153 test bank for managerial accounting 12th edition

Free Test Bank with Answers for Accounting Information Systems 1st Free Test Bank with Answers for Accounting Information Systems 1st Free Test Bank with Answers for Accounting Information Systems 1st Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Financial Accounting An Introduction. Free Test Bank with Answers for Auditing and Assurance Services Understandin Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Advanced Accounting 12th Edition Test Bank with Answers for Auditing A Business Risk Approach 8th Edition Free Test Bank for Management Accounting with Answers Ngân hàng câu hỏi trắc nghiệm Hệ thống thông tin kế toán, Ngân hàng câu hỏi kèm đáp án đề trắc nghiệm Tài chính kế toán, đề trắc nghiệm Quản trị kế toán, kế toán nâng cao, Đề trắc nghiệm có đáp án Tài chính kế toán, Kế toán kiểm toán, kế toán quản trji Test Bank for Managerial Accounting with Answers Đề trắc nghiệm kế toán, trắc nghiệm tài chính, Test bank for Accounting, Test bank with Answer, Test Bank Financial Accounting

153 Test Bank for Managerial Accounting 12th Edition

True False Questions - Free Text Questions - Multiple Choice

Questions

Costs other than direct materials cost and direct labor cost

incurred in the manufacturing process are classified as:

1 period cost

2 miscellaneous expense

3 factory overhead cost

4 product costs

Cost of goods manufactured is equal to:

1 total manufacturing costs plus beginning work in process inventory less ending work in process inventory

2 total manufacturing costs plus ending work in process inventory less beginning work in process inventory

3 cost of goods sold plus beginning work in process inventory less ending work in

process inventory

4 total manufacturing costs plus ending materials inventory less beginning materials inventory

Beginning Raw Materials Inventory:$40,000; Materials

purchased:$65,000; Ending Raw Materials Inventory:

$30,000 What is the amount of Raw Materials Used?

1 $75,000

2 $5,000

3 $65,000

4 $30,000

A company manufactured 50,000 units of a product at a cost of

$450,000 They sold 40,000 units for $15 each What is the gross margin?

1 $600,000

2 $450,000

3 $240,000

4 $750,000

Compute conversion costs given the following data: Direct

Materials, $347,500; Direct Labor, $186,300; Factory

Overhead, $187,900; and Selling Expenses, $45,290

1 vice president of sales

2 vice president of finance

3 manager of the Valhalla Plant

4 vice president of production

All of the following would be reported on the balance sheet as a

current asset except:

1 factory overhead

2 materials inventory

3 work in process inventory

4 finished goods inventory

All of the following are ways that managers use managerial

information except

1 to evaluate the company’s stock performance

2 to evaluate the performance of a company’s operations

3 to determine the cost of manufacturing a product

4 to support long-term planning decisions

Cost of Materials Used: $45,000; Direct Labor costs: $48,000;

Factory Overhead: $39,000; Work in Process, beg.:

$28,000; Work in Process, end.: $18,000 What is Cost of Goods Manufactured?

1 $132,000

2 $178,000

3 $122,000

4 $142,000

A company sells goods for $150,000 that cost $60,000 to

manufacture Which statement(s) are true?

1 The company will recognize sales on the balance sheet of $150,000.

2 The company will decrease finished goods by $60,000.

3 All of these are true.

4 The company will recognize $90,000 gross profit on the balance sheet.

Accounting designed to meet the needs of decision-makers

inside the business is referred to as:

4 lumber

Cost of goods manufactured during 2011 is $240, work in

process inventory on December 31, 2011, is $50 Work in process inventory during 2011 decreased by 60% Total manufacturing costs incurred during 2011 amount to:

1 $290

2 $315

3 $190

4 $165

A product cost is:

1 expensed in the period in which it is incurred

2 expensed in the period the product is sold

3 shown with current liabilities on the balance sheet

4 shown on the income statement with the operating expenses

All of the following are examples of indirect labor except:

1 ending work in process inventory less beginning work in process inventory

2 ending finished goods inventory less beginning finished goods inventory

3 beginning work in process inventory less ending work in process inventory

4 beginning finished goods inventory less ending finished goods inventory

Conversion costs are

1 direct materials and direct labor

2 factory overhead and direct labor

3 direct materials and indirect labor

4 direct materials and factory overhead

Beginning work in process is equal to:

1 cost of goods manufactured plus ending work in process minus manufacturing costs incurred during the current period

2 manufacturing costs incurred during the current period minus ending work in process

3 ending work in process plus manufacturing costs incurred during the current period

4 cost of goods manufactured minus ending work in process plus manufacturing costs incurred during the current period

An example of a period cost is:

1 depreciation on factory equipment

2 indirect materials

3 property taxes on plant facilities

4 advertising expense

Cost of Materials Used:$45,000; Direct Labor costs: $48,000;

Factory Overhead: $39,000; Work in Process, beg:

$28,000;Work in Process, end: $18,000; Finished

Goods,beg.: $28,000; Finished Goods, end.:$18,000 What

is Cost of Goods Sold?

1 $152,000

2 $10,000

3 $142,000

4 $128,000

At the beginning of 2011, the Gilbert Company’s work in

process inventory account had a balance of $30,000

During 2011, $68,000 of direct materials were used in

production, and $66,000 of direct labor costs were

incurred Factory overhead in 2011 amounted to $90,000 Cost of goods manufactured is $230,000 in 2011 The

balance in work in process inventory on December 31,

2011, is:

1 $36,000

A company used $35,000 of direct materials, incurred $73,000 in

direct labor cost, and $114,000 in factory overhead costs during the period If beginning and ending work in

process inventories were $28,000 and $32,000

respectively, the cost of goods manufactured was:

1 $226,000

2 $222,000

3 $218,000

4 $190,000

Costs on the income statement for both a merchandiser and a

manufacturer would include:

1 direct labor incurred

2 cost of goods manufactured

3 direct materials

4 operating expenses

84 Free Test Bank for Managerial Accounting 12th Edition

by Warren Multiple Choice Questions - Page 2

The cost of a manufactured product generally consists of which

of the following costs?

1 Direct materials cost and direct labor cost

2 Direct labor cost, direct materials cost, and factory overhead cost

3 Direct materials cost and factory overhead cost

4 Direct labor cost and factory overhead cost

Goods that are partially completed by a manufacturer are

referred to as:

1 merchandise inventory

2 work in process inventory

3 finished goods inventory

4 materials inventory

Indirect labor and indirect materials are classified as:

1 operating costs and period costs

2 operating costs and product costs

3 factory overhead and period costs

4 factory overhead and product costs

Period costs include:

1 operating costs that are shown on the income statement in the period in which they are incurred

2 operating costs that are shown on the income statement when products are sold

3 current liabilities on the balance sheet

4 current assets on the balance sheet

The Sharpe Company reports the following information for

2015: Sales: $76,500; Direct materials used: 7,300;

Depreciation on factory equipment: 4,700; Indirect labor: 5,900; Direct labor: 10,500; Factory rent: 4,200; Factory utilities: 1,200; Sales salaries expense: 15,600; Office

salaries expense: 8,900; Indirect materials: 1,200;

Determine product costs for 2015

1 $24,500

2 $35,000

3 $30,300

4 $29,200

Managerial accounting

1 is related to the entire business entity only.

2 is prepared according to management needs.

3 is prepared according to GAAP.

4 is prepared periodically only.

Managerial accountants would most likely prepare all of the

following reports except:

1 A control report comparing direct material usage over time.

2 A sales report targeting monthly sales and potential bonuses.

3 An annual report for external regulators such as the SEC.

4 A performance report identifying amounts of scrap.

Finished goods inventory is reported on the:

1 balance sheet as a long-term asset

2 balance sheet as a current asset

3 income statement as revenue

4 income statement as a period cost

Indirect costs incurred in a manufacturing environment that

cannot be traced directly to a product are treated as:

1 period costs and expensed when incurred

2 period costs and expensed when the goods are sold

3 product costs and expensed when the goods are sold

4 product costs and expenses when incurred

Costs which are reported on the income statement as part of

cost of goods sold are referred to as:

Materials must have which two qualities in order to be classified

as direct materials?

1 They must be an integral part of the finished product and be a significant portion of the total product cost.

2 They must be classified as both prime costs and conversion costs.

3 They must be introduced into the process in both work-in-process inventories and finished goods inventories.

4 They must be an integral part of the finished product, but can be an insignificant portion

of the total product cost.

If the cost of direct materials is a small portion of total

production cost, it may be classified as part of:

1 factory overhead cost

2 miscellaneous costs

3 direct labor cost

4 selling and administrative costs

The Sharpe Company reports the following information for

2015: Sales: $76,500; Direct materials used: 7,300;

Depreciation on factory equipment: 4,700; Indirect labor: 5,900; Direct labor: 10,500; Factory rent: 4,200; Factory utilities:1,200; Sales salaries expense: 15,600; Office

salaries expense: 8,900; Indirect materials: 1,200;

Determine period costs for 2015

1 $24,500

2 $30,300

3 $29,200

4 $35,000

Reedy Company reports the following information for 2012:Cost

of goods manufactured:$68,250; Direct materials

used:27,000; Direct labor incurred:25,000; Work in

process inventory, January 1, 2012:11,000 Factory

overhead is 75% of the cost of direct labor Work in

process inventory on December 31, 2012, is:

The controller's staff often consists of several management

accountants All of the following would most likely be on the controller's staff EXCEPT:

1 general accountants

2 cost accountants

3 investments and shareholder relations managers

4 budgets and budget analysts

In order to be useful to managers, management accounting

reports should possess all of the following characteristics EXCEPT:

1 be prepared to report information for any unit of the business to support decision

making

2 be prepared in accordance with generally accepted accounting principles

3 provide objective measures of past operations and subjective estimates about future decisions

4 be provided at any time management needs information

In the income statement of a manufacturing company, what

replaces purchases in the cost of goods section of a retail company?

1 Cost of merchandise available

2 Work in process completed

3 Finished goods

4 Cost of goods manufactured

Direct labor and direct materials are classified as:

1 product costs and expensed when incurred

2 product costs and expensed when the goods are sold

3 period costs and expensed when incurred

4 period costs and expensed when the goods are sold

Product costs

1 appear only on the balance sheet

2 appear only on the income statement

3 appear on both the income statement and balance sheet

4 are expensed as costs are incurred for direct labor, direct material and factory

overhead

The cost of goods sold for Heedy manufacturing in 2011 was

$233,000 The January 1, 2011, finished goods inventory balance was $31,600, and the December 31, 2011, finished goods inventory balance was $24,200 Cost of goods

manufactured during the period was:

1 $288,800

2 $233,000

3 $240,400

4 $225,600

Factory overhead includes:

1 indirect materials and direct materials

2 factory rent and direct labor

3 direct materials and direct labor

4 indirect labor and indirect materials

Prime costs are

1 period costs and factory overhead

2 direct labor and factory overhead

3 direct materials and direct labor

4 direct materials and factory overhead

Rent expense on a factory building would be treated as a(n):

1 both A and C are correct

2 period cost

3 direct cost

4 product cost

In most business organizations, the chief management

accountant is called the:

1 chief executive officer

2 chief accounting officer

3 controller

4 chairman of the board

84 Free Test Bank for Managerial Accounting 12th Edition

by Warren Multiple Choice Questions - Page 3

The following are all product costs except:

3 Machine operator wages

4 Assembly line wages

Which of the following is most associated with financial

accounting?

1 Can have both objective and subjective information

2 Can be prepared for the entity or segment

3 Can be prepared periodically, or as needed

4 Prepared in accordance with GAAP

Williams Company reports production costs for 2015 as follows:

Direct materials used:$345,000; Direct labor

incurred:250,000; Factory overhead; incurred:400,000; Operating expenses:175,000 Williams Company’s period costs for 2015 amount to:

1 $250,000

2 $175,000

3 $345,000

4 $400,000

Work in process inventory increased by $20,000 during 2011

Cost of goods manufactured was $180,000 Total

manufacturing costs incurred in 2011 are:

1 $160,000

2 $200,000

3 $198,000

4 $189,000

Work in process inventory on December 31, 2011, is $44,000

Work in process inventory increased by 60% during 2011 Cost of goods manufactured for 2011 amounts to

$275,000 What are the total manufacturing costs incurred

in 2011?

1 $233,750

2 $302,000

3 $291,500

4 $275,750

Which of the following is an example of direct labor cost for an

airplane manufacturer?

1 Cost of oil lubricants for factory machinery

2 Cost of wages of assembly worker

3 Cost of jet engines

4 Salary of plant supervisor

Williams Company reports production costs for 2015 as follows:

Direct materials used:$345,000; Direct labor

incurred:250,000; Factory overhead; incurred:400,000; Operating expenses:175,000 Williams Company’s

product costs for 2015 amount to:

1 Memory chips for a microcomputer manufacturer

2 Hourly wages of an assembly worker

3 Commissions for sales personnel

4 Oil lubricants used for factory machinery

Which of the following is not a characteristic of useful

managerial accounting reports?

1 historical and estimated data

2 reports prepared as needed

3 GAAP

4 Accuracy

What is the purpose of the Statement of Cost of Goods

Manufactured?

1 to determine the ending materials inventory

2 to determine the amounts transferred to finished goods

3 to determine the ending work in process inventory

4 all of the answers are true

Which of the following is an example of direct materials cost for

an automobile manufacturer?

1 Cost of oil lubricants for factory machinery

2 Cost of wages of assembly worker

3 Salary of production supervisor

4 Cost of interior upholstery

What is the primary criterion for the preparation of managerial

accounting reports?

1 Cost of the reports

2 Relevance of the reports

3 Meet the manager needs

4 Timing of the reports

Which of the following accounts will be found on the income

Which of the following is not a factory overhead cost?

1 salaries of production supervisors

2 materials used directly in the manufacturing process of the product

3 insurance on factory equipment

4 property tax on factory building

What term is used to describe the process of monitoring

operating results and comparing actual results with the expected results?

1 Directing

2 Planning

3 Controlling

4 Improving

What term is used to describe the process of developing the

organization’s objectives and translating those into courses of action?

Which one of the following will not be found on the balance

sheet of a manufacturing company?

1 finished goods

2 materials

3 cost of goods sold

4 work in process

Who are the individuals charged with the responsibility for

directing the day-to-day operations of a business?

1 Customers

2 Investors