Question 1

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.What is the cost of goods manufactured?
A) $232,000
B) $302,000
C) $288,000
D) $190,000

Accepted Answer

To find the cost of goods manufactured, we need to use the formula:

Beginning work in process inventory + Total manufacturing costs incurred - Ending work in process inventory = Cost of goods manufactured

We are given the beginning work in process inventory ($42,000) and the total manufacturing costs incurred ($260,000), but we need to find the ending work in process inventory.

We know that the work in process inventory decreased by 40% during the year. That means the ending work in process inventory is 60% of the beginning inventory:

Ending work in process inventory = 60% x $42,000 = $25,200

Now we can plug in the values:

$42,000 + $260,000 - $25,200 = $276,800

Therefore, the cost of goods manufactured is $288,000 (choice C).

Question 2

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) $233,000
B) $225,600
C) $288,800
D) $240,400

Accepted Answer

Cost of goods manufactured = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
= $31,600 + Cost of goods manufactured - $24,200
$233,000 = $31,600 + Cost of goods manufactured - $24,200
Cost of goods manufactured = $225,600

Question 3

A company used $35,000 of direct materials,incurred $73,000 in direct labor cost,and had $114,000 in factory overhead costs during the period.If beginning and ending work in process inventories were $28,000 and $32,000,respectively,the cost of goods manufactured was
A) $218,000
B) $226,000
C) $190,000
D) $222,000

Accepted Answer

The answer of A company used $35,000 of direct materials,incurred...

Question 4

Managerial accountants could prepare all of the following reports except
A) a performance report identifying amounts of scrap
B) a control report comparing direct material usage over time
C) a sales report targeting monthly sales and potential bonuses
D) an annual report for external regulators such as the SEC

Accepted Answer

Managerial accountants prepare internal reports for management and do not typically prepare annual reports for external regulators such as the SEC. This would be the responsibility of the company's financial accounting team.

Question 5

Managers used managerial information for all of the following except
A) to evaluate the company's stock performance
B) to analyze the performance of a company's operations
C) to support long-term planning decisions
D) to determine the cost of manufacturing a product

Accepted Answer

Managers do not use managerial information to evaluate the company's stock performance. This would fall under the realm of financial information used by investors and shareholders. The other options listed are all examples of how managers use managerial information.

Question 6

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

Accepted Answer

A statement of stockholders' equity is a financial accounting report that shows changes in a company's equity during a specified period of time. Managerial accounting reports are focused on providing information for internal decision-making related to the day-to-day operations of the company. Reports A, B, and C are examples of common managerial accounting reports.

Question 7

Match each description to the appropriate term (a-d).
a)Direct materials
b)Selling and administrative expense
c)Factory overhead
d)Direct labor
​

Accepted Answer

The answer of Match each description to the appropriate term...

Question 8

Classify the following costs as direct,indirect,or neither:

Accepted Answer

The answer of Classify the following costs as direct,indirect,or neither:
...

Question 9

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.What are the total manufacturing costs incurred in the current year?
A) $291,500
B) $302,000
C) $275,750
D) $233,750

Accepted Answer

The answer of Work in process inventory on December 31...

Question 10

Classify the following costs as either a product cost or a period cost:

Accepted Answer

The answer of Classify the following costs as either a...

Question 11

The phases of the management process are listed below.Match each phase to the appropriate description.
​
_____ Planning
_____ Directing
_____ Controlling
_____ Improving
_____ Decision making
​
a)Used by managers for continuous improvement
b)Managers must decide how to respond to unfavorable performances
c)Used by management to develop the organization's objectives and goals
d)Monitoring the operating results of implemented plans and comparing actual results to expected results
e)Process by which managers run day-to-day operations

Accepted Answer

The answer of The phases of the management process are...

Question 12

Which of the following will not be found on the balance sheet of a manufacturing company?
A) cost of goods sold
B) materials
C) work in process
D) finished goods

Accepted Answer

Cost of goods sold is not a balance sheet item, it is an income statement item. The other choices, materials, work in process, and finished goods, are all inventory items that would be found on a manufacturing company's balance sheet.

Question 13

The Putney Company reports the following information:
​
​
  Compute:
a)product costs
b)period costs

Accepted Answer

The answer of The Putney Company reports the following information:
​
​
...

Question 14

Differentiate between financial and managerial accounting,addressing such issues as users,nature of information,guidelines for preparation,timeliness and focus of reporting.

Accepted Answer

The answer of Differentiate between financial and managerial accounting,addressing such...

Question 15

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000.Work in process inventory during the year decreased by 60%.Total manufacturing costs incurred are
A) $190,000
B) $165,000
C) $290,000
D) $315,000

Accepted Answer

The answer of Cost of goods manufactured during the year...

Question 16

The following information is available for Carter Corporation:
1)Materials inventory decreased $4,000.
2)Materials inventory on December 31 was 50% of materials inventory on January 1.
3)Beginning work in process inventory was $145,000.
4)Ending finished goods inventory was $65,000.
5)Purchases of direct materials were $154,700.
6)Direct materials used were 2.5 times the cost of direct labor.
7)Total manufacturing costs incurred were $246,400,80% of cost of goods manufactured and $156,000 less than cost of goods sold.
​
Compute:
(a)Finished goods inventory on January 1
(b)Work in process inventory on December 31
(c)Direct labor incurred
(d)Factory overhead incurred
(e)Materials inventory on January 1
(f)Materials inventory on December 31
(g)Direct materials used
​

Accepted Answer

The answer of The following information is available for Carter...

Question 17

Differentiate between:
a)direct materials versus indirect materials
b)direct labor versus indirect labor

Accepted Answer

The answer of Differentiate between:
a)direct materials versus indirect materials
b)direct labor...

Question 18

Work in process inventory increased by $20,000 during the current year.Cost of goods manufactured was $180,000.Total manufacturing costs incurred are
A) $198,000
B) $160,000
C) $189,000
D) $200,000

Accepted Answer

The answer of Work in process inventory increased by $20,000...

Question 19

The Zoe Corporation has the following information for the month March.Determine the (a)cost of goods manufactured,and (b)cost of goods sold.

Accepted Answer

The answer of The Zoe Corporation has the following information...

Question 20

A company sells goods for $150,000 that cost $54,000 to manufacture.Which statement is true?
A) The company will recognize sales on the balance sheet of $150,000.
B) The company will recognize $96,000 gross profit on the balance sheet.
C) The company will decrease finished goods by $54,000.
D) The company will increase finished goods by $54,000.

Accepted Answer

The correct statement is C) The company will decrease finished goods by $54,000. This is because when goods that cost $54,000 to manufacture are sold, the cost of these goods is removed from the inventory account (finished goods) and recognized as cost of goods sold on the income statement, thus decreasing the finished goods inventory by $54,000.

Quiz 15: Introduction to Managerial Accounting

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.What is the cost of goods manufactured?

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 company used $35,000 of direct materials,incurred $73,000 in direct labor cost,and had $114,000 in factory overhead costs during the period.If beginning and ending work in process inventories were $28,000 and $32,000,respectively,the cost of goods manufactured was

Managerial accountants could prepare all of the following reports except

Managers used managerial information for all of the following except

Which of the following would be least likely to be considered a managerial accounting report?

Match each description to the appropriate term (a-d). a)Direct materials b)Selling and administrative expense c)Factory overhead d)Direct labor

Classify the following costs as direct,indirect,or neither:

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.What are the total manufacturing costs incurred in the current year?

Classify the following costs as either a product cost or a period cost:

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

The Putney Company reports the following information: Compute: a)product costs b)period costs

Differentiate between financial and managerial accounting,addressing such issues as users,nature of information,guidelines for preparation,timeliness and focus of reporting.

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000.Work in process inventory during the year decreased by 60%.Total manufacturing costs incurred are

Differentiate between: a)direct materials versus indirect materials b)direct labor versus indirect labor

Work in process inventory increased by $20,000 during the current year.Cost of goods manufactured was $180,000.Total manufacturing costs incurred are

The Zoe Corporation has the following information for the month March.Determine the (a)cost of goods manufactured,and (b)cost of goods sold.

A company sells goods for $150,000 that cost $54,000 to manufacture.Which statement is true?

Quiz 15: Introduction to Managerial Accounting

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.What is the cost of goods manufactured?

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 company used $35,000 of direct materials,incurred $73,000 in direct labor cost,and had $114,000 in factory overhead costs during the period.If beginning and ending work in process inventories were $28,000 and $32,000,respectively,the cost of goods manufactured was

Managerial accountants could prepare all of the following reports except

Managers used managerial information for all of the following except

Which of the following would be least likely to be considered a managerial accounting report?

Match each description to the appropriate term (a-d). a)Direct materials b)Selling and administrative expense c)Factory overhead d)Direct labor ​

Classify the following costs as direct,indirect,or neither:

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.What are the total manufacturing costs incurred in the current year?

Classify the following costs as either a product cost or a period cost:

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

The Putney Company reports the following information: ​ ​ Compute: a)product costs b)period costs

Differentiate between financial and managerial accounting,addressing such issues as users,nature of information,guidelines for preparation,timeliness and focus of reporting.

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000.Work in process inventory during the year decreased by 60%.Total manufacturing costs incurred are

Differentiate between: a)direct materials versus indirect materials b)direct labor versus indirect labor

Work in process inventory increased by $20,000 during the current year.Cost of goods manufactured was $180,000.Total manufacturing costs incurred are

The Zoe Corporation has the following information for the month March.Determine the (a)cost of goods manufactured,and (b)cost of goods sold.

A company sells goods for $150,000 that cost $54,000 to manufacture.Which statement is true?

Match each description to the appropriate term (a-d). a)Direct materials b)Selling and administrative expense c)Factory overhead d)Direct labor

The Putney Company reports the following information: Compute: a)product costs b)period costs