Managerial Accounting Exam 1 WileyPlus Verified Exam Questions
and Answers Latest update 2026/2027
Question:
Which one of the following does not appear on the balance sheet of a manufacturing company?
Finished goods inventory Work in process inventory Raw materials inventory Cost of goods
manufactured
Answer:
Cost of goods manufactured The wages of a timekeeper in the factory would be classified as a period
cost. direct labor. indirect labor.
Question:
compliance costs.
Answer:
indirect labor. Managerial accounting applies to each of the following types of businesses except
managerial accounting applies to all types of firms. service firms. merchandising firms.
Question:
manufacturing firms.
Answer:
managerial accounting applies to all types of firms. Managerial accounting applies to all forms of
business organizations.
True
Question:
False
Answer:
True Direct materials and direct labor are the only product costs.
True
Question:
False
Answer:
False
,Question:
Which one of the following is not a direct material? Plastic used in the covered case for a home PC
Steel used in the manufacturing of steel-radial tires A tire used for a lawn mower Lubricant for a
ball-bearing joint for a large crane
Answer:
Lubricant for a ball-bearing joint for a large crane
Question:
Because of automation, which component of product cost is declining? Advertising Direct materials
Direct labor Manufacturing overhead
Answer:
Direct labor Management accountants would not assist in budget planning. prepare reports primarily
for external users. determine cost behavior.
Question:
be concerned with the impact of cost and volume on profits.
Answer:
prepare reports primarily for external users. Determining the unit cost of manufacturing a product is an
output of financial accounting.
True
Question:
False
Answer:
False
Question:
When the physical association of raw materials with the finished product is too small to trace in terms
of cost, they are usually classified as indirect materials.
True
False
Answer:
True
, Question:
Which of the following are period costs? Selling expenses Raw materials Direct materials and direct
labor Direct labor and manufacturing overhead
Answer:
Selling expenses Raw materials inventory shows the cost of completed goods available for sale to
customers.
True
Question:
False
Answer:
False Walker Company reported the following year-end information:
Beginning work in process inventory $ 46,000 Beginning raw materials inventory 24,000 Ending
work in process inventory 50,000 Ending raw materials inventory 20,000 Raw materials purchased
830,000 Direct labor 440,000 Manufacturing overhead 100,000
Question:
How much is Walker's cost of goods manufactured for the year? $1,374,000 $1,370,000 $1,378,000
$834,000
Answer:
$1,370,000 Laflin Company reported the following year-end information:
Beginning work in process inventory $1,080,000 Beginning raw materials inventory 300,000 Ending
work in process inventory 900,000 Ending raw materials inventory 480,000 Raw materials purchased
960,000 Direct labor 900,000 Manufacturing overhead 720,000 Laflin Company's cost of goods
manufactured for the year is $2,400,000. $2,580,000. $2,760,000.
Question:
$2,220,000.
Answer:
$2,580,000. Given the following data for Glennon Company, compute (A) total manufacturing costs
and (B) costs of goods manufactured:
Direct materials used $270,000 Beginning work in process $40,000 Direct labor 200,000 Ending work
in process 20,000 Manufacturing overhead 250,000 Beginning finished goods 50,000 Operating
expenses 350,000 Ending finished goods 30,000 (A) (B) $720,000 $700,000 $740,000 $760,000
$720,000 $740,000
Question:
$700,000 $740,000
Answer:
$720,000 $740,000
and Answers Latest update 2026/2027
Question:
Which one of the following does not appear on the balance sheet of a manufacturing company?
Finished goods inventory Work in process inventory Raw materials inventory Cost of goods
manufactured
Answer:
Cost of goods manufactured The wages of a timekeeper in the factory would be classified as a period
cost. direct labor. indirect labor.
Question:
compliance costs.
Answer:
indirect labor. Managerial accounting applies to each of the following types of businesses except
managerial accounting applies to all types of firms. service firms. merchandising firms.
Question:
manufacturing firms.
Answer:
managerial accounting applies to all types of firms. Managerial accounting applies to all forms of
business organizations.
True
Question:
False
Answer:
True Direct materials and direct labor are the only product costs.
True
Question:
False
Answer:
False
,Question:
Which one of the following is not a direct material? Plastic used in the covered case for a home PC
Steel used in the manufacturing of steel-radial tires A tire used for a lawn mower Lubricant for a
ball-bearing joint for a large crane
Answer:
Lubricant for a ball-bearing joint for a large crane
Question:
Because of automation, which component of product cost is declining? Advertising Direct materials
Direct labor Manufacturing overhead
Answer:
Direct labor Management accountants would not assist in budget planning. prepare reports primarily
for external users. determine cost behavior.
Question:
be concerned with the impact of cost and volume on profits.
Answer:
prepare reports primarily for external users. Determining the unit cost of manufacturing a product is an
output of financial accounting.
True
Question:
False
Answer:
False
Question:
When the physical association of raw materials with the finished product is too small to trace in terms
of cost, they are usually classified as indirect materials.
True
False
Answer:
True
, Question:
Which of the following are period costs? Selling expenses Raw materials Direct materials and direct
labor Direct labor and manufacturing overhead
Answer:
Selling expenses Raw materials inventory shows the cost of completed goods available for sale to
customers.
True
Question:
False
Answer:
False Walker Company reported the following year-end information:
Beginning work in process inventory $ 46,000 Beginning raw materials inventory 24,000 Ending
work in process inventory 50,000 Ending raw materials inventory 20,000 Raw materials purchased
830,000 Direct labor 440,000 Manufacturing overhead 100,000
Question:
How much is Walker's cost of goods manufactured for the year? $1,374,000 $1,370,000 $1,378,000
$834,000
Answer:
$1,370,000 Laflin Company reported the following year-end information:
Beginning work in process inventory $1,080,000 Beginning raw materials inventory 300,000 Ending
work in process inventory 900,000 Ending raw materials inventory 480,000 Raw materials purchased
960,000 Direct labor 900,000 Manufacturing overhead 720,000 Laflin Company's cost of goods
manufactured for the year is $2,400,000. $2,580,000. $2,760,000.
Question:
$2,220,000.
Answer:
$2,580,000. Given the following data for Glennon Company, compute (A) total manufacturing costs
and (B) costs of goods manufactured:
Direct materials used $270,000 Beginning work in process $40,000 Direct labor 200,000 Ending work
in process 20,000 Manufacturing overhead 250,000 Beginning finished goods 50,000 Operating
expenses 350,000 Ending finished goods 30,000 (A) (B) $720,000 $700,000 $740,000 $760,000
$720,000 $740,000
Question:
$700,000 $740,000
Answer:
$720,000 $740,000
