Question 1

In a manufacturing firm, accounting, legal, and administrative costs are typical examples of product costs.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is true of financial accounting?

Accepted Answer

A) It provides information to investors needed for their investment decisions. 
B) It provides forward-looking information needed for managing and delegating operations. 
C) It focuses on detailed reports for parts of the company rather than the whole company. 
D) It focuses on planning and controlling day-to-day operations. 
A) It provides information to investors needed for their investment decisions. 
B) It provides forward-looking information needed for managing and delegating operations. 
C) It focuses on detailed reports for parts of the company rather than the whole company. 
D) It focuses on planning and controlling day-to-day operations.

Question 3

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in manufacturing overhead costs during the period. If beginning and ending Work-in-Process Inventories were $28,000 and $21,000 respectively, what is the cost of goods manufactured?

Accepted Answer

A) $250,000 
B) $229,000 
C) $215,000 
D) $222,000 
A) $250,000 
B) $229,000 
C) $215,000 
D) $222,000

Question 4

Goods that are produced by a manufacturing company and are ready to sell are recorded in the:

Accepted Answer

A) Materials Inventory account. 
B) Work-in-Process Inventory account. 
C) Manufacturing Overhead account. 
D) Finished Goods Inventory account. 
A) Materials Inventory account. 
B) Work-in-Process Inventory account. 
C) Manufacturing Overhead account. 
D) Finished Goods Inventory account.

Question 5

An enterprise resource planning system (ERP):

Accepted Answer

A) is a cost management system in which a company produces products just in time to satisfy needs. 
B) requires the implementation of total quality management. 
C) integrates all worldwide functions, departments and data of a company into a single system. 
D) cannot be implemented in service companies. 
A) is a cost management system in which a company produces products just in time to satisfy needs. 
B) requires the implementation of total quality management. 
C) integrates all worldwide functions, departments and data of a company into a single system. 
D) cannot be implemented in service companies.

Question 6

Given the following information, determine the cost of goods sold.

Accepted Answer

A) $380,000 
B) $1,016,500 
C) $356,500 
D) $414,000 
A) $380,000 
B) $1,016,500 
C) $356,500 
D) $414,000

Question 7

The balance sheet of a ________ company will show Work-in-Process Inventory as a line item.

Accepted Answer

A) manufacturing 
B) merchandising 
C) service 
D) trading 
A) manufacturing 
B) merchandising 
C) service 
D) trading

Question 8

The three categories of period costs are direct materials, direct labor, and manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true of product costs?

Accepted Answer

A) They are expensed in the period they are paid. 
B) For external reporting, GAAP requires that they be expensed before the products are sold. 
C) They are first recorded in an inventory account. 
D) For merchandising companies, product costs do not include freight costs. 
A) They are expensed in the period they are paid. 
B) For external reporting, GAAP requires that they be expensed before the products are sold. 
C) They are first recorded in an inventory account. 
D) For merchandising companies, product costs do not include freight costs.

Question 10

For a manufacturing business, which of the following would be included as indirect manufacturing costs?

Accepted Answer

A) Sales commissions 
B) Fuel and maintenance for delivery vehicles 
C) Wages of the assembly line workers 
D) Wages of the factory manager 
A) Sales commissions 
B) Fuel and maintenance for delivery vehicles 
C) Wages of the assembly line workers 
D) Wages of the factory manager

Question 11

Jasper Corporation reports the following cost information for March:   What is the amount of direct materials used by Jasper in March?

Accepted Answer

A) $12,030 
B) $18,600 
C) $28,870 
D) $137,970 
A) $12,030 
B) $18,600 
C) $28,870 
D) $137,970

Question 12

A merchandiser need not calculate cost per unit as it resells goods that are already manufactured.

Accepted Answer

A) True 
 B)False

Question 13

Evanston Manufacturing Company reported the following information for the year 2015:   What was the unit product cost?

Accepted Answer

A) $87.77 
B) $262.50 
C) $93.00 
D) $96.00 
A) $87.77 
B) $262.50 
C) $93.00 
D) $96.00

Question 14

Service companies do not have product costs so they often consider all operating expenses as part of their cost of service.

Accepted Answer

A) True 
 B)False

Question 15

Amoeba Manufacturing Company provided the following information for the year 2015:   The inventory account balances as of January 1st 2015 are given below.   What is the ending balance in the Work-in-Process Inventory account?

Accepted Answer

A) $24,650 
B) $12,000 
C) $49,500 
D) $65,350 
A) $24,650 
B) $12,000 
C) $49,500 
D) $65,350

Question 16

The following information relates to Webster Inc.:   How much were Webster's period costs?

Accepted Answer

A) $141,897 
B) $474,050 
C) $615,947 
D) $61,503 
A) $141,897 
B) $474,050 
C) $615,947 
D) $61,503

Question 17

Which of the following is a philosophy designed to integrate all organizational areas in order to provide customers with superior products and services, while meeting organizational goals throughout the value chain?

Accepted Answer

A) Supply chain management 
B) Just-in-time (JIT)management 
C) Enterprise resource planning (ERP) 
D) Total quality management (TQM) 
A) Supply chain management 
B) Just-in-time (JIT)management 
C) Enterprise resource planning (ERP) 
D) Total quality management (TQM)

Question 18

The income statement of a service company will most likely include:

Accepted Answer

A) salary expense. 
B) factory overhead. 
C) cost of goods sold. 
D) direct materials. 
A) salary expense. 
B) factory overhead. 
C) cost of goods sold. 
D) direct materials.

Question 19

Direct costs and indirect costs can be easily traced directly to a cost object.

Accepted Answer

A) True 
 B)False

Question 20

Manufacturing overhead is also referred to as:

Accepted Answer

A) indirect manufacturing costs. 
B) direct costs. 
C) prime costs. 
D) period costs. 
A) indirect manufacturing costs. 
B) direct costs. 
C) prime costs. 
D) period costs.

Exam 18: Introduction to Managerial Accounting

In a manufacturing firm, accounting, legal, and administrative costs are typical examples of product costs.

Which of the following statements is true of financial accounting?

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in manufacturing overhead costs during the period. If beginning and ending Work-in-Process Inventories were $28,000 and $21,000 respectively, what is the cost of goods manufactured?

Goods that are produced by a manufacturing company and are ready to sell are recorded in the:

An enterprise resource planning system (ERP):

Given the following information, determine the cost of goods sold.

The balance sheet of a ________ company will show Work-in-Process Inventory as a line item.

The three categories of period costs are direct materials, direct labor, and manufacturing overhead.

Which of the following is true of product costs?

For a manufacturing business, which of the following would be included as indirect manufacturing costs?

Jasper Corporation reports the following cost information for March: What is the amount of direct materials used by Jasper in March?

A merchandiser need not calculate cost per unit as it resells goods that are already manufactured.

Evanston Manufacturing Company reported the following information for the year 2015: What was the unit product cost?

Service companies do not have product costs so they often consider all operating expenses as part of their cost of service.

Amoeba Manufacturing Company provided the following information for the year 2015: The inventory account balances as of January 1st 2015 are given below. What is the ending balance in the Work-in-Process Inventory account?

The following information relates to Webster Inc.: How much were Webster's period costs?

Which of the following is a philosophy designed to integrate all organizational areas in order to provide customers with superior products and services, while meeting organizational goals throughout the value chain?

The income statement of a service company will most likely include:

Direct costs and indirect costs can be easily traced directly to a cost object.

Manufacturing overhead is also referred to as:

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

Amoeba Manufacturing Company provided the following information for the year 2015: The inventory account balances as of January 1^st 2015 are given below. What is the ending balance in the Work-in-Process Inventory account?