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Exam 15: Introduction to Managerial Accounting

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Question 61

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What term refers to the cost of changing direct materials into a finished manufactured product?

A) factory overhead cost
B) period cost
C) conversion cost
D) direct labor cost

E) A) and C)
F) All of the above

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Question 62

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The following information is available for Carter Corporation: 1)Materials inventory decreased $4,000. 2)Materials inventory on December 31 was 50% of materials inventory on January 1. 3)Beginning work in process inventory was $145,000. 4)Ending finished goods inventory was $65,000. 5)Purchases of direct materials were $154,700. 6)Direct materials used were 2.5 times the cost of direct labor. 7)Total manufacturing costs incurred were $246,400,80% of cost of goods manufactured and $156,000 less than cost of goods sold. ​ Compute: (a)Finished goods inventory on January 1 (b)Work in process inventory on December 31 (c)Direct labor incurred (d)Factory overhead incurred (e)Materials inventory on January 1 (f)Materials inventory on December 31 (g)Direct materials used ​

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(a)Cost of goods sold = $246,400 + $156,...

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Question 63

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Goods that are partially completed by a manufacturer are

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.

Costs on the income statement for both a merchandiser and a manufacturer would be

Goods that are part way through the manufacturing process,but not yet complete,are referred to as materials inventory.

Product costs

Given the following data: ​ ​ Direct materials used is

If the cost of employee wages is not a significant portion of the total product cost,the wages are classified as direct materials cost.

Managerial accounting provides useful information to managers on product costs.

Classify the following costs as direct,indirect,or neither:

For each of the following,indicate whether the cost would typically be considered product or period cost for the cost object given. -Accountant salaries

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

Accounting designed to meet the needs of decision makers inside the business is

Which of the following statements is false?

Which of the following is most associated with managerial accounting?

Only the value of the inventory that is sold will appear on the income statement.

The controller's staff consists of management accountants responsible for systems and procedures,general accounting,budgets,taxes,and cost accounting.

The costs of materials and labor that do not enter directly into the finished product are classified as factory overhead.

Bartel Corporation produces bar stools for restaurants.For each of the following,indicate whether the cost would typically be considered direct or indirect cost for the cost object given. -Lubricants used on the bar stool manufacturing equipment