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