Explore BrainMass
Share

Cost of goods manufactured

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

1. Management accounting information can be used for all of the following except:
calculate the cost of a product or service.
evaluate the performance of a company.
project materials needs.
evaluate the market price of the stock.

2. Management accounting reports might include information about:
customer complaints.
net income for the year on budgeted income statement.
total assets on budgeted balance sheet.
All of the above are correct.

3. Which of the following types of information are used in management accounting?
financial information
nonfinancial information
information focused on the long term
All of these are correct.

4. Which of the following statements refers to management accounting information?
There are no regulations governing the reports.
The reports are generally delayed and historical.
The audience tends to be stockholders, creditors, and tax authorities.
The scope tends to be highly aggregate.

5. Financial accounting:
focuses on the future and includes activities such as preparing next year's operating budget
must comply with GAAP (generally accepted accounting principles)
reports include detailed information on the various operating segments of the business such as product lines or departments
is prepared for the use of department heads and other employees

6. A key element of any organization's strategy is identifying:
its potential shareholders
its target customers
competitor's products
employee needs

7. A weekly report comparing machine time used to available machine time is information MOST useful to:
a front-line employee
the manager of operations
the chief executive officer
the accounting department

8. Nonmanufacturing costs:
include only fixed costs
seldom influence financial success or failure
include the cost of selling, distribution, and after-sales costs for customers
are considered by GAAP to be an element of product costs

9. A plant manufactures several different products. The wages of the maintenance staff in the plant can be classified as a (an):
direct cost
product cost
opportunity cost
nonmanufacturing cost

10. Manufacturing costs include:
machinery used inside of the factory
research and development costs
costs of dealing with customers after the sale
general and administrative costs

11. The cost of inventory reported on the balance sheet may include the cost of all the following EXCEPT:
advertising
wages of the plant supervisor
depreciation of the factory equipment
parts used in the manufacturing process

12. For a manufacturing company, what type of position (line or staff) is each of the following?
a. Manager of a Data Processing Department
b. Manager of a Production Department

a. Staff
b. Staff
a. Staff
b. Line
a. Line
b. Staff
a. Line
b. Line

13. The Sarbanes-Oxley Act of 2002 contains all of the following provisions EXCEPT:
The audit committee of the board of directors of a company must hire, compensate, and terminate the public accounting firm that audits the company's financial reports.
Financial statements must be audited once every three years by the Government Accounting Office.
Both the CEO and CFO must certify in writing that their company's financial statements and accompanying disclosures fairly represent the results of operations.
A company's annual report must contain an internal control report.

14. The Institute of Management Accountants' Standards of Ethical Conduct contains a policy regarding confidentiality that requires that management accountants:
refrain from disclosing confidential information acquired in the course of their work except when authorized by management.
refrain from disclosing confidential information acquired in the course of their work in all situations.
refrain from disclosing confidential information acquired in the course of their work except when authorized by management, unless legally obligated to do so.
refrain from disclosing confidential information acquired in the course of their work in all cases since the law requires them to do so.

15. Which of the following is NOT one of the Institute of Management Accountants' five Standards of Ethical Conduct?
Competence
Confidentiality
Independence
Integrity

16. Manufacturing overhead includes:
all direct material, direct labor and administrative costs.
all manufacturing costs except direct labor.
all manufacturing costs except direct labor and direct materials.
all selling and administrative costs.

17. Which of the following is NOT a period cost?
Monthly depreciation of the equipment in a fitness room used by factory workers.
Salary of a billing clerk.
Insurance on a company showroom, where current and potential customers can view new products.
Cost of a seminar concerning tax law updates that was attended by the company's controller.

18. Conversion costs consist of:
direct and indirect labor.
direct labor and direct materials.
direct labor and manufacturing overhead.
prime costs and manufacturing overhead.

19. The information below relates to Derby Manufacturing Company's operations for a recent month. (Assume that all raw materials are direct materials.):
Purchases of raw materials $91,000
Direct labor cost $122,000
Selling costs (total) $42,000
Administrative costs (total) $56,000
Manufacturing overhead costs (total) $340,000
Raw materials inventory, beginning $22,000
Work in process inventory, beginning $27,000
Finished goods inventory, beginning $42,000
Raw materials inventory, ending $7,000
Work in process inventory, ending $35,000
Finished goods inventory, ending $15,000

What was Derby's cost of goods manufactured for the month?

$545,000
$560,000
$568,000
$587,000

20. Consider the following costs incurred in a recent period:
Direct materials $33,000
Depreciation on factory equipment $12,000
Factory janitor's salary $23,000
Direct labor $28,000
Utilities for factory $9,000
Selling expense $16,000
Production supervisor's salary $34,000
Administrative expenses $21,000

What was the total amount of the period costs listed above for the period?

$78,000
$71,000
$46,000
$37,000

© BrainMass Inc. brainmass.com October 17, 2018, 1:29 am ad1c9bdddf
https://brainmass.com/business/financial-accounting-bookkeeping/cost-of-goods-manufactured-339774

Solution Preview

Management accounting information can be used for all of the following except: (Points :2)
evaluate the market price of the stock.
As its primarily related to financial accounting

2. Management accounting reports might include information about: (Points :2)

All of the above are correct.

3. Which of the following types of information are used in management accounting? (Points :2)
financial information

4. Which of the following statements refers to management accounting information? (Points :2)
There are no regulations governing the reports.

5. Financial accounting: (Points :2)
must comply with GAAP (generally accepted accounting principles)

6. A key element of any organization's strategy is identifying: (Points :2)
its target customers

7. A weekly report comparing machine time used to available machine time is information MOST useful to: (Points :2)
a front-line employee

8. Nonmanufacturing costs: (Points :2)
include the cost of ...

Solution Summary

Response discusses the cost of goods manufactured

$2.19
Similar Posting

Accounting problems

38) Account Record of Loan Oak Products:

Raw materials purchases $175,000
Direct labor 254,000
Indirect labor 109,000
Selling and administrative salaries 133,000
Building depreciation* 80,000
Selling & admin expense 195,000
Other factory cost 344,000
Sales revenue ($130 per unit) 1,495,000
? Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions.

Inventory data: January 1 December 31
Raw material 15,800 18,200
Work in progress 35,700 62,100
Finish goods* 111,100 97,900
? The January 1 and December 31 inventory consisted of 1,350 units and 1,190 units, respectively
1. Calculate Lone Oak's manufacturing overhead for the year.
2. Calculate Lone Oak's cost of goods manufactured.
3. Compute the company's cost of goods sold.
4. Determine net income for 20x1, assuming a 30% income tax rate.
5. Determine the number of completed units manufactured during the year.
6. Build a spreadsheet : Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: indirect labor is $115,000 and othe factory cost amount to $516,000.

40. Mason Corp began operations at the beginning of the current year. One of the company's product, a refrigeration element, sells for $185 per unit. Information related to the current year's activities follows:
Variable costs per unit:
Direct material $20
Direct Labor $37
Manufacturing overhead 48

Annual Fixed costs:
Manufacturing overhead 600,000
Selling and administrative 860,000
Production and Sales activity;
Production (units) 24,000
Sales(units) 20,000

Mason carries its finished-goods inventory at the average unit cost of production and is subject ot a 30% income tax rate. There was no work in process at year-end.
1. Determine the cost of the December 31 finished-goods inventory
2. Computer Mason's net income for the current year ended December 31.
3. If next year's production decreases to 23,000 units and general cost behavior patterns do not change, what is the likely effect on:
a. The direct-labor cost of $37 per unit? Why?
b. The fixed manufacturing overhead costs of $600,000? Why?
c. The fixed selling and administrative cost of $860,000? Why?
d. The average unit cost of production? Why?

41. Determine the missing amounts in each of the following independent cases. Refer to the spreadsheet, fill in the spreadsheet.

View Full Posting Details