Answer

A) True 
 B)False

Question 9

The managerial function of controlling

Accepted Answer

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. 
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.

Question 10

Which one of the following is not a direct material?

Accepted Answer

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 
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

Question 11

Planning involves coordinating the diverse activities and human resources of a company to produce a smooth running operation.

Accepted Answer

A) True 
 B)False

Question 12

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.
The total raw materials available for use during 2017 for Dolan Company is

Accepted Answer

A) $1,110,000. 
B) $660,000. 
C) $750,000. 
D) $1,060,000. 
A) $1,110,000. 
B) $660,000. 
C) $750,000. 
D) $1,060,000.

Question 13

A manufacturing company calculates cost of goods sold as follows:

Accepted Answer

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. 
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.

Question 14

The product cost that is most difficult to associate with a product is

Accepted Answer

A) direct materials. 
B) direct labor. 
C) manufacturing overhead. 
D) advertising. 
A) direct materials. 
B) direct labor. 
C) manufacturing overhead. 
D) advertising.

Question 15

Using the following information, compute the direct materials used. $\begin{array}{lr}
\text { Raw materials inventory, January 1 } & 20,000 \
\text { Raw materials inventory, December } 31 & 40,000 \
\text { Work in process, January 1 } & 18,000 \
\text { Work in process, December } 31 & 12,000 \
\text { Finished goods, January 1 } & 40,000 \
\text { Finished goods, December } 31 & 32,000 \
\text { Raw materials purchases } & 1,700,000 \
\text { Direct labor } & 760,000 \
\text { Factory utilities } & 150,000 \
\text { Indirect labor } & 50,000 \
\text { Factory depreciation } & 400,000 \
\text { Operating expenses } & 420,000
\end{array}$

Accepted Answer

A) $1,760,000. 
B) $1,720,000. 
C) $1,700,000. 
D) $1,680,000. 
A) $1,760,000. 
B) $1,720,000. 
C) $1,700,000. 
D) $1,680,000.

Question 16

The function that pertains to keeping the activities of the enterprise on track is

Accepted Answer

A) planning. 
B) directing. 
C) controlling. 
D) accounting. 
A) planning. 
B) directing. 
C) controlling. 
D) accounting.

Question 17

The principal difference between a merchandising and a manufacturing income statement is the

Accepted Answer

A) cost of goods sold section. 
B) extraordinary item section. 
C) operating expense section. 
D) revenue section. 
A) cost of goods sold section. 
B) extraordinary item section. 
C) operating expense section. 
D) revenue section.

Question 18

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

Accepted Answer

A) $3,490,000. 
B) $3,499,000. 
C) $3,190,000. 
D) $4,120,000. 
A) $3,490,000. 
B) $3,499,000. 
C) $3,190,000. 
D) $4,120,000.

Question 19

Finished goods inventory does not appear on a cost of goods manufactured schedule.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not a management function?

Accepted Answer

A) Constraining 
B) Planning 
C) Controlling 
D) Directing 
A) Constraining 
B) Planning 
C) Controlling 
D) Directing

Both direct materials and indirect materials are

The wages of a timekeeper in the factory would be classified as

What is work in process inventory generally described as?

Which of the following statements about internal reports is not true?

Ending finished goods inventory appears on both the balance sheet and the income statement of a manufacturing company.

A distinguishing feature of managerial accounting is

Direct materials become a cost of the finished goods manufactured when they are acquired, not when they are used.

The managerial function of controlling

Which one of the following is not a direct material?

Planning involves coordinating the diverse activities and human resources of a company to produce a smooth running operation.

A manufacturing company calculates cost of goods sold as follows:

The product cost that is most difficult to associate with a product is

The function that pertains to keeping the activities of the enterprise on track is

The principal difference between a merchandising and a manufacturing income statement is the

Finished goods inventory does not appear on a cost of goods manufactured schedule.

Which of the following is not a management function?

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

Both direct materials and indirect materials are

The wages of a timekeeper in the factory would be classified as

What is work in process inventory generally described as?

Which of the following statements about internal reports is not true?

Ending finished goods inventory appears on both the balance sheet and the income statement of a manufacturing company.

A distinguishing feature of managerial accounting is

Direct materials become a cost of the finished goods manufactured when they are acquired, not when they are used.

The managerial function of controlling

Which one of the following is not a direct material?

Planning involves coordinating the diverse activities and human resources of a company to produce a smooth running operation.

A manufacturing company calculates cost of goods sold as follows:

The product cost that is most difficult to associate with a product is

The function that pertains to keeping the activities of the enterprise on track is

The principal difference between a merchandising and a manufacturing income statement is the

Finished goods inventory does not appear on a cost of goods manufactured schedule.

Which of the following is not a management function?

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