Accounting Ch 15

Work in process inventory on December 31 is $42,000. Work in process inventory decreased by 40% during the year. Total manufacturing costs incurred amount to $260,000. The cost of goods manufactured is a. $232,000 b. $288,000 c. $190,000 d. $302,000

b. $288,000

Work in process inventory on December 31 of the current year is $44,000. Work in process inventory increased by 60% during the year. Cost of goods manufactured amounts to $275,000. The total manufacturing costs incurred in the current year are a. $302,000 b. $291,500 c. $275,750 d. $233,750

b. $291,500

indirect labor and indirect materials are classified as a. operating costs and product costs b. factory overhead and product costs c. operating costs and period costs d. factory overhead and period costs

b. factory overhead and product costs

Which of the following is the primary criterion for the preparation of managerial accounting reports? a. timing of the reports b. manager needs c. cost of the reports d. relevance of the reports

b. manager needs

Which of the following would be least likely to be considered a managerial accounting report? a. statement of cost of goods manufactured b. statement of stockholders' equity c. schedule of total manufacturing costs incurred d. report to analyze potential efficiencies and savings for the purchase of new production equipment

b. statement of stockholders' equity

Product costs a. appear only on the balance sheet b. appear only on the income statement c. appear on both the income statement and balance sheet d. are expensed as costs are incurred for direct labor, direct materials, and factory overhead

c. appear on both the income statement and balance sheet

The primary goal of managerial accounting is to provide information to a. investors b. external auditors c. management d. creditors

c. management

At the beginning of the current year, Grant Company's work in process inventory account had a balance of $30,000. During the year, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Factory overhead for the year amounted to $90,000. Cost of goods manufactured is $230,000. The balance in work in process inventory on December 31 is a. $24,000 b. $36,000 c. $66,000 d. $44,000

. $24,000

Prime costs are a. direct materials and factory overhead b. period costs and factory overhead c. direct labor and factory overhead d. direct materials and direct labor

d. direct materials and direct labor

Direct labor and direct materials are a. product costs and expensed when the goods are sold b. period costs and expensed when the goods are sold c. period costs and expensed when incurred d. product costs and expensed when incurred

product costs and expensed when the goods are sold

The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was a. $240,400 b. $225,600 c. $288,800 d. $233,000

$225,600

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except a. be prepared in accordance with generally accepted accounting principles b. be provided at any time management needs information c. be prepared to report information for any unit of the business to support decision making d. provide objective measures of past operations and subjective estimates about future decisions

a. be prepared in accordance with generally accepted accounting principles

Insurance expense incurred on a factory building would be treated as a a. product cost b. selling cost c. period cost d. direct cost

a. product cost

Given the following data: Work in process, beginning$14,000Work in process, ending20,000Direct labor costs4,000Cost of goods manufactured8,000Factory overhead8,000 Direct materials used is a. $4,000 b. $8,000 c. $2,000 d. $14,000

c. $2,000