Exam 1: Managerial Accounting

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

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

Planning is a function that involves

The equivalent of finished goods inventory for a merchandising firm is referred to as

Direct materials and direct labor are the only product costs.

Raw materials inventory shows the cost of completed goods available for sale to customers.

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

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

The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity.

Internal reports must be communicated

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. Assume Benson's cost of goods manufactured for 2017 amounted to $1,660,000. How much would it report as cost of goods sold for the year?

Sales commissions are classified as

Direct materials costs and indirect materials costs are manufacturing overhead.

As inventoriable costs expire, they become

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

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?

Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.

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

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?

Which one of the following is an example of a period cost?