Question 1

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 2

A manufacturing process requires small amounts of glue.The glue used in the production process is classified as a(n)

Accepted Answer

A) period cost. 
B) indirect material. 
C) direct material. 
D) miscellaneous expense. 
A) period cost. 
B) indirect material. 
C) direct material. 
D) miscellaneous expense.

Question 3

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

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 4

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 5

Managerial accounting information

Accepted Answer

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. 
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.

Question 6

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 7

Cost of goods manufactured is calculated as follows:

Accepted Answer

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. 
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.

Question 8

Benson Inc.'s accounting records reflect the following inventories: $$\begin{array} { l c c c } 
& \text { Dec. } 31,2016 &  \text { Dec. 31, 2017 } \
\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \
\text { Work in process inventory } & 104,000 & 116,000 \
\text { Finished goods inventory } & 100,000 & 92,000
\end{array}$$ 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 is total manufacturing costs incurred during 2017 for Benson?

Accepted Answer

A) $1,864,000 
B) $1,876,000 
C) $1,860,000 
D) $1,872,000 
A) $1,864,000 
B) $1,876,000 
C) $1,860,000 
D) $1,872,000

Question 9

The major reporting standard for presenting managerial accounting information is

Accepted Answer

A) relevance. 
B) generally accepted accounting principles. 
C) the cost principle. 
D) the current tax law. 
A) relevance. 
B) generally accepted accounting principles. 
C) the cost principle. 
D) the current tax law.

Question 10

The subtotal, "Cost of goods manufactured" appears on

Accepted Answer

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) 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.

Question 11

Period costs are not inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 12

Wood Company has beginning work in process inventory of $138,000 and total manufacturing costs of $477,000.If cost of goods manufactured is $480,000, what is the cost of the ending work in process inventory?

Accepted Answer

A) $120,000. 
B) $141,000. 
C) $150,000. 
D) $135,000. 
A) $120,000. 
B) $141,000. 
C) $150,000. 
D) $135,000.

Question 13

Managerial accounting reports can be described as

Accepted Answer

A) general-purpose. 
B) macro-reports. 
C) special-purpose. 
D) classified financial statements. 
A) general-purpose. 
B) macro-reports. 
C) special-purpose. 
D) classified financial statements.

Question 14

Controlling is the process of determining whether planned goals are being met.

Accepted Answer

A) True 
 B)False

Question 15

Raw materials that can be conveniently and directly associated with a finished product are called materials overhead.

Accepted Answer

A) True 
 B)False

Question 16

If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

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. 
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.

Question 18

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 19

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 20

Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

Accepted Answer

A) Balanced scorecard 
B) Just-in-time inventory 
C) Activity-based costing 
D) Total quality management 
A) Balanced scorecard 
B) Just-in-time inventory 
C) Activity-based costing 
D) Total quality management

Which of the following is not a manufacturing cost category?

A manufacturing process requires small amounts of glue.The glue used in the production process is classified as a(n)

Cost of goods manufactured in a manufacturing company is analogous to

Managerial accounting information

The managerial function of controlling

Cost of goods manufactured is calculated as follows:

The major reporting standard for presenting managerial accounting information is

The subtotal, "Cost of goods manufactured" appears on

Period costs are not inventoriable costs.

Wood Company has beginning work in process inventory of $138,000 and total manufacturing costs of $477,000.If cost of goods manufactured is $480,000, what is the cost of the ending work in process inventory?

Managerial accounting reports can be described as

Controlling is the process of determining whether planned goals are being met.

Raw materials that can be conveniently and directly associated with a finished product are called materials overhead.

If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

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 distinguishing feature of managerial accounting is

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

Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

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

Managerial Accounting

Time Value of Money

Filters

Exam 1: Introduction to Financial Statements

Which of the following is not a manufacturing cost category?

A manufacturing process requires small amounts of glue.The glue used in the production process is classified as a(n)

Cost of goods manufactured in a manufacturing company is analogous to

Managerial accounting information

The managerial function of controlling

Cost of goods manufactured is calculated as follows:

The major reporting standard for presenting managerial accounting information is

The subtotal, "Cost of goods manufactured" appears on

Period costs are not inventoriable costs.

Wood Company has beginning work in process inventory of $138,000 and total manufacturing costs of $477,000.If cost of goods manufactured is $480,000, what is the cost of the ending work in process inventory?

Managerial accounting reports can be described as

Controlling is the process of determining whether planned goals are being met.

Raw materials that can be conveniently and directly associated with a finished product are called materials overhead.

If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

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 distinguishing feature of managerial accounting is

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

Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

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

Managerial Accounting

Time Value of Money

Filters