Question 1

Period costs can be found in the balance sheet.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a factory overhead cost?

Accepted Answer

A)   materials used directly in the manufacturing process of the product
B)   insurance on factory equipment
C)   salaries of production supervisors
D)   property tax on factory buildingE) A) and D)
F) B) and C)

Question 3

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 4

The following information is available for Carter Corporation for 2012:
1) Materials inventory decreased $4,000 during 2012.
2) Materials inventory on December 31, 2012, was 50% of materials inventory on January 1, 2012.
3) Beginning work in process inventory was $145,000.
4) Ending finished goods inventory was $65,000.
5) Purchases of direct materials were $154,700.
6) Direct materials used were 2.5 times the cost of direct labor.
7) Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $156,000 less than cost of goods sold.
Compute:
a) finished goods inventory on January 1, 2012
b) work in process inventory on December 31, 2012
c) direct labor incurred
d) factory overhead incurred
e) direct materials used
f) materials inventory on January 1, 2012
g) materials inventory on December 31, 2012
Note to students: The answers are not necessarily calculated in alphabetical order.

Accepted Answer

a) cost of goods sold = $246,400 + $156,...

Question 5

Which of the following is an example of direct labor cost for an airplane 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 jet enginesE) A) and B)
F) A) and C)

Question 6

Which of the following costs are referred to as conversion costs?

Accepted Answer

A)   Direct labor cost and factory overhead cost
B)   Direct materials cost and direct labor cost
C)   Factory overhead cost
D)   Direct materials cost and factory overhead costE) A) and D)
F) A) and C)

Question 7

Costs which are reported on the income statement as part of cost of goods sold are referred to as:

Accepted Answer

A)   administrative expenses
B)   period costs
C)   cost of goods manufactured
D)   operating expensesE) B) and C)
F) All of the above

Question 8

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as:

Accepted Answer

A)   period costs and expensed when incurred
B)   product costs and expensed when the goods are sold
C)   product costs and expenses when incurred
D)   period costs and expensed when the goods are soldE) A) and C)
F) C) and D)

Question 9

Product costs

Accepted Answer

A)   appear only on the balance sheet
B)   appear only on the income statement
C)   are expensed as costs are incurred for direct labor, direct material and factory overhead
D)   appear on both the income statement and balance sheetE) B) and C)
F) None of the above

Question 10

What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?

Accepted Answer

A)   Improving
B)   Controlling
C)   Directing
D)   PlanningE) A) and B)
F) A) and C)

Question 11

Goods that are partially completed by a manufacturer are referred to as:

Accepted Answer

A)   merchandise inventory
B)   work in process inventory
C)   finished goods inventory
D)   materials inventoryE) None of the above
F) B) and C)

Question 12

Work in process inventory on December 31, 2011, is $44,000. Work in process inventory increased by 60% during 2011. Cost of goods manufactured for 2011 amounts to $275,000. What are the total manufacturing costs incurred in 2011?

Accepted Answer

A)   $291,500
B)   $302,000
C)   $275,750
D)   $233,750E) None of the above
F) A) and C)

Question 13

Magnus Industries has the following data:

Accepted Answer

Show how you would calculate R...

Question 14

What is the amount of Raw Materials Used?

Accepted Answer

A)   $5,000
B)   $65,000
C)   $75,000
D)   $30,000E) B) and C)
F) A) and D)

Question 15

Conversion costs consist of product costs and period costs.

Accepted Answer

A) True 
 B)False

Question 16

Managerial accountants would most likely prepare all of the following reports except:

Accepted Answer

A)   A performance report identifying amounts of scrap.
B)   A control report comparing direct material usage over time.
C)   A sales report targeting monthly sales and potential bonuses.
D)   An annual report for external regulators such as the SEC.E) All of the above
F) A) and D)

Question 17

Period costs include direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 18

Classify the following costs as direct, indirect, or neither:

Accepted Answer

a) indirect
b) indirect
c) ind...

Question 19

Beginning work in process is equal to:

Accepted Answer

A)   cost of goods manufactured plus ending work in process minus manufacturing costs incurred during the current period
B)   cost of goods manufactured minus ending work in process plus manufacturing costs incurred during the current period
C)   ending work in process plus manufacturing costs incurred during the current period
D)   manufacturing costs incurred during the current period minus ending work in processE) B) and C)
F) B) and D)

Question 20

Period costs include:

Accepted Answer

A)   current assets on the balance sheet
B)   current liabilities on the balance sheet
C)   operating costs that are shown on the income statement when products are sold
D)   operating costs that are shown on the income statement in the period in which they are incurredE) C) and D)
F) A) and D)

Exam 15: Managerial Accounting Concepts and Principles

Period costs include direct materials and direct labor.

Correct Answer
verified

What is the amount of Raw Materials Used?

Correct Answer
verified

Period costs include:

Correct Answer
verified

Work in process inventory on December 31, 2011, is $44,000. Work in process inventory increased by 60% during 2011. Cost of goods manufactured for 2011 amounts to $275,000. What are the total manufacturing costs incurred in 2011?

Correct Answer
verified

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as:

Correct Answer
verified

Beginning work in process is equal to:

Correct Answer
verified

Which of the following costs are referred to as conversion costs?

Correct Answer
verified

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

Correct Answer
verified

Classify the following costs as direct, indirect, or neither:

Correct Answer
verified
a) indirect
b) indirect
c) ind...
View Answer

Costs which are reported on the income statement as part of cost of goods sold are referred to as:

Correct Answer
verified

Which of the following is an example of direct labor cost for an airplane manufacturer?

Correct Answer
verified

Managerial accountants would most likely prepare all of the following reports except:

Correct Answer
verified

Magnus Industries has the following data:

Correct Answer
verified
Show how you would calculate R...
View Answer

Product costs

Correct Answer
verified

What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?

Correct Answer
verified

Period costs can be found in the balance sheet.

Correct Answer
verified

Goods that are partially completed by a manufacturer are referred to as:

Correct Answer
verified

Which of the following is not a factory overhead cost?

Correct Answer
verified

Conversion costs consist of product costs and period costs.

Correct Answer
verified

Correct Answer
verified
a) cost of goods sold = $246,400 + $156,...
View Answer

Exam 15: Managerial Accounting Concepts and Principles

Period costs include direct materials and direct labor.

Correct AnswerverifiedShow Answer

What is the amount of Raw Materials Used?

Correct AnswerverifiedShow Answer

Period costs include:

Correct AnswerverifiedShow Answer

Work in process inventory on December 31, 2011, is $44,000. Work in process inventory increased by 60% during 2011. Cost of goods manufactured for 2011 amounts to $275,000. What are the total manufacturing costs incurred in 2011?

Correct AnswerverifiedShow Answer

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as:

Correct AnswerverifiedShow Answer

Beginning work in process is equal to:

Correct AnswerverifiedShow Answer

Which of the following costs are referred to as conversion costs?

Correct AnswerverifiedShow Answer

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

Correct AnswerverifiedShow Answer

Classify the following costs as direct, indirect, or neither:

Correct Answerverifieda) indirectb) indirectc) ind...View AnswerShow Answer

Costs which are reported on the income statement as part of cost of goods sold are referred to as:

Correct AnswerverifiedShow Answer

Which of the following is an example of direct labor cost for an airplane manufacturer?

Correct AnswerverifiedShow Answer

Managerial accountants would most likely prepare all of the following reports except:

Correct AnswerverifiedShow Answer

Magnus Industries has the following data:

Correct AnswerverifiedShow how you would calculate R...View AnswerShow Answer

Product costs

Correct AnswerverifiedShow Answer

What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?

Correct AnswerverifiedShow Answer

Period costs can be found in the balance sheet.

Correct AnswerverifiedShow Answer

Goods that are partially completed by a manufacturer are referred to as:

Correct AnswerverifiedShow Answer

Which of the following is not a factory overhead cost?

Correct AnswerverifiedShow Answer

Conversion costs consist of product costs and period costs.

Correct AnswerverifiedShow Answer

Correct Answerverifieda) cost of goods sold = $246,400 + $156,...View AnswerShow Answer

Correct Answer
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a) indirect
b) indirect
c) ind...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Show how you would calculate R...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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a) cost of goods sold = $246,400 + $156,...
View Answer