Managerial Accounting Exam 1 Multiple
Choice
The reporting standard for external financial reports is:
a) company-Managerial Accounting
specific.
b) generally accepted accounting principles.
c) department-specific.
d) industry-specific. - ANS b) generally accepted accounting principles.
A manufacturing process requires small amounts of glue. The glue used in the production
process is classified as a(n)
a) indirect material.
b) direct material.
c) period cost.
d) miscellaneous expense - ANS a) indirect material.
For inventoriable costs to become expenses under the matching principle,
a) all accounts payable must be settled.
b) the product must be finished and in stock.
c) the product must be expensed based on its percentage-of-completion.
d) the product to which they attach must be sold. - ANS d) the product to which they attach
must be sold.
Sheridan Company's accounting records reflect the following inventories:
December 31st 2016
, Raw materials inventory $80000
Work in progress inventory $104000
Finished goods inventory $100000
December 31st 2017
Raw materials inventory $64000
Work in progress inventory $116000
Finished goods inventory $92000
During 2017, Sheridan purchased $1370000 of raw materials, incurred direct labor costs of
$250000, and incurred manufacturing overhead totaling $160000. Assume Sheridan's cost of
goods manufactured for 2017 amounted to $1784000. How much would it report as cost of
goods sold for the year?
a) $1884000
b) $1792000
c) $1692000
d) $1776000 - ANS b) $1792000
Bonita Industries has beginning and ending work in process inventories of $50000 and $65000
respectively. If total manufacturing costs are $680000, what is the total cost of goods
manufactured?
a) $665000.
b) $745000.
c) $695000.
d) $730000. - ANS a) $665000.
Cost of raw materials is debited to Raw Materials Inventory when the
a) materials are ordered.
b) bill for the materials is paid.
c) materials are received.
d) materials are put into production - ANS c) materials are received.
Choice
The reporting standard for external financial reports is:
a) company-Managerial Accounting
specific.
b) generally accepted accounting principles.
c) department-specific.
d) industry-specific. - ANS b) generally accepted accounting principles.
A manufacturing process requires small amounts of glue. The glue used in the production
process is classified as a(n)
a) indirect material.
b) direct material.
c) period cost.
d) miscellaneous expense - ANS a) indirect material.
For inventoriable costs to become expenses under the matching principle,
a) all accounts payable must be settled.
b) the product must be finished and in stock.
c) the product must be expensed based on its percentage-of-completion.
d) the product to which they attach must be sold. - ANS d) the product to which they attach
must be sold.
Sheridan Company's accounting records reflect the following inventories:
December 31st 2016
, Raw materials inventory $80000
Work in progress inventory $104000
Finished goods inventory $100000
December 31st 2017
Raw materials inventory $64000
Work in progress inventory $116000
Finished goods inventory $92000
During 2017, Sheridan purchased $1370000 of raw materials, incurred direct labor costs of
$250000, and incurred manufacturing overhead totaling $160000. Assume Sheridan's cost of
goods manufactured for 2017 amounted to $1784000. How much would it report as cost of
goods sold for the year?
a) $1884000
b) $1792000
c) $1692000
d) $1776000 - ANS b) $1792000
Bonita Industries has beginning and ending work in process inventories of $50000 and $65000
respectively. If total manufacturing costs are $680000, what is the total cost of goods
manufactured?
a) $665000.
b) $745000.
c) $695000.
d) $730000. - ANS a) $665000.
Cost of raw materials is debited to Raw Materials Inventory when the
a) materials are ordered.
b) bill for the materials is paid.
c) materials are received.
d) materials are put into production - ANS c) materials are received.
