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Managerial Accounting Week 1

Total questions: 15

Worksheet time: 45mins

Name
Class
Date
1.

Which of the following is not one of the IMA's credibility standards?

a)

A) To disclose all relevant information

b)

B) To disclose deficiencies in internal control

c)

C) To communicate information fairly and objectively

d)

D) All of the above are part of IMA's credibility standard.

2.

________ gathers, summarizes, and reports on the financial impact of changes to business operations.

a)

Managerial Accounting

b)

Planning

c)

Directing

d)

Controlling

3.

Which of the following is an example of manufacturing overhead expense in a factory?

a)

A) Wages of machine operators

b)

B) Wages of administrators in the corporate office

c)

C) Wages of factory maintenance personnel

d)

D) Salaries of salespersons

4.

Which of the following items is not used when calculating the cost of goods manufactured?

a)

A) Direct materials used

b)

B) Direct labor

c)

C) Salesperson salaries

d)

D) Manufacturing overhead

5.

Rouse Manufacturing's operating activities for the year are listed below.

 

Beginning inventory

 $1,000,400

Ending inventory

 $350,800

Purchases

 $750,700

Sales revenue

 $1,500,900

Operating expenses

 $700,600

 

What is the cost of goods sold for the year?

a)

A) $1,400,300

b)

B) $750,200

c)

C) $50,100

d)

D) $1,751,100

6.

Parham Bridges Recreation's operating activities for the year are listed below.

 

Purchases

$174,000

Operating expenses

62,200

Beginning inventory

 27,900

Ending inventory

 38,000

Sales revenue

 333,400

 

What is the cost of goods sold for the year?

a)

$163,900

b)

$201,900

c)

$174,000

d)

$97,200

7.

Lacey Fontaine Company reports the following data for its first year of operation.

 

Work in process inventory, beginning

0

Work in process inventory, ending

140,000

Direct materials used

 110,400

Direct Labor

134,000

Manufacturing overhead

 185,800

Finished goods inventory, beginning

0

Finished goods inventory, ending

90,500

 

What are the total manufacturing costs to account for?

a)

A) $199,700

b)

B) $244,400

c)

C) $430,200

d)

D) $134,000

8.

Russ Maddux Company reports the following data for its first year of operation.

 

Cost of goods manufactured

$455,800

Work in process inventory, beginning

0

Work in process inventory, ending

140,400

Direct materials used

 110,900

Direct Labor

137,000

Manufacturing overhead

 185,300

Finished goods inventory, beginning

0

Finished goods inventory, ending

90,700

 

What is the cost of goods sold?

a)

A) $365,100

b)

B) $455,800

c)

C) $752,000

d)

D) $520,900

9.

Purser, Inc. sells lawn furniture. Selected financial information for the most recent year follows.

 

Beginning merchandise inventory on January 1 was $33,700.

Ending merchandise inventory on December 31 was $35,700.

Purchases during the year were $92,900.

Selling and administrative expenses were $75,500.

Sales for year were $262,200.

 

What was cost of goods sold?

a)

$162,300

b)

$93,800

c)

$94,900

d)

$90,900

10.

Selected financial information for Dier Manufacturing is presented in the following table (000s omitted).

 

Sales revenue

 $4300

Purchases of direct materials

 $500

Direct labor

 $460

Manufacturing overhead

 $710

Operating expenses

 $690

Beginning raw materials inventory

 $220

Ending raw materials inventory

 $200

Beginning work in process inventory

 $390

Ending work in process inventory

 $420

Beginning finished goods inventory

 $280

Ending finished goods inventory

 $250

 

What was the cost of direct materials used?

a)

$720

b)

$520

c)

$500

d)

$420

11.

If sales are $100,000, fixed expenses are $34,500, and the contribution margin is $40,000, then the net operating income must be:

a)

$74,500

b)

$5,500

c)

$60,000

d)

$34,500

12.

If conversion costs are $70,000, manufacturing overhead costs are $22,500, and direct materials costs are $39,000, then the prime costs must be

a)

$47,500

b)

$86,500

c)

$31,000

d)

$8,500

13.

If the cost of goods sold is $95,700, beginning merchandise inventory is $10,500, and merchandise purchases are $110,000, then the ending merchandise inventory must be

a)

$24,800

b)

$3,800

c)

$85,200

d)

$10,500

14.

At a sales volume of 39,500 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $505,600. To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 41,900 units? (Assume that this sales volume is within the relevant range.)

a)

$12.80

b)

$13.07

c)

$13.59

d)

$12.07

15.

Sales less cost of goods sold =

(a)