Exam 19: Managerial Accounting

The management function that requires managers to look ahead and establish objectives is

Determining the unit cost of manufacturing a product is an output of financial accounting.

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

A manufacturing company makes the products that it sells. Briefly identify and define the cost elements that are incurred in making a product. After product cost elements are identified how is the cost of goods manufactured for a period determined?

Property taxes on a manufacturing plant are an element of a Product Cost Period Cost A) Yes No B) Yes Yes C) No Yes D) No No

Presented below are incomplete 2016 manufacturing cost data for Swartnez Corporation. Direct Materials Used Direct Labor Manufacturing Overhead Total Manufa Costs (a) \2 2,000 \ 42,000 ? \ 88,00 (b) \1 48,000 ? \ 112,000 \ 460,00 Instructions Determine the missing amounts.

Assuming that the direct materials used are $1700000 compute the total manufacturing costs using the following information. Raw materials inventory, January 1 \ 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 18,000 Work in process, December 31 12,000 Finished goods, January 1 40,000 Finished goods, December 31 32,000 Raw materials purchases 1,700,000 Direct labor 760,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000

Sales commissions are classified as

Decision-making is an integral part of the planning directing and controlling functions.

Presented below are incomplete 2016 manufacturing cost data for Tardy Corporation. Total Work in Work in Cost of DirectMaterials Direct Manufacturing Manufacturing Process Process Goods Used Labor Overhead Costs (1/1) (12/31) Manufactured (a) \ 38,000 \ 80,000 \ 48,000 ? \ 120,000 \ 96,000 ? (b) \ 149,000 \ 53,000 \ 90,000 \ 292,000 ? \ 98,000 \ 311,000 (c) \ 53,000 \ 116,000 \ 121,000 \ 290,000 \ 403,000 ? \ 515,000 Instructions Determine the missing amounts.

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

Many companies now focus on reducing defects in finished products with the goal of zero defects. This is called

From the account balances listed below prepare a schedule of cost of goods manufactured for Sampson Manufacturing Company for the month ended December 31 2016. Account Balances Finished Goods Inventory, December 31 \ 42,000 Factory Supervisory Salaries 12,000 Income Tax Expense 18,000 Raw Materials Inventory, December 1 12,000 Work In Process Inventory, December 31 15,000 Sales Salaries Expense 14,000 Factory Depreciation Expense 8,000 Finished Goods Inventory, December 1 35,000 Raw Materials Purchases 105,000 Work In Process Inventory, December 1 25,000 Factory Utilities Expense 6,000 Direct Labor 70,000 Raw Materials Inventory, December 31 19,000 Sales Returns and Allowances 5,000 Indirect Labor 21,000

The reporting standard for external financial reports is

Determine whether each of the following is classified as:

___________________ is added to direct labor and manufacturing overhead to get total manufacturing costs for the current period.

Presented below are Cricket Company's monthly manufacturing cost data related to its personal computer products. A) Hard drives and memory sticks \ 30,000 B) Wages to assemble equipment \ 65,000 C) Insurance on manufacturing building \ 41,000 D) Wages for factory supervisors \ 64,000 Instructions Enter each cost item in the following table placing an 'X' under the appropriate headings. Product Costs Direct Materials Direct Labor Manufacturing Overhead a. b. c. d.

As inventoriable costs expire they become

The balanced scorecard approach attempts to maintain as little inventory on hand as possible.

Ogleby Inc.'s accounting records reflect the following inventories: Dec. 31,2016 Dec. 31, 2017 Raw materials inventory \ 120,000 \ 96,000 Work in process inventory 156,000 174,000 Finished goods inventory 150,000 138,000 During 2017 Ogleby purchased $980000 of raw materials incurred direct labor costs of $175000 and incurred manufacturing overhead totaling $224000. How much would Ogleby Manufacturing report as cost of goods manufactured for 2017?