Acc 212 – Chapter 14

31 December 2022
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T/F:Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers.
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True
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Managerial accounting is different from financial accounting in that:
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Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.
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An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:
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Just-in-time manufacturing.
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Materials that are used in manufacturing but are not clearly identified with specific product units are called:
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Indirect materials.
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Classifying costs by behavior with changes in volume of activity involves:
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Identifying fixed cost and variable cost.
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A fixed cost:
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Does not change with changes in the volume of activity within the relevant range.
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Products that are in the process of being manufactured but are not yet complete are called:
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Work in process inventory or goods in process inventory
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A schedule of cost of goods manufactured is also known as a:
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Manufacturing statement.
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A manufacturing company has a beginning finished goods inventory of $28,600, cost of goods manufactured of $58,800, and an ending finished goods inventory of $27,900. The cost of goods sold for this company is:
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$59,500 (Formula: Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory = COGS)
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Use the following data to compute total manufacturing costs for the month: Sales commissions $12,200 Direct labor 41,000 Indirect materials 16,600 Factory manager salaries 8,600 Factory supplies 10,400 Indirect labor 7,700 Depreciation—office equipment 6,400 Direct materials 41,900 Corporate office salaries 43,900 Depreciation—factory equipment 8,900
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$135,100 (Explanation: Direct labor $41,000 + Indirect materials $16,600 + Factory manager salaries $8,600 + Factory supplies $10,400 + Indirect labor $7,700 + Direct materials $41,900 + Depreciation on factory equipment $8,900 = $135,100) or (Direct materials used + Direct Labor + Total Factory overhead) Pg 640 & 646