Question 1

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) C) and D)
F) A) and B)

Question 2

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 D)
F) C) and D)

Question 3

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 B)
F) C) and D)

Question 4

Prime costs are the combination of direct labor costs and factory overhead costs.

Accepted Answer

A) True 
 B)False

Question 5

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

Accepted Answer

A) True 
 B)False

Question 6

Cost of goods manufactured is equal to:

Accepted Answer

A)   total manufacturing costs plus ending materials inventory less beginning materials inventory
B)   cost of goods sold plus beginning work in process inventory less ending work in process inventory
C)   total manufacturing costs plus ending work in process inventory less beginning work in process inventory
D)   total manufacturing costs plus beginning work in process inventory less ending work in process inventoryE) A) and B)
F) All of the above

Question 7

Which of the following is false in regards to direct materials for an auto manufacturer?

Accepted Answer

A)   Steel would probably be a direct material.
B)   Upholstery fabric would probably be a direct material
C)   Oil to lubricate factory machines would not be a direct material.
D)   Small plastic clips to hold on door panels, that become part of the auto, must be accounted for as direct materials.E) B) and D)
F) All of the above

Question 8

Watson Company has the following data:

Show how you would calculate the amount of Direct Materials Used.

Accepted Answer

[($25,000 - $18,000)...

Question 9

Williams Company reports production costs for 2015 as follows: 
 Williams Company's period costs for 2015 amount to:

Accepted Answer

A)   $345,000
B)   $250,000
C)   $400,000
D)   $175,000E) B) and C)
F) None of the above

Question 10

Which of the following is considered a part of factory overhead cost?

Accepted Answer

A)   Sales commissions
B)   Depreciation of factory buildings
C)   Depreciation of office equipment
D)   Direct materials usedE) B) and C)
F) A) and D)

Question 11

Goods that are partway through the manufacturing process, but not yet complete, are referred to as materials inventory.

Accepted Answer

A) True 
 B)False

Question 12

Controlling deals with choosing goals and deciding how to achieve them.

Accepted Answer

A) True 
 B)False

Question 13

The aspects of the management process are listed below. Match each phase to the appropriate description.
_____ Planning
_____ Directing
_____ Controlling
_____ Improving
_____ Decision making
a) Used by managers for continuous improvement
b) Managers must decide how to respond to unfavorable performances
c) Used by management to develop the organization's objectives and goals
d) Monitoring the operating results of implemented plans and comparing actual results
e) Managers run their day to day activities

Accepted Answer

The answer of The aspects of the management process are...

Question 14

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Accepted Answer

A)   Investors
B)   Managers
C)   Shareholders
D)   CustomersE) All of the above
F) A) and C)

Question 15

Labor costs that are directly traceable to the product are part of factory overhead.

Accepted Answer

A) True 
 B)False

Exam 16: Managerial Accounting Concepts and Principles

Product costs

Correct Answer
verified

Watson Company has the following data: Show how you would calculate the amount of Direct Materials Used.

Correct Answer
verified
[($25,000 - $18,000)...
View Answer

Prime costs are the combination of direct labor costs and factory overhead costs.

Correct Answer
verified

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Correct Answer
verified

Williams Company reports production costs for 2015 as follows: Williams Company's period costs for 2015 amount to:

Correct Answer
verified

Cost of goods manufactured is equal to:

Correct Answer
verified

Goods that are partway through the manufacturing process, but not yet complete, are referred to as materials inventory.

Correct Answer
verified

Correct Answer
verified

Which of the following is considered a part of factory overhead cost?

Correct Answer
verified

Which of the following is false in regards to direct materials for an auto manufacturer?

Correct Answer
verified

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

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

Labor costs that are directly traceable to the product are part of factory overhead.

Correct Answer
verified

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

Correct Answer
verified

Controlling deals with choosing goals and deciding how to achieve them.

Correct Answer
verified

Exam 16: Managerial Accounting Concepts and Principles

Product costs

Correct AnswerverifiedShow Answer

Watson Company has the following data: Show how you would calculate the amount of Direct Materials Used.

Correct Answerverified[($25,000 - $18,000)...View AnswerShow Answer

Prime costs are the combination of direct labor costs and factory overhead costs.

Correct AnswerverifiedShow Answer

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Correct AnswerverifiedShow Answer

Williams Company reports production costs for 2015 as follows: Williams Company's period costs for 2015 amount to:

Correct AnswerverifiedShow Answer

Cost of goods manufactured is equal to:

Correct AnswerverifiedShow Answer

Goods that are partway through the manufacturing process, but not yet complete, are referred to as materials inventory.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is considered a part of factory overhead cost?

Correct AnswerverifiedShow Answer

Which of the following is false in regards to direct materials for an auto manufacturer?

Correct AnswerverifiedShow Answer

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

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

Labor costs that are directly traceable to the product are part of factory overhead.

Correct AnswerverifiedShow Answer

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

Correct AnswerverifiedShow Answer

Controlling deals with choosing goals and deciding how to achieve them.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
[($25,000 - $18,000)...
View Answer

Correct Answer
verified

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verified

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