Reference no: EM132316073
Question
1) Financial accounting prepares reports for internal? purposes, whereas managerial accounting provides information to external stakeholders.
True
False
2) Connie is analyzing the financial statements of MegaMart and Bullseye Company. She wants to invest in one of the companies and is trying to decide which company has the better past performance. Connie is examining
A. regulatory accounting information.
B. managerial accounting information.
C. organizational accounting information.
D. financial accounting information.
3) All costs incurred in the manufacture of completed products are product costs.
True
False
4 Which of the following is an example of a period cost for a manufacturing? company?
A. Property taxes for the factory
B. Advertising expense
C. Depreciation on factory equipment
D. Indirect materials
5) Manufacturing overhead is also referred to as? ________.
A. direct manufacturing costs
B. prime costs
C. indirect manufacturing costs
D. period costs
6) The following information relates to? Myer, Inc.:
Advertising Costs $13,200
Sales Salary 10,400
Sales Revenue 550,000
?President's Salary 410,000
Office Rent 70,500
Manufacturing Equipment Depreciation 1,800
Indirect Materials Used 1,800
Indirect Labor 13,000
Factory Repair and Maintenance 920
Direct Materials Used 30,000
Direct Labor 26,000
Delivery Vehicle Depreciation 1,000
Administrative Salaries 24,000
How much were? Myer's product? costs?
A. $434,000
B. $669,100
C. $563,200
D. $ 73, 520
7 Manufacturing companies produce their own? products, but merchandising companies do not.
True
False
8) Artisan? Inspiration, Inc. is a merchandiser of stone ornaments. The company sold? 8,000 units during the year. The company has provided the following? information:
Sales Revenue ?$593,000
Purchases? (excluding Freight? In) ?304,000
Selling and Administrative Expenses ?68,000
Freight In ?14,000
Beginning Merchandise Inventory ?46,000
Ending Merchandise Inventory ?42,000
What is the operating income for the? year? (Round your answer to the nearest whole? dollar.)
A. ?$322,000
B. ?$525,000
C. ?$203,000
D. ?$271,000
9) Jasper, Inc. reports the following cost information for? March:
Cost of Goods Manufactured ?$74,100
Manufacturing Overhead ?18,500
Finished Goods? Inventory, March 1 ?4,000
Finished Goods? Inventory, March 31 ?2,700
Work-in-Process ?Inventory, March 1 ?9,800
Work-in-Process ?Inventory, March 31 ?1,400
Direct Materials Used
?25,200
What is the cost of goods sold for? March?
A. ?$3,100
B. ?$78,100
C. ?$72,800
D. ?$75,400
10) The cost of goods manufactured includes selling? expenses, administrative? expenses, and manufacturing overhead.
True
False
11) Given the following? information, determine the cost of goods manufactured.
Direct Labor Incurred $64,000
Manufacturing Overhead Incurred 175,000
Direct Materials Used 151,000
Finished Goods? Inventory, Jan. 1 198,000
Finished Goods? Inventory, Dec. 31 96,500
?Work-in-Process Inventory, Jan. 1 220,500
?Work-in-Process Inventory, Dec. 31 110,000
A.$390,000
B.$184,500
C.$500,500
D.$ 280, 000
12) Regarding the flow of costs through the inventory? accounts, which of the following statements is?incorrect?
A.The format for computing the amount? used, manufactured, or sold is the same for all three inventory accounts.
B.Purchases of raw material and freight in are debited to the Work-in-Process Inventory account.
C.The costs flow from Raw Materials Inventory to Work-in-Process Inventory to Finished Goods Inventory.
D.The final amount at each stage is added at the beginning of the next stage.
13) Managerial accounting is used in manufacturing and merchandising? companies, but not in service companies.
True
False
14) ?Nurix, Inc. is a business consulting firm. During the month of? February, Nurix earned? $55,600 of revenues by providing services to 47 clients. Operating costs for February were? $8,500 and non-operating costs were? $6,000. What is the unit cost per? service? (Round your answer to the nearest?cent.)
A. ?$180.85
B. ?$308.51
C. ?$127.66
D. ?$1,182.98
15) The primary activity of manufacturing companies is to purchase goods from a wholesaler and resell them.
True
False