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Exam 16: Managerial Accounting Concepts and Principles

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Question 31

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The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year. Required: (Present all reports and calculations in thousands of dollars) (a) What was the cost of the raw materials used in production during the year? (b) What was the cost of goods manufactured (finished) for the year? (c) What was the cost of goods sold for the year? (d) What was the net income for the year?

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(a) The cost of the raw materials used i...

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Question 32

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A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

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Question 33

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Indirect costs can be specifically identified to a cost object.

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a cake manufacturer. 1. _____ Frosting 2. _____ Depreciation on oven 3. _____ Wages of bakers 4. _____ Sprinkles for topping

All of the following would be reported on the balance sheet as a current asset except:

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Which of the following is the principle reason for preparing managerial accounting reports?

Which of the following is an example of direct materials cost for an automobile manufacturer?

Conversion cost is the combination of direct materials cost and factory overhead cost.

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:

Accounting is an information system that provides essential data about the economic activities of an entity to various users to aid them in making informed judgments and decisions.

Cost of goods manufactured during 2011 is $240, work in process inventory on December 31, 2011, is $50. Work in process inventory during 2011 decreased by 60%. Total manufacturing costs incurred during 2011 amount to:

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in factory overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $32,000 respectively, the cost of goods manufactured was:

Which of the following would be least likely to be considered a managerial accounting report?

Which of the following is most associated with financial accounting?

Which of the following is an example of direct labor cost for an airplane manufacturer?

Managerial accounting reports must be useful to the user of the information.

Sineath Industries had a fire and some of its accounting records were destroyed. Available information is presented below for the year ended December 31, 2011. Additional information is as follows: Factory overhead is 150% of direct labor cost. Finished goods inventory decreased by $18,000 during the year. Work in process inventory increased by $12,000 during the year. Calculate: a) materials inventory, January 1, 2011 b) direct labor cost c) factory overhead incurred d) cost of goods sold

Prime costs are the combination of direct materials and direct labor costs.