Man Acc Quiz 1

Direct materials used

Beginning DM+Purchases-Ending DM

Total Manufacturing Costs

Direct Materials Used + Direct Labor + Manufacturing Overhead

Cost of Goods Manufactured

Beginning WIP + Total Manufacturing costs - Ending WIP

Gross Profit

Sales Revenue - COGS

Service companies carry no inventories of products for sale

Work-In Process Inventory

Beginning Merchandise Inventory + Purchase and Freight in - Ending Merchandise Inventory

603,870

organizational chart

competence

looking at future expansion, regardless of the cost of savings.

1,132,000

Wages paid to the factory janitor

319,000

2.83

Wages of assembly line personnel

20,000

office rent

operating expenses

It helps managers cut costs by speeding the transformation of raw materials into finished products.

Service companies

Prime Costs

Indirect manufacturing costs

a car dealership

its employees to plan, direct and control operations

merchandising company

Total operating costs/ Total number of services provided

74000

317000

choosing goals and deciding how to achieve them

365,000

manufacturing

227,500

59,410

The work in process inventory account includes the:

Goods that are partially completed

A manager compares actual expenses with the budget to determine if operations are on track. This is what function?

Controlling

Describe the accounting for indirect labor costs

Indirect labor costs are product costs; expensed when mfg product is sold

For a manufacturing company give an example of period cost

office rent

The balance sheet of which type of company will include finished goods inventory as a line item?

Manufacturing company

Give an example of something that is a part of manufacturing overhead

Factory insurance

Indirect materials 8,200, indirect labor 12,400, factory utilities 5,600, direct labor 31,700. manufacturing overhead?

26,200

When does a manufacturing product cost generally become an expense

When the product is sold

For decision making purposes, which costs are often divided into prime costs and conversion costs?

product costs

The goal of just-in-time (JIT) management is to decrease costs by:

getting materials just in time for production