Question 1

The cost of goods sold for Michaels Manufacturing in the current year was $233,000.The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200.Cost of goods manufactured during the period was
A)$233,000
B)$225,600
C)$288,800
D)$240,400

Accepted Answer

Cost of goods manufactured = beginning finished goods inventory + cost of goods sold - ending finished goods inventory
Cost of goods manufactured = $31,600 + $233,000 - $24,200
Cost of goods manufactured = $225,600

Question 2

Differentiate between financial and managerial accounting, addressing such issues as users, nature of information, guidelines for preparation, timeliness and focus of reporting.

Accepted Answer

The answer of Differentiate between financial and managerial accounting, addressing...

Question 3

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000.Work in process inventory during the year decreased by 60%.Total manufacturing costs incurred are
A)$190,000
B)$165,000
C)$290,000
D)$315,000

Accepted Answer

The answer of Cost of goods manufactured during the year...

Question 4

The phases 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 to expected results
e Process by which managers run day-to-day operations

Accepted Answer

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

Question 5

Which of the following will not be found on the balance sheet of a manufacturing company?
A)cost of goods sold
B)materials
C)work in process
D)finished goods

Accepted Answer

Cost of goods sold is an expense account and is found on the income statement, not the balance sheet. The other options (materials, work in process, and finished goods) are all inventory accounts and are found on the balance sheet of a manufacturing company.

Question 6

Identify the following costs as a direct materials, b direct labor, or c factory overhead for a lawn mower manufacturer.
1.Wheels
2.Depreciation on worker's tools
3.Wages of assemblers
4.Grease for wheel axles

Accepted Answer

The answer of Identify the following costs as a direct...

Question 7

Which of the following would be least likely to be considered a managerial accounting report?
A)a report to analyze potential efficiencies and savings for the purchase of new production equipment
B)a schedule of total manufacturing costs incurred
C)a statement of cost of goods manufactured
D)a statement of stockholders' equity

Accepted Answer

A statement of stockholders' equity is a financial accounting report, not a managerial accounting report, as it focuses on the financial position of the company rather than internal operations and decision-making. The other options, A, B, and C, are all examples of managerial accounting reports.

Question 8

Differentiate between period and product costs, including examples of each type of cost.​

Accepted Answer

The answer of Differentiate between period and product costs, including...

Question 9

Work in process inventory on December 31 is $42,000.Work in process inventory decreased by 40% during the year.Total manufacturing costs incurred amount to $260,000.What is the cost of goods manufactured?
A)$232,000
B)$302,000
C)$288,000
D)$190,000

Accepted Answer

Beginning work in process inventory = $42,000

Ending work in process inventory = (Beginning work in process inventory) - 40%*(Beginning work in process inventory) = $25,200

Total manufacturing costs incurred = Direct materials + Direct labor + Manufacturing overhead + Beginning work in process inventory - Ending work in process inventory

$260,000 = Direct materials + Direct labor + Manufacturing overhead + $42,000 - $25,200

Direct materials + Direct labor + Manufacturing overhead = $260,000 - $42,000 + $25,200 = $243,200

Cost of goods manufactured = Direct materials + Direct labor + Manufacturing overhead + Beginning work in process inventory - Ending work in process inventory

Cost of goods manufactured = $243,200 + $42,000 - $25,200 = $260,000

Therefore, the cost of goods manufactured is $288,000 (Option C).

Question 10

Work in process inventory increased by $20,000 during the current year.Cost of goods manufactured was $180,000.Total manufacturing costs incurred are
A)$198,000
B)$160,000
C)$189,000
D)$200,000

Accepted Answer

The answer of Work in process inventory increased by $20,000...

Question 11

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

Accepted Answer

The answer of Classify the following costs as direct, indirect,...

Question 12

Match each description to the appropriate term a-d.
a direct materials
b selling and administrative expense
c factory overhead
d direct labor

Accepted Answer

The answer of Match each description to the appropriate term...

Question 13

Differentiate between:
a direct materials versus indirect materials
b direct labor versus indirect labor

Accepted Answer

The answer of Differentiate between:
a direct materials versus indirect materials
b...

Question 14

Differentiate between a line department and a staff department.​

Accepted Answer

The answer of Differentiate between a line department and a...

Question 15

Identify the following costs as a prime cost, b conversion cost, or c both for a cake factory.
1.Frosting
2.Wages of the baker
3.Sprinkles for the topping considered an indirect material
4.Depreciation on oven

Accepted Answer

The answer of Identify the following costs as a prime...

Question 16

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs during the period.If beginning and ending work in process inventories were $28,000 and $32,000, respectively, the cost of goods manufactured was
A)$218,000
B)$226,000
C)$190,000
D)$222,000

Accepted Answer

The answer of A company used $35,000 of direct materials,...

Question 17

Managerial accountants could prepare all of the following reports except
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

Accepted Answer

Managerial accountants are responsible for preparing internal reports for management's decision-making purposes. They would not typically prepare an annual report for external regulators such as the SEC, as this is typically the responsibility of the external auditor or financial reporting team.

Question 18

A company sells goods for $150,000 that cost $54,000 to manufacture.Which statement is true?
A)The company will recognize sales on the balance sheet of $150,000.
B)The company will recognize $96,000 gross profit on the balance sheet.
C)The company will decrease finished goods by $54,000.
D)The company will increase finished goods by $54,000.

Accepted Answer

The correct statement is C) The company will decrease finished goods by $54,000. This is because when goods that cost $54,000 to manufacture are sold, the cost of these goods is removed from the inventory account (finished goods) and recognized as cost of goods sold on the income statement, thus decreasing the finished goods inventory by $54,000.

Question 19

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?
A)$291,500
B)$302,000
C)$275,750
D)$233,750

Accepted Answer

The answer of Work in process inventory on December 31...

Question 20

Managers used managerial information for all of the following except
A)to evaluate the company's stock performance
B)to analyze the performance of a company's operations
C)to support long-term planning decisions
D)to determine the cost of manufacturing a product

Accepted Answer

Managerial information is used for internal decision-making by managers and is not intended for external stakeholders like stockholders. Therefore, evaluating the company's stock performance is not a purpose for managerial information.

Quiz 1: Managerial Accounting Concepts and Principles

The cost of goods sold for Michaels Manufacturing in the current year was $233,000.The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200.Cost of goods manufactured during the period was

Differentiate between financial and managerial accounting, addressing such issues as users, nature of information, guidelines for preparation, timeliness and focus of reporting.

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000.Work in process inventory during the year decreased by 60%.Total manufacturing costs incurred are

Which of the following will not be found on the balance sheet of a manufacturing company?

Identify the following costs as a direct materials, b direct labor, or c factory overhead for a lawn mower manufacturer. 1.Wheels 2.Depreciation on worker's tools 3.Wages of assemblers 4.Grease for wheel axles

Which of the following would be least likely to be considered a managerial accounting report?

Differentiate between period and product costs, including examples of each type of cost.​

Work in process inventory on December 31 is $42,000.Work in process inventory decreased by 40% during the year.Total manufacturing costs incurred amount to $260,000.What is the cost of goods manufactured?

Work in process inventory increased by $20,000 during the current year.Cost of goods manufactured was $180,000.Total manufacturing costs incurred are

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

Match each description to the appropriate term a-d. a direct materials b selling and administrative expense c factory overhead d direct labor

Differentiate between: a direct materials versus indirect materials b direct labor versus indirect labor

Differentiate between a line department and a staff department.​

Identify the following costs as a prime cost, b conversion cost, or c both for a cake factory. 1.Frosting 2.Wages of the baker 3.Sprinkles for the topping considered an indirect material 4.Depreciation on oven

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs during the period.If beginning and ending work in process inventories were $28,000 and $32,000, respectively, the cost of goods manufactured was

Managerial accountants could prepare all of the following reports except

A company sells goods for $150,000 that cost $54,000 to manufacture.Which statement is true?

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?

Managers used managerial information for all of the following except

Differentiate between period and product costs, including examples of each type of cost.

Differentiate between a line department and a staff department.