Principles of Accounting II ACC-202-OL02Chapter 16 Test100% Results16.4-3 Given the following​ information, determine the cost of goods sold.Direct Labor Incurred ​$62,000Manufacturing Overhead In

Principles of Accounting II ACC-202-OL02

Chapter 16 Test

100% Results

16.4-3 Given the following​ information, determine the cost of goods sold.

Direct Labor Incurred ​$62,000

Manufacturing Overhead Incurred ​175,000

Direct Materials Used ​150,000

Finished Goods​ Inventory, Jan. 1 ​198,000

Finished Goods​ Inventory, Dec. 31 ​98,500

​Work-in-Process Inventory, Jan. 1 ​221,000

​Work-in-Process Inventory, Dec. 31 ​108,000

16.2-1 Service companies sell their​ time, skills, and knowledge.

16.5-7 Samson, Inc. reported the following information for the​ year:

Service Revenue ​$60,000

Operating Expenses ​21,000

Net Income ​39,000

Number of Services Provided for the Year ​10,500

How much was the unit cost per​ service? (Round your answer to the nearest​ cent.)

16.2-33 Robbinsdale, Inc. is a merchandiser of stone ornaments. The company sold​ 8,000 units during the year. The company has provided the following​ information:

Sales Revenue ​$559,000

Purchases​ (excluding freight​ in) ​303,000

Selling and Administrative Expenses ​67,000

Freight In ​14,000

Beginning Merchandise Inventory ​46,000

Ending Merchandise Inventory ​43,000

What is the cost of goods available for sale for the​ year?

16.1-8 Which of the following statements is true of managerial​ accounting?

A. The external stakeholders of a company are the primary users of managerial accounting.

B. An external audit by an independent CPA is required for managerial accounting information.

C. Managerial accounting information must comply with Generally Accepted Accounting Principles.

D. Managerial accounting information is used to help managers plan and control their operations.

16.5-16  Kentucky, Inc. purchases and sells widgets. The following information summarizes the​ company's operating activities for the​ year:

Selling and Administrative Expenses ​$5,300

Purchases ​157,000

Sales Revenue ​785,000

Merchandise​ Inventory, January 1 ​2,350

Merchandise​ Inventory, December 31 ​38,350

If the company sold​ 7,900 units of widgets during the​ year, how much is the cost for one​ widget? (Round your answer to the nearest​ cent.)

16.1-21 Management of a company is accountable to​ ________ for obeying laws and paying taxes.

A. the government

B. its asset vendors

C. the securities exchange

D. the natural environment

16.4-20 Given the following​ information, determine the cost of goods manufactured.

Direct Labor Incurred ​$62,000

Manufacturing Overhead Incurred ​177,000

Direct Materials Used ​151,000

Finished Goods​ Inventory, Jan. 1 ​197,000

Finished Goods​ Inventory, Dec. 31 ​99,000

​Work-in-Process Inventory, Jan. 1 ​221,000

​Work-in-Process Inventory, Dec. 31 ​108,000

A. ​$390,000

B. ​$503,000

C. ​$282,000

D. ​$188,000

16.3-3 The wages of manufacturing plant janitors are considered to be​ non-manufacturing overhead costs as these costs are not directly related to the manufacturing process.

True

False

16.5-1 Managerial accounting is used in manufacturing and merchandising​ companies, but not in service companies.

True

False

16.3-40 Which of the following is an example of direct labor cost in a​ factory?

A. salary of vice president of production

B. wages of factory security guard

C. salary of production manager

D. wages of assembly line personnel

16.2-10 For external reporting​ purposes, GAAP requires companies to treat period costs as assets.

True

False

16.4-41 Evanston​ Manufacturing, Inc. reported the following information for the​ year:

Number of Units Produced ​152,000

Number of Units Sold ​62,000

Cost of Goods Manufactured ​$268,000

Cost of Goods Sold ​52,900

Sales Revenue ​130,000

Gross Profit ​72,940

Operating Expense ​727,000

What was the unit product​ cost? (Round your answer to the nearest​ cent.)

A. ​$1.76

B. ​$0.86

C. ​$0.85

D. ​$4.32

16.3-71 Which of the following will be classified as a conversion​ cost?

A. depreciation on factory equipment

B. salary of sales personnel

C. cost of direct materials used

D. depreciation on office furniture

16.1-37 You did not understand what the term accrual meant and failed to accrue the interest due at the end of the year on the​ company's bonds. Which of the IMA standards appears to have been violated​ here?

A. competence

B. integrity

C. confidentiality

D. objectivity