FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 16: Introduction to Managerial Accounting

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Beckett, Inc. reports the following cost information for March: $\begin{array} { | l | r | } \hline \text { Cost of Goods Manufactured } & \$ 75,000 \\\hline \text { Manufacturing Overhead } & 19,000 \\\hline \text { Finished Goods Inventory, March 1 } & 5000 \\\hline \text { Finished Goods Inventory, March 31 } & 2000 \\\hline \text { Work-in-Process Inventory, March 1 } & 9980 \\\hline \text { Work-in-Process Inventory, March 31 } & 1160 \\\hline \text { Direct Materials Used } & 25,400 \\\hline\end{array}$ What is the amount of direct labor incurred by Beckett, Inc. in March?

A) $66,180
B) $6400
C) $75,000
D) $21,780

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

Garrett Corporation provided the following information for the year: $\begin{array} { | l | r | } \hline \text { Beginning Balance - Work-in-Process Inventory } & \$ 27,000 \\\hline \text { Ending Balance - Work-in-Process Inventory } & 56,000 \\\hline \text { Beginning Balance - Direct Materials } & 83,000 \\\hline \text { Ending Balance - Direct Materials } & 60,000 \\\hline \text { Purchases - Direct Materials } & 360,000 \\\hline \text { Direct Labor } & 471,000 \\\hline \text { Indirect Labor } & 18,000 \\\hline \text { Depreciation on Factory Plant and Equipment } & 25,000 \\\hline \text { Plant Utilities and Insurance } & 271,000 \\\hline\end{array}$ What was the amount of direct materials used in production during the year?

A) $66,000
B) $360,000
C) $383,000
D) $831,000

Correct Answer

verified

Show Answer

Question 33

True/False

Review LaterAdd Note

The wages of factory janitors are considered to be direct labor costs because they are directly related to the manufacturing process.

Service companies sell their time, skills, and knowledge.

________ is a philosophy of continuous improvement of products and processes.

Nurix, Inc. is a business consulting firm. During the month of February, Nurix earned $55,600 of revenues by providing services to 47 clients. Operating costs for February were $8500 and non-operating costs were $6000. What is the unit cost per service? (Round your answer to the nearest cent.)

Classify each cost of a furniture manufacturer as either a product cost (PR) or a period cost (PE). $\begin{array} { | l | l | } \hline{ \text { Cost } } & \text { PR or PE } \\\hline \text { Vice president of marketing's salary } & \\\hline \text { Delivery expense } & \\\hline \text { Wood used to make dining tables } & \\\hline \text { Depreciation on office equipment } & \\\hline \text { Production supervisor's salary } & \\\hline \text { Factory insurance } & \\\hline \text { Corporate office rent } & \\\hline\end{array}$

Which of the following is the primary focus of financial accounting?

Define period cost. Give three examples of period costs of a merchandising company.

Total manufacturing costs to account for during the year minus the ending Work-in-Process Inventory equals the cost of goods manufactured.

Belstone, Inc. is a merchandiser of stone ornaments. It sold 15,000 units during the year. The company has provided the following information: $\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 525,000 \\\hline \text { Purchases (excluding Freight In) } & 347,000 \\\hline \text { Selling and Administrative Expenses } & 36,500 \\\hline \text { Freight In } & 15,500 \\\hline \text { Beginning Merchandise Inventory } & 42,000 \\\hline \text { Ending Merchandise Inventory } & 55,500 \\\hline\end{array}$ How much is the gross profit for the year?

Manufacturing companies produce their own products, but merchandising companies do not.

Silver Crafts, Inc. purchases and sells bracelets. The following information summarizes the company's operating activities for the year: $\begin{array} { | l | r | } \hline \text { Selling and Administrative Expenses } & \$ 5300 \\\hline \text { Purchases } & 157,000 \\\hline \text { Sales Revenue } & 785,000 \\\hline \text { Merchandise Inventory, January 1 } & 2350 \\\hline \text { Merchandise Inventory, December 31 } & 38,350 \\\hline\end{array}$ If the company sold 7900 units of bracelets during the year, how much is the cost for one bracelet? (Round your answer to the nearest cent.)

Companies that provide healthcare, communication, banking and other benefits to society are called ________.

Which of the following describes the cost of goods manufactured?

Identify each cost as a period cost or a product cost. -Materials used in making products

The following information was obtained from Moreau Manufacturing, Inc.: $\begin{array} { | l | r | } \hline \text { Advertising Costs } & \$ 9900 \\\hline \text { Indirect Labor } & 53,000 \\\hline \text { CEO's Salary } & 620,000 \\\hline \text { Direct Labor } & 40,000 \\\hline \text { Indirect Materials Used } & 7500 \\\hline \text { Direct Materials Used } & 65,000 \\\hline \text { Factory Utilities } & 760 \\\hline \text { Factory Janitorial Costs } & 1200 \\\hline \text { Manufacturing Equipment Depreciation } & 3100 \\\hline \text { Delivery Vehicle Depreciation } & 1000 \\\hline \text { Administrative Wages and Salaries } & 24,000 \\\hline\end{array}$ Calculate Moreau Manufacturing's total product costs.

Manufacturing overhead includes indirect manufacturing costs, such as insurance and depreciation on the factory building.

Vermont State, Inc. used $153,000 of direct materials and incurred $63,000 of direct labor costs during the year. Indirect labor amounted to $270,000, while indirect materials used totaled $53,000. Other operating costs pertaining to the factory included utilities of $135,500; maintenance of $70,260; repairs of $53,400; depreciation of $133,000; and property taxes of $74,640. There was no beginning or ending finished goods inventory, but Work-in-Process inventory began the year with a $5000 balance and ended the year with a $7400 balance. How much is the cost of goods manufactured?

A manufacturer produced 7,500 total units. The cost of goods manufactured is $88,000 and the cost of goods sold is $71,000. The unit product cost is $9.47.