Question 1

Period costs include direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 2

Classify the following costs as either a product cost or a period cost:

Accepted Answer

a)Product b)Product c)Period d

Question 3

At the beginning of the current year,the Grant Company's work in process inventory account had a balance of $30,000.During the year,$68,000 of direct materials were used in production,and $66,000 of direct labor costs were incurred.Factory overhead for the year amounted to $90,000.Cost of goods manufactured is $230,000.The balance in work in process inventory on December 31 is

Accepted Answer

A)  $24,000 
B)  $44,000 
C)  $66,000 
D)  $36,000 
A)  $24,000 
B)  $44,000 
C)  $66,000 
D)  $36,000

Question 4

Keeton Company had the following data:
Cost of materials used $ 60,000
Direct labor costs 58,000
Factory overhead 33,000
Work in process,beg. 29,000
Work in process,end. 18,000
Finished goods,beg. 32,000
Finished goods,end. 18,000
Calculate the cost of goods sold.

Accepted Answer

Cost of goods sold = $60,000 +

Question 5

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Accepted Answer

A) True 
 B)False

Question 6

Bartel Corporation produces bar stools for restaurants.For each of the following,indicate whether the cost would typically be considered direct or indirect cost for the cost object given.
-The production labor wages for the bar stool assemblers

Accepted Answer

A) Direct 
B) Indirect 
A) Direct 
B) Indirect

Question 7

The following information is taken from the financial records of Gunner Manufacturing: ​
​
Cost of materials used $45,000
Direct labor costs 48,000
Factory overhead 39,000
Work in process,beginning 18,000
Work in process,ending 28,000
​
​
What is the cost of goods manufactured?

Accepted Answer

A)  $178,000 
B)  $132,000 
C)  $122,000 
D)  $142,000 
A)  $178,000 
B)  $132,000 
C)  $122,000 
D)  $142,000

Question 8

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Accepted Answer

A)  investors 
B)  managers 
C)  shareholders 
D)  customers 
A)  investors 
B)  managers 
C)  shareholders 
D)  customers

Question 9

Laramie Technologies had the following data:
​
Cost of materials used $50,000
Direct labor costs 56,000
Factory overhead 28,000
Work in process,beg. 45,000
Work in process,end. 32,000
​
Calculate the cost of goods manufactured.

Accepted Answer

Cost of goods manufa

Question 10

Labor costs that are directly traceable to the product are part of factory overhead.

Accepted Answer

A) True 
 B)False

Question 11

Insurance expense incurred on a factory building would be treated as a

Accepted Answer

A)  direct cost 
B)  period cost 
C)  product cost 
D)  selling cost 
A)  direct cost 
B)  period cost 
C)  product cost 
D)  selling cost

Question 12

Product costs are not expensed until the product is sold.

Accepted Answer

A) True 
 B)False

Question 13

Prime costs are the combination of direct labor costs and factory overhead costs.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an example of direct materials cost for an automobile manufacturer?

Accepted Answer

A)  cost of oil lubricants for factory machinery 
B)  cost of wages of assembly worker 
C)  salary of production supervisor 
D)  cost of interior upholstery 
A)  cost of oil lubricants for factory machinery 
B)  cost of wages of assembly worker 
C)  salary of production supervisor 
D)  cost of interior upholstery

Question 15

A company used $35,000 of direct materials,incurred $73,000 in direct labor cost,and had $114,000 in factory overhead costs during the period.If beginning and ending work in process inventories were $28,000 and $32,000,respectively,the cost of goods manufactured was

Accepted Answer

A)  $218,000 
B)  $226,000 
C)  $190,000 
D)  $222,000 
A)  $218,000 
B)  $226,000 
C)  $190,000 
D)  $222,000

Question 16

Which of the following is an example of direct labor cost for a cell phone manufacturer?

Accepted Answer

A)  cost of oil lubricants for factory machinery 
B)  cost of wages of assembly worker 
C)  salary of plant supervisor 
D)  cost of phone components 
A)  cost of oil lubricants for factory machinery 
B)  cost of wages of assembly worker 
C)  salary of plant supervisor 
D)  cost of phone components

Question 17

Manufacturers use machinery and labor to convert direct materials into finished products.

Accepted Answer

A) True 
 B)False

Question 18

The payment of dividends is an example of a cost.

Accepted Answer

A) True 
 B)False

Question 19

All of the following employees hold line positions in Facebook except

Accepted Answer

A)  vice president of production 
B)  vice president of finance 
C)  manager of the web design 
D)  vice president of sales 
A)  vice president of production 
B)  vice president of finance 
C)  manager of the web design 
D)  vice president of sales

Question 20

The Darwin Company reports the following information: ​
  Product costs are

Accepted Answer

A)  $24,500 
B)  $30,300 
C)  $29,200 
D)  $35,000 
A)  $24,500 
B)  $30,300 
C)  $29,200 
D)  $35,000

Exam 15: Introduction to Managerial Accounting

Period costs include direct materials and direct labor.

Classify the following costs as either a product cost or a period cost:

Keeton Company had the following data: Cost of materials used $ 60,000 Direct labor costs 58,000 Factory overhead 33,000 Work in process,beg. 29,000 Work in process,end. 18,000 Finished goods,beg. 32,000 Finished goods,end. 18,000 Calculate the cost of goods sold.

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Bartel Corporation produces bar stools for restaurants.For each of the following,indicate whether the cost would typically be considered direct or indirect cost for the cost object given. -The production labor wages for the bar stool assemblers

The following information is taken from the financial records of Gunner Manufacturing: ​ ​ Cost of materials used $45,000 Direct labor costs 48,000 Factory overhead 39,000 Work in process,beginning 18,000 Work in process,ending 28,000 ​ ​ What is the cost of goods manufactured?

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Laramie Technologies had the following data: ​ Cost of materials used $50,000 Direct labor costs 56,000 Factory overhead 28,000 Work in process,beg. 45,000 Work in process,end. 32,000 ​ Calculate the cost of goods manufactured.

Labor costs that are directly traceable to the product are part of factory overhead.

Insurance expense incurred on a factory building would be treated as a

Product costs are not expensed until the product is sold.

Prime costs are the combination of direct labor costs and factory overhead costs.

Which of the following is an example of direct materials cost for an automobile manufacturer?

A company used $35,000 of direct materials,incurred $73,000 in direct labor cost,and had $114,000 in factory overhead costs during the period.If beginning and ending work in process inventories were $28,000 and $32,000,respectively,the cost of goods manufactured was

Which of the following is an example of direct labor cost for a cell phone manufacturer?

Manufacturers use machinery and labor to convert direct materials into finished products.

The payment of dividends is an example of a cost.

All of the following employees hold line positions in Facebook except

The Darwin Company reports the following information: ​ Product costs are

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

The following information is taken from the financial records of Gunner Manufacturing: Cost of materials used $45,000 Direct labor costs 48,000 Factory overhead 39,000 Work in process,beginning 18,000 Work in process,ending 28,000 What is the cost of goods manufactured?

Laramie Technologies had the following data: Cost of materials used $50,000 Direct labor costs 56,000 Factory overhead 28,000 Work in process,beg. 45,000 Work in process,end. 32,000 Calculate the cost of goods manufactured.

The Darwin Company reports the following information: Product costs are