6- Which of the following are reported on the income statement as part of cost of goods?

administrative expenses

operating expenses

period costs

cost of goods manufactured

7- The following information is taken from the financial records of Gunner Manufacturing:

Cost of materials used	$45,000
Direct labor costs	48,000
Factory overhead	39,000
Work in process, beg.	18,000
Work in process, end.	28,000

What is cost of goods manufactured?

a.$132,000

b.$122,000

c.$142,000

d.$178,000

8- Which of the following is part of factory overhead cost?

sales commissions

direct materials used

depreciation of factory equipment and machines

depreciation of sales person's vehicle

9- What term refers to the cost of changing direct materials into a finished manufactured product?

period cost

conversion cost

factory overhead cost

direct labor cost

10- Goods that are partially completed by a manufacturer are

merchandise inventory

finished goods inventory

work in process inventory

materials inventory

11- Which of the following costs are conversion costs?

direct labor cost and factory overhead cost

direct materials cost and direct labor cost

factory overhead cost

direct materials cost and factory overhead cost

12- Another term for factory overhead is

supervisory cost

surplus

factory burden

period cost

13- Period costs include

current assets on the balance sheet

operating costs that are shown on the income statement when products are sold

current liabilities on the balance sheet

operating costs that are shown on the income statement in the period in which they are incurred

14- Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as

factory overhead cost

miscellaneous expense

period cost

product costs

15- The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as

factory overhead cost

miscellaneous costs

direct labor cost

direct materials cost

16- If the cost of a direct material is a small portion of total production cost, it may be classified as part of

direct labor cost

factory overhead cost

selling and administrative costs

miscellaneous costs

17- A plant manager's salary is

a direct cost and an indirect cost

a direct cost

a period cost

an indirect cost

18- The cost of a manufactured product generally consists of which of the following costs?

direct labor cost and factory overhead cost only

direct labor cost, direct materials cost, and factory overhead cost

direct materials cost and factory overhead cost only

direct materials cost and direct labor cost only

19- Materials must have which two qualities in order to be classified as direct materials?

They must be introduced into the process in both work-in-process inventories and finished goods inventories.

They must be classified as both prime costs and conversion costs.

They must be an integral part of the finished product and be a significant portion of the total product cost.

They must be an integral part of the finished product, but can be an insignificant portion of the total product cost.

20- Compute conversion costs given the following data: Direct Materials, $351,600; Direct Labor, $193,900; Factory Overhead, $220,900 and Selling Expenses, $35,300.

$766,400

$572,500

$414,800

$185,600

21- The primary goal of managerial accounting is to provide information to

external auditors

management

creditors

investors

22- What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

supervising

decision making

planning

improving

23- Accounting designed to meet the needs of decision makers inside the business is

financial accounting

general accounting

managerial accounting

external accounting

24- What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?

improving

controlling

planning

directing

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

investors

customers

shareholders

managers

26- Managerial accounting reports are

prepared according to management needs

prepared periodically only

related to the entire business entity only

prepared according to GAAP

27- Which of the following is most associated with financial accounting?

can have both objective and subjective information

prepared in accordance with GAAP

can be prepared periodically, or as needed

can be prepared for the entity or segment

28- Which of the following is most associated with managerial accounting?

is prepared for users outside the organization

may rely on estimates and forecasts

must follow GAAP

always reports on the entire entity

29- What is the primary criterion for the preparation of managerial accounting reports?

manager needs

relevance of the reports

timing of the reports

cost of the reports