Question 1

The Sharpe Company reports the following information for 2015:  Determine period costs for 2015.

Accepted Answer

The answer of The Sharpe Company reports the following information...

Question 2

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 3

Reedy Company reports the following information for 2012:  Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, 2012, is:

Accepted Answer

The answer of Reedy Company reports the following information for...

Question 4

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

Accepted Answer

Factory overhead is an indirect cost and is not a tangible asset that can be converted into cash or used in operations, so it would not be reported as a current asset on the balance sheet. Materials inventory, finished goods inventory, and work in process inventory are all tangible assets that can be sold or used in operations and would typically be reported as current assets on the balance sheet.

Question 5

Laramie Technologies had the following data:
Cost of Materials Used $50,000
Direct Labor costs $56,000
Factory Overhead $28,000
Work in Process, beg. $45,000
Work in Process, end. $32,000
Show your calculations to determine the Cost of Goods Manufactured.

Accepted Answer

The answer of Laramie Technologies had the following data:
Cost of...

Question 6

Watson Company has the following data:
  Show how you would calculate the amount of Direct Materials Used.

Accepted Answer

The answer of Watson Company has the following data:
 ...

Question 7

Cost of goods manufactured during 2011 is $240, work in process inventory on December 31, 2011, is $50. Work in process inventory during 2011 decreased by 60%. Total manufacturing costs incurred during 2011 amount to:

Accepted Answer

The answer of Cost of goods manufactured during 2011 is...

Question 8

Sienna Company has the following information for January.
  Show your calculations to find the cost of goods manufactured.

Accepted Answer

The answer of Sienna Company has the following information for...

Question 9

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a cake manufacturer.
1. _____ Frosting
2. _____ Depreciation on oven
3. _____ Wages of bakers
4. _____ Sprinkles for topping

Accepted Answer

The answer of Identify the following costs as (a) direct...

Question 10

Work in process inventory on December 31, 2011, is $42,000. Work in process inventory decreased by 40% during 2011. Total manufacturing costs incurred in 2011 amount to $260,000. What is cost of goods manufactured?

Accepted Answer

To calculate the cost of goods manufactured, we need to find out the total manufacturing costs for the year, which is $260,000, less the decrease in the work in process inventory, which is 40% of the beginning balance ($42,000 x 40% = $16,800).

So, the cost of goods manufactured is:

$260,000 - $16,800 = $243,200

However, we need to remember to add the beginning work in process inventory:

$243,200 + $42,000 = $285,200

Therefore, the closest option is C, $288,000.

Question 11

Magnus Industries has the following data:
  Show how you would calculate Raw Materials Used.

Accepted Answer

The answer of Magnus Industries has the following data:
 ...

Question 12

The cost of goods sold for Heedy manufacturing in 2011 was $233,000. The January 1, 2011, finished goods inventory balance was $31,600, and the December 31, 2011, finished goods inventory balance was $24,200. Cost of goods manufactured during the period was:

Accepted Answer

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

Question 13

Work in process inventory increased by $20,000 during 2011. Cost of goods manufactured was $180,000. Total manufacturing costs incurred in 2011 are:

Accepted Answer

Total manufacturing costs incurred can be calculated by adding the increase in work in process inventory to the cost of goods manufactured: $180,000 + $20,000 = $200,000.

Question 14

The Sharpe Company reports the following information for 2015:  Determine product costs for 2015.

Accepted Answer

The answer of The Sharpe Company reports the following information...

Question 15

Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory.
1. _____ Frosting
2. _____ Wages of the baker
3. _____ Sprinkles for the topping (considered an indirect material)
4. _____ Depreciation on oven

Accepted Answer

The answer of Identify the following costs as (a) prime...

Question 16

Work in process inventory on December 31, 2011, is $44,000. Work in process inventory increased by 60% during 2011. Cost of goods manufactured for 2011 amounts to $275,000. What are the total manufacturing costs incurred in 2011?

Accepted Answer

Work in process inventory on December 31, 2010, is $44,000. Work in process inventory increased by 60% during 2011, so the work in process inventory on December 31, 2011, is $44,000 * 1.60 = $70,400. The cost of goods manufactured for 2011 is $275,000. The total manufacturing costs incurred in 2011 are the cost of goods manufactured plus the change in work in process inventory, which is $275,000 + $70,400 - $44,000 = $291,400.

Question 17

At the beginning of 2011, the Gilbert Company's work in process inventory account had a balance of $30,000. During 2011, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Factory overhead in 2011 amounted to $90,000. Cost of goods manufactured is $230,000 in 2011. The balance in work in process inventory on December 31, 2011, is:

Accepted Answer

The ending work in process inventory is calculated as: Beginning WIP ($30,000) + Direct Materials ($68,000) + Direct Labor ($66,000) + Factory Overhead ($90,000) - Cost of Goods Manufactured ($230,000) = $24,000.

Question 18

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $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:

Accepted Answer

Cost of goods manufactured = Direct materials + Direct labor + Factory overhead + Change in work in process inventory= $35,000 + $73,000 + $114,000 + ($32,000 - $28,000)= $226,000

Question 19

The aspects 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
e) Managers run their day to day activities

Accepted Answer

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

Question 20

Identify the following costs as a (a) product cost or (b) period cost for a cake factory.
1. _____ Frosting
2. _____ Baker's wages
3. _____ Advertising fees
4. _____ Transportation out

Accepted Answer

The answer of Identify the following costs as a (a)...

Quiz 18: Managerial Accounting Concepts and Principles

The Sharpe Company reports the following information for 2015: Determine period costs for 2015.

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

Reedy Company reports the following information for 2012: Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, 2012, is:

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

Laramie Technologies had the following data: Cost of Materials Used $50,000 Direct Labor costs $56,000 Factory Overhead $28,000 Work in Process, beg. $45,000 Work in Process, end. $32,000 Show your calculations to determine the Cost of Goods Manufactured.

Watson Company has the following data: Show how you would calculate the amount of Direct Materials Used.

Cost of goods manufactured during 2011 is $240, work in process inventory on December 31, 2011, is $50. Work in process inventory during 2011 decreased by 60%. Total manufacturing costs incurred during 2011 amount to:

Sienna Company has the following information for January. Show your calculations to find the cost of goods manufactured.

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a cake manufacturer. 1. ___ Frosting 2. _ Depreciation on oven 3. _ Wages of bakers 4. ___ Sprinkles for topping

Work in process inventory on December 31, 2011, is $42,000. Work in process inventory decreased by 40% during 2011. Total manufacturing costs incurred in 2011 amount to $260,000. What is cost of goods manufactured?

Magnus Industries has the following data: Show how you would calculate Raw Materials Used.

The cost of goods sold for Heedy manufacturing in 2011 was $233,000. The January 1, 2011, finished goods inventory balance was $31,600, and the December 31, 2011, finished goods inventory balance was $24,200. Cost of goods manufactured during the period was:

Work in process inventory increased by $20,000 during 2011. Cost of goods manufactured was $180,000. Total manufacturing costs incurred in 2011 are:

The Sharpe Company reports the following information for 2015: Determine product costs for 2015.

Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory. 1. ___ Frosting 2. _ Wages of the baker 3. _ Sprinkles for the topping (considered an indirect material) 4. ___ Depreciation on oven

Work in process inventory on December 31, 2011, is $44,000. Work in process inventory increased by 60% during 2011. Cost of goods manufactured for 2011 amounts to $275,000. What are the total manufacturing costs incurred in 2011?

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $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:

Identify the following costs as a (a) product cost or (b) period cost for a cake factory. 1. ___ Frosting 2. _ Baker's wages 3. _ Advertising fees 4. ___ Transportation out

Quiz 18: Managerial Accounting Concepts and Principles

The Sharpe Company reports the following information for 2015: Determine period costs for 2015.

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

Reedy Company reports the following information for 2012: Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, 2012, is:

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

Laramie Technologies had the following data: Cost of Materials Used $50,000 Direct Labor costs $56,000 Factory Overhead $28,000 Work in Process, beg. $45,000 Work in Process, end. $32,000 Show your calculations to determine the Cost of Goods Manufactured.

Watson Company has the following data: Show how you would calculate the amount of Direct Materials Used.

Cost of goods manufactured during 2011 is $240, work in process inventory on December 31, 2011, is $50. Work in process inventory during 2011 decreased by 60%. Total manufacturing costs incurred during 2011 amount to:

Sienna Company has the following information for January. Show your calculations to find the cost of goods manufactured.

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a cake manufacturer. 1. _____ Frosting 2. _____ Depreciation on oven 3. _____ Wages of bakers 4. _____ Sprinkles for topping

Work in process inventory on December 31, 2011, is $42,000. Work in process inventory decreased by 40% during 2011. Total manufacturing costs incurred in 2011 amount to $260,000. What is cost of goods manufactured?

Magnus Industries has the following data: Show how you would calculate Raw Materials Used.

The cost of goods sold for Heedy manufacturing in 2011 was $233,000. The January 1, 2011, finished goods inventory balance was $31,600, and the December 31, 2011, finished goods inventory balance was $24,200. Cost of goods manufactured during the period was:

Work in process inventory increased by $20,000 during 2011. Cost of goods manufactured was $180,000. Total manufacturing costs incurred in 2011 are:

The Sharpe Company reports the following information for 2015: Determine product costs for 2015.

Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory. 1. _____ Frosting 2. _____ Wages of the baker 3. _____ Sprinkles for the topping (considered an indirect material) 4. _____ Depreciation on oven

Work in process inventory on December 31, 2011, is $44,000. Work in process inventory increased by 60% during 2011. Cost of goods manufactured for 2011 amounts to $275,000. What are the total manufacturing costs incurred in 2011?

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $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:

Identify the following costs as a (a) product cost or (b) period cost for a cake factory. 1. _____ Frosting 2. _____ Baker's wages 3. _____ Advertising fees 4. _____ Transportation out

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a cake manufacturer. 1. ___ Frosting 2. _ Depreciation on oven 3. _ Wages of bakers 4. ___ Sprinkles for topping

Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory. 1. ___ Frosting 2. _ Wages of the baker 3. _ Sprinkles for the topping (considered an indirect material) 4. ___ Depreciation on oven

Identify the following costs as a (a) product cost or (b) period cost for a cake factory. 1. ___ Frosting 2. _ Baker's wages 3. _ Advertising fees 4. ___ Transportation out