Chapter 16 – Management Accounting: A Business Partner
Financial and Managerial Accounting, 17/e 16-7
CHAPTER 16 NAME ___ # ____
10-MINUTE QUIZ B SECTION
The “flow” of manufacturing costs through the ledger of Able Mfg. Co. during April is
summarized in the following T accounts. Certain amounts have been omitted and are
represented by question marks.
Materials Inventory
Work in Process Inventory
Beg. Bal. 32,000
35,000
End. Bal. ?
33,000
Beg. Bal. 3,000
?
End. Bal. 5,000
72,000
Direct Labor
Finished Goods Inventory
13,000
Beg. Bal. 0
?
End. Bal. 1,000
Beg. Bal. 47,000
72,000
End. Bal. 39,000
?
Manufacturing Overhead
Cost of Goods Sold
27,000
27,000
?
Answer the following questions. If you select answer d, indicate the correct amount.
1 Refer to the above data. The total amount of inventory that should appear in the
company’s balance sheet at April 30 is:
a $39,000. c $73,000.
b $82,000. d Some other amount. $____________
2 Refer to the above data. The amount of wages paid to direct workers during April
amounted to:
a $14,000. c $13,000.
b $12,000. d Some other amount. $____________
3 Refer to the above data. The total manufacturing costs charged to production
during April were:
a $74,000. c $76,000.
b $72,000. d Some other amount. $____________
4 Refer to the above data. The cost of finished goods manufactured in April
amounted to:
a $72,000. c $47,000.
b $80,000. d Some other amount. $____________
5 Refer to the above data. The cost of goods sold in April amounted to:
a $72,000. c $39,000.
b $80,000. d Some other amount. $____________
Chapter 16 – Management Accounting: A Business Partner
CHAPTER 16 NAME #
10-MINUTE QUIZ C SECTION
You are to summarize the “flow” of manufacturing costs through the ledger accounts of
Berman Mfg. Co. for the month of June. Complete the following T accounts by entering
summary amounts for the month in each of the blank spaces provided (lettered a through j). In
addition to the amounts already shown in the T accounts, the following information is
available:
Direct materials used during June …………………………………………………………………….. $51,000
Wages paid during June to direct labor workers …………………………………………………. $22,000
Cost of finished goods manufactured ………………………………………………………………… $98,000
Total manufacturing costs charged to production (in the Work in
Process account, record this entire amount as
one entry) ……………………………………………………………………………………………………….. $94,000
Materials Inventory
Work in Process Inventory
Beg. Bal. 43,000
a
End. Bal. 50,000
b
Beg. Bal. 14,000
f
End. Bal. 10,000
g
Direct Labor
Finished Goods Inventory
c
Beg. Bal. 0
d
End. Bal. 10,000
Beg. Bal. 58,000
h
End. Bal. 52,000
i
Manufacturing Overhead
Cost of Goods Sold
11,000
e
j
Chapter 16 – Management Accounting: A Business Partner
Financial and Managerial Accounting, 17/e 16-9
CHAPTER 16 NAME #________
10-MINUTE QUIZ D SECTION
Information about the manufacturing costs and inventories of Tracy Mfg. Co. in 2011 is shown
below:
Manufacturing Costs:
Direct materials used …………………………………………………………………………………………… $655,000
Direct labor charged to production ……………………………………………………………………….. $330,000
Manufacturing overhead ……………………………………………………………………………………… $455,000
Dec. 31, Jan. 1,
2011 2011
Materials ………………………………………………………………………….. $65,000 $50,000
Work in process ……………………………………………………………….. $27,000 $32,000
Finished goods …………………………………………………………………. $75,000 $83,000
a Using the appropriate data, prepare a Schedule of Cost of Finished Goods Manufactured for the
year ended December 31, 2011
TRACY MFG. CO.
Schedule of Cost of Finished Goods Manufactured
For the Year Ended December 31, 2011
b Compute the cost of goods sold in 2011: $__________
Chapter 16 – Management Accounting: A Business Partner
SOLUTIONS TO CHAPTER 16 10-MINUTE QUIZZES
QUIZ B
QUIZ C
(a) $50,000 ending + $51,000 used – $43,000 beginning = $58,000
(b) $51,000 (given)
Chapter 16 – Management Accounting: A Business Partner
Financial and Managerial Accounting, 17/e 16–11
QUIZ D
a TRACY MFG. CO.
Schedule of Cost of Finished Goods Manufactured
For the Year Ended December 31, 2011
Work in process inventory, Jan. 1, 2011 ……………………………………………….. $ 32,000
Manufacturing costs assigned to production:
Chapter 16 – Management Accounting: A Business Partner
Assignment Guide to Chapter 16
Brief Exercises
Exercises
Problems
Cases
Net
1 – 10
1 – 15
1
2
3
4
5
6
7
8
1
2
4
3
Time estimate (in minutes)
< 15
< 15
40
40
25
30
25
40
30
40
40
40
45
15
Difficulty rating
E
E
M
M
M
S
E
M
M
S
S
S
M
E
Learning Objectives:
1, 7, 8, 11
√
1. Explain the three principles guiding
the design of management
accounting systems.
2. Describe the three basic types of
manufacturing costs.
5
1, 2, 13, 14
√
√
3. Distinguish between product costs
and period costs.
1, 3, 9, 10
1, 3, 6, 12, 13,
15
√
√
√
4. Describe how manufacturing costs
flow through perpetual inventory
accounts.
2, 3, 4, 5, 6, 7, 8,
9
1, 4, 6, 9, 10,
12
√
√
5. Distinguish between direct and
indirect costs.
6, 9
1, 3, 6, 13, 14
6. Prepare a schedule of the cost of
finished goods manufactured.
5, 9, 10, 12
√
√
√