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

The answer of Martinez Company makes leather cowboy hats.Each hat...

Question 2

Prime costs consist of direct labor and factory overhead.

Accepted Answer

A) True 
 B)False

Question 3

Manufacturers usually have three inventories: raw materials,work in process,and finished goods.

Accepted Answer

A) True 
 B)False

Question 4

Craigmont Company's direct materials costs are $3,000,000,its direct labor costs total $7,000,000,and its factory overhead costs total $5,000,000.Its prime costs total:

Accepted Answer

A)  $10,000,000.
B)  $8,000,000.
C)  $12,000,000.
D)  $5,000,000.
E)  $15,000,000.F) B) and E)
G) A) and E)

Question 5

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance.

Accepted Answer

A) True 
 B)False

Question 6

The process of identifying costs as direct or indirect is referred to as classifying costs by _______________.

Accepted Answer

The answer of The process of identifying costs as direct...

Question 7

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

Accepted Answer

A)  Unspecified labor.
B)  Direct labor.
C)  Indirect labor.
D)  Basic labor.
E)  Joint labor.F) B) and D)
G) B) and E)

Question 8

A _________________ cost does not change in total in proportion to changes in the volume of activity within the relevant range.

Accepted Answer

The answer of A _________________ cost does not change in...

Question 9

Which of the following is not part of the materials activity in the flow of manufacturing activities?

Accepted Answer

A)  Beginning raw materials
B)  Beginning work in process
C)  Raw materials purchases
D)  Raw materials available for use
E)  Ending raw materialsF) A) and C)
G) A) and B)

Question 10

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 11

The Langston Company manufactures coats.Costs for February were as follows:  Required:
Calculate the total manufacturing cost for February.

Accepted Answer

The answer of The Langston Company manufactures coats.Costs for February...

Question 12

Total manufacturing costs incurred during the year do not include:

Accepted Answer

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

Question 13

Period costs are incurred by purchasing merchandise or manufacturing finished goods.

Accepted Answer

A) True 
 B)False

Question 14

The three major cost components of manufacturing a product are:

Accepted Answer

A)  Marketing,selling,and administrative costs.
B)  Indirect labor,indirect materials,and fixed expenses.
C)  Direct materials,direct labor,and factory overhead.
D)  Product costs,period costs,and variable costs.
E)  General,selling,and administrative costs.F) A) and E)
G) B) and C)

Question 15

The schedule of cost of goods manufactured is also known as a manufacturing statement.

Accepted Answer

A) True 
 B)False

Question 16

Manufacturing costs other than direct materials and direct labor,and are not readily traceable to specific units or batches of production are called:

Accepted Answer

A)  Administrative expenses.
B)  Nonmanufacturing costs.
C)  Prime costs.
D)  Factory overhead.
E)  Preproduction costs.F) A) and E)
G) B) and E)

Question 17

Direct costs are incurred for the benefit of more than one cost object.

Accepted Answer

A) True 
 B)False

Question 18

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost,factory overhead is charged to expense as it is incurred because it is a period cost.

Accepted Answer

A) True 
 B)False

Question 19

Materials that are used in manufacturing but are not clearly identified with specific product units are called:

Accepted Answer

A)  Secondary materials.
B)  General materials.
C)  Direct materials.
D)  Indirect materials.
E)  Materials inventory.F) A) and C)
G) A) and B)

Question 20

___________________ is the process of setting goals and making plans to achieve them.

Accepted Answer

The answer of ___________________ is the process of setting goals...

Exam 18: Managerial Accounting Concepts and Principles

The Langston Company manufactures coats.Costs for February were as follows: Required: Calculate the total manufacturing cost for February.

Correct Answer
verified

Direct costs are incurred for the benefit of more than one cost object.

Correct Answer
verified

Period costs are incurred by purchasing merchandise or manufacturing finished goods.

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

Craigmont Company's direct materials costs are $3,000,000,its direct labor costs total $7,000,000,and its factory overhead costs total $5,000,000.Its prime costs total:

Correct Answer
verified

The three major cost components of manufacturing a product are:

Correct Answer
verified

Correct Answer
verified

Which of the following is not part of the materials activity in the flow of manufacturing activities?

Correct Answer
verified

The process of identifying costs as direct or indirect is referred to as classifying costs by _______________.

Correct Answer
verified

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance.

Correct Answer
verified

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost,factory overhead is charged to expense as it is incurred because it is a period cost.

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

The schedule of cost of goods manufactured is also known as a manufacturing statement.

Correct Answer
verified

Manufacturers usually have three inventories: raw materials,work in process,and finished goods.

Correct Answer
verified

Total manufacturing costs incurred during the year do not include:

Correct Answer
verified

A _________________ cost does not change in total in proportion to changes in the volume of activity within the relevant range.

Correct Answer
verified

Manufacturing costs other than direct materials and direct labor,and are not readily traceable to specific units or batches of production are called:

Correct Answer
verified

___________________ is the process of setting goals and making plans to achieve them.

Correct Answer
verified

Prime costs consist of direct labor and factory overhead.

Correct Answer
verified

Materials that are used in manufacturing but are not clearly identified with specific product units are called:

Correct Answer
verified

Exam 18: Managerial Accounting Concepts and Principles

The Langston Company manufactures coats.Costs for February were as follows: Required: Calculate the total manufacturing cost for February.

Correct AnswerverifiedShow Answer

Direct costs are incurred for the benefit of more than one cost object.

Correct AnswerverifiedShow Answer

Period costs are incurred by purchasing merchandise or manufacturing finished goods.

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

Craigmont Company's direct materials costs are $3,000,000,its direct labor costs total $7,000,000,and its factory overhead costs total $5,000,000.Its prime costs total:

Correct AnswerverifiedShow Answer

The three major cost components of manufacturing a product are:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not part of the materials activity in the flow of manufacturing activities?

Correct AnswerverifiedShow Answer

The process of identifying costs as direct or indirect is referred to as classifying costs by _______________.

Correct AnswerverifiedShow Answer

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance.

Correct AnswerverifiedShow Answer

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost,factory overhead is charged to expense as it is incurred because it is a period cost.

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

The schedule of cost of goods manufactured is also known as a manufacturing statement.

Correct AnswerverifiedShow Answer

Manufacturers usually have three inventories: raw materials,work in process,and finished goods.

Correct AnswerverifiedShow Answer

Total manufacturing costs incurred during the year do not include:

Correct AnswerverifiedShow Answer

A _________________ cost does not change in total in proportion to changes in the volume of activity within the relevant range.

Correct AnswerverifiedShow Answer

Manufacturing costs other than direct materials and direct labor,and are not readily traceable to specific units or batches of production are called:

Correct AnswerverifiedShow Answer

___________________ is the process of setting goals and making plans to achieve them.

Correct AnswerverifiedShow Answer

Prime costs consist of direct labor and factory overhead.

Correct AnswerverifiedShow Answer

Materials that are used in manufacturing but are not clearly identified with specific product units are called:

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