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