Question 1

Martinez Company makes leather cowboy hats. Each hat requires ½ yard of leather to produce. On December 31, 2014, the company had (a) 75 hats in Finished Goods Inventory and (b) 60 yards of leather at a cost of $12 per yard in Raw Materials Inventory. During 2015, the company purchased 850 more yards of leather at $12 per yard and manufactured 1,600 hats. Determine the unit and dollar amounts of Raw Materials Inventory in leather at December 31, 2015.

Accepted Answer

None...

Question 2

The main goal of the lean business model is the elimination of waste while satisfying the customer and providing a positive return to the company.

Accepted Answer

A) True 
 B)False

Question 3

A manufacturer's total cost of making and finishing products in the period is called:

Accepted Answer

A)   Cost of goods sold.
B)   Ending work in process inventory.
C)   Cost of goods manufactured.
D)   Ending finished goods inventory.
E)   Total manufacturing costs.F) All of the above
G) A) and C)

Question 4

Just-in-time manufacturing (JIT) is a system that acquires inventory and produces only when needed.

Accepted Answer

A) True 
 B)False

Question 5

Current information for the Healey Company follows:   Beginning raw materials inventory $15,200 Raw material purchases 60,000 Ending raw materials inventory 16,600 Beginning work in process inventory 22,400 Ending work in process inventory 28,000 Direct labor 42,800 Total factory overhead 30,000\begin{array} { l | r } 	ext { Beginning raw materials inventory } & \$ 15,200 \\hline 	ext { Raw material purchases } & 60,000 \\hline 	ext { Ending raw materials inventory } & 16,600 \\hline 	ext { Beginning work in process inventory } & 22,400 \\hline 	ext { Ending work in process inventory } & 28,000 \\hline 	ext { Direct labor } & 42,800 \\hline 	ext { Total factory overhead } & 30,000\end{array} Beginning raw materials inventory  Raw material purchases  Ending raw materials inventory  Beginning work in process inventory  Ending work in process inventory  Direct labor  Total factory overhead ​$15,20060,00016,60022,40028,00042,80030,000​​  All raw materials used were traceable to specific units of product.
- Healey Company's total manufacturing costs for the year are:

Accepted Answer

A)   $125,800.
B)   $128,600.
C)   $137,000.
D)   $139,000.
E)   $131,400. F) A) and B)
G) A) and C)

Question 6

Use the following data to compute total factory overhead costs for the month:   Sales commissions $10,800 Direct labor 39,600 Indirect materials15,200 Factory manager salaries 7,200 Factory supplies 9,000 Indirect labor 6,300 Depreciation -office equipment 5,000 Direct materials40,500 Corporate office salaries 42,500 Depreciation -factory equipment 7,500\begin{array}{l|c}	ext { Sales commissions } && \$ 10,800 \\hline 	ext { Direct labor } & 39,600 \\hline 	ext { Indirect materials}&&15,200 \\hline 	ext { Factory manager salaries } & 7,200 & \\hline 	ext { Factory supplies } & 9,000 & \\hline 	ext { Indirect labor } & & 6,300 \\hline 	ext { Depreciation -office equipment } & 5,000 &\\hline	ext { Direct materials} & 40,500 \\hline 	ext { Corporate office salaries } & 42,500 \\hline 	ext { Depreciation -factory equipment } && 7,500 \\end{array} Sales commissions  Direct labor  Indirect materials Factory manager salaries  Factory supplies  Indirect labor  Depreciation -office equipment  Direct materials Corporate office salaries  Depreciation -factory equipment ​39,6007,2009,0005,00040,50042,500​$10,80015,2006,3007,500​​

Accepted Answer

A)   $125,300.
B)   $141,100.
C)   $58,300.
D)   $45,200.
E)   $84,800. F) A) and C)
G) B) and C)

Question 7

Current information for the Healey Company follows:   Beginning raw materials inventory $15,200 Raw material purchases 60,000 Ending raw materials inventory 16,600 Beginning work in process inventory 22,400 Ending work in process inventory 28,000 Direct labor 42,800 Total factory overhead 30,000\begin{array} { l | c } 	ext { Beginning raw materials inventory } & \$ 15,200 \\hline 	ext { Raw material purchases } & 60,000 \\hline 	ext { Ending raw materials inventory } & 16,600 \\hline 	ext { Beginning work in process inventory } & 22,400 \\hline 	ext { Ending work in process inventory } & 28,000 \\hline 	ext { Direct labor } & 42,800 \\hline 	ext { Total factory overhead } & 30,000\end{array} Beginning raw materials inventory  Raw material purchases  Ending raw materials inventory  Beginning work in process inventory  Ending work in process inventory  Direct labor  Total factory overhead ​$15,20060,00016,60022,40028,00042,80030,000​​  All raw materials used were traceable to specific units of product. 
-Healey Company's direct materials used for the year is:

Accepted Answer

A)   $75,200.
B)   $58,600.
C)   $76,600.
D)   $61,400.
E)   $60,000. F) A) and B)
G) A) and C)

Question 8

The cost of workers who assist in, or supervise, the manufacturing process, not linked to specific units of product is called:

Accepted Answer

A)   Indirect labor.
B)   Direct labor.
C)   Basic labor.
D)   Unspecified labor.
E)   Joint labor.F) None of the above
G) A) and B)

Question 9

To be certified under ISO 9000 standards, companies must use a quality control system and document that it achieves the desired quality level.

Accepted Answer

A) True 
 B)False

Question 10

Products that are in the process of being manufactured but are not yet complete are called:

Accepted Answer

A)   Cost of goods sold.
B)   Conversion costs.
C)   Work in process inventory.
D)   Raw materials inventory.
E)   Finished goods inventory.F) A) and B)
G) A) and C)

Question 11

For product costs associated with a particular product to be reported on the income statement:

Accepted Answer

A)   The product must be sold.
B)   The company must expect to sell the product during the next twelve months.
C)   The product must be transferred to Finished Goods Inventory.
D)   The product may be in any of the manufacturer's inventory accounts.
E)   The product must still be in Work in Process Inventory.F) All of the above
G) B) and C)

Question 12

A National Quality Award that encourages an emphasis on quality was established by:

Accepted Answer

A)   The Malcolm Baldrige Foundation.
B)   The United Nations.
C)   The SEC.
D)   The U.S. Chamber of Commerce.
E)   The U.S. Congress.F) B) and C)
G) C) and E)

Question 13

The series of activities that add value to a company's products or services is called a value chain.

Accepted Answer

A) True 
 B)False

Question 14

Total manufacturing costs incurred during the year do not include:

Accepted Answer

A)   Direct labor.
B)   Depreciation of factory machinery.
C)   Direct materials used.
D)   Work in Process inventory, beginning balance.
E)   Factory supplies used.F) D) and E)
G) C) and D)

Question 15

Costs that flow directly to the income statement as expenses are called:

Accepted Answer

A)   Period costs.
B)   Capitalized costs.
C)   General costs.
D)   Balance sheet costs.
E)   Product costs.F) C) and E)
G) C) and D)

Question 16

Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines.

Accepted Answer

A) True 
 B)False

Question 17

Just-in-time manufacturing techniques can be useful in _____________ days' sales in raw materials inventory.

Accepted Answer

A)   changing upward
B)   lowering
C)   increasing
D)   keeping constant
E)   adding toF) A) and B)
G) A) and C)

Question 18

A schedule of cost of goods manufactured is also known as a:

Accepted Answer

A)   Manufacturing statement.
B)   Cost of goods sold schedule.
C)   Raw materials processed schedule.
D)   Total finished goods statement.
E)   Factory supplies used schedule.F) B) and E)
G) A) and D)

Question 19

A direct cost is a cost that is:

Accepted Answer

A)   Does not change with the volume of activity.
B)   Identifiable as controllable.
C)   Traceable to multiple cost objects.
D)   Traceable to a single cost object.
E)   Traceable to the company as a whole.F) C) and E)
G) A) and B)

Question 20

Costs that are capitalized as inventory when they are incurred are called:

Accepted Answer

A)   Fixed costs.
B)   General costs.
C)   Administrative costs.
D)   Period costs.
E)   Product costs.F) B) and D)
G) A) and D)

Exam 18: Managerial Accounting Concepts and Principles

Total manufacturing costs incurred during the year do not include:

Correct Answer
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Correct Answer
verified
None...
View Answer

A direct cost is a cost that is:

Correct Answer
verified

A manufacturer's total cost of making and finishing products in the period is called:

Correct Answer
verified

Just-in-time manufacturing techniques can be useful in _____________ days' sales in raw materials inventory.

Correct Answer
verified

Costs that are capitalized as inventory when they are incurred are called:

Correct Answer
verified

Correct Answer
verified

Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines.

Correct Answer
verified

The series of activities that add value to a company's products or services is called a value chain.

Correct Answer
verified

To be certified under ISO 9000 standards, companies must use a quality control system and document that it achieves the desired quality level.

Correct Answer
verified

Costs that flow directly to the income statement as expenses are called:

Correct Answer
verified

A schedule of cost of goods manufactured is also known as a:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A National Quality Award that encourages an emphasis on quality was established by:

Correct Answer
verified

The main goal of the lean business model is the elimination of waste while satisfying the customer and providing a positive return to the company.

Correct Answer
verified

For product costs associated with a particular product to be reported on the income statement:

Correct Answer
verified

Products that are in the process of being manufactured but are not yet complete are called:

Correct Answer
verified

The cost of workers who assist in, or supervise, the manufacturing process, not linked to specific units of product is called:

Correct Answer
verified

Just-in-time manufacturing (JIT) is a system that acquires inventory and produces only when needed.

Correct Answer
verified

Exam 18: Managerial Accounting Concepts and Principles

Total manufacturing costs incurred during the year do not include:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNone...View AnswerShow Answer

A direct cost is a cost that is:

Correct AnswerverifiedShow Answer

A manufacturer's total cost of making and finishing products in the period is called:

Correct AnswerverifiedShow Answer

Just-in-time manufacturing techniques can be useful in _____________ days' sales in raw materials inventory.

Correct AnswerverifiedShow Answer

Costs that are capitalized as inventory when they are incurred are called:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines.

Correct AnswerverifiedShow Answer

The series of activities that add value to a company's products or services is called a value chain.

Correct AnswerverifiedShow Answer

To be certified under ISO 9000 standards, companies must use a quality control system and document that it achieves the desired quality level.

Correct AnswerverifiedShow Answer

Costs that flow directly to the income statement as expenses are called:

Correct AnswerverifiedShow Answer

A schedule of cost of goods manufactured is also known as a:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A National Quality Award that encourages an emphasis on quality was established by:

Correct AnswerverifiedShow Answer

The main goal of the lean business model is the elimination of waste while satisfying the customer and providing a positive return to the company.

Correct AnswerverifiedShow Answer

For product costs associated with a particular product to be reported on the income statement:

Correct AnswerverifiedShow Answer

Products that are in the process of being manufactured but are not yet complete are called:

Correct AnswerverifiedShow Answer

The cost of workers who assist in, or supervise, the manufacturing process, not linked to specific units of product is called:

Correct AnswerverifiedShow Answer

Just-in-time manufacturing (JIT) is a system that acquires inventory and produces only when needed.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
None...
View Answer

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