Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

a. Shareholders

c. Investors b. Work in process completed   d. Cost of merchandise available

 

In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:

a. be provided at any time management needs information.

c. be prepared to report information for any unit of the business to support decision making. b. $187,900 d. $374,200

 

Reedy Company reports the following information for 2012:

Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, 2012, is:

a. $18,750

c. $8,500 b. Conversion cost d. Period cost

 

Which of the following accounts will be found on the income statement?

a. Finished goods

c. Cost of goods sold b. $190 d. $290

 

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in factory overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $32,000 respectively, the cost of goods manufactured was:

a. $218,000

c. $222,000 b. $29,200 d. $35,000

 

 

 

Which of the following items would not be classified as part of factory overhead?

a. Production supervisors’ salaries

c. Direct labor used b. Organizing and directing d. Decision making and supervising

 

Which of the following manufacturing costs is an indirect cost of producing a product?

a. Commissions for sales personnel

c. Oil lubricants used for factory machinery b. $24,500 d. $30,300

 

Sineath Industries had a fire and some of its accounting records were destroyed. Available information is presented below for the year ended December 31, 2011.

 Calculate materials inventory, January 1, 2011.

$

 Calculate direct labor cost.

 Calculate factory overhead incurred.

 Calculate cost of goods sold.

 

 

Prime costs are

a. direct materials and factory overhead.

c. direct materials and direct labor.