ACCT 526 Midterm Exam 2024 with Guaranteed Accurate Answers

Period Costs - correct answer Costs that are matched with the revenue of a specific time period and charged to expense as incurred. Indirect Labor - correct answer Work of factory employees that has no physical association with the finished product, or it is impractical to trace the costs to the good produced. Product Costs - correct answer costs that are a necessary and integral part of producing the finished product Manufacturing Overhead - correct answer Manufacturing costs that are indirectly associated with the manufacture of the finished product. Managerial Accounting - correct answer A field of accounting that provides economic and financial information for internal users. Direct Labor - correct answer The work of factory employees that can be physically and directly associated with converting raw materials into finished goods. Manufacturing Overhead - correct answer Identify: Factory supervisor's salary Period Costs - correct answer Identify: Supplies for the general office Direct Materials - correct answer Identify: Rubber latex purchased for the use in the manufacture of automobile tires Period Costs - correct answer Identify: Advertising Manufacturing Overhead - correct answer Identify: Rent on factory equipment Period Costs - correct answer Identify: Utility cost for the store Period Costs - correct answer Identify: Salary paid to the company's chief executive officer Manufacturing Overhead - correct answer Identify: Salary paid to mechanics who maintain and repair factory equipment Direct Labor - correct answer Identify: Wages paid to assembly-line workers who install interiors in automobiles a. deal with the economic events of an enterprise - correct answer Financial and managerial accounting are similar in that both: a. deal with the economic events of an enterprise. b. produce general-purpose reports. c. have the same primary users. d. have reports that are prepared quarterly and annually. c. the product is sold - correct answer Product costs are expenses on the income statement when: a. the product completes the manufacturing process. b. the order is received for the product. c. the product is sold. d. raw materials for the product are purchased. a. $22,500 15,500 + 44,500 - 37,500 = - correct answer Super Tread Inc. is a large manufacturer of auto tires. Super Tread has provided the following information: Sales Revenue $55,000 Beginning Finished Goods Inventory $15,500 Cost of Goods sold $37,500 Cost of Goods Manufactured $44,500 Calculate the amount of ending Finished Goods Inventory reported on Super Tread's balance sheet. c. $1,135,000 Direct Materials (81,000+360,000-59,000) + Direct Labor (471,000) + Factory Overhead (19,000+24,000+268,000) + Work-in-Process (26,000-55,000) - correct answer Payton Corporation provided the following information for the year: Beginning Balance - Work-in-Process Inventory $26,000 Ending Balance - Work-in-Process Inventory $55,000 Beginning Balance - Direct Materials 81,000 Ending Balance - Direct Materials 59,000 Purchases - Direct Materials 360,000 Direct Labor 471,000 Indirect Labor 19,000 Depreciation on Factory Plant and Equipment 24,000 Plan