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Managerial Accounting Exam 1 WileyPlus| 109 questions| with complete solutions
Question 1: Which one of the following does not appear on the
balance sheet of a manufacturing company?
CORRECT ANSWER : Cost of goods manufactured
Question 2: The wages of a timekeeper in the factory would be
classified as
CORRECT ANSWER : indirect labor
Question 3: Managerial accounting applies to each of the
following types of businesses except
CORRECT ANSWER : managerial accounting applies to all
types of firms
Question 4: Managerial accounting applies to all forms of
business organizations.
CORRECT ANSWER : True
Question 5: Direct materials and direct labor are the only
product costs.
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CORRECT ANSWER: False
Question 6: Which one of the following is not a direct material?
CORRECT ANSWER : Lubricant for a ball-bearing joint for a
large crane
Question 7: Because of automation, which component of
product cost is declining?
CORRECT ANSWER : Direct labor
Question 8: Management accountants would not
CORRECT ANSWER : prepare reports primarily for external
users
Question 9: Determining the unit cost of manufacturing a
product is an output of financial accounting.
CORRECT ANSWER : False
Question 10: 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.
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CORRECT ANSWER : True
Question 11: Which of the following are period costs?
CORRECT ANSWER : Selling expenses
Question 12: Raw materials inventory shows the cost of
completed goods available for sale to customers.
CORRECT ANSWER : False
Question 13: 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
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How much is Walker's cost of goods manufactured for the year?
CORRECT ANSWER : $1,370,000
Question 14: 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
CORRECT ANSWER : $2,580,000
Question 15: Given the following data for Glennon Company,
compute (A) total manufacturing costs and (B) costs of goods