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Exam 1: Managerial Accounting Concepts and Principles

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Question 21

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Identify and describe the three categories of manufacturing costs.

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The three basic cost elements in account...

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Question 22

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Information for Eastman Industries is presented below. Compute the cost of goods manufactured. $\begin{array}{|l|r|}\hline \text { Beginning work in process inventory } & 21,200\\\hline \text { Ending work in process inventory } & 20,000 \\\hline \text { Direct materials used in production } & \$ 46,800 \\\hline \text { Direct labor } & 81,000 \\\hline \text { Total factory overhead } & 106,000 \\\hline\end{array}$

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Question 23

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A cost can be classified as either ________ or ________based how it changes, in total, with changes in the volume of activity.

Marketing managers can use managerial accounting information to decide whether to advertise on social media.

Just-in-time manufacturing (JIT) focuses on quality improvement and applies this standard to all aspects of business activities.

Waters, Inc. reported the following data regarding costs and inventories for the current year: beginning finished goods inventory, $5,000; cost of goods manufactured, $21,500; ending finished goods inventory, $4,000. Cost of goods sold for Waters, Inc. equals ________.

Total fixed costs change in proportion to changes in the volume of activity.

Which of the following is not part of the production activity in the flow of manufacturing activities?

Use the following information to calculate the cost of goods sold for the period: $\begin{array}{lr}\text { Beginning Finished Goods Inventory } & \$ 19,500 \\\text { Ending Finished Goods Inventory } & 18,000 \\\text { Cost of Goods Manufactured } & 126,800\end{array}$

Which of the following is not a direct cost for a scooter manufacturer?

Just-in-time manufacturing is a system that acquires inventory and produces product only when needed for an order.

The cost of partially completed products is included in the balance of the Work in Process Inventory account.

Expenditures incurred in the process of converting raw materials to finished goods, that include direct labor and factory overhead are known as ________.

Use the following data to compute total manufacturing costs for the month: $\begin{array}{lr}\text { Sales commissions } & \$ 10,800 \\\text { Direct labor } & 39,600 \\\text { Indirect materials } & 15,200 \\\text { Factory manager salaries } & 7,200 \\\text { Factory supplies } & 9,000 \\\text { Indirect labor } & 6,300 \\\text { Depreciation-office equipment } & 5,000 \\\text { Direct materials } & 40,500 \\\text { Corporate office salaries } & 42,500 \\\text { Depreciation-factory equipment } & 7,500\end{array}$

Products that are in the process of being manufactured but are not yet complete are called:

A ________ cost changes in total in proportion to changes in the volume of activity.

Materials a company acquires to use in making products are called:

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

________ are beliefs that distinguish right from wrong.

Calculate Cost of Goods Sold for the following two companies: $\begin{array} { | l | r | r | } \hline & \text { LEWIS INC. } & \text { MERCER CO. } \\\hline \text { Merchandise } & \$ 250,000 & \\\hline \text { Finished Goods } & & \$ 550,000 \\\hline \text { Cost of Goods Purchased } & 460,000 & \\\hline \text { Cost of Goods Manufactured } & & 688,000 \\\hline \text { Ending Inventory: } & & \\\hline \text { Merchandise } & 128,000 & \\\hline \text { Finished Goods } & & 350,000 \\\hline\end{array}$