Exam 16: Management Accounting: a Business Partner

The Alton Company produces metal belts. During the current month, the company incurred the following product costs: Raw materials $100,000 Direct labor $75,000 Electricity used in the Factory $25,000 Factory foreperson salary $3,750 Maintenance of factory machinery $2,000 Alton Company's direct product costs totaled:

During the current year, the Jules Company incurred the following product costs: Direct materials used in production $250,000 Direct labor $185,000 Manufacturing overhead $245,500 The Jules Company's beginning Work in Process Inventory was $20,000 and its ending Work in Process Inventory amounted to $30,000. What is the company's cost of finished goods manufactured for the year?

The completion of a computer by First Wireless, Inc. would require a debit to which of the following accounts?

The total amount of inventory to be included in Elite's August31^st balance sheet amounts to:

In a manufacturing company, the cost of finished goods manufactured is equal to:

The cost of finished goods manufactured in April amounted to:

The placing of direct materials into the production process is recorded by an entry debiting:

A product cost is deducted from revenue in the period in which:

Product costs are selling expenses that appear on the income statement.

The accountant for Eric's Plumbing Equipment Company recently made a journal entry consisting of a debit to Work in Process and a credit to Raw Materials Inventory. This entry recorded:

Total manufacturing costs charged (debited) to Work in Process during August amount to:

The cost of finished goods manufactured in September is:

In a schedule of cost of finished goods manufactured, the figure for total manufacturing costs:

Flow of manufacturing costs The following data are taken from the accounting records of Gregory Mfg. Co.: Compute the following for the current year: (a) Direct materials purchased: $____________ (b) Total manufacturing costs charged to production (the Work in Process Inventory account): $____________ (c) The cost of finished goods manufactured: $____________ (d) The cost of goods sold: $____________

The set of linked activities and resources needed to create and deliver a product or service to the customer is referred to as:

Accounting terminology Listed below are nine technical accounting terms introduced or emphasized in this chapter: Product costs Direct materials Period costs Manufacturing overhead Direct labor Work-in-Process Inventory Cost driver Finished Goods Inventory Indirect materials Each of the following statements may (or may not) describe one of these technical terms. In the space provided, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms. ______ (a) The account that is debited when the Work in Process Inventory account is credited. ______ (b) A term describing any manufacturing cost that can be traced conveniently and directly to the various types of products being manufactured. ______ (c) Costs that are charged directly to expense accounts at the time that the costs are incurred. ______ (d) The category of manufacturing cost that would include the cost of tires used in the manufacture of automobiles. _____ (e) An account which has a balance that is increased by manufacturing costs incurred during the period and decreased by the cost of finished goods manufactured. _____ (f) The category of manufacturing cost that includes the salaries of plant guards, supervisors, and maintenance personnel. _____ (g) A term describing all three categories of manufacturing costs.

The cost of goods sold in April amounted to:

Manufacturing overhead is considered an indirect cost, since overhead costs generally cannot be traced conveniently and directly to specific units of product.

Indicate whether each of the following is a product cost or a period cost: (a) Electricity for lighting a factory building. (b) Costs of delivering finished bicycles to dealers. (c) Cost of a store detective in a retail establishment. (d) Cost of eggs in a bakery. (e) Cost of chocolate to a candy manufacturer. (f) Salary of injection molding machine operator in a plastics factory. (g) Salary of a sewing machine operator in a clothing factory. (h) Depreciation of a freezer in an ice cream plant.

A debit balance in the Direct Labor account represents a liability for wages payable.