Question 1

All of the following are examples of indirect labor except

Accepted Answer

A) maintenance personnel 
B) janitorial personnel 
C) machine operators 
D) plant managers

Question 2

Jensen Company's product costs are

Accepted Answer

A) $995,000 
B) $920,000 
C) $825,000 
D) $770,000

Question 3

A staff department has no direct authority over a line department.

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

Work in process inventory on December 31 is $42,000.Work in process inventory decreased by 40% during the year.Total manufacturing costs incurred amount to $260,000.What is the cost of goods manufactured?

Accepted Answer

A) $232,000 
B) $302,000 
C) $288,000 
D) $190,000

Question 6

The controller's staff often consists of several management accountants.All of the following would most likely be on the controller's staff except

Accepted Answer

A) general accountants 
B) budgets and budget analysts 
C) investments and shareholder relations managers 
D) cost accountants

Question 7

Identify the following costs as a prime cost, b conversion cost, or c both for a cake factory.
1.Frosting
2.Wages of the baker
3.Sprinkles for the topping considered an indirect material
4.Depreciation on oven

Accepted Answer

The answer of Identify the following costs as a prime...

Question 8

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000.Work in process inventory during the year decreased by 60%.Total manufacturing costs incurred are

Accepted Answer

A) $190,000 
B) $165,000 
C) $290,000 
D) $315,000

Question 9

The following are some of the costs incurred by Cupcake Company.Identify them as either:
-Factory rent

Accepted Answer

A) Prime costs 
B) Conversion costs 
C) Both prime and conversion costs 
D) Neither prime or conversion costs

Question 10

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.
-Nails and screws used in the production of the bar stools

Accepted Answer

A) Direct 
B) Indirect

Question 11

An example of a period cost is

Accepted Answer

A) advertising expense 
B) indirect materials 
C) depreciation on factory equipment 
D) property taxes on plant facilities

Question 12

Which of the following is not a prime cost?

Accepted Answer

A) plant janitor's wages 
B) direct labor wages 
C) machine operator wages 
D) assembly line wages

Question 13

Which of the following manufacturing costs is an indirect cost of producing a product?

Accepted Answer

A) oil lubricants used for factory machinery 
B) commissions for sales personnel 
C) hourly wages of an assembly worker 
D) memory chips for a microcomputer manufacturer

Question 14

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

Question 15

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.
-Lubricants used on the bar stool manufacturing equipment

Accepted Answer

A) Direct 
B) Indirect

Question 16

A company sells goods for $150,000 that cost $54,000 to manufacture.Which statement is true?

Accepted Answer

A) The company will recognize sales on the balance sheet of $150,000. 
B) The company will recognize $96,000 gross profit on the balance sheet. 
C) The company will decrease finished goods by $54,000. 
D) The company will increase finished goods by $54,000.

Question 17

A performance report that identifies the amount of employee downtime is a financial accounting report.

Accepted Answer

A) True 
 B)False

Question 18

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given.
-Electricity costs to run the factory

Accepted Answer

A) Product 
B) Period

Question 19

Period costs are operating costs that are expensed in the period in which the goods are sold.

Accepted Answer

A) True 
 B)False

Question 20

The following information is taken from the financial records of Gunner Manufacturing:  What is cost of goods manufactured?

Accepted Answer

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

Exam 1: Managerial Accounting Concepts and Principles

All of the following are examples of indirect labor except

Jensen Company's product costs are

A staff department has no direct authority over a line department.

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

Work in process inventory on December 31 is $42,000.Work in process inventory decreased by 40% during the year.Total manufacturing costs incurred amount to $260,000.What is the cost of goods manufactured?

The controller's staff often consists of several management accountants.All of the following would most likely be on the controller's staff except

Identify the following costs as a prime cost, b conversion cost, or c both for a cake factory. 1.Frosting 2.Wages of the baker 3.Sprinkles for the topping considered an indirect material 4.Depreciation on oven

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000.Work in process inventory during the year decreased by 60%.Total manufacturing costs incurred are

The following are some of the costs incurred by Cupcake Company.Identify them as either: -Factory rent

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. -Nails and screws used in the production of the bar stools

An example of a period cost is

Which of the following is not a prime cost?

Which of the following manufacturing costs is an indirect cost of producing a product?

All of the following employees hold line positions in Facebook except

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. -Lubricants used on the bar stool manufacturing equipment

A company sells goods for $150,000 that cost $54,000 to manufacture.Which statement is true?

A performance report that identifies the amount of employee downtime is a financial accounting report.

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given. -Electricity costs to run the factory

Period costs are operating costs that are expensed in the period in which the goods are sold.

The following information is taken from the financial records of Gunner Manufacturing: What is cost of goods manufactured?