Question 1

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 2

Wood Company has beginning work in process inventory of $108,000 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)  $90,000. 
B)  $111,000. 
C)  $120,000. 
D)  $105,000. 
A)  $90,000. 
B)  $111,000. 
C)  $120,000. 
D)  $105,000.

Question 3

Managerial accounting internal reports are prepared more frequently than are classified financial statements.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Worth Manufacturing Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $716,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Worth Manufacturing Company's cost of goods sold for the year is

Accepted Answer

A)  $704,000. 
B)  $728,000. 
C)  $676,000. 
D)  $452,000. 
A)  $704,000. 
B)  $728,000. 
C)  $676,000. 
D)  $452,000.

Question 6

Molina Company has beginning and ending work in process inventories of $130,000 and $145,000 respectively. If total manufacturing costs are $620,000, what is the total cost of goods manufactured?

Accepted Answer

A)  $750,000. 
B)  $765,000. 
C)  $605,000. 
D)  $635,000. 
A)  $750,000. 
B)  $765,000. 
C)  $605,000. 
D)  $635,000.

Question 7

Ogleby Manufacturing Inc.'s accounting records reflect the following inventories:   During 2010, Ogleby purchased $940,000 of raw materials, incurred direct labor costs of $150,000, and incurred manufacturing overhead totaling $192,000.
How much is total manufacturing costs incurred during 2010 for Ogleby?

Accepted Answer

A)  $1,288,000 
B)  $1,306,000 
C)  $1,282,000 
D)  $1,300,000 
A)  $1,288,000 
B)  $1,306,000 
C)  $1,282,000 
D)  $1,300,000

Question 8

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 9

If the cost of goods manufactured is less than the cost of goods sold, which of the following is correct?

Accepted Answer

A)  Finished Goods Inventory has increased. 
B)  Work in Process Inventory has increased. 
C)  Finished Goods Inventory has decreased. 
D)  Work in Process Inventory has decreased. 
A)  Finished Goods Inventory has increased. 
B)  Work in Process Inventory has increased. 
C)  Finished Goods Inventory has decreased. 
D)  Work in Process Inventory has decreased.

Question 10

Internal reports must be communicated

Accepted Answer

A)  daily. 
B)  monthly. 
C)  annually. 
D)  as needed. 
A)  daily. 
B)  monthly. 
C)  annually. 
D)  as needed.

Question 11

In a manufacturing company balance sheet, manufacturing inventories are reported in the current assets section in the order of their expected use in production.

Accepted Answer

A) True 
 B)False

Question 12

Wasson Manufacturing Company reported the following year-end information:   How much is Wasson Manufacturing's total cost of work in process for the year?

Accepted Answer

A)  $563,000 
B)  $818,000 
C)  $815,000 
D)  $853,000 
A)  $563,000 
B)  $818,000 
C)  $815,000 
D)  $853,000

Question 13

The sum of the direct materials costs, direct labor costs, and beginning work in process is the total manufacturing costs for the year.

Accepted Answer

A) True 
 B)False

Question 14

When the physical association of raw materials with the finished product is too small to trace in terms of cost, they are usually classified as indirect materials.

Accepted Answer

A) True 
 B)False

Question 15

The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  purchases. 
B)  cost of goods purchased. 
C)  merchandise inventory. 
D)  raw materials inventory. 
A)  purchases. 
B)  cost of goods purchased. 
C)  merchandise inventory. 
D)  raw materials inventory.

Question 17

Listed below are current asset items for Lester Company at December 31, 2010.   
Instructions
Prepare the current assets section of the balance sheet. (Include a complete heading.)

Accepted Answer

The answer of Listed below are current asset items for...

Question 18

Determine whether each of the following costs should be classified as direct materials (DM), direct labor (DL), or manufacturing overhead (MO).
a. ____ Depreciation on factory equipment
b. ____ Table legs used in manufacturing tables
c. ____ Wages paid to assembly line workers
d. ____ Factory rent

Accepted Answer

a. MO
b. D

Question 19

Manufacturing cost data for Morton Company are presented below.   
Instructions
Indicate the missing amount for each letter (a) through (i).

Accepted Answer

The answer of Manufacturing cost data for Morton Company are...

Question 20

What is "balanced" in the balanced scorecard approach?

Accepted Answer

A)  The number of products produced 
B)  The emphasis on financial and non-financial performance measurements 
C)  The amount of costs allocated to products 
D)  The number of defects found on each product 
A)  The number of products produced 
B)  The emphasis on financial and non-financial performance measurements 
C)  The amount of costs allocated to products 
D)  The number of defects found on each product

Exam 19: Managerial Accounting

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

Wood Company has beginning work in process inventory of $108,000 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 internal reports are prepared more frequently than are classified financial statements.

The major reporting standard for presenting managerial accounting information is

Molina Company has beginning and ending work in process inventories of $130,000 and $145,000 respectively. If total manufacturing costs are $620,000, what is the total cost of goods manufactured?

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

If the cost of goods manufactured is less than the cost of goods sold, which of the following is correct?

Internal reports must be communicated

In a manufacturing company balance sheet, manufacturing inventories are reported in the current assets section in the order of their expected use in production.

Wasson Manufacturing Company reported the following year-end information: How much is Wasson Manufacturing's total cost of work in process for the year?

The sum of the direct materials costs, direct labor costs, and beginning work in process is the total manufacturing costs for the year.

When the physical association of raw materials with the finished product is too small to trace in terms of cost, they are usually classified as indirect materials.

The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company.

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

Listed below are current asset items for Lester Company at December 31, 2010. Instructions Prepare the current assets section of the balance sheet. (Include a complete heading.)

Determine whether each of the following costs should be classified as direct materials (DM), direct labor (DL), or manufacturing overhead (MO). a. ____ Depreciation on factory equipment b. ____ Table legs used in manufacturing tables c. ____ Wages paid to assembly line workers d. ____ Factory rent

Manufacturing cost data for Morton Company are presented below. Instructions Indicate the missing amount for each letter (a) through (i).

What is "balanced" in the balanced scorecard approach?

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Analysis: the Big Picture

Job Order Costing

Process Costing

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Filters

Determine whether each of the following costs should be classified as direct materials (DM), direct labor (DL), or manufacturing overhead (MO). a. Depreciation on factory equipment b. Table legs used in manufacturing tables c. Wages paid to assembly line workers d. Factory rent