Chapter 14 example #67413

Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers. True False

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable. True False

Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines. True False

A variable cost changes in proportion to changes in the volume in activity. True False

Product costs can refer to expenditures necessary to finish products and to the administrative support during the time period. True False

The sales commission incurred based on units of product sold during the month is an example of a product cost. True False

Product costs can be classified as one of three types: direct materials, direct labor, or overhead. True False

The Work in Process Inventory account is found only in the ledgers of merchandising companies. True False

Prime costs consist of direct labor and factory overhead. True False

The schedule of cost of goods manufactured must be prepared monthly as it is a required general-purpose financial statement. True False

A direct cost is a cost that is: Identifiable as controllable. Traceable to the company as a whole. Does not change with the volume of activity. Traceable to a single cost object. Traceable to multiple cost objects.

A fixed cost: Requires the future outlay of cash and is relevant for future decision making. Does not change with changes in the volume of activity within the relevant range. Is directly traceable to a cost object. Changes with changes in the volume of activity within the relevant range. Is irrelevant for cost-volume-profit and short-term decision making.

Last year, Gordon Company sold 20,000 units of its only product. If sales increase by 20% in the current year, how will unit variable cost and total fixed cost be affected? Unit Variable Cost Total Fixed Cost A) Remains constant Remains constant B) Increases Decreases C) Decreases Remains constant D) Remains constant Decreases E) Remains constant Increases Choice A Choice B Choice C Choice D Choice E

Costs that are capitalized as inventory when they are incurred are called: Period costs. Product costs. General costs. Administrative costs. Fixed costs.

The cost of workers who assist in or supervise the manufacturing process, not linked to specific units of product is called: Unspecified labor. Direct labor. Indirect labor. Basic labor. Joint labor.

Which of the following items appears only in a manufacturing company's financial statements? Cost of goods sold. Cost of goods manufactured. Goods available for sale. Gross profit. Net income.

A manufacturing firm's cost of goods manufactured is equivalent to a merchandising firm's: Cost of goods sold. Cost of goods purchased. Cost of goods available. Beginning merchandise inventory. Ending merchandise inventory.

A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800. The cost of goods sold for this company is: $21,200. $29,300. $32,500. $47,100. $27,600.

Mustang Corporation has accumulated the following accounting data for the month of April: Finished goods inventory, April 1 $30,200 Finished goods inventory, April 30 24,600 Total cost of goods manufactured 114,500 The cost of goods sold for the year is: $169,300. $108,900. $59,700. $120,100. $144,700.

Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. Its conversion costs total: $10,000,000. $8,000,000. $12,000,000. $5,000,000. $15,000,000.

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending Raw materials inventory $547,000 $610,000 The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to: $955,000. $892,000. $1,565,000. $408,000. $1,081,000.

Asteroid Industries accumulated the following cost information for the year: Direct materials $16,000 Indirect materials 4,000 Indirect labor 8,500 Factory depreciation 12,800 Direct labor 37,000 Using the above information, total factory overhead costs would be: $78,300. $25,300. $12,800. $16,800. $53,000.

Using the information below for Singing Dolls, Inc., determine the total manufacturing costs incurred during the year: Work in Process, January 1 50,000 Work in Process, December 31 37,000 Direct materials used $12,500 Total Factory overhead 5,500 Direct labor used 26,500 $13,000. $44,500. $57,500. $94,500. $89,000.

Using the information below for Sundar Company; determine the total manufacturing costs added during the current year: Direct materials used $19,000 Direct labor used 24,500 Factory overhead 55,100 Beginning work in process 10,700 Ending work in process 11,300 $98,600. $43,500. $98,000. $42,900. $79,000.

Use the following data to compute total manufacturing costs for the month. Sales commissions 10,800 Direct labor 39,600 Indirect materials 15,200 Factory manager salaries 7,200 Factory supplies 9,000 Indirect labor 6,300 Depreciation—office equipment 5,000 Direct materials 40,500 Corporate office salaries 42,500 Depreciation—factory equipment 7,500 $141,100. $125,300. $45,200. $84,800. $58,300.