Question 1

Match between columns
                        Premises: Baker's wages
Cupcake mix
Factory rent
Sprinkles for decoration (indirect material)
Salesman commissions
Frosting
Depreciation expense-factory
Depreciation expense-office

Accepted Answer

The Answer of Conversion costs and Neither prime or conversion is...

Question 2

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 wagesE) A) and B)
F) None of the above

Question 3

Given the following data: 
Direct materials used is

Accepted Answer

A)   $2,000
B)   $4,000
C)   $8,000
D)   $14,000E) None of the above
F) C) and D)

Question 4

Accounting designed to meet the needs of decision makers inside the business is

Accepted Answer

A)   general accounting
B)   financial accounting
C)   managerial accounting
D)   external accountingE) A) and B)
F) A) and C)

Question 5

The Darwin Company reports the following information:  Product costs are

Accepted Answer

A)   $24,500
B)   $30,300
C)   $29,200
D)   $35,000E) A) and C)
F) A) and B) D

Question 6

The primary goal of managerial accounting is to provide information to

Accepted Answer

A)   investors
B)   creditors
C)   management
D)   external auditorsE) A) and B)
F) A) and C)

Question 7

Cost of goods sold for a manufacturer equals cost of goods manufactured plus

Accepted Answer

A)   beginning work in process inventory less ending work in process inventory
B)   ending work in process inventory less beginning work in process inventory
C)   beginning finished goods inventory less ending finished goods inventory
D)   ending finished goods inventory less beginning finished goods inventoryE) B) and D)
F) B) and C)

Question 8

Classify the following costs as either a Product Cost or a Period Cost:

Accepted Answer

a) Product 
b) Product 
c) Period 
d) Product 
e) Product 
f) Period 
g) Product 
h) Period 
i) Product 
j) Product 
k) Product 
l) Product

Question 9

Which of the following is the principle reason for preparing managerial accounting reports?

Accepted Answer

A)   usefulness to management
B)   cost of preparation
C)   clarity
D)   GAAPE) A) and D)
F) A) and C)

Question 10

The Putney Company reports the following information:  
Compute: 
a) product costs 
b) period costs

Accepted Answer

a) product costs = $7,300 + $4...

Question 11

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) None of the above
F) C) and D)

Question 12

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) None of the above
F) A) and D)

Question 13

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following costs are 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) B) and C)
F) All of the above

Question 15

For a construction contractor, the wages of carpenters would be classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 16

Depreciation on factory plant and equipment is an example of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 17

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 accountantsE) A) and D)
F) C) and D)

Question 18

The following information is available for Carter Corporation: 
1) Materials inventory decreased $4,000. 
2) Materials inventory on December 31 was 50% of materials inventory on January 1. 
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 
(b) Work in process inventory on December 31 
(c) Direct labor incurred 
(d) Factory overhead incurred 
(e)  Materials inventory on January 1 
(f) M aterials inventory on December 31 
(g) Direct materials used

Accepted Answer

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

Question 19

All of the following could be considered a direct material except

Accepted Answer

A)   steel
B)   fabric
C)   glue
D)   lumberE) C) and D)
F) None of the above C

Question 20

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

Accepted Answer

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

Exam 1: Introduction to Managerial Accounting

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

Which of the following is not a prime cost?

Correct Answer
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Given the following data: Direct materials used is

Correct Answer
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Accounting designed to meet the needs of decision makers inside the business is

Correct Answer
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The Darwin Company reports the following information: Product costs are

Correct Answer
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D

The primary goal of managerial accounting is to provide information to

Correct Answer
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Cost of goods sold for a manufacturer equals cost of goods manufactured plus

Correct Answer
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Classify the following costs as either a Product Cost or a Period Cost:

Correct Answer
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a) Product b) Product c) Period d) Product e) Product f) Period g) Product h) Period i) Product j) Product k) Product l) Product

Which of the following is the principle reason for preparing managerial accounting reports?

Correct Answer
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The Putney Company reports the following information: Compute: a) product costs b) period costs

Correct Answer
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a) product costs = $7,300 + $4...
View Answer

Period costs include

Correct Answer
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Which of the following is not a factory overhead cost?

Correct Answer
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Factory overhead includes all manufacturing costs except direct materials and direct labor.

Correct Answer
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Which of the following costs are conversion costs?

Correct Answer
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For a construction contractor, the wages of carpenters would be classified as factory overhead cost.

Correct Answer
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Depreciation on factory plant and equipment is an example of factory overhead cost.

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

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

All of the following could be considered a direct material except

Correct Answer
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C

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

Correct Answer
verified

Exam 1: Introduction to Managerial Accounting

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

Which of the following is not a prime cost?

Correct AnswerverifiedShow Answer

Given the following data: Direct materials used is

Correct AnswerverifiedShow Answer

Accounting designed to meet the needs of decision makers inside the business is

Correct AnswerverifiedShow Answer

The Darwin Company reports the following information: Product costs are

Correct AnswerverifiedD

The primary goal of managerial accounting is to provide information to

Correct AnswerverifiedShow Answer

Cost of goods sold for a manufacturer equals cost of goods manufactured plus

Correct AnswerverifiedShow Answer

Classify the following costs as either a Product Cost or a Period Cost:

Correct Answerverifieda) Product b) Product c) Period d) Product e) Product f) Period g) Product h) Period i) Product j) Product k) Product l) Product

Which of the following is the principle reason for preparing managerial accounting reports?

Correct AnswerverifiedShow Answer

The Putney Company reports the following information: Compute: a) product costs b) period costs

Correct Answerverifieda) product costs = $7,300 + $4...View AnswerShow Answer

Period costs include

Correct AnswerverifiedShow Answer

Which of the following is not a factory overhead cost?

Correct AnswerverifiedShow Answer

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Correct AnswerverifiedShow Answer

Which of the following costs are conversion costs?

Correct AnswerverifiedShow Answer

For a construction contractor, the wages of carpenters would be classified as factory overhead cost.

Correct AnswerverifiedShow Answer

Depreciation on factory plant and equipment is an example of factory overhead cost.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answerverified(a) Cost of goods sold = $246,400 + $156...View AnswerShow Answer

All of the following could be considered a direct material except

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

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D

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a) Product b) Product c) Period d) Product e) Product f) Period g) Product h) Period i) Product j) Product k) Product l) Product

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a) product costs = $7,300 + $4...
View Answer

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(a) Cost of goods sold = $246,400 + $156...
View Answer

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C

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