Chapter 14 Multimedia Questions

Topeka Manufacturing reported sales of $750,000 during the current year. The company used $300,000 of raw materials to produce the units that were sold. Its raw materials inventory totaled $10,000 at the beginning of the year and $14,000 at the end of the year. What is the company's days' sales in raw materials inventory at the end of the current year?

Days' sales in raw materials inventory = ending raw materials inventory of $14,000 ÷ raw materials used of $300,000 × 365 = 17.03 days.

What is the most common type of fraud?

Employee Theft

Completed products ready for sale are referred to as:

Finished Goods Inventory

Assume that Speedboat Company has beginning finished goods inventory of $10,000; ending finished goods inventory of $150,000; goods available for sale of $210,000; and cost of goods manufactured of $200,000. What is its cost of goods sold?

Goods available for sale includes beginning finished goods inventory and cost of goods purchased. As such, Cost of goods sold = Goods available for sale of $210,000 − Ending Finished Goods Inventory of $150,000 = $60,000.

A service company has the following costs:

Overhead Costs Expenses in the period incurred

Topeka Manufacturing reported sales of $750,000 during the current year. The company used $300,000 of raw materials to produce the units that were sold. Its raw materials inventory totaled $10,000 at the beginning of the year and $14,000 at the end of the year. What is the company's raw materials inventory turnover?

Raw materials inventory turnover = raw materials used of $300,000 ÷ average raw materials inventory of $12,000 (or ($10,000 + $14,000) ÷ 2) = 25.0.

Which of the following are sections of the Schedule of Cost of Goods Manufactured?

The sections include Direct Materials, Direct Labor, Factory Overhead, and Cost of Goods Manufactured.

The purposes of managerial accounting are to provide useful information to aid in:

The three main purposes of managerial accounting are to provide useful information to aid in planning future activities, comparing actual to planned results, and determining costs of products and services.

A focus on financial, social, and environmental measures is known as:

Triple Bottom Line