Which of the following correctly describes the accounting for indirect labor costs?

Ch16

Question 1

1. Amoeba Manufacturing Inc. provided the following information for the year 2015: Purchases Raw Materials $90,000 Plant Utilities & Insurance 67,500 Indirect Materials 11,750 Indirect Labor 4,750 Direct Materials Used in Production 96,000 Direct Labor 117,500 Depreciation on Factory Plant & Equipment 6,000 Cost of Goods Manufactured 290,850 The inventory account balances as of January 1st 2015 are given below. Raw Materials Inventory $42,000 Work-in-Process Inventory 12,000 Finished Goods Inventory 49,500 What is the ending balance in the Work-in-Process Inventory account?

$65,350

$49,500

$24,650

$12,000

1 points

Question 2

1. Barricades Corporation provided the following information for the year 2015: Beginning Balance Work-in-Process Inventory $24,000 Ending Balance Work-in-Process Inventory 56,000 Beginning Balance Raw Materials Inventory 84,000 Ending Balance Raw Materials Inventory 60,000 Purchases Raw Materials 360,000 Direct Labor 470,000 Indirect Materials 47,000 Indirect Labor 19,000 Depreciation on Factory Plant & Equipment 24,000 Plant Utilities & Insurance 270,000 What was the amount of direct materials used in production during 2015?

$504,000

$360,000

$328,000

$384,000

1 points

Question 3

1. Which of the following is an objective of management accounting?

to provide information to business managers to assist them in controlling their business

to ensure that the reports produced for internal and external business purposes are GAAP compliant

to provide information to shareholders to assist them with their investment decisions

to generate financial statements of a company for tax reporting

1 points

Question 4

1. Jasper Corporation reports the following cost information for March: Cost of Goods Manufactured $75,000 Manufacturing Overhead 18,250 Finished Goods Inventory, March 1 4,500 Finished Goods Inventory, March 31 2,650 Work-in-Process Inventory, March 1 9,670 Work-in-Process Inventory, March 31 1,250 Direct Labor 36,300 What is the amount of manufacturing overhead incurred by the company in March?

$30,270

$20,000

$13,430

$136,570

1 points

Question 5

1. Which of the following is an example of direct labor cost in a factory?

wages of factory security guard

salary of production manager

wages of assembly line personnel

salary of vice president of production

1 points

Question 6

1. Damsel Inc. is a large manufacturer of auto tires. Damsel has provided the following information: Sales Revenue $45,500 Beginning Finished Goods Inventory 1,500 Cost of Goods Sold 32,500 Cost of Goods Manufactured 35,000 Calculate the amount of ending finished goods inventory reported in Damsel's balance sheet.

$4,000

$10,500

$3,500

$36,500

1 points

Question 7

1. The balance sheet of a ________ company will show Work-in-Process Inventory as a line item.

trading

service

manufacturing

merchandising

1 points

Question 8

1. Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information: Sales Revenue $557,000 Purchases (excluding freight in) 300,000 Selling and Administrative Expenses 69,000 Freight In 15,000 Beginning Merchandise Inventory 45,000 Ending Merchandise Inventory 55,700 What is the cost of goods sold for 2015?

$360,000

$330,000

$304,300

$358,300

1 points

Question 9

1. Given the following information, determine the cost of goods sold. Direct Labor Incurred $63,000 Manufacturing Overhead Incurred 179,500 Direct Materials Used 150,000 Finished Goods Inventory, 1/1/2015 197,500 Finished Goods Inventory, 12/31/2015 221,000 Work-in-Process Inventory, 1/1/2015 96,500 Work-in-Process Inventory, 12/31/2015 109,000

$1,016,500

$414,000

$356,500

$380,000

1 points

Question 10

1. Barricades Corporation provided the following information for the year 2015: Beginning Balance Work-in-Process Inventory $24,000 Ending Balance Work-in-Process Inventory 56,000 Beginning Balance Raw Materials Inventory 84,000 Ending Balance Raw Materials Inventory 60,000 Purchases Raw Materials 360,000 Direct Labor 470,000 Indirect Materials 47,000 Indirect Labor 19,000 Depreciation on Factory Plant & Equipment 24,000 Plant Utilities & Insurance 270,000 What was the amount of the cost of goods manufactured for the year 2015?

$1,182,000

$1,246,000

$1,414,000

$1,214,000

1 points

Question 11

1. Which of the following would be included as manufacturing overhead for a manufacturing business?

direct labor

advertising

indirect materials cost

direct materials cost

1 points

Question 12

1. For a manufacturing company, which of the following is a period cost?

wages expense of factory workers

office rent

indirect materials

direct materials

1 points

Question 13

1. Which of the following correctly describes the accounting for indirect labor costs?

Indirect labor costs are period costs and are expensed when the manufactured product is sold.

Indirect labor costs are period costs and are expensed as incurred.

Indirect labor costs are product costs and are expensed when the manufactured product is sold.

Indirect labor costs are product costs and are expensed as incurred.

1 points

Question 14

1. Which of the following is the primary objective of managerial accounting?

providing summarized results of operations

providing information that managers need to make operational decisions

providing information to comply with laws and regulations of government bodies

providing historical data to investors and creditors

1 points

Question 15

1. Selected data for Lemon Grass Inc. for 2015 is provided below: Factory Utilities $1,500 Indirect Materials Used 37,500 Direct Materials Used 300,000 Property Taxes on Factory Building 6,900 Sales Commissions 85,000 Indirect Labor Incurred 25,000 Direct Labor Incurred 150,000 Depreciation on Factory Equipment 6,500 What is the total factory overhead?

$450,000

$62,400

$612,000

$77,400

1 points

Question 16

1. Samson Inc. reported the following information for the year 2015: Service Revenue $40,000 Operating Expenses $23,625 Net Income $16,375 Number of Services Provided for the Year 10,500 How much was the unit cost per service?

$2.25

$3.81

$1.56

$3.20

1 points

Question 17

1. Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information: Sales Revenue $557,000 Purchases (excluding freight in) 300,000 Selling and Administrative Expenses 69,000 Freight In 15,000 Beginning Merchandise Inventory 45,000 Ending Merchandise Inventory 55,700 What is the cost of goods available for sale for 2015?

$304,300

$360,000

$330,000

$345,000

1 points

Question 18

1. Which of the following is an example of a period cost for a manufacturing company?

advertising expense

property taxes for the factory

indirect materials??

depreciation on factory equipment

1 points

Question 19

1. Which of the following is the primary focus of financial accounting?

providing information that managers need to make operational decisions

providing highly detailed information on product lines, regions, and divisions

providing budgets for future periods

providing summarized information on operational results to investors and creditors

1 points

Question 20

1. Evanston Manufacturing Inc. reported the following information for the year 2015: Number of Units Produced 4,800 Number of Units Sold 5,250 Cost of Goods Manufactured $460,800 Cost of Goods Sold $488,250 Sales Revenue $1,260,000 Gross Profit $771,750 Operating Expense $724,900 What was the unit product cost?

$87.77

$93.00

$262.50

$96.00