Question 1

At the beginning of 2015, Swift Company's Work-in-Process Inventory account had a balance of $120,000. During 2015, $250,000 of direct materials were used in production, and $75,000 of direct labor costs were incurred. Manufacturing overhead amounted to $850,000. The cost of goods manufactured was $675,000. What is the balance in the Work-in-Process Inventory account on December 31, 2015?

Accepted Answer

A)  $230,000
B)  $1,295,000
C)  $675,000
D)  $620,000

Question 2

Which of the following formulas represents cost of goods sold for a merchandising business?

Accepted Answer

A)  Beginning Inventory - Ending Inventory = Cost of Goods Sold
B)  Purchases and Freight In - Ending Inventory = Cost of Goods Sold
C)  Ending Inventory + Purchases and Freight In - Beginning Inventory = Cost of Goods Sold
D)  Beginning Inventory + Purchases and Freight In - Ending Inventory = Cost of Goods Sold

Question 3

Managerial accounting is used in manufacturing and merchandising companies, but not in service companies.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following describes the cost of goods manufactured?

Accepted Answer

A)  the cost of the goods that were sold during the period
B)  the total cost of all goods that were completed, or partially completed during the period
C)  the cost of those goods which were completed during the period
D)  total costs in inventory at the end of the period

Question 5

Which of the following statements is true of management accounting?

Accepted Answer

A)  The primary users of management accounting are the external stakeholders of a company.
B)  Management accounting information is used to help managers plan and control their operations.
C)  Management accounting information requires an external audit by an independent CPA.
D)  Management accounting information must comply with Generally Accepted Accounting Principles.

Question 6

The IMA standards of ethical practice require managerial accountants to maintain their professional competence.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is the primary focus of financial accounting?

Accepted Answer

A)  providing information that managers need to make operational decisions
B)  providing summarized information on operational results to investors and creditors
C)  providing budgets for future periods
D)  providing highly detailed information on product lines, regions, divisions, etc.

Question 8

How is the management of a company accountable to its employees?

Accepted Answer

A)  The management must provide products that are safe and free of defects.
B)  The management must provide a safe workplace.
C)  The management must ensure that it earns a net positive return on its investments.
D)  The management must ensure the business is environmentally responsible to its community.

Question 9

Five Seasons is a merchandiser of packed foods. The company provides the following information for the year 2015:  How much was the unit cost per unit of product sold?

Accepted Answer

A)  $3.14
B)  $5.18
C)  $2.33
D)  $0.82

Question 10

The Work-in-Process Inventory account includes the:

Accepted Answer

A)  goods that are ready to be sold.
B)  goods that are partially completed.
C)  goods that have been sold in the market.
D)  goods that are damaged during production.

Question 11

For a manufacturing business, which of the following would be considered a period cost?

Accepted Answer

A)  Indirect materials
B)  Factory utilities
C)  Direct labor
D)  Sales salaries

Question 12

Indirect materials costs are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 13

Management's accountability to its suppliers and vendors is to:

Accepted Answer

A)  provide products to customers that are safe and free of defects.
B)  obey laws and pay taxes timely.
C)  provide a return on shareholders' investment.
D)  make timely payments and comply with contract terms.

Question 14

For a manufacturing firm, which of the following is a product cost?

Accepted Answer

A)  Salary of administrative staff
B)  Wages paid to factory janitor
C)  Commissions paid to sales staff
D)  Depreciation on corporate building

Question 15

Amoeba Manufacturing Company provided the following information for the year 2015: st 2015 are given below.   What is the ending balance in the finished goods inventory? A) $49,500 B) $63,200 C) $35,800 D) $24,650" class="answers-bank-image d-inline" rel="preload" > The inventory account balances as of January 1st 2015 are given below. st 2015 are given below.   What is the ending balance in the finished goods inventory? A) $49,500 B) $63,200 C) $35,800 D) $24,650" class="answers-bank-image d-inline" rel="preload" > What is the ending balance in the finished goods inventory?

Accepted Answer

A)  $49,500
B)  $63,200
C)  $35,800
D)  $24,650

Question 16

Jasper Corporation reports the following cost information for March:  What is the amount of manufacturing overhead incurred by Jasper in March?

Accepted Answer

A)  $20,000
B)  $30,270
C)  $13,430
D)  $136,570

Question 17

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

Accepted Answer

A)  Administrative expenses are product costs and are expensed as incurred.
B)  Administrative expenses are period costs and are expensed as incurred.
C)  Administrative expenses are product costs and are expensed when the manufactured product is sold.
D)  Administrative expenses are period costs and are expensed when the manufactured product is sold.

Question 18

Repair and maintenance costs for factory equipment are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 19

A company that uses labor, equipment, supplies, and facilities to convert raw materials into finished products is a:

Accepted Answer

A)  merchandising company.
B)  manufacturing company.
C)  service company.
D)  trading company.

Question 20

Financial statements prepared for investors and creditors often include forward-looking information because they make decisions based on a company's future prospects.

Accepted Answer

A) True 
 B)False

Exam 18: Introduction to Managerial Accounting

Financial statements prepared for investors and creditors often include forward-looking information because they make decisions based on a company's future prospects.

Correct Answer
verified

For a manufacturing firm, which of the following is a product cost?

Correct Answer
verified

A company that uses labor, equipment, supplies, and facilities to convert raw materials into finished products is a:

Correct Answer
verified

Jasper Corporation reports the following cost information for March: What is the amount of manufacturing overhead incurred by Jasper in March?

Correct Answer
verified

Correct Answer
verified

The IMA standards of ethical practice require managerial accountants to maintain their professional competence.

Correct Answer
verified

How is the management of a company accountable to its employees?

Correct Answer
verified

Indirect materials costs are included in manufacturing overhead.

Correct Answer
verified

Repair and maintenance costs for factory equipment are included in manufacturing overhead.

Correct Answer
verified

The Work-in-Process Inventory account includes the:

Correct Answer
verified

Which of the following formulas represents cost of goods sold for a merchandising business?

Correct Answer
verified

Managerial accounting is used in manufacturing and merchandising companies, but not in service companies.

Correct Answer
verified

Which of the following is the primary focus of financial accounting?

Correct Answer
verified

For a manufacturing business, which of the following would be considered a period cost?

Correct Answer
verified

Five Seasons is a merchandiser of packed foods. The company provides the following information for the year 2015: How much was the unit cost per unit of product sold?

Correct Answer
verified

Amoeba Manufacturing Company provided the following information for the year 2015: The inventory account balances as of January 1^st 2015 are given below. What is the ending balance in the finished goods inventory?

Correct Answer
verified

Which of the following statements is true of management accounting?

Correct Answer
verified

Management's accountability to its suppliers and vendors is to:

Correct Answer
verified

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

Correct Answer
verified

Which of the following describes the cost of goods manufactured?

Correct Answer
verified

Exam 18: Introduction to Managerial Accounting

Financial statements prepared for investors and creditors often include forward-looking information because they make decisions based on a company's future prospects.

Correct AnswerverifiedShow Answer

For a manufacturing firm, which of the following is a product cost?

Correct AnswerverifiedShow Answer

A company that uses labor, equipment, supplies, and facilities to convert raw materials into finished products is a:

Correct AnswerverifiedShow Answer

Jasper Corporation reports the following cost information for March: What is the amount of manufacturing overhead incurred by Jasper in March?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The IMA standards of ethical practice require managerial accountants to maintain their professional competence.

Correct AnswerverifiedShow Answer

How is the management of a company accountable to its employees?

Correct AnswerverifiedShow Answer

Indirect materials costs are included in manufacturing overhead.

Correct AnswerverifiedShow Answer

Repair and maintenance costs for factory equipment are included in manufacturing overhead.

Correct AnswerverifiedShow Answer

The Work-in-Process Inventory account includes the:

Correct AnswerverifiedShow Answer

Which of the following formulas represents cost of goods sold for a merchandising business?

Correct AnswerverifiedShow Answer

Managerial accounting is used in manufacturing and merchandising companies, but not in service companies.

Correct AnswerverifiedShow Answer

Which of the following is the primary focus of financial accounting?

Correct AnswerverifiedShow Answer

For a manufacturing business, which of the following would be considered a period cost?

Correct AnswerverifiedShow Answer

Five Seasons is a merchandiser of packed foods. The company provides the following information for the year 2015: How much was the unit cost per unit of product sold?

Correct AnswerverifiedShow Answer

Amoeba Manufacturing Company provided the following information for the year 2015: The inventory account balances as of January 1st 2015 are given below. What is the ending balance in the finished goods inventory?

Correct AnswerverifiedShow Answer

Which of the following statements is true of management accounting?

Correct AnswerverifiedShow Answer

Management's accountability to its suppliers and vendors is to:

Correct AnswerverifiedShow Answer

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

Correct AnswerverifiedShow Answer

Which of the following describes the cost of goods manufactured?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Amoeba Manufacturing Company provided the following information for the year 2015: The inventory account balances as of January 1^st 2015 are given below. What is the ending balance in the finished goods inventory?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified