Managerial Accounting connect 1 (chp 14)
why is a purchasing agent not considered a direct materials cost?
Employees who work on the product are a direct labor cost.
The following items would be included in the overhead section of the schedule of cost of goods manufactured:
Factory insurance Factory supplies used Factory utilities
The main purpose of managerial accounting is
providing financial and nonfinancial information to an organization's managers
The cost of materials a company purchases to use in making products are
raw materials
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. Beginning finished goods Inventory 2. Plus 3. Cost of goods manufactured 4. Minus 5. Ending finished goods Inventory
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.
Average inventory=(Beginning inventory+Ending inventory)/2 =(10,000+8000)/2 =$9000 =50,000/9,000 =5.55
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
Average raw materials inventory = (Beginning raw materials inventory + Ending raw materials inventory) / 2 Average raw materials inventory = ($5,000 + $6,000) / 2 Average raw materials inventory = $5,500 Raw materials inventory = Raw materials used / Average raw materials inventory Raw materials inventory = $71,500 / $5,500 Raw materials inventory = 13.00 times
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
Cost of Goods Sold = Opening balance + Cost of goods manufactured - Closing Balance Cost of Goods Sold = 1000 + 5000 - 1200 Cost of Goods Sold = $4800
Which of the following are product costs for a manufacturer?
Depreciation on the factory equipment Direct materials
A schedule of cost of goods manufactured has the following main sections:
Direct labor Overhead Direct materials Cost of goods manufactured
Which of the following are indirect costs for the finishing department of a furniture manufacturer?
Electricity cost for the plant, Rent on the manufacturing facility Plant manager's salary
Match the activity with the activity type.
Purchase materials - Materials activity Use materials - Production activity Product sold - Sales activity
Which of the following are period costs for a manufacturer?
Salary for administrative staff Rent on the office building Sales commissions
Which of the following are direct costs for a shoe manufacturer?
Shoe laborers who make the shoes Leather used in the shoes
True or false: The main purpose of managerial accounting is to provide relevant information to its managers.
True
Which of the following characteristics describe managerial accounting?
Used to make planning and control decisions Many future projections
mangerial accounting uses
current performance and future projections
Understanding the changing needs of customers is referred to as
customer orientation
Consider a service company that provides carpet cleaning. Classify the cost of the hourly workers who clean carpets for customers.
direct
Prime costs consists of:
direct labor and direct materials
Costs which are crucial parts of the finished product are called
direct materials
Which of the following are included in Raw materials inventory?
direct materials
Financial accounting provides information for _________ users, while managerial accounting provides information for _________ decision makers.
external, internal
Conversion costs consist of:
factory overhead and direct labor
Managerial accounting has the following characteristics?
focus is on internal users Includes mostly monetary and some nonmonetary information Emphasis is on projects, processes, and divisions
Expansion of competition which provides customers with many choices is called a _____ economy.
global
Expansion of competitive boundaries which allows customers many choices is called a:
global economy
Data Visualization
graphical depiction of data to help people interpret their meaning
Digital manufacturing combines _____ to manufacture products.
human control computers machines
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
List the following activities in the order in which they occur, with the first activity on top (sales, production, materials)
materials activity, production activity, sales activity
The fraud triangle shows three factors that push a person to commit fraud and includes ___, pressure, and rationalization.
opportunity
financial accounting uses
past performance using historical information
The characteristics of the fraud triangle include:
pressure opportunity rationalization
data analytics
process of analyzing data to identify meaningful relations and trends
Direct materials costs for an automobile manufacturer would include all of the following:
steering wheels bumpers tires