ACCT Exam 3 LSU
All of the following are distinguishing features of managerial accounting except
a- to provide special-purpose information.
b- internal users.
c- independent audits.
d- reports pertaining to subunits of the entity.
The process of keeping the company's activities on track is
a- controlling.
b- planning.
c- directing.
d- evaluating.
Which of the following statements is true about managerial accounting?
a- It is primarily for internal users such as stockholders and managers.
b- It pertains to a business as a whole.
c- It must be prepared using generally accepting accounting principles.
d- It provides more detailed information than financial accounting does.
The management of an organization performs several broad functions. They are
a- planning, manufacturing, and controlling.
b- planning, directing, and controlling.
c- planning, directing, and selling.
d- directing, manufacturing, and controlling.
Which of the following costs are classified as a period cost?
a- Wages paid to a factory custodian.
b- Wages paid to an assembly worker.
c- Wages paid to a cost accountant department supervisor.
d- Wages paid to a production department supervisor.
On average, studies have shown that the smallest component of total manufacturing
cost is
a- direct materials.
b- manufacturing overhead.
c- factory overhead.
d- direct labor.
,Pharmco incurred the following costs while manufacturing its product: Materials used in
production, $120,000; factory depreciation, $60,000; property taxes on the
administrative offices, $12,000; labor costs of assembly-line workers, $95,000; factory
supplies used, $8,000; advertising expense, $13,000; property taxes on the factory,
$20,000; delivery expense, $23,000; salaries of the sales staff, $53,000; and sales
commissions, $17,000. The total product costs for Pharmco are
a-$315,000.
b- $303,000.
c- $391,000.
d- $421,000.
Which of the following answer choices lists the three manufacturing costs?
a- Raw materials, work in process, and finished goods
b- Indirect materials, indirect labor, and factory-related costs
c- Direct materials, direct labor, and manufacturing overhead
d- Work in process, finished goods, and cost of goods sold
Which of the following costs would a computer manufacturer include in manufacturing
overhead?
a- The cost of the memory chips.
b- Depreciation on testing equipment.
c- The wages earned by computer assemblers.
d- The cost of the disk drives.
Barry's BarBQue incurred the following costs: $1,400 for ribs, 45 hours of labor to cook
the ribs at $10 per hour, $50 for seasoning and sauce, $300 for signs to advertise the
ribs, $150 to clean the grill after cooking the ribs, and $100 of administrative costs. How
much are total product costs?
a- $1,850
b- $2,050
c- $2,150
d- $2,350
Manders Corporation has $20,000 of ending finished goods inventory at December 31.
If beginning finished goods inventory was $15,000 and cost of goods sold was $40,000,
how much would Manders Corporation report as cost of goods manufactured?
$5,000.
$55,000.
$75,000.
$45,000.
, (40,000+ 20,000- 15,000)
(cost of goods sold+ending finished goods inventory-beginning finishes goods
inventory)
For the year, Redder Company has cost of goods manufactured of $600,000, beginning
finished goods inventory of $200,000, and ending finished goods inventory of $250,000.
The cost of goods sold is
a- $600,000.
b- $450,000.
c- $500,000.
d- $550,000.
(beginning finished goods inventory (20,000) + cost of goods manufactured (600,000) -
ending finished goods inventory (250,000)
Checker Clackers, Inc. manufactures clackers. Checker's transactions and accounts
included the following during June:
Raw materials inventory, beginning
$1,200
Raw materials inventory, ending
1,400
Work in process inventory, beginning
7,100
Work in process inventory, ending
6,800
Raw materials acquired
27,800
Cost of direct materials used in production
27,600
Sales commissions to sell clackers
2,100
Direct labor cost
20,000
Total manufacturing overhead
28,900
How much is cost of goods manufactured for June?
a- $78,900
b- $76,500
c- $77,000
d- $76,800
Model Magic Manufacturing reported the following year-end balances: Beginning work
in process inventory, $35,000; beginning raw materials inventory, $18,000; ending work
in process inventory, $38,000; ending raw materials inventory, $15,000; raw materials
