Exam (elaborations)
Managerial Accounting Exam 1 Multiple Choice Questions and Answers
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Managerial Accounting Exam 1 Multiple Choice Questions and Answers
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Managerial Accounting Exam 1 MultipleChoice Questions and Answers
The reporting standard for external financial reports is:
a) company-specific.
b) generally accepted accounting principles.
c) department-specific.
d) industry-specific. - Answer-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 - Answer-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. - Answer-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 - Answer-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. - Answer-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 - Answer-c) materials are received.
Which one of the following should be equal to the balance of the Work In Process
Inventory account at the end of the period?
a) The total manufacturing costs for the period
b) The sum of the costs shown on the job cost sheets of unfinished jobs
c) The total of the amounts transferred from raw materials for the current period
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