shared via CourseHero com This study resource was This study source was downloaded by 100000829654215 from CourseHero com on 12 05 2021 05 55 39 GMT 06 00 https www coursehero com file 29398442 Managerial Accounting Midterm Examdocx NAMEManagerial Accounting Midterm ExamThe following questions are worth 1 5 points each 1 Which of the following functions involves comparing actual results with planned results A PlanningB OrganizingC ControllingD Delegating2 Which of the following statements represents a similarity between financial and managerial accounting A Both are only concerned with providing information for external usersB Both are governed by GAAPC Both draw upon data from an organization s accounting system D Both rely heavily on published financial statements 3 Product costs areA expensed when incurredB classified as inventoryC treated in the same manner as period costsD treated in the same manner as advertising costsE None of the above 4 Which of the following would not be classified as a product cost A Direct materials B Direct laborC Indirect materialsD Insurance on the manufacturing plantE None of the above 5 Which of the following is a product cost A Sales commissionsB AdvertisingC The salary of the vice president of financeD Direct Labor shared via CourseHero com This study resource was This study source was downloaded by 100000829654215 from CourseHero com on 12 05 2021 05 55 39 GMT 06 00 https www coursehero com file 29398442 Managerial Accounting Midterm Examdocx E Both A and D 6 Costs that are expensed when incurred are called A Product costsB Direct costsC Inventoriable costs D Period costsE Indirect costs7 Depreciation of factory equipment would be classified as A period costB sales costC advertising costD None of the above8 Which of the following statements is true A Product costs affect only the balance sheetB Product costs affect only the income statementC Period costs affect only the balance sheetD Period costs affect the balance sheet and the income statementE Product costs eventually affect both the balance sheet and the income statement 9 Work in process inventory and Finished Goods Inventory is composed of A Direct material and direct laborB Direct labor and manufacturing overheadC Direct material and manufacturing overheadD Direct material onlyE Direct material direct labor and manufacturing overhead10 A custom home builder would likely utilize A job order costingB process costingC mass customizationD process budgetingE joint costing shared via CourseHero com This study resource was This study source was downloaded by 100000829654215 from CourseHero com on 12 05 2021 05 55 39 GMT 06 00 https www coursehero com file 29398442 Managerial Accounting Midterm Examdocx 11 The assignment of direct labor cost to individual job is based on A and estimate of the total time spent on the jobB actual total payroll cost divided equally among all jobs in processC estimated total payroll cost divided equally among all jobs in processD the actual time spent on each job multiplied by the wage rateE the estimated time spent on each job multiplied by the wage rate12 The total production cost of a job is composed of A direct material and direct laborB direct material direct labor manufacturing overhead and outlays for selling costsC direct material direct labor manufacturing overhead and outlays for both selling and administrative costs D None of the above13 Manufacturing overhead A includes direct materials indirect materials indirect labor and factory depreciationB is easily traced to jobsC includes all selling costsD should not be assigned to individual jobs because it bears no obvious relationship to themE is a pool of indirect production costs that must somehow be attached to each unit manufactured 14 As production takes place all manufacturing costs are added to the A Work in Process Inventory accountB Manufacturing Overhead Inventory accountC Cost of Goods Sold accountD Finished Goods Inventory accountE Production Labor account15 The process of assigning overhead costs to the job that is being worked on is commonly called overhead elimination 16 An accountant recently debited Work in Process Inventory and credited Manufacturing Overhead The accountant was applying overhead to production shared via CourseHero com This study resource was This study source was downloaded by 100000829654215 from CourseHero com on 12 05 2021 05 55 39 GMT 06 00 https www coursehero com file 29398442 Managerial Accounting Midterm Examdocx 17 The major disadvantage of using a predetermined overhead rate is that it provides timely product cost information 18 Depreciation expense can be either a product cost or period cost 19 The completion of production would require a company to debit Finished Goods Inventory and credit to Cost of Goods Sold 20 Under or overapplied manufacturing overhead at year end is mostly charged to finished goods inventory 21 The source document for direct labor charged to a job would be a material requisition form 22 A budget is not used relative to calculating a predetermined overhead rate 23 A company that provides a service such as financial planning would have no use for accounting information to make managerial decisions 24 Managerial accounting has more of an external focus than an internal focus 25 An appropriate cost driver or allocation base which will be used to allocate manufacturing overhead for a company that uses a significant amount of machinery and equipment in their production of inventory would be labor hours shared via CourseHero com This study resource was This study source was downloaded by 100000829654215 from CourseHero com on 12 05 2021 05 55 39 GMT 06 00 https www coursehero com file 29398442 Managerial Accounting Midterm Examdocx Problem 1 20 pointsOrlando Manufacturing had the following data for the period just ended Work in process Jan 1 17 000Work in process Dec 31 35 000Finished Goods Jan 1 64 000Finished Goods Dec 31 65 000Direct Materials Used 140 000Direct Labor 260 000Factory Depreciation 70 000Sales 945 000Selling and Gen Admin Exp 178 000Factory Utilities35 000Indirect Materials 19 000Indirect Labor 38 000Income Tax rate 20 Required A Calculate Orlando s Cost of Goods Manufactured B Calculate Orlando s Cost of Goods Sold C Prepare an Income Statement shared via CourseHero com This study resource was This study source was downloaded by 100000829654215 from CourseHero com on 12 05 2021 05 55 39 GMT 06 00 https www coursehero com file