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Exam 18: Introduction to Managerial Accounting

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Question 61

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Goods that are produced by a manufacturing company and are ready to sell are recorded in the _______ account.

A) Raw Materials Inventory
B) Work-in-Process Inventory
C) Manufacturing Overhead
D) Finished Goods Inventory

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Question 62

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Which of the following would appear as a line item on the income statements of both a merchandiser and a manufacturer?

A) Direct Labor
B) Cost of Goods Manufactured
C) Direct Materials
D) Cost of Goods Sold

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Question 63

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Houston Corporation reports the following cost information for March: What is the amount of direct materials used by the company in March?

Which of the following would be classified as a prime cost?

Planet Manufacturing provided the following information for the month ended March 31: Prepare the income statement.

Direct materials and direct labor are prime costs.

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

Which of the following statements is true of financial accounting?

The IMA Standards of Ethical Practice include confidentiality,competence,credibility,and integrity.

Period costs are the ________.

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

Simons,Inc.sells plasticware.The following information summarizes Simons' operating activities for the year: Prepare an income statement for Simons,Inc. ,a merchandiser,for the year ended December 31 using the format below:

Anything for which managers want a separate measurement of cost is called a ________.

In a manufacturing company,wages and benefits of assembly line workers are included in manufacturing overhead.

Which of the following correctly describes the accounting for factory depreciation?

In a manufacturing company,accounting,legal,and administrative costs are typical examples of product costs.

A merchandiser does not need to calculate cost per unit because it resells goods that are already manufactured.

Best,Inc. ,a merchandiser,sells office supplies.The following information summarizes Best's operating activities during the year: Required: Prepare an income statement for Best,Inc.for the year ended December 31,using the format below.

If a merchandising company determines that the unit cost to purchase a product is less than the unit cost to manufacture the product,the company should make a decision to begin manufacturing the product

The three categories of period costs are direct materials,direct labor,and manufacturing overhead.