Inventories costs are expensed when incurred. Answer Selected Answer: Correct Answer: Question 2 1 out of 1 points Correct False Finished goods inventory is ordinarily held for sale by a manufacturing company. Question 3 True Indirect labor is not a component of manufacturing overhead. Answer Selected Answer: False Question 4 The following equation Beginning finished goods + cost of goods manufactured – ending finished goods is used to calculate cost of goods sold during the period.
Question 5 A suitable cost driver for the amount of direct materials used is the number of direct abort hours worked.
Answer Correct Answer: False Question 6 Which of the following statements is true? Different cost concepts and classifications are used for different purposes. Correct Answer: Different cost concepts and classifications are used for different purposes. Question 7 1 out AT 1 pilots Product costs are: inventoried. Question 8 Which of the following is a product cost? Both “A” and “D. ” Question 9 Which of the following would not be classified as a product cost?
Answer Sales commissions. Question 10 The accounting records of Georgia Company revealed the following costs: direct trials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000; and selling and administrative expenses, 0,000.
Georgians product costs total: Question 11 Costs that are expensed when incurred are called: period costs. Question 1 Which of the following is a period cost? Advertising expense. Question 13 Which of the following is not a period cost? Wages of assembly-line workers.
Question 14 The accounting records of Reynolds Corporation revealed the following selected costs: Sales commissions, $65,000; plant supervision, $190,000; and administrative expenses, $185,000. Reynolds period costs total: Answer $250,000. Question 15 Yang Corporation recently computed total product costs of $567,000 and total period costs of $420,000, excluding $35,000 of sales commissions that were overlooked by the company’s administrative assistant. On the basis of this information, Yang’s income statement should reveal operating expenses of: Answer $455,000.
Question 16 Which of the following entities would most likely have raw materials, work in process, and finished goods? Answer Exxon corporation. Exxon Corporation. Question 17 Selling and administrative expenses would likely appear on the balance sheet of: None of these firms. Question 18 Which of the following inventories would a discount retailer such as Wall-Mart report as an asset? Answer Merchandise inventory. Question 19 Which of the following inventories would a company ordinarily hold for sale? Answer Finished goods.
Question 20 Goodbye Corporation engages in mass customization and direct sales, the latter by accepting customer orders over the Internet. As a result, Goodbye: Answer would likely find choices “A” and “B” to be applicable. Question 21 Lake Appliance produces washers and dryers in an assembly-line process. Labor costs incurred during a recent period were: corporate executives, $500,000; assembly-line workers, $180,000; security guards, $45,000; and plant supervisor, $110,000. The total of Lake’s direct labor cost was: Answer selected Answer: $180,000.
Question 22 Which of the following employees would not be classified as indirect labor? Answer Choices “B” and “C. ” Question 23 Which of the following costs is not a component of manufacturing overhead? Answer Factory equipment. Question 24 Conversion costs are: erect labor and manufacturing overhead. Question 25 Prime costs are comprised of: direct materials and direct labor. Question 26 In a manufacturing company, the cost of goods completed during the period would include which of the following elements? Answer Raw materials used. Erect Answer: Question 27 Work-in-process inventory is composed of: direct material, direct labor, and manufacturing overhead. Question 28 Holder Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $56,000 and the cost of goods sold during the month was $125,000. The cost of goods manufactured during July was: $133,000. Question 29 Carolina Plating Company reported a cost of goods manufactured of $520,000, with the firm’s year-end balance sheet revealing work in process and finished goods of $70,000 and $134,000, respectively.
If supplemental information disclosed raw materials used in production of $80,000, direct labor of $140,000, and manufacturing overhead of $240,000, the company’s beginning work in process must have been: $130,000. Question 30 For the year Just ended, Cole Corporation’s manufacturing costs (raw materials used, erect labor, and manufacturing overhead) totaled $1 Beginning and ending work-in-process inventories were $60,000 and $90,000, respectively.
Coles balance sheet also revealed respective beginning and ending finished-goods inventories of $250,000 and $180,000. On the basis of this information, how much would the company report as cost of goods manufactured (GM) and cost of goods sold (CSS)? GM, CSS, $1 Question 31 An employee accidentally overstated the year’s advertising expense by $50,000. Which of the following correctly depicts the effect of this error? Answer None of these. Question 32 Variable costs are costs that: vary directly with changes in activity.
Question 33 As activity decreases, unit variable cost: remains constant. Question 34 Fixed costs are costs that: remain constant as activity changes. Question 35 The fixed cost per unit: will exhibit the behavior described in choices “B” and “C. ” Question 36 If purchases of raw materials were $135,000 during the year, what was the amount of raw materials used during the year? Answer $140,800. Question 37 If the cost of goods manufactured for the year was $565,000, what was the amount of erect materials used during the year?
Answer $155,500. Question 38 Wee Care is a nursery school for pre-kindergarten children. The school has determined that the following biweekly revenues and costs occur at different levels of enrollment: The marginal cost when the twenty-first student enrolls in the school is: Answer $55. Question 39 If the total cost of alternative A is $50,000 and the total cost of alternative B is $34,000, then $16,000 is termed the: Answer differential cost. Question 40 The average cost per student when 16 students enroll in the school is: Answer $175.
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