Question-1
Comet Company accumulated the following account information for the year:
| Beginning raw materials inventory | $6,000 |
| Indirect materials cost | 2,000 |
| Indirect labor cost | 5,000 |
| Maintenance of factory equipment | 2,800 |
| Direct labor cost | 7,000 |
Using the above information, total factory overhead costs would be:
$13,000.
$15,800.
$9,800.
$16,800.
$7,800.
Question-2
Using the information below, compute the raw materials inventory turnover:
| Raw Materials Used | $121,600 |
| Beginning Raw Materials Inventory | $18,000 |
| Ending Raw Materials Inventory | $20,200 |
6.76.
60.6.
6.37.
54.0.
6.02.
Question-3
Current information for the Healey Company follows:
| Beginning raw materials inventory | $15,200 |
| Raw material purchases | 60,000 |
| Ending raw materials inventory | 16,600 |
| Beginning work in process inventory | 22,400 |
| Ending work in process inventory | 28,000 |
| Direct labor | 42,800 |
| Total factory overhead | 30,000 |
All raw materials used were traceable to specific units of product. Healey Company's Cost of Goods Manufactured for the year is:
$128,600.
$139,000.
$125,800.
$131,400.
$137,000.
Question-4
Indirect materials are accounted for as factory overhead because they are not clearly identified with specific product units.
True
False
Question-5
A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:
Service versus manufacturing.
Direct versus indirect.
Financial versus managerial.
Fixed versus variable.
Product versus period.
Question-6
Direct costs are incurred for the benefit of more than one cost object.
True
False
Question-7
Costs that flow directly to the income statement as expenses are called:
Balance sheet costs.
Period costs.
General costs.
Product costs.
Capitalized costs.
Question-8
Which of the following items appears only in a manufacturing company's financial statements?
Cost of goods sold.
Goods available for sale.
Cost of goods manufactured.
Gross profit.
Net income.
Question-9
The following information is available for the year ended December 31:
| Beginning raw materials inventory | $11,000 |
| Raw materials purchases | 86,000 |
| Ending raw materials inventory | 10,400 |
| Manufacturing supplies expense | 900 |
The amount of raw materials used in production for the year is:
$85,700.
$86,600.
$85,400.
$87,500.
$86,900.
Question-10
The series of activities that add value to a company's products or services is called a value chain.
True
False
Question-11
The main goal of the lean business model is the elimination of waste while satisfying the customer and providing a positive return to the company.
True
False
Question-12
Total quality management and just-in-time manufacturing focus on quality improvement as well as on time customer deliveries.
True
False
Question-13
Product costs:
Are expensed on the income statement when incurred.
Are expenditures identified more with a time period rather than with units of product.
Are expenditures necessary and integral to finished products.
Are moved to the income statement for any unsold inventory at the end of the year.
Include selling and administrative expenses.
Question-14
Last year, Flash Company sold 15,000 units of its only product. If sales decreased by 17% in the current year, how will total variable cost and total fixed cost be affected?
|
| Total Variable Cost | Total Fixed Cost |
| A) | Remains constant | Remains constant |
| B) | Increases | Decreases |
| C) | Decreases | Remains constant |
| D) | Remains constant | Decreases |
| E) | Remains constant | Increases |
Choice B
Choice E
Choice A
Choice C
Choice D
Question-15
The schedule of cost of goods manufactured is divided into four parts consisting of all of the following except:
Computation of cost of goods manufactured.
Overhead.
Direct labor.
Computation of cost of goods sold.
Direct materials.
Question-16
Using the information below for Singing Dolls, Inc., determine the total manufacturing costs incurred during the year:
| Work in Process, January 1 | 50,000 |
| Work in Process, December 31 | 37,000 |
| Direct materials used | $12,500 |
| Total Factory overhead | 5,500 |
| Direct labor used | 26,500 |
$89,000.
$13,000.
$94,500.
$44,500.
$57,500.
Question-17
Which of the following costs is not included in factory overhead?
Depreciation of manufacturing equipment.
Direct materials.
Manufacturing supplies used.
Indirect labor.
Payroll taxes on the wages of factory supervisors.
Question-18
Managerial accounting is different from financial accounting in that:
Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.
Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors.
Managerial accounting never includes nonmonetary information.
Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization.
Managerial accounting is mainly used to set stock prices.
Question-19
Current information for the Healey Company follows:
| Beginning raw materials inventory | $15,200 |
| Raw material purchases | 60,000 |
| Ending raw materials inventory | 16,600 |
| Beginning work in process inventory | 22,400 |
| Ending work in process inventory | 28,000 |
| Direct labor | 42,800 |
| Total factory overhead | 30,000 |
All raw materials used were traceable to specific units of product. Healey Company's total manufacturing costs for the year are:
$125,800.
$139,000.
$128,600.
$137,000.
$131,400.
Question-20
Using the information below for Singing Dolls, Inc., determine cost of goods manufactured for the year:
| Work in Process, January 1 | 50,000 |
| Work in Process, December 31 | 37,000 |
| Total Factory overhead | 5,500 |
| Direct materials used | $12,500 |
| Direct labor used | 26,500 |
$52,000.
$13,000.
$57,500.
$94,500.
$44,500.
