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Exam 1: Managerial Accounting Concepts and Principles

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Question 71

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

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verified

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Question 72

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The purpose of managerial accounting information is to help ________ users make decisions while the purpose of financial accounting is to help ________ users make decisions.

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Question 73

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

Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

Product costs:

Using the information below, calculate gross profit for the period: $\begin{array} { l r } \text { Sales revenues for the period } & \$1, 304,000 \\\text { Operating expenses for the period } & \mathbf { 2 39 , 0 0 0 } \\\text { Finished Goods Irventory, Jaruary 1 } & \mathbf { 3 6 , 0 0 0 } \\\text { Finished Goods Irventory, December } 31 & 41,000 \\\text { Cost of goods marufactured for the period } & 540,000\end{array}$

The three major cost components of manufacturing a product are:

An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:

Using the information below, calculate gross profit for the period:

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

Which of the following items does not represent a difference between financial and managerial accounting?

Use the following information to prepare the schedule of cost of goods manufactured for Graffstone Company for the month ended June 30. $\begin{array} { | l | r | } \hline \text { Work in Process inventory, May 31 } & \$ 12,600 \\\hline \text { Work in Process inventory, June 30 } & 16,500 \\\hline \text { Direct materials used during June } & 21,000 \\\hline \text { Direct labor used during June } & 31,000 \\\hline \text { Factory overhead: } & \\\hline \text { Indirect material } &6,400 \\\hline \text { Indirect labor } & 9,200 \\\hline \text { Factory rent } & 12,000 \\\hline \text { Factory depreciation } &15,000 \\\hline \text { Factory utilities } & 18,400 \\\hline \end{array}$

Martinez Company makes leather cowboy hats. Each hat requires ½ yard of leather to produce. On December 31, 2014, the company had (a) 75 hats in Finished Goods Inventory and (b) 60 yards of leather at a cost of $12 per yard in Raw Materials Inventory. During 2015, the company purchased 850 more yards of leather at $12 per yard and manufactured 1,600 hats. Determine the unit and dollar amounts of Raw Materials Inventory in leather at December 31, 2015.

Total quality management and just-in-time manufacturing focus on quality improvement as well as on time customer deliveries.

For product costs associated with a particular product to be reported on the income statement:

Brotherton Company is a manufacturer of Blu-ray discs. Place each of the following costs in the appropriate column.

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

The following information is available for the year ended December 31: $\begin{array} { | l | r | } \hline \text { Beginning raw materials inventory } & \$ 11,000 \\\hline \text { Raw materials purchases } & 86,000 \\\hline \text { Ending raw materials inventory } & 10,400 \\\hline \text { Manufacturing supplies expense } & 900 \\\hline\end{array}$ The amount of raw materials used in production for the year is:

The following items for Neptune Company are used to compute the cost of goods manufactured and the cost of goods sold. Indicate how each item should be used in the calculations by filling in the blanks with "+" if the item is to be added, "-" if the item is to be subtracted, or "0" if the item is not used in the calculation. The first item is completed as an example. $\begin{array} { | l | l | l | } \hline & \text { Cost of Goods } & \text { Cost of Goods } \\\hline \text { Beginning finished goods inventory } & \text { Manufactured } & \text { Sold } \\\hline \text { Ending finished goods inventory } & 0 & + \\\hline \text { Direct labor } & & \\\hline \text { Indirect labor } & & \\\hline \text { Beginning work in process inventory } & & \\\hline \text { Ending work in process inventory } & & \\\hline \text { General and administrative expenses } & & \\\hline \text { Indirect materials } & & \\\hline \text { Beginning raw materials inventory } & & \\\hline \text { Ending raw materials inventory } & & \\\hline \text { Raw material purchases } & & \\\hline \text { Depreciation of factory building } & & \\\hline \text { Cost of goods manufactured } & & \\\hline & & \\\hline\end{array}$

Use the following information to compute the cost of goods manufactured. Assume that all raw materials used were traceable to specific units of product. $\begin{array} { | l | r | } \hline \text { Beginning raw materials } & \$ 5,500 \\\hline \text { Ending raw materials } & 4,000 \\\hline \text { Direct labor } & 12,250 \\\hline \text { Raw material purchases } & 7,400 \\\hline \text { Depreciation on factory equipment } & 6,500 \\\hline \text { Factory repairs and maintenance } & 3,300 \\\hline \text { Beginning finished goods inventory } & 10,200 \\\hline \text { Ending finished goods inventory } & 8,900 \\\hline \text { Beginning work in process inventory } & 5,700 \\\hline \text { Ending work in process inventory } & 6,300 \\\hline\end{array}$