Question 1

Which of the following are period costs?

Accepted Answer

A)  Raw materials 
B)  Direct materials and direct labor 
C)  Direct labor and manufacturing overhead 
D)  Selling expenses 
A)  Raw materials 
B)  Direct materials and direct labor 
C)  Direct labor and manufacturing overhead 
D)  Selling expenses

Question 2

Using $2,200,000 as the total manufacturing costs, compute the cost of goods manufactured using the following information.

Accepted Answer

A)  $2,192,000. 
B)  $2,194,000. 
C)  $2,206,000. 
D)  $2,208,000. 
A)  $2,192,000. 
B)  $2,194,000. 
C)  $2,206,000. 
D)  $2,208,000.

Question 3

Finished goods inventory does not appear on a cost of goods manufactured schedule.

Accepted Answer

A) True 
 B)False

Question 4

Peters Manufacturing Company has the following data at June 30, 2010:
Instructions
(a) Prepare an income statement through gross profit for the month of June.
(b) Indicate the balance sheet presentation of the June 30 inventories.

Accepted Answer

The answer of Peters Manufacturing Company has the following data...

Question 5

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 6

Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2010. If beginning finished goods inventory was $10,000 and cost of goods sold was $40,000, how much would Kushman report for cost of goods manufactured?

Accepted Answer

A)  $45,000 
B)  $10,000 
C)  $50,000 
D)  $30,000 
A)  $45,000 
B)  $10,000 
C)  $50,000 
D)  $30,000

Question 7

Internal reports are generally

Accepted Answer

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

Question 8

Some companies implement systems to reduce defects in finished products with the goal of achieving zero defects. What are these systems called?

Accepted Answer

A)  Activity-based costing systems 
B)  Balanced scorecard systems 
C)  Value chain systems 
D)  Total quality management systems 
A)  Activity-based costing systems 
B)  Balanced scorecard systems 
C)  Value chain systems 
D)  Total quality management systems

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

Direct mat

Question 11

Using the following information, compute the direct materials used.

Accepted Answer

A)  $1,160,000. 
B)  $1,120,000. 
C)  $1,100,000. 
D)  $1,080,000. 
A)  $1,160,000. 
B)  $1,120,000. 
C)  $1,100,000. 
D)  $1,080,000.

Question 12

Period costs include selling and administrative expenses.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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

Accepted Answer

A)  controlling. 
B)  directing. 
C)  planning. 
D)  constraining. 
A)  controlling. 
B)  directing. 
C)  planning. 
D)  constraining.

Question 15

In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.

Accepted Answer

A) True 
 B)False

Question 16

The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead costs.

Accepted Answer

A) True 
 B)False

Question 17

Assuming that the direct materials used is $1,100,000, compute the total manufacturing costs using the following information.

Accepted Answer

A)  $2,260,000. 
B)  $2,254,000. 
C)  $2,060,000. 
D)  $2,680,000. 
A)  $2,260,000. 
B)  $2,254,000. 
C)  $2,060,000. 
D)  $2,680,000.

Question 18

Which one of the following represents a period cost?

Accepted Answer

A)  The VP of Sales' salary and benefits 
B)  Overhead allocated to the manufacturing operations 
C)  Labor costs associated with quality control 
D)  Fringe benefits associated with factory workers 
A)  The VP of Sales' salary and benefits 
B)  Overhead allocated to the manufacturing operations 
C)  Labor costs associated with quality control 
D)  Fringe benefits associated with factory workers

Question 19

Which one of the following is not considered as material costs?

Accepted Answer

A)  Partially completed motor engines for a motorcycle plant 
B)  Bolts used in manufacturing the compressor of an engine 
C)  Rivets for the wings of a new commercial jet aircraft 
D)  Lumber used to build tables 
A)  Partially completed motor engines for a motorcycle plant 
B)  Bolts used in manufacturing the compressor of an engine 
C)  Rivets for the wings of a new commercial jet aircraft 
D)  Lumber used to build tables

Question 20

As inventoriable costs expire, they become

Accepted Answer

A)  selling expenses. 
B)  gross profit. 
C)  cost of goods sold. 
D)  sales revenue. 
A)  selling expenses. 
B)  gross profit. 
C)  cost of goods sold. 
D)  sales revenue.

Exam 19: Managerial Accounting

Which of the following are period costs?

Using $2,200,000 as the total manufacturing costs, compute the cost of goods manufactured using the following information.

Finished goods inventory does not appear on a cost of goods manufactured schedule.

Peters Manufacturing Company has the following data at June 30, 2010: Instructions (a) Prepare an income statement through gross profit for the month of June. (b) Indicate the balance sheet presentation of the June 30 inventories.

Managerial accounting reports can be described as

Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2010. If beginning finished goods inventory was $10,000 and cost of goods sold was $40,000, how much would Kushman report for cost of goods manufactured?

Internal reports are generally

Some companies implement systems to reduce defects in finished products with the goal of achieving zero defects. What are these systems called?

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

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

Using the following information, compute the direct materials used.

Period costs include selling and administrative expenses.

A distinguishing feature of managerial accounting is

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

In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.

The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead costs.

Assuming that the direct materials used is $1,100,000, compute the total manufacturing costs using the following information.

Which one of the following represents a period cost?

Which one of the following is not considered as material costs?

As inventoriable costs expire, they become

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

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