Question 1

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

$50,000 + $56,000 + $28,000 + ($45,000 - $32,000) = $147,000

Question 2

A staff department has no direct authority over a line department.

Accepted Answer

A) True 
 B)False

Question 3

Match between columns
                        Premises: Decision making
Improving
Controlling
Directing
Planning

Accepted Answer

The Answer of Monitoring the operating results of implemented plans is...

Question 4

In most business organizations, the chief management accountant is called the:

Accepted Answer

A)   chief accounting officer
B)   controller
C)   chairman of the board
D)   chief executive officerE) None of the above
F) B) and D)

Question 5

A cost can be a payment of cash for the purpose of generating revenues.

Accepted Answer

A) True 
 B)False

Question 6

Managerial accounting uses only past data in reports to aid management in the decision making process.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following items would not be classified as part of factory overhead?

Accepted Answer

A)   Direct labor used
B)   Amortization of manufacturing patents
C)   Production supervisors' salaries
D)   Factory supplies usedE) All of the above
F) A) and C) A

Question 8

Direct costs can be specifically traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 9

The Sharpe Company reports the following information for 2012:

Accepted Answer

Compute:
a) product costs
b) p...

Question 10

Manufacturers use labor, plant, and equipment to convert direct materials into finished products.

Accepted Answer

A) True 
 B)False

Question 11

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)   cost of goods sold
B)   materials
C)   work in process
D)   finished goodsE) B) and C)
F) A) and D) A

Question 13

Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change.

Accepted Answer

A) True 
 B)False

Question 14

Product costs are also referred to as inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is most associated with financial accounting?

Accepted Answer

A)   Can have both objective and subjective information
B)   Can be prepared periodically, or as needed
C)   Prepared in accordance with GAAP
D)   Can be prepared for the entity or segmentE) All of the above
F) None of the above

Question 17

Operating expenses are product costs and are expensed when the product is sold.

Accepted Answer

A) True 
 B)False

Question 18

Managerial accounting information includes both historical and estimated data.

Accepted Answer

A) True 
 B)False

Question 19

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 20

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

A)   $218,000
B)   $226,000
C)   $190,000
D)   $222,000E) A) and B)
F) A) and D)

Exam 15: Managerial Accounting Concepts and Principles

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.

Correct Answer
verified
$50,000 + $56,000 + $28,000 + ($45,000 - $32,000) = $147,000

A staff department has no direct authority over a line department.

Correct Answer
verified

The aspects of the management process are listed below. Match each phase to the appropriate description.

In most business organizations, the chief management accountant is called the:

Correct Answer
verified

A cost can be a payment of cash for the purpose of generating revenues.

Correct Answer
verified

Managerial accounting uses only past data in reports to aid management in the decision making process.

Correct Answer
verified

Which of the following items would not be classified as part of factory overhead?

Correct Answer
verified
A

Direct costs can be specifically traced to a cost object.

Correct Answer
verified

The Sharpe Company reports the following information for 2012:

Correct Answer
verified
Compute:
a) product costs
b) p...
View Answer

Manufacturers use labor, plant, and equipment to convert direct materials into finished products.

Correct Answer
verified

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Correct Answer
verified

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

Correct Answer
verified
A

Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change.

Correct Answer
verified

Product costs are also referred to as inventoriable costs.

Correct Answer
verified

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

Correct Answer
verified

Which of the following is most associated with financial accounting?

Correct Answer
verified

Operating expenses are product costs and are expensed when the product is sold.

Correct Answer
verified

Managerial accounting information includes both historical and estimated data.

Correct Answer
verified

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

Correct Answer
verified

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:

Correct Answer
verified

Exam 15: Managerial Accounting Concepts and Principles

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.

Correct Answerverified$50,000 + $56,000 + $28,000 + ($45,000 - $32,000) = $147,000

A staff department has no direct authority over a line department.

Correct AnswerverifiedShow Answer

The aspects of the management process are listed below. Match each phase to the appropriate description.

In most business organizations, the chief management accountant is called the:

Correct AnswerverifiedShow Answer

A cost can be a payment of cash for the purpose of generating revenues.

Correct AnswerverifiedShow Answer

Managerial accounting uses only past data in reports to aid management in the decision making process.

Correct AnswerverifiedShow Answer

Which of the following items would not be classified as part of factory overhead?

Correct AnswerverifiedA

Direct costs can be specifically traced to a cost object.

Correct AnswerverifiedShow Answer

The Sharpe Company reports the following information for 2012:

Correct AnswerverifiedCompute:a) product costsb) p...View AnswerShow Answer

Manufacturers use labor, plant, and equipment to convert direct materials into finished products.

Correct AnswerverifiedShow Answer

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change.

Correct AnswerverifiedShow Answer

Product costs are also referred to as inventoriable costs.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is most associated with financial accounting?

Correct AnswerverifiedShow Answer

Operating expenses are product costs and are expensed when the product is sold.

Correct AnswerverifiedShow Answer

Managerial accounting information includes both historical and estimated data.

Correct AnswerverifiedShow Answer

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

Correct Answer
verified
$50,000 + $56,000 + $28,000 + ($45,000 - $32,000) = $147,000

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified
Compute:
a) product costs
b) p...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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