MBA 600 Attempt 1
If total assets decreased by $88,000 during a period of time and stockholders' equity increased by $71,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is ____
$159,000 decrease. -$88,000= liabilties + $71,000 88,000 - 71,000= liabilities -$159,000
Jensen Company reports the following: Direct Materials used: $345,000 Direct Labor Incurred: $250,000 Factory Overhead Incurred: $400,000 Operating Expenses: $175,000 This means Jensen Company's period costs are:
$175,000, operating expenses
The Darwin Company reports the following information: Sales $76,500 Direct materials used 7,300 Depreciation on factory equipment 4,700 Indirect labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales salaries expense 15,600 Office salaries expense 8,900 Indirect materials 1,200 Period costs are a. $24,500 b. $30,300 c. $29,200 d. $35,000
$24,500 Sales salaries expense + office salaries expense
The assets and liabilities of a company are $128,000 and $84,000, respectively. Stockholder's equity should equal _____
$44,000
The Darwin Company reports the following information: Sales $76,500 Direct materials used 7,300 Depreciation on factory equipment 4,700 Indirect labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales salaries expense 15,600 Office salaries expense 8,900 Indirect materials 1,200 Product costs are ____
$7,300 (DM cost) + $10,500 (DL costs) + $17,200 (FO) = product costs $35,000
Finished good inventory is reported on the ______
Balance sheet as current assets
Which of the following would not be found on the balance sheet of a manufacturing company?
Cost of goods sold
If total assets decreased by $30,000 during a specific period and stockholders' equity decreased by $35,000 during the same period, the period's change in total liabilities was a $65,000 increase.
-$30,000 + $35,000 = $5,000 liabilities
What are a few examples of a factory overhead cost?
-factory heating and lighting cost - repairing and maintaining factory equipment - property taxes on factory buildings and land - insurance on factory buildings depreciation on factory plant and equipment
All of the following would be reported on the balance sheet as a current assets except:
Factory overhead
Conversion costs are ______ and ______
Factory overhead and direct labor
Costs other than direct materials cost and direct labor cost accrued in the manufacturing process are classified as _______
Factory overhead cost
If the cost of a direct material is a small portion of total production cost, it may be classifies as part of ______
Factory overhead cost
Which of the following is not a characteristic of useful managerial accounting reports?
GAAP—adhering
Four financial statements are usually prepared for a business. The statement of cash flows is usually prepared last. The statement of stockholders' equity (SSE), the balance sheet (B), and the income statement (I) are prepared in a certain order to obtain information needed for the next statement. In what order are these three statements prepared?
I, SSE, B
A financial statement that would determine if a company was profitable or not during a specific period of time by reviewing the ______
Income statement
A plant manager's salary is an ______
Indirect cost
Which of the following terms is used to describe the process of developing the organization's objectives and translating those into courses of action?
Planning
For a bicycle company, electricity for the factory would be considered a _____ cost
Product
For a bicycle company, tires would be considered a _____ cost
Product
Which of the following must be true in order for materials to be classified as direct materials?
They must be an integral part of the finished product and be a significant portion of the total product cost
Managerial accountants could prepare all of the following reports except an ______
annual report for external regulators such as the SEC
The accounting equation may be expressed as:
assets- liabilities= stockholders' equity
Which of the following financial statements reports information as of a specific date?
balance sheet
liabilities are reported on the
balance sheet
In order to be useful to manager, managerial accounting reports should possess all of the following characteristics except:
be prepared in accordance with generally accepted accounting principles (GAAP)
To a cake factory, wages of a baker is a _____ cost
both prime and conversion
To a lawn mower manufacturer, wages of assemblers are a ______ cost
direct labor
The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as ____
direct labor cost
Which of the following costs are a conversion cost?
direct labor cost and factory overhead 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
To a lawn mower manufacturer, wheels are a ______ cost
direct materials
To a lawn mower manufacturer, depreciation on worker's tools are a ______ cost
factory overhead
To a lawn mower manufacturer, grease for wheel axels are a ______ cost
factory overhead
Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as _____
factory overhead cost
All of the following could be considered a direct material except: - steel - fabric - glue - lumber
glue
Factory overhead costs are ______ costs of the product
indirect
Debts owed by a business are referred to as ___
liabilities
All of the following are examples of indirect labor except:
machine operators
The primary goal of managerial accounting is to provide information to ____
management
Accounting designed to meet the needs of decision makers inside the business is _____
managerial accounting
Which of the following is not a factory overhead cost?
materials used directly in the manufacturing process of the product
Which of the following is most associated with managerial accounting?
may rely on estimates and forecasts
advertising expense is a ____ cost
period
depreciation on store equipment is a ____ cost
period
salespersons' commission is a ____ cost
period
Which of the following terms is used to describe the process of developing the organization's objectives and translating those into courses of action?
planning
Which of the following is not a prime cost?
plant janitor's wages
To a cake factory, frosting is a _____ cost
prime
____ costs consist of direct materials and direct labor costs
prime
depreciation on factory machinery is a _____ cost
product
direct labor incurred is a ___ cost
product
direct materials used are a ____ cost
product
factory machinery repairs and maintenance is a ____ cost
product
factory utilities are a ____ cost
product
indirect labor incurred is a ____ cost
product
indirect materials used is a ____ cost
product
plant insurance expired is a _____ cost
product
salary of a plant manager is a _____ cost
product
The assets section of the balance sheet normally presents assets in
the order in which they will be converted into cash or used in operations
Which of the following individuals are charged with the responsibility for directing day to day operations of a business?
Managers
Which of the following manufacturing costs is an indirect cost of producing a product?
Oil lubricants used for factory machinery
For a bicycle company, accountant salaries would be considered a _____ cost
Period
For a bicycle company, delivery costs to take the bicycles somewhere would be considered a _____ cost
Period
For a bicycle company, selling cards for the bicycle would be considered a _____ cost
Period
The assets section of a balance sheet normally presents assets as ____
The order in which they will be converted into cash or used in operations
All of the following are general purpose financial statements except ______
cash budget
Which of the following terms is used to describe the process of monitoring operating results and comparing actual results with the expected results?
controlling
To a cake factory, depreciation on oven is a _____ cost
conversion
To a cake factory, sprinkles for the topping (considered an indirect material) is a _____ cost
conversion
_____ costs are the costs of converting the materials into a finished product
conversion
Which of the following item refers to the cost of changing direct materials into a finished manufactured product?
conversion cost
Which of the following accounts will be found on the income statement?
cost of goods sold