Exam 16: Management Accounting: a Business Partner

The "cost of finished goods manufactured",which appears on the bottom of the Schedule of Finished Goods Manufactured,flows to the balance sheet and is reported as the ending inventory balance.

A schedule of the cost of finished goods manufactured summarizes the flow of manufacturing costs into and out of the finished goods inventory account.

Flow of manufacturing costs The "flow" of manufacturing costs through the ledger of Wolpe Mfg.Co.during the month of October is summarized in the following T accounts.Certain amounts have been omitted and are represented by question marks. From the data supplied above,determine each of the following amounts.Some of the required amounts already appear in the T accounts; others require a short computation. (a)The amount of direct materials used during the month: $___________ (b)The amount paid to direct labor workers during the month: $___________ (c)The amount of accrued wages payable to direct labor workers at October 31: $___________ (d)Total manufacturing costs charged (debited)to the Work in Process Inventory account during the month: $___________ (e)The cost of finished goods manufactured during the month: $___________

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

The cost of the employee who computes total manufacturing costs would be considered as:

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 indirect product costs totaled:

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

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

When products are completed:

During its first year of operations,Brown Company incurred the following product costs: Direct materials used in production $200,000 Direct labor $175,000 Manufacturing overhead $145,500 Brown Company's ending Work in Process Inventory amounted to $35,000 at the end of the year.What is the company's cost of finished goods manufactured for the year?

The following information is for the Choplin Company for 2015: Required: (1)What is the cost of materials purchased? (2)What is the cost of goods sold? (3)What is gross profit? (4)What is net profit?

The ending inventory of a merchandising company corresponds most closely to which of the following amounts of a manufacturer?

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 total product 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: $___________

Goods that are still in the production process would be in which account?

The following information is available for the LBB Company for the year 2015: Required (1)What are total manufacturing costs charged to work in process? (2)What are costs of finished goods manufactured? (3)What is the cost of goods sold? (4)What is gross profit? (5)What is operating income?

Product costs are charged directly to expense accounts.

When a manufacturing company purchases raw materials or component parts to be used in manufacturing finished goods,these costs are initially debited to:

Product costs become part of inventory and are placed on the balance sheet until the products are sold.

Managerial accounting refers to the preparation and use of accounting information designed to meet the needs of decision makers inside and outside the business organization.