Mangerial accounting smart book

A company reported Cost of goods manufactured of $55,000 on the manufacturing statement. If the beginning balance in Work in process inventory was $5,000 and the Total manufacturing costs were $60,000, then the ending balance in Work in process inventory was $

$10,000

A company began the year with $500 in raw materials and purchased $10,250 more during the year. If the company has $725 in raw materials at the end of the year, then they would report direct materials used of $

$10,025 on the schedule of cost of goods manufactured.

Recall the formula for figuring Days' Sales in Inventory.

(Ending inventory/Cost of goods sold) x 365

The formula for days' sales in raw materials inventory is:

(ending raw materials inventory / raw materials used) x 365

A manufacturing company reports the following items: Work in process inventory, beginning balance: $500; Work in process inventory, ending balance: $200; Direct materials: $700; Direct labor: $600; Factory overhead: $100. The cost of goods manufactured is $

1,700

List the activities in the value chain in the order they occur for a cookie retailer, with the first activity on top.

1.Acquire raw material 2.Baking 3.Sales 4.Service

List the items below in the correct order in which they would appear in the calculation of cost of goods sold for a manufacturing company.

1.Begging finished finished goods inventory 2.plus 3.cost of goods manufactured 4.minus 5.Ending finished goods inventory

Place the following ethical decision making steps in the correct order with the first step listed on the top:

1.Identify ethical concerns 2.Analyze options 3.Make ethical decision

Click and drag on elements in order List the following activities in the order in which they occur, with the first activity on top.

1.Materials activity 2.Production activity 3.Sales activity

Sparks Fireworks manufactures and sells fireworks. Their raw materials used is $71,500. Their beginning raw materials inventory was $5,000 and their ending raw materials inventory was $6,000. Sparks' raw materials inventory turnover is

13.00

A manufacturing company reports the following items: Work in process inventory, beginning balance: $1,000 Work in process inventory, ending balance: $3,000 Direct materials: $5,000 Direct labor: $7,000 Factory overhead: $4,000 The cost of goods manufactured is $

14,000

A company incurred the following costs: $6,000 for indirect labor; $26,000 for direct labor; $2,500 for utilities for the factory building; $10,300 for factory equipment depreciation; $8,700 for office equipment depreciation. The total overhead costs reported on the schedule of cost of goods manufactured is $

18800

A merchandising company usually has one inventory account while a manufacturing company usually has _____ inventory accounts.

3

A manufacturing company reports the following items: Finished goods inventory, beginning balance: $1,000 Finish goods inventory, ending balance: $1,200 Cost of goods manufactured, $5,000 The cost of goods sold is $

4800

A company incurred the following costs: Selling and administrative expenses: $45,000; Direct materials: $15,000; Income tax expense: $10,000; Direct labor: $30,000; Factory overhead: $5,000. Total manufacturing costs reported on the schedule of cost of goods manufactured are $

50000

List the activities in the value chain in the order they occur for a cookie retailer, with

Acquire raw materials Baking Sales Service

Weighted Average

Assume costs flow at an average of the costs avaliable

Fifo

Assume costs flow in the order incurred

LIFO

Assume costs flow in the reverse order incurred

Specific Identification

Assumes costs flow can be specifically matched with the physical flow of items

process of analyzing data to identify meaningful relations and trends

Choice data analytics

The managerial accountant at XYZ Company told her friend that the company expects to announce a major recall in a few weeks. The friend promptly sells all her stock in XYZ. The accountant violated which IMA requirement? (Check all that apply.)

Confidentiality Integrity

Which of the following are product costs for a manufacturer? (Check all that apply.)

Depreciation on the factory equipment Direct materials

Consider a service company that provides carpet cleaning. Classify the cost of the hourly workers who clean carpets for customers.

Direct

A schedule of cost of goods manufactured has the following main sections: (Check all that apply.)

Direct materials Overhead Cost of goods manufactured Direct labor

True or false: Finished goods are products which are partially complete.

False

True or false: The main purpose of managerial accounting is to provide general-purpose financial statements.

False

Consider a service company that provides carpet cleaning and uses straight-line depreciation. Classify the cost of the depreciation on the carpet cleaning machines.

Indirect

What types of information does managerial accounting provide? (Check all that apply.)

Information for managers Financial Non-financial

Recall the formula for computing a company's inventory turnover ratio.

Inventory turnover = Cost of goods sold/Average inventory

purchase materials

Materials Activity

Minor Manufacturing Company has ending raw materials inventory of $15,000, raw materials used of $60,000. Calculate the days' sales in raw materials inventory.

Reason: $15,000/60,000 x 365 = 91.25.

Major Manufacturing Company has direct materials used of $50,000, beginning raw materials inventory of $10,000 and ending raw materials inventory of $8,000. Compute the raw materials inventory turnover.

Reason: $50,000 / [(10,000+8,000/2)]=5.55

Which of the following are indirect costs for the finishing department of a furniture manufacturer? (Check all that apply.)

Rent on the manufacturing facility Electricity cost for the plant Plant manager's salary

Which of the following are period costs for a manufacturer? (Check all that apply.)

Sales commissions Rent on the office building Salary for administrative staff

Which of the following are direct costs for a shoe manufacturer? (Check all that apply.)

Shoe laborers who make the shoes Leather used in the shoes

Which of the following statements correctly explains what the inventory turnover ratio assesses.

The inventory turnover ratio assesses whether management is doing a good job controlling the amount of inventory.

Review the statements below and select the ones that are correct regarding the days' sales in inventory ratio. (Check all that apply.)

The ratio reveals how much inventory is available in terms of the number of days' sales. The ratio is useful in evaluating how quickly inventory is being sold. The ratio is often viewed as a measure of the buffer against out-of-stock inventory. The ratio estimates how many days it will take to convert inventory into accounts receivable or cash.

Factory overhead includes all manufacturing costs except direct materials and direct labor.

True

True or false: Managerial accounting provides information to internal managerial and executive employees who are in charge of a company's business activities.

True

Which of the following characteristics describe managerial accounting? (Check all that apply.)

Used to make planning and control decisions Many future projections

Managerial

Uses current performance and future projections

financial

Uses past performance using historical information

Consider a company that manufactures picture frames. Which of the following costs would be considered direct costs? (Check all that apply.)

Wages of assembly line worker Glass used in the frame Oak wood used for frame

Consider a company that manufactures automobiles. Which of the following costs would be considered a direct cost?

Wages of assembly line workers

Which of the following summarizes the weighted average cost flow assumption?

Weighted average assumes that costs flow at an average of the costs available.

Managerial information:

allows estimates and projections

A process of analyzing data to identify meaningful relations and trends is called data

analytics

Managerial accounting information is normally provided to managers

as they request it.

The Institute of Management Accountants requires members to: (Check all that apply.)

be competent. act with integrity.

The cost of goods sold for a manufacturer is computed as

beginning finished goods inventory plus cost of goods manufactured minus ending finished goods inventory

Ethics are defined as: (Check all that apply.)

beliefs that distinguish right from wrong. accepted standards of good and bad behavior.

Lean practices include those which are designed to eliminate waste while still satisfying the customer. Examples of lean practices include all of the following:

continuous improvement total quality management just-in-time manufacturing

The primary difference between the income statement for a merchandising company and a manufacturing company is in the _____ section.

cost of goods sold

Understanding the changing needs of customers is referred to as

customer orientation.

graphical depiction of data to help people interpret their meaning

data visualization

The efforts of employees who work directly to convert direct materials into the finished product are referred to as

direct labor

Prime costs consists of:

direct labor and direct materials

Those who work directly on the product to convert raw materials into a finished product are known as

direct labor.

osts which are crucial parts of the finished product are called

direct material

Which of the following are included in Raw materials inventory? (Check all that apply).

direct materials

A trend whereby consumers expect to be able to purchase items electronically, whenever and wherever they want is known as

e-commerce

Managerial accounting report both monetary and nonmonetary information. Examples of nonmonetary information include:

employee satisfaction data. employee diversity. percentage of on-time deliveries.

Managers use an internal control system to: (Check all that apply.)

ensure reliable accounting. protect assets. promote efficiency.

Financial accounting provides information for

external

Conversion costs consist of:

factory overhead and direct labor

Inventory which is completed but not yet sold by a manufacturer is known as

finished goods inventory

Managerial reporting systems are

flexible

Managerial accounting has the following characteristics? (Check all that apply.)

focus is on internal users Includes mostly monetary and some nonmonetary information Emphasis is on projects, processes, and divisions

Expansion of competitive boundaries which allows customers many choices is called a:

global economy

Lean principles include all of the following except:

global economy

Each of the following are examples of factory overhead: (Check all that apply.)

indirect materials indirect labor

while managerial accounting provides information for

internal decision makers

Managerial accounting primarily provides information to

internal users.

The main difference between a manufacturer's and a merchandiser's balance sheet is in the

inventory account.

Digital manufacturing combines _____ to manufacture products. (Check all that apply.)

machines human control computers

Managerial accounting is different from financial accounting in that:

managerial accounting is used in planning and control decisions and financial accounting is used in making investment and credit decisions

Costs which are crucial parts of the finished product are called

material

In addition to monetary information, managerial accounting reports ?information.

nonmonetary, nonfinancial, or non-monetary

In addition to monetary information, managerial accounting reports

nonmonetary, nonfinancial, or non-monetary information

All of the following are types of e-commerce:

online sales activities text messaging sales activities smartphone sales activities

The triple threat of fraud involves:

opportunity, pressure, rationalization

An emphasis on the changing needs of customers is called customer

orientation

use materials

production activity

Production activities include: (Check all that apply.)

production workers assembling products. factory overhead costs. direct materials used.

Materials activities include: (Check all that apply.)

raw materials beginning inventory. purchasing materials.

The cost of materials a company purchases to use in making products are

raw materials.

The Sustainability Accounting Standards Board was established to develop _____ standards for businesses' sustainability activities.

reporting

Activities that include finished goods are considered ? activities

sales

product sold

sales activity

Sales activities include: (Check all that apply.)

selling finished products. finished goods inventory.

A _____ company does not have any inventory held for sale, while a merchandising company does have merchandise for sale.

service

The triple bottom line focuses on three measures including:

social environmental financial

Direct materials costs for an automobile manufacturer would include all of the following:

steering wheels tires bumpers

A series of activities that add value to a company's products or services is called:

value chain

A graphical presentation of data to help in understanding their significance is called data

visualization

Inventory which is partially complete is known as

work in process

Partially complete units are known as

work in process inventory