ACCT 2121 11/27 PAL Session: Managerial Accounting

This type of accounting fulfills the needs of external users of a business such as investors and creditors

• managerial

• financial

In an effort to protect the public interest, Congress established the

___________ and gave it authority

to regulate public financial reporting practices.

• Financial accounting standards board

• securities and exchange commission

• generally accepted accounting principles

________ accounting is restricted only by the value-added

principle

• Financial

• Management

BOBS Corporation began operations on January 1st. During the year, it started and completed 2,700 units of product. The company incurred the following costs:

Raw materials purchased and used—$5,600

Wages of production workers—$6,890.

Salaries of administrative and sales personnel—$2,450.

Depreciation on manufacturing equipment—$4,280.

Depreciation on administrative equipment—$7,010.

BOBS corporation sold 2,100 units of product.

Determine the total product cost for the year.

• $19,500

• $23,780

• $16,770

• $13,740

BOBS Corporation began operations on January 1st. During the year, it started and completed 2,700 units of product. The company incurred the following costs:

Raw materials purchased and used—$5,600

Wages of production workers—$6,890.

Salaries of administrative and sales personnel—$2,450.

Depreciation on manufacturing equipment—$4,280.

Depreciation on administrative equipment—$7,010.

BOBS corporation sold 2,100 units of product.

Determine cost of inventory per unit

• $7.99

• $6.21

• $5.85

• $8.14

BOBS Corporation began operations on January 1st. During the year, it started and completed 2,700 units of product. The company incurred the following costs:

Raw materials purchased and used—$5,600

Wages of production workers—$6,890.

Salaries of administrative and sales personnel—$2,450.

Depreciation on manufacturing equipment—$4,280.

Depreciation on administrative equipment—$7,010.

BOBS corporation sold 2,100 units of product.

Determine cost of ending inventory

• $3,726

• $4,794

• $2,484

• $3,196

BOBS Corporation has a beginning inventory of $240,000 for raw materials. They have purchased $370,000 of raw materials during the year. The total raw materials available for use is:

• $520,000

• $130,000

• $610,000

• $210,000

Is the following direct labor, direct materials, manufacturing overhead, or period costs?

Property taxes on the production factory.

• Direct material

• Direct labor

• Manufacturing overhead

• Period costs

Is the following direct labor, direct materials, manufacturing overhead, or period costs?

$210,000 in advertising costs.

• Direct labor

• Direct materials

• Manufacturing overhead

• Period costs

Is the following direct labor, direct materials, manufacturing overhead, or period costs?

Salaries for factory employees

• Direct materials

• Direct labor

• Manufacturing overhead

• Period costs