CH 18 ACC

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

$200,000

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is

$270,000

Rent expense on a factory building would be treated as a

product cost

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

$218,000

Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290.

$384,200

Compute conversion costs given the following data: direct materials, $390,300; direct labor, $197,400; factory overhead, $195,000 and selling expenses, $39,700.

$392,400

Materials must have which two qualities in order to be classified as direct materials?

They must be an integral part of the finished product and a significant portion of the total product cost.

Which of the following is not a characteristic of useful managerial accounting reports?

adhere to GAAP

In most business organizations, the chief management accountant is called the

controller

What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?

controlling

What term refers to the cost of changing direct materials into a finished manufactured product?

conversion cost

Which of the following are reported on the income statement as part of cost of goods?

cost of goods manufactured

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

cost of goods sold

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as a

direct labor cost

The cost of a manufactured product generally consists of which of the following costs?

direct labor cost, direct materials cost, and factory overhead cost

Managers use managerial accounting information for all of the following except to

evaluate the company's stock performance

Which of the following is an example of a factory overhead cost?

factory heating and lighting cost

All of the following would be reported on the balance sheet as a current asset except

factory overhead

Indirect labor and indirect materials are classified as

factory overhead and product costs

If the cost of a material is a small portion of total production cost, it may be classified as part of

factory overhead cost

All of the following could be considered a direct material except

glue

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

investments and shareholder relations managers

The primary goal of managerial accounting is to provide information to

management

Which of the following is most associated with managerial accounting?

may rely on estimates and forecasts

Period costs include

operating costs that are shown on the income statement in the period in which they are incurred

Costs on the income statement for both a merchandiser and a manufacturer would be

operating expenses

What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

planning

Which of the following are basic phases of the management process?

planning and controlling

Managerial accounting reports are

prepared according to management needs

Indirect costs incurred in a manufacturing environment that are not traced directly to a product are treated as

product costs and expensed when the goods are sold

Goods that are partially completed by a manufacturer are

work in process inventory

Which of the following accounts will not be found on the statement of cost of goods manufactured?

Cost of Goods Sold

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

a statement of stockholders' equity