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Exam 16: Introduction to Managerial Accounting

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Question 41

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A company that uses labor,equipment,supplies,and facilities to convert raw materials into finished products is a ________.

A) merchandising company
B) manufacturing company
C) service company
D) trading company

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Question 42

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Costs are transferred from the balance sheet to the income statement as cost of goods sold when ________.

A) finished goods are sold
B) goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account
C) direct materials,direct labor and manufacturing overhead are transferred to the beginning Work-in-Process Inventory account
D) the total of Cost of Goods Manufactured is determined

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Question 43

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Anika,a division manager,is purchasing materials to ensure she has enough to meet customers' demands.Anika is engaging in the ________.

Repair and maintenance costs for manufacturing equipment are product costs.

In order to reach new markets,many companies are moving operations to other countries.

Period costs are the ________.

Franklin Manufacturing provided the following information for the month ended March 31: $\begin{array}{|l|r|}\hline \text { Sales Revenue } & \$ 15,000 \\\hline \text { Beginning Finished Goods Inventory } & 11,000 \\\hline \text { Ending Finished Goods Inventory } & 9500 \\\hline \text { Cost of Goods Manufactured } & 19,600\\\hline \end{array}$ Compute cost of goods sold.

In a manufacturing company,wages and benefits of assembly line workers are period costs.

In a manufacturing plant,indirect materials costs from lubricants and cleaning fluids are product costs.

Hernando Manufacturing,Inc.reported the following information for the year: $\begin{array} { | l | r | } \hline \text { Number of Units Produced } & 152,000 \\\hline \text { Number of Units Sold } & 62,000 \\\hline \text { Cost of Goods Manufactured } & \$ 268,000 \\\hline \text { Cost of Goods Sold } & 52,900 \\\hline \text { Sales Revenue } & 130,000 \\\hline \text { Gross Profit } & 72,940 \\\hline \text { Operating Expense } & 727,000 \\\hline\end{array}$ What was the unit product cost? (Round your answer to the nearest cent.)

________ is a philosophy of continuous improvement of products and processes.

In a manufacturing company,accounting,legal,and administrative costs are typical examples of product costs.

Which of the following is true of service companies?

An Enterprise Resource Planning system (ERP) ________.

Which of the following is an example of a period cost for a manufacturing company?

Total manufacturing costs to account for during the year minus the ending Work-in-Process Inventory equals the cost of goods manufactured.

Which of the following is a part of manufacturing overhead?

The following information is available from Avery Company,a manufacturer of security cameras: $\begin{array} { | l | l | } \hline \text { Cost of Goods Manufactured } & \$ 312,000 \\\hline \text { Total Units Produced } & 1200 \\\hline \text { Number of Units Sold } & 850 \\\hline \text { Cost of Goods Sold } & \$ 275,000 \\\hline\end{array}$ The unit product cost for a security camera is:

Goods that are produced by a manufacturing company and are ready to sell are recorded in the _______ account.

Unit cost per service is calculated by dividing total costs by the total number of services provided.