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Exam 14: Managerial Accounting Concepts and Principles

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Question 61

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The concept of total quality management focuses on continuous improvement.

A) True
B) False

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Question 62

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For a manufacturer,the cost of goods sold can be computed by adding the beginning finished goods inventory to ________________________ and then subtracting the ending finished goods inventory.

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cost of go...

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Question 63

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Juliet Corporation has accumulated the following accounting data for the year: $\begin{array}{llr} \text { Finished goods inventory, January 1} &\$3,200\\ \text { Finished goods inventory, December 31 } &4,000\\ \text {Total cost of goods sold } &4,200\end{array}$ The cost of goods manufactured for the year is:

Both financial and managerial accounting affect people's decisions and actions.

Which of the following is not a characteristic of all fraud?

Another title for goods in process inventory is:

Continuous improvement:

What is the main difference between the income statement of a manufacturer and that of a merchandiser?

The management concept of customer orientation causes a company to spend large amounts on advertising to convince customers to buy the company's standard products.

Indirect labor refers to the cost of the workers whose efforts are directly traceable to specific units or batches of product.

A manufacturer's inventory that is not completely finished is called __________________ .

The following information for Baldwin Company,as of December 31,is provided. $\begin{array}{lr}\text { Administrative salaries } & \$ 24,000 \\\text { Depreciation of factory equipment } & 18,750 \\\text { Depreciation of delivery vehicles } & 6,000 \\\text { Direct labor } & 51,000 \\\text { Factory supplies used } & 9,000 \\\text { Finished goods inventory, January 1 } & 42,750 \\\text { Finished goods inventory, December 31 } & 52,000 \\\text { Factory insurance } & 11,625 \\\text { Interest expense } & 10,000 \\\text { Factory utilities } & 10,500\\ \text { Factory maintenance } & 5,625 \\\text { Raw materials inventory, January 1 } & 7,000 \\\text { Raw materials inventory, December 31 } & 3,500 \\\text { Raw material purchases } & 94,000 \\\text { Rent on factory equipment } & 18,750 \\\text { Repairs of factory equipment } & 8,600 \\\text { Sales commissions } & 28,150 \\\text { Goods in process inventory, January 1 } & 4,000 \\\text { Goods in process inventory, December 31 } & 2,500\end{array}$ A. Calculate the direct material used during the period. B. Calculate the total manufacturing costs incurred during the period. C. Calculate the Cost of Goods Manufactured during the period. D. Calculate the Cost of Goods Sold during the period.

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

Raw materials inventory includes only direct materials.

For each item shown below,indicate whether it is a product cost or a period cost,by placing an X in the appropriate column.For each item that is a product cost,also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text {Product or Period Cost? \quad Direct or Indirect Cost: Cost?}$ $\begin{array}{lllll}\text { Cost Item } & \text { Product } & \text { Period } &\quad\quad \text { Direct } & \text { Indirect }\\\text {Administrative salaries}\\\text {Direct labor}\\\text {Advertising}\\\text {Property tax on the factory}\\\text {Factory maintenance}\\\text {Direct materials}\\\text {Depreciation on factory}\\\text {equipment}\\\text {Interest expense}\\\text {Factory supplies}\\\end{array}$

The three major cost components of a manufactured product are:

Use the following information to compute the cost of goods manufactured: $\begin{array}{lr}\text { Beginning finished goods inventory } & \$ 9,250 \\\text { Beginning goods in process inventory } & 8,700 \\\text { Beginning raw materials } & 7,500 \\\text { Depreciation on factory equipment } & 6,000 \\\text { Direct labor } & 75,000 \\\text { Ending finished goods inventory } & 8,750 \\\text { Ending goods in process inventory } & 9,300 \\\text { Ending raw materials } & 8,500 \\\text { Factory Supervisor's salary } & 50,000 \\\text { Raw material purchases } & 14,000\end{array}$

________________________ is an activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Materials that are used in support of the production process but that do not become a part of the product and are not clearly identified with units or batches of product are called:

Which of the following is never included in direct materials costs?