MBA 600 Attempt 1

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If total assets decreased by $88,000 during a period of time and stockholders' equity increased by $71,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is ____

$159,000 decrease. -$88,000= liabilties + $71,000 88,000 - 71,000= liabilities -$159,000

Jensen Company reports the following: Direct Materials used: $345,000 Direct Labor Incurred: $250,000 Factory Overhead Incurred: $400,000 Operating Expenses: $175,000 This means Jensen Company's period costs are:

$175,000, operating expenses

The Darwin Company reports the following information: Sales $76,500 Direct materials used 7,300 Depreciation on factory equipment 4,700 Indirect labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales salaries expense 15,600 Office salaries expense 8,900 Indirect materials 1,200 Period costs are a. $24,500 b. $30,300 c. $29,200 d. $35,000

$24,500 Sales salaries expense + office salaries expense

The assets and liabilities of a company are $128,000 and $84,000, respectively. Stockholder's equity should equal _____

$44,000

The Darwin Company reports the following information: Sales $76,500 Direct materials used 7,300 Depreciation on factory equipment 4,700 Indirect labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales salaries expense 15,600 Office salaries expense 8,900 Indirect materials 1,200 Product costs are ____

$7,300 (DM cost) + $10,500 (DL costs) + $17,200 (FO) = product costs $35,000

Finished good inventory is reported on the ______

Balance sheet as current assets

Which of the following would not be found on the balance sheet of a manufacturing company?

Cost of goods sold

If total assets decreased by $30,000 during a specific period and stockholders' equity decreased by $35,000 during the same period, the period's change in total liabilities was a $65,000 increase.

-$30,000 + $35,000 = $5,000 liabilities

What are a few examples of a factory overhead cost?

-factory heating and lighting cost - repairing and maintaining factory equipment - property taxes on factory buildings and land - insurance on factory buildings depreciation on factory plant and equipment

All of the following would be reported on the balance sheet as a current assets except:

Factory overhead

Conversion costs are ______ and ______

Factory overhead and direct labor

Costs other than direct materials cost and direct labor cost accrued in the manufacturing process are classified as _______

Factory overhead cost

If the cost of a direct material is a small portion of total production cost, it may be classifies as part of ______

Factory overhead cost

Which of the following is not a characteristic of useful managerial accounting reports?

GAAP—adhering

Four financial statements are usually prepared for a business. The statement of cash flows is usually prepared last. The statement of stockholders' equity (SSE), the balance sheet (B), and the income statement (I) are prepared in a certain order to obtain information needed for the next statement. In what order are these three statements prepared?

I, SSE, B

A financial statement that would determine if a company was profitable or not during a specific period of time by reviewing the ______

Income statement

A plant manager's salary is an ______

Indirect cost

Which of the following terms is used to describe the process of developing the organization's objectives and translating those into courses of action?

Planning

For a bicycle company, electricity for the factory would be considered a _____ cost

Product

For a bicycle company, tires would be considered a _____ cost

Product

Which of the following must be true in order for materials to be classified as direct materials?

They must be an integral part of the finished product and be a significant portion of the total product cost

Managerial accountants could prepare all of the following reports except an ______

annual report for external regulators such as the SEC

The accounting equation may be expressed as:

assets- liabilities= stockholders' equity

Which of the following financial statements reports information as of a specific date?

balance sheet

liabilities are reported on the

balance sheet

In order to be useful to manager, managerial accounting reports should possess all of the following characteristics except:

be prepared in accordance with generally accepted accounting principles (GAAP)

To a cake factory, wages of a baker is a _____ cost

both prime and conversion

To a lawn mower manufacturer, wages of assemblers are a ______ cost

direct labor

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as ____

direct labor cost

Which of the following costs are a conversion cost?

direct labor cost and factory overhead 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

To a lawn mower manufacturer, wheels are a ______ cost

direct materials

To a lawn mower manufacturer, depreciation on worker's tools are a ______ cost

factory overhead

To a lawn mower manufacturer, grease for wheel axels are a ______ cost

factory overhead

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as _____

factory overhead cost

All of the following could be considered a direct material except: - steel - fabric - glue - lumber

glue

Factory overhead costs are ______ costs of the product

indirect

Debts owed by a business are referred to as ___

liabilities

All of the following are examples of indirect labor except:

machine operators

The primary goal of managerial accounting is to provide information to ____

management

Accounting designed to meet the needs of decision makers inside the business is _____

managerial accounting

Which of the following is not a factory overhead cost?

materials used directly in the manufacturing process of the product

Which of the following is most associated with managerial accounting?

may rely on estimates and forecasts

advertising expense is a ____ cost

period

depreciation on store equipment is a ____ cost

period

salespersons' commission is a ____ cost

period

Which of the following terms is used to describe the process of developing the organization's objectives and translating those into courses of action?

planning

Which of the following is not a prime cost?

plant janitor's wages

To a cake factory, frosting is a _____ cost

prime

____ costs consist of direct materials and direct labor costs

prime

depreciation on factory machinery is a _____ cost

product

direct labor incurred is a ___ cost

product

direct materials used are a ____ cost

product

factory machinery repairs and maintenance is a ____ cost

product

factory utilities are a ____ cost

product

indirect labor incurred is a ____ cost

product

indirect materials used is a ____ cost

product

plant insurance expired is a _____ cost

product

salary of a plant manager is a _____ cost

product

The assets section of the balance sheet normally presents assets in

the order in which they will be converted into cash or used in operations

Which of the following individuals are charged with the responsibility for directing day to day operations of a business?

Managers

Which of the following manufacturing costs is an indirect cost of producing a product?

Oil lubricants used for factory machinery

For a bicycle company, accountant salaries would be considered a _____ cost

Period

For a bicycle company, delivery costs to take the bicycles somewhere would be considered a _____ cost

Period

For a bicycle company, selling cards for the bicycle would be considered a _____ cost

Period

The assets section of a balance sheet normally presents assets as ____

The order in which they will be converted into cash or used in operations

All of the following are general purpose financial statements except ______

cash budget

Which of the following terms is used to describe the process of monitoring operating results and comparing actual results with the expected results?

controlling

To a cake factory, depreciation on oven is a _____ cost

conversion

To a cake factory, sprinkles for the topping (considered an indirect material) is a _____ cost

conversion

_____ costs are the costs of converting the materials into a finished product

conversion

Which of the following item refers to the cost of changing direct materials into a finished manufactured product?

conversion cost

Which of the following accounts will be found on the income statement?

cost of goods sold


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