Question 1

If the amount of "Cost of goods manufactured" during a period exceeds the amount of "Total manufacturing costs" for the period, then

Accepted Answer

A)  ending work in process inventory is greater than or equal to the amount of the beginning work in process inventory. 
B)  ending work in process is greater than the amount of the beginning work in process inventory. 
C)  ending work in process is equal to the cost of goods manufactured. 
D)  ending work in process is less than the amount of the beginning work in process inventory. 
A)  ending work in process inventory is greater than or equal to the amount of the beginning work in process inventory. 
B)  ending work in process is greater than the amount of the beginning work in process inventory. 
C)  ending work in process is equal to the cost of goods manufactured. 
D)  ending work in process is less than the amount of the beginning work in process inventory.

Question 2

Dolan Company's accounting records reflect the following inventories: $\begin{array}{lrr}&\text { Dec. } 31,2020&\text { Dec. } 31,2019\
\text { Raw materials inventory } & \$ 310,000 & \$ 260,000 \
\text { Work in process inventory } & 300,000 & 160,000 \
\text { Finished goods inventory } & 190,000 & 150,000
\end{array}$ During 2020, $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 2020 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 3

Managerial accounting applies to all forms of business organizations.

Accepted Answer

A) True 
 B)False

Question 4

Dolan Company's accounting records reflect the following inventories: $\begin{array}{lrr}&\text { Dec. } 31,2020&\text { Dec. } 31,2019\
\text { Raw materials inventory } & \$ 310,000 & \$ 260,000 \
\text { Work in process inventory } & 300,000 & 160,000 \
\text { Finished goods inventory } & 190,000 & 150,000
\end{array}$ During 2020, $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 2020 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 5

Internal reports are generally

Accepted Answer

A)  aggregated. 
B)  detailed. 
C)  regulated. 
D)  unreliable. 
A)  aggregated. 
B)  detailed. 
C)  regulated. 
D)  unreliable.

Question 6

For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to

Accepted Answer

A)  cost of goods purchased. 
B)  cost of goods manufactured. 
C)  net purchases. 
D)  total manufacturing costs. 
A)  cost of goods purchased. 
B)  cost of goods manufactured. 
C)  net purchases. 
D)  total manufacturing costs.

Question 7

Using $3,040,000 as the cost of goods manufactured, compute the cost of goods sold 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)  $3,046,000. 
B)  $3,008,000. 
C)  $3,032,000. 
D)  $3,048,000. 
A)  $3,046,000. 
B)  $3,008,000. 
C)  $3,032,000. 
D)  $3,048,000.

Question 8

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 9

For inventoriable costs to become expenses under the matching principle,

Accepted Answer

A)  the product must be finished and in stock. 
B)  the product must be expensed based on its percentage-of-completion. 
C)  the product to which they attach must be sold. 
D)  all accounts payable must be settled. 
A)  the product must be finished and in stock. 
B)  the product must be expensed based on its percentage-of-completion. 
C)  the product to which they attach must be sold. 
D)  all accounts payable must be settled.

Question 10

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 11

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 12

Which of the following is not an internal user?

Accepted Answer

A)  Creditor 
B)  Department manager 
C)  Controller 
D)  Treasurer 
A)  Creditor 
B)  Department manager 
C)  Controller 
D)  Treasurer

Question 13

Directing includes

Accepted Answer

A)  providing a framework for management to have criteria to terminate employees when needed. 
B)  running a department under quality control standards universally accepted. 
C)  coordinating a company's diverse activities and human resources to produce a smooth-running operation. 
D)  developing a complex performance ranking system to give certain high performers good raises. 
A)  providing a framework for management to have criteria to terminate employees when needed. 
B)  running a department under quality control standards universally accepted. 
C)  coordinating a company's diverse activities and human resources to produce a smooth-running operation. 
D)  developing a complex performance ranking system to give certain high performers good raises.

Question 14

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 15

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 16

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 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

Period costs include selling and administrative expenses.

Accepted Answer

A) True 
 B)False

Question 19

Benson Inc.'s accounting records reflect the following inventories: $\begin{array}{lrr}&\text { Dec. 31, } 2019&\text { Dec. 31, } 2020\
\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \
\text { Work in process inventory } & 104,000 & 116,000 \
\text { Finished qoods inventory } & 100,000 & 92,000
\end{array}$ During 2020, 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 2020 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 20

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

If the amount of "Cost of goods manufactured" during a period exceeds the amount of "Total manufacturing costs" for the period, then

Managerial accounting applies to all forms of business organizations.

Internal reports are generally

For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to

Managerial accounting is applicable to

For inventoriable costs to become expenses under the matching principle,

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?

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

Which of the following is not an internal user?

Directing includes

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

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

Cost of goods manufactured is calculated as follows:

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

Period costs include selling and administrative expenses.

What is work in process inventory generally described as?

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Statement of Cash Flows

Financial Statement Analysis

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Exam 1: Managerial Accounting

If the amount of "Cost of goods manufactured" during a period exceeds the amount of "Total manufacturing costs" for the period, then

Managerial accounting applies to all forms of business organizations.

Internal reports are generally

For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to

Managerial accounting is applicable to

For inventoriable costs to become expenses under the matching principle,

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?

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

Which of the following is not an internal user?

Directing includes

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

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

Cost of goods manufactured is calculated as follows:

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

Period costs include selling and administrative expenses.

What is work in process inventory generally described as?

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Statement of Cash Flows

Financial Statement Analysis

Filters