Comprehensive Project

1. List the two general purposes for Managerial Accounting.

2. What is the purpose of information in Managerial Accounting?

3. Costs can be classified in what five ways?

4. Which of the following is a fixed cost for a lawnmower manufacturer? a. Rent on a warehouse for the coming year of $50,000. b. Labor cost to build lawnmowers only incurred if lawnmowers are built. c. Cost of paint for lawnmowers. d. Cost of tires for lawnmowers.

5. Which of the following is a variable cost for a lawnmower manufacturer? a. Insurance on the factory for the coming year of $42,000. b. Cost of paint for lawnmowers. c. Straight-line depreciation costs for the factory equipment. d. Salary of human resources manager.

6. In question #5 which of the answers (a-d) is a direct cost to the cost object lawnmowers?

7. In question #5 how would the salary of the human resources manager be classified in terms of traceability to the cost object lawnmowers?

8. When are classifications of costs by controllability especially useful?

9. Which of the following is relevant to future decision making? a. Sunk costs. b. Out-of-pocket costs.

10. What are the three costs included in product costs?

11. Define direct materials.

12. Define direct labor.

13. Define factory overhead.

14. Which costs make up the prime costs of manufacturing finished goods?

15. Which costs make up the conversion costs of manufacturing finished goods?

16. If raw materials inventory equals $10,000 and goods in process inventory equals $16,000, and total inventory equals $46,000, what does the finished goods inventory equal?

17. Calculate the cost of goods sold for a merchandising company. Beginning merchandise inventory$7,000 Cost of merchandise purchased. $54,000 Ending merchandise inventory$22,000

18. Calculate the cost of goods sold for a manufacturing company. Beginning finished goods inventory $12,000 Cost of goods manufactured. $158,000 Ending finished goods inventory $15,000

19. If a Manufacturing Statement for the year ended shows direct material of $51,000, and factory overhead of $20,000, and a total manufacturing costs of $101,000, what must direct labor be equal to?

20. Using the information from question # 19, if beginning goods in process inventory equals $4,000, and ending goods in process inventory equals $6,000, what must the cost of goods manufactured be?