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Exam 16: Management Accounting

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Question 31

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Classification of costs Using the code letters below,indicate in the space provided how each of the following costs should be classified in the indicated manufacturing company: Costs ________ (a)Research and development costs incurred by Martin,manufacturer of derailleurs,brakes,and other component parts for bicycles in its efforts to develop new products. ________ (b)Salaries paid by Martin to the plant managers supervising production operations. ________ (c)An inventory of Martin Group 105 components purchased by Earl Bicycle Corporation for use in the manufacture of Earl 's Model 1200 aluminum bicycle. ________ (d)An inventory of Model 1200 bicycle frames manufactured by Earl.Prior to sale,these frames will be painted and equipped with derailleurs,brakes,and other component parts. ________ (e)Salaries paid by Earl to its sales personnel. ________ (f)Salaries paid by Earl to employees who install derailleurs,brakes,and other component parts on the bicycle frames. ________ (g)An inventory of Martin Group 105 derailleurs awaiting sale to customers.

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(a)PC (b)M...

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Question 32

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The costs of storing and delivering finished goods are allocated to the finished goods account.

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Question 33

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The wages paid to employees working directly on a company's products would be shown as a:

Management accounting encompasses the design and use of accounting information systems inside the company to achieve the company's objectives.

The payment of wages to factory employees who work directly on the goods being manufactured is recorded by an entry crediting:

Which of the following is not a product cost?

Which of the following is not one of the three types of inventories of a manufacturing company?

The "cost of finished goods manufactured," which appears on the bottom of the Schedule of Finished Goods Manufactured,flows to the balance sheet and is reported as the ending inventory balance.

Generally Accepted Accounting Principles The accounting department of Burke Manufacturing prepares numerous reports at the request of,and for exclusive use by,the management of the company.Is it necessary that these managerial accounting reports be developed in accordance with generally accepted accounting principles (GAAP)?

Schedule of cost of finished goods manufactured The accounting records of Hogan Handle Co.include the following information about the company's manufacturing costs and inventories for the month of March 2018: Complete the following Schedule of Cost of Finished Goods Manufactured for the year ended March 31,2018:

[The following information applies to the questions displayed below.] The following information has been taken from the perpetual inventory system of Imperial Mfg.Co.for the month ended September 30: -Alton Company produces metal belts.During the current month,the company incurred the following product costs: Raw materials $100,000; Direct labor $75,000; Electricity used in the Factory $25,000; Factory foreperson salary $3,750;and Maintenance of factory machinery $2,000. Alton Company's direct product costs totaled:

Since manufacturing costs (direct materials,direct labor,and overhead) are incurred in the process of manufacturing units of product,these costs are debited to:

Supervisor salaries,equipment repairs,depreciation of machinery,and indirect materials are all examples of manufacturing overhead.

In comparison with a financial statement prepared in conformity with generally accepted accounting principles,a managerial accounting report is less likely to:

During its first year of operations,Brown Company incurred the following product costs: Direct materials used in production $200,000; Direct labor $175,000;and Manufacturing overhead $145,500. The Brown Company's ending Work in Process Inventory amounted to $35,000 at the end of the year.What is the company's cost of finished goods manufactured for the year?

All of the following statements regarding management accounting's role in assigning decision-making authority are true except:

The cost of the employee who computes total manufacturing costs would be considered:

A debit balance in the Direct Labor account represents a liability for wages payable.

A schedule of the cost of finished goods manufactured summarizes the flow of manufacturing costs into and out of the finished goods inventory account.

Management accounting systems are designed to assist organizations in the performance of all of the following functions except: