Question 1

Which of the following is not classified as direct labor?

Accepted Answer

A)   Bottlers of beer in a brewery
B)   Copy machine operators at a copy shop
C)   Wages of supervisors
D)   Bakers in a bakery

Question 2

The wages of a timekeeper in the factory would be classified as

Accepted Answer

A)   a period cost.
B)   direct labor.
C)   indirect labor.
D)   compliance costs.

Question 3

A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n)

Accepted Answer

A)   period cost.
B)   indirect material.
C)   direct material.
D)   miscellaneous expense.

Question 4

Penner Company reported total manufacturing costs of $450,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000. How much is direct labor cost?

Accepted Answer

A)   Cannot be determined from the information provided.
B)   $624,000
C)   $354,000
D)   $276,000

Question 5

A manufacturing company calculates cost of goods sold as follows:

Accepted Answer

A)   Beginning FG inventory + cost of goods purchased - ending FG inventory.
B)   Ending FG inventory - cost of goods manufactured + beginning FG inventory.
C)   Beginning FG inventory - cost of goods manufactured - ending FG inventory.
D)   Beginning FG inventory + cost of goods manufactured - ending FG inventory.

Question 6

On the costs of goods manufactured schedule, the item raw materials inventory (ending)  appears as a(n)

Accepted Answer

A)   addition to raw materials purchases.
B)   addition to raw materials available for use.
C)   subtraction from raw materials available for use.
D)   subtraction from raw materials purchases.

Question 7

Both direct materials and indirect materials are

Accepted Answer

A)   raw materials.
B)   manufacturing overhead.
C)   merchandise inventory.
D)   sold directly to customers by a manufacturing company.

Question 8

Molina Company has beginning and ending work in process inventories of $130,000 and $145,000 respectively. If total manufacturing costs are $680,000, what is the total cost of goods manufactured?

Accepted Answer

A)   $810,000.
B)   $825,000.
C)   $665,000.
D)   $695,000.

Question 9

In an analogous sense, external user is to internal user as generally accepted accounting principles are to

Accepted Answer

A)   timely.
B)   special-purpose.
C)   relevance to decision.
D)   SEC.

Question 10

Which one of the following characteristics would likely be associated with a just-in-time inventory method?

Accepted Answer

A)   Ending inventory of work in process that would allow several production runs
B)   A backlog of inventory orders not yet shipped
C)   Minimal finished goods inventory on hand
D)   An understanding with customers that they may come to the showroom and select from inventory on hand

Question 11

Period costs are not inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 12

Using $3,000,000 as the total manufacturing costs, compute the cost of goods manufactured using the following information.   Raw materials inventory, January 120,000 Raw materials inventory, December 3140,000 Work in process, January 118,000 Work in process, December 3112,000 Finished goods, January 140,000 Finished goods, December 3132,000 Raw materials purchases 1,700,000 Direct labor 760,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000\begin{array}{lll}	ext { Raw materials inventory, January } 1 & 20,000 \	ext { Raw materials inventory, December } 31 & 40,000 \	ext { Work in process, January } 1 & 18,000\	ext { Work in process, December } 31 & 12,000 \	ext { Finished goods, January } 1 & 40,000 \	ext { Finished goods, December } 31 & 32,000 \	ext { Raw materials purchases } & 1,700,000\	ext { Direct labor } & 760,000 \	ext { Factory utilities } & 150,000 \	ext { Indirect labor } & 50,000 \	ext { Factory depreciation } & 400,000 \	ext { Operating expenses } & 420,000\end{array} Raw materials inventory, January 1 Raw materials inventory, December 31 Work in process, January 1 Work in process, December 31 Finished goods, January 1 Finished goods, December 31 Raw materials purchases  Direct labor  Factory utilities  Indirect labor  Factory depreciation  Operating expenses ​20,00040,00018,00012,00040,00032,0001,700,000760,000150,00050,000400,000420,000​

Accepted Answer

A)   $3,014,000.
B)   $2,994,000.
C)   $3,006,000.
D)   $3,008,000.

Question 13

Which of the following statements about internal reports is not true?

Accepted Answer

A)   The content of internal reports may extend beyond the double-entry accounting system.
B)   Internal reports may show all amounts at market values.
C)   Internal reports may discuss prospective events.
D)   Most internal reports are summarized rather than detailed.

Question 14

In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.

Accepted Answer

A) True 
 B)False

Question 15

Finished goods inventory does not appear on a cost of goods manufactured schedule.

Accepted Answer

A) True 
 B)False

Question 16

Manufacturing costs include

Accepted Answer

A)   direct materials and direct labor only.
B)   direct materials and manufacturing overhead only.
C)   direct labor and manufacturing overhead only.
D)   direct materials, direct labor, and manufacturing overhead.

Question 17

Because of automation, which component of product cost is declining?

Accepted Answer

A)   Direct labor
B)   Direct materials
C)   Manufacturing overhead
D)   Advertising

Question 18

Both direct labor cost and indirect labor cost are product costs.

Accepted Answer

A) True 
 B)False

Question 19

Which one of the following is not a direct material?

Accepted Answer

A)   A tire used for a lawn mower
B)   Plastic used in the covered case for a home PC
C)   Steel used in the manufacturing of steel-radial tires
D)   Lubricant for a ball-bearing joint for a large crane

Question 20

Which one of the following would not be classified as manufacturing overhead?

Accepted Answer

A)   Indirect labor
B)   Direct materials
C)   Insurance on factory building
D)   Indirect materials

Exam 1: Managerial Accounting

A manufacturing company calculates cost of goods sold as follows:

Correct Answer
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Correct Answer
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Which of the following statements about internal reports is not true?

Correct Answer
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Both direct materials and indirect materials are

Correct Answer
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Both direct labor cost and indirect labor cost are product costs.

Correct Answer
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Molina Company has beginning and ending work in process inventories of $130,000 and $145,000 respectively. If total manufacturing costs are $680,000, what is the total cost of goods manufactured?

Correct Answer
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Which one of the following would not be classified as manufacturing overhead?

Correct Answer
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Manufacturing costs include

Correct Answer
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Which one of the following characteristics would likely be associated with a just-in-time inventory method?

Correct Answer
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Because of automation, which component of product cost is declining?

Correct Answer
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Period costs are not inventoriable costs.

Correct Answer
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Which of the following is not classified as direct labor?

Correct Answer
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On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n)

Correct Answer
verified

The wages of a timekeeper in the factory would be classified as

Correct Answer
verified

Finished goods inventory does not appear on a cost of goods manufactured schedule.

Correct Answer
verified

A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n)

Correct Answer
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Which one of the following is not a direct material?

Correct Answer
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In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.

Correct Answer
verified

Penner Company reported total manufacturing costs of $450,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000. How much is direct labor cost?

Correct Answer
verified

In an analogous sense, external user is to internal user as generally accepted accounting principles are to

Correct Answer
verified

Exam 1: Managerial Accounting

A manufacturing company calculates cost of goods sold as follows:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements about internal reports is not true?

Correct AnswerverifiedShow Answer

Both direct materials and indirect materials are

Correct AnswerverifiedShow Answer

Both direct labor cost and indirect labor cost are product costs.

Correct AnswerverifiedShow Answer

Molina Company has beginning and ending work in process inventories of $130,000 and $145,000 respectively. If total manufacturing costs are $680,000, what is the total cost of goods manufactured?

Correct AnswerverifiedShow Answer

Which one of the following would not be classified as manufacturing overhead?

Correct AnswerverifiedShow Answer

Manufacturing costs include

Correct AnswerverifiedShow Answer

Which one of the following characteristics would likely be associated with a just-in-time inventory method?

Correct AnswerverifiedShow Answer

Because of automation, which component of product cost is declining?

Correct AnswerverifiedShow Answer

Period costs are not inventoriable costs.

Correct AnswerverifiedShow Answer

Which of the following is not classified as direct labor?

Correct AnswerverifiedShow Answer

On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n)

Correct AnswerverifiedShow Answer

The wages of a timekeeper in the factory would be classified as

Correct AnswerverifiedShow Answer

Finished goods inventory does not appear on a cost of goods manufactured schedule.

Correct AnswerverifiedShow Answer

A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n)

Correct AnswerverifiedShow Answer

Which one of the following is not a direct material?

Correct AnswerverifiedShow Answer

In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.

Correct AnswerverifiedShow Answer

Penner Company reported total manufacturing costs of $450,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000. How much is direct labor cost?

Correct AnswerverifiedShow Answer

In an analogous sense, external user is to internal user as generally accepted accounting principles are to

Correct AnswerverifiedShow Answer

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