Question 1

Use the following data to compute total factory overhead costs for the month.

Accepted Answer

A)  $141,100.
B)  $125,300.
C)  $45,200.
D)  $84,800.
E)  $58,300.F) C) and D)
G) None of the above

Question 2

Factory overhead costs may include all of the following except:

Accepted Answer

A)  Indirect labor costs.
B)  Indirect material costs.
C)  Selling costs.
D)  Assembly supplies.
E)  Factory rent.F) C) and E)
G) A) and B)

Question 3

Which of the following costs would not be classified as factory overhead?

Accepted Answer

A)  Property taxes on maintenance machinery.
B)  Insurance on factory building.
C)  Wages of the factory janitor.
D)  Rubber for the soles of shoes produced.
E)  Small tools used in production.F) A) and B)
G) C) and D)

Question 4

Which of the following statements is correct concerning the Days' sales in raw materials inventory?

Accepted Answer

A)  A measure of how long it takes raw materials to be used in production.
B)  The ratio is not useful for a manufacturer.
C)  Reveals how many times a company turns over its raw materials inventory in a period.
D)  Most companies generally prefer a higher number of days' sales in raw materials inventory.
E)  Is calculated by taking the Raw materials used/Average raw materials inventory.F) None of the above
G) A) and E)

Question 5

Current information for the Stellar Corporation follows:  Stellar Corporation's Cost of Goods Manufactured for the year is:

Accepted Answer

A)  $295,100.
B)  $296,500.
C)  $313,000.
D)  $275,800.
E)  $293,700.F) A) and E)
G) B) and E)

Question 6

A company's prime costs total $4,500,000 and its conversion costs total $5,500,000.If direct materials are $2,000,000,calculate the overhead costs:

Accepted Answer

A)  $2,500,000.
B)  $3,500,000.
C)  $2,000,000.
D)  $1,000,000.
E)  $3,000,000.F) C) and D)
G) A) and E)

Question 7

Using the information below,compute the Days' sales in raw materials inventory:

Accepted Answer

A)  6.76.
B)  6.02.
C)  54.0.
D)  60.6.
E)  6.37.F) C) and D)
G) A) and B)

Question 8

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

Accepted Answer

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

Question 9

Which of the following represents the correct formula for calculating raw materials inventory turnover for a manufacturer?

Accepted Answer

A)  Raw materials purchased/Average raw materials inventory.
B)  Average raw materials inventory/Raw materials used.
C)  Raw materials used/Average raw materials inventory.
D)  Ending raw materials/Raw materials used * 365.
E)  Raw materials used/Beginning raw materials inventory * 365.F) A) and E)
G) B) and D)

Question 10

Calculate the cost of goods manufactured using the following information:

Accepted Answer

A)  $680,500.
B)  $701,900.
C)  $687,100.
D)  $674,600.
E)  $772,600.F) D) and E)
G) A) and B)

Question 11

A manufacturer's cost of goods manufactured is the sum of direct materials,direct labor,and factory overhead costs incurred in producing products.

Accepted Answer

A) True 
 B)False

Question 12

Product costs are expenditures necessary and integral to finished products.

Accepted Answer

A) True 
 B)False

Question 13

Calculate the cost of goods sold using the following information:

Accepted Answer

A)  $680,500.
B)  $701,900.
C)  $687,100.
D)  $674,600.
E)  $772,600.F) A) and B)
G) A) and E)

Question 14

An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:

Accepted Answer

A)  Continuous improvement.
B)  Customer orientation.
C)  Just-in-time manufacturing.
D)  Theory of constraints.
E)  Total quality management.F) B) and C)
G) A) and E)

Question 15

The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Accepted Answer

A)  Just in time manufacturing model.
B)  Managerial accounting model.
C)  Corporate social responsibility model.
D)  Continuous improvement model.
E)  Lean business model.F) None of the above
G) A) and E)

Question 16

The Institute of Management Accountants (IMA)Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

Accepted Answer

A) True 
 B)False

Question 17

Using the information below for Sundar Company;determine the total manufacturing costs added during the current year:

Accepted Answer

A)  $98,600.
B)  $43,500.
C)  $98,000.
D)  $42,900.
E)  $79,000.F) A) and B)
G) A) and C)

Question 18

Under a just-in-time manufacturing system,large quantities of inventory are accumulated throughout the factory to be certain that components are available each time that they are needed.

Accepted Answer

A) True 
 B)False

Question 19

Information for Maxim Manufacturing is presented below.Compute both the cost of goods manufactured and the cost of goods sold for Maxim Manufacturing.

Accepted Answer

The answer of Information for Maxim Manufacturing is presented below.Compute...

Question 20

Romeo Corporation has accumulated the following accounting data for the year:  The cost of goods manufactured for the year is:

Accepted Answer

A)  $21,400.
B)  $11,000.
C)  $15,000.
D)  $17,400.
E)  $10,200.F) None of the above
G) B) and E)

Exam 18: Managerial Accounting Concepts and Principles

An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:

Correct AnswerverifiedShow Answer

The Institute of Management Accountants (IMA)Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

Correct AnswerverifiedShow Answer

A manufacturer's cost of goods manufactured is the sum of direct materials,direct labor,and factory overhead costs incurred in producing products.

Correct AnswerverifiedShow Answer

Current information for the Stellar Corporation follows: Stellar Corporation's Cost of Goods Manufactured for the year is:

Correct AnswerverifiedShow Answer

Which of the following costs would not be classified as factory overhead?

Correct AnswerverifiedShow Answer

Calculate the cost of goods sold using the following information:

Correct AnswerverifiedShow Answer

A company's prime costs total $4,500,000 and its conversion costs total $5,500,000.If direct materials are $2,000,000,calculate the overhead costs:

Correct AnswerverifiedShow Answer

Using the information below,compute the Days' sales in raw materials inventory:

Correct AnswerverifiedShow Answer

Information for Maxim Manufacturing is presented below.Compute both the cost of goods manufactured and the cost of goods sold for Maxim Manufacturing.

Correct AnswerverifiedShow Answer

Romeo Corporation has accumulated the following accounting data for the year: The cost of goods manufactured for the year is:

Correct AnswerverifiedShow Answer

Calculate the cost of goods manufactured using the following information:

Correct AnswerverifiedShow Answer

Which of the following statements is correct concerning the Days' sales in raw materials inventory?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Factory overhead costs may include all of the following except:

Correct AnswerverifiedShow Answer

Product costs are expenditures necessary and integral to finished products.

Correct AnswerverifiedShow Answer

Under a just-in-time manufacturing system,large quantities of inventory are accumulated throughout the factory to be certain that components are available each time that they are needed.

Correct AnswerverifiedShow Answer

Use the following data to compute total factory overhead costs for the month.

Correct AnswerverifiedShow Answer

Which of the following represents the correct formula for calculating raw materials inventory turnover for a manufacturer?

Correct AnswerverifiedShow Answer

Using the information below for Sundar Company;determine the total manufacturing costs added during the current year:

Correct AnswerverifiedShow Answer

The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified