1) The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.
a. true
b. false
2) At the beginning of 2011, the Gilbert Company's work in process inventory account had a balance of $30,000. During 2011, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Factory overhead in 2011 amounted to $90,000. Cost of goods manufactured is $220,000 in 2011. The balance in work in process inventory on December 31, 2011, is:
a. $24,000
b. $34,000
c. $6,000
d. $66,000
3) Which of the following would be least likely to be considered a managerial accounting report?
a. a statement of stockholders' equity
b. a schedule of total manufacturing costs incurred
c. a report to analyze potential efficiencies and savings for the purchase of new production equipment.
d. a statement of cost of goods manufactured
4) Costs which are reported on the income statement as part of cost of goods sold are referred to as:
a. cost of goods manufactured
b. administrative expenses
c. operating expenses
d. period costs
5) What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?
a. Controlling
b. Planning
c. Improving
d. Directing