Explore BrainMass
Share

Explore BrainMass

    Cost of goods manufactured

    This content was COPIED 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 10, 2019, 1:33 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