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Managerial Accounting Final Exam Review/ Exam Questions with Correct Verified Answers/ Rated A+
Which of the following is a product cost for a manufacturing company? - ANS - wages paid to factory janitor
Which of the following represents the combined sum of direct labor costs and manufacturing overhead costs? - ANS - conversion costs
Viva, Inc. has provided the following information for the year:
Cost of Goods Manufactured
$1,265,000
Beginning Balance—Finished Goods Inventory
98,000
Ending Balance—Finished Goods Inventory
81,000
What is the cost of goods sold? - ANS - Beginning Finished Goods Inventory-Ending Finished Goods Inventory) +COG manufactured= COGS
$1,282,000
Goods that are produced by a manufacturing company and are ready to sell are recorded in the _______ account. - ANS - Finished Goods Inventory
Which of the following is an example of direct labor cost in a factory? - ANS - wages of assembly line personnel
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2 Which of the following will be included in manufacturing overhead costs? - ANS - indirect labor and indirect materials used
Castillo Corporation, a manufacturer, reports costs for the year as follows:
Direct Materials Used
$750,000
Wages to Line Workers
335,000
Office Rent
28,500
Indirect Materials Used
785,000
How much is the total period costs for Castillo? - ANS - 28,500 (office rent)
The costs transferred to Finished Goods Inventory are called _______. - ANS - Cost of Goods Manufactured
The entry to record the purchase of raw materials on account would include a ________. - ANS - debit to the Raw Materials Inventory account
Midtown, Inc. uses a predetermined overhead allocation rate of $60 per direct labor hour. In January, the company completed Job A23 which utilized 22 direct labor hours. Which of the following correctly describes the journal entry to allocate overhead to the job? - ANS - debit Work−in−Process Inventory $1,320 and credit Manufacturing Overhead $1,320
Under process costing, the costs incurred by each department are reported in ________. The perpetual inventory system is used. - ANS - a production cost report
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Rios Corporation reports costs for the year as follows:
Direct Materials Used
$755,000
Wages to Line Workers
265,000
Office Rent
36,000
Indirect Materials Used
435,000
How much is the total product costs for the year? - ANS - DM used+ Wages to line workerism used=product cost for the year
$1,455,000
Which of the following is the primary focus of managerial accounting? - ANS - providing information that managers need to make operational decisions
Which of the following is true of Finished Goods Inventory? - ANS - Finished Goods Inventory is an account used by a manufacturer and includes completed goods that have not yet been sold.
Fontana Manufacturing provided the following information for the month ended March 31: Sales Revenue
$26,000
Beginning Finished Goods Inventory 7,000 Ending Finished Goods Inventory
11,500
Cost of Goods Manufactured
17,600
Compute cost of goods available for sale. - ANS - Beginning Finished Goods Inventory 7,000+Cost of Goods Manufactured
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