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Exam 16: Managerial Accounting Concepts and Principles

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Question 81

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Managerial accounting information includes both historical and estimated data.

A) True
B) False

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Question 82

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Conversion cost is the combination of direct materials cost and factory overhead cost.

A) True
B) False

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Question 83

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

What is decision making? Who is responsible for decision making in a managerial situation?​

Jensen Company reports the following: $\begin{array} { | l | l | } \hline \text { Direct materials used } & \$ 345,000 \\\hline \text { Direct labor incurred } & 250,000 \\\hline \text { Factory overhead incurred } & 400,000 \\\hline \text { Operating expenses } & 175,000 \\\hline\end{array}$ -Jensen Company's period costs are

The cost of a manufactured product generally consists of which of the following costs?

Magnus Industries has the following data: $\begin{array} { | l | l | } \hline \text { Beginning raw materials inventory } & \$ 75,000 \\\hline \text { Materials purchased } & 40,000 \\\hline \text { Ending raw materials inventory } & 60,000 \\\hline\end{array}$ Calculate the cost of raw materials used.

Which of the following is an example of a factory overhead cost?

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Cupcake mix

Watson Company has the following data: $\begin{array} { | l | l | } \hline \text { Work in process, beginning } & \$ 18,000 \\\hline \text { Work in process, ending } & 25,000 \\\hline \text { Direct labor costs incurred } & 5,000 \\\hline \text { Cost of goods manufactured } & 9,000 \\\hline \text { Factory overhead } & 7,000 \\\hline\end{array}$ Calculate the amount of direct materials used.

Which of the following is not a prime cost?

$\begin{array} { | l | l | } \hline \text { Sales } & \$ 76,500 \\\hline \text { Direct materials used } & 7,300 \\\hline \text { Depreciati on on factory equipment } & 4,700 \\\hline \text { Indirect labor } & 5,900 \\\hline \text { Direct labor } & 10,500 \\\hline \text { Factory rent } & 4,200 \\\hline \text { Factory utilities } & 1,200 \\\hline \text { Sales salaries expense } & 15,600 \\\hline \text { Office salaries expense } & 8,900 \\\hline \text { Indirect materials } & 1,200 \\\hline\end{array}$ Period costs are -The Darwin Company reports the following information:

Given the following data: Cost of materials used $45,000 Direct labor costs 48,000 Factory overhead 39,000 Work in process, beg. 28,000 Work in process, end. 18,000 Finished goods, beg. 28,000 Finished goods, end. 18,000 What is cost of goods sold?

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

Managerial accounting reports are

Given the following data: $\begin{array} { | l | l | } \hline \text { B eginning raw materials inventory } & { \$ 30,000 } \\\hline \text { Materials purchased } & 65,000 \\\hline \text { Ending raw material s inventory } & 40,000 \\\hline\end{array}$ What is the amount of raw materials used?

Which of the following is the principle reason for preparing managerial accounting reports?

Indirect labor and indirect materials would be part of factory overhead.

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 Calculate the cost of goods manufactured.

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?