The cost of goods sold for Michaels Manufacturing in the current year was $233,000

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The cost of goods sold for Michaels Manufacturing in the current year

was $233,000.  The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200.  Cost of goods manufactured during the period was
a.$240,400
b.$233,000
c.$288,800
d.$225,600


Accounting designed to meet the needs of decision makers inside the business is
a.general accounting
b.managerial accounting
c.financial accounting
d.external accounting


Insurance expense incurred on a factory building would be treated as a
a.direct cost
b.period cost
c.product cost
d.selling cost


Managerial accounting provides useful information to managers on product costs.
 True
 False


Indirect costs can be specifically traced to a cost object.
 True
 False


Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?
a.investors
b.managers
c.shareholders
d.customers


Managers used managerial information for all of the following except
a.to determine the cost of manufacturing a product
b.to support long-term planning decisions
c.to analyze the performance of a company's operations
d.to evaluate the company's stock performance


Prime costs consist of direct materials, indirect materials, and direct labor.
 True
 False


Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $196,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.
a.$384,200
b.$187,900
c.$543,800
d.$731,700


The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.
 True
 False


The Darwin Company reports the following information:
?
Sales$76,500
Direct materials used    7,300
Depreciation on factory equipment    4,700
Indirect labor    5,900
Direct labor  10,500
Factory rent    4,200
Factory utilities    1,200S
ales salaries expense  15,600
Office salaries expense    8,900
Indirect materials    1,200
?
Period costs are
a.$35,000
b.$29,200
c.$24,500
d.$30,300


Direct costs can be specifically traced to a cost object.
 True
 False


If factory overhead applied exceeds the actual costs, overhead is said to be underapplied.
 True
 False


Record the journal entries for the following transactions: 


1.March 10: 500 units of raw materials were purchased on account at $4.00 per unit.
2.March 15: 250 units of raw materials were requisitioned at $4.50 per unit for production, Job 872.
3.March 25: 215 units of raw materials were requisitioned at $5.00 per unit for production, Job 879.




The following budget data are available for Sharp Company: 
Estimated direct labor hours12,000
Estimated direct labor dollars$90,000
Estimated factory overhead costs$179,000
Actual direct labor hours11,500
Actual direct labor dollars$92,000
Actual factory overhead costs$180,000
?
If factory overhead is to be applied based on direct labor dollars, the predetermined overhead rate is
a.199%
b.$15.65
c.196%
d.$14.92