Question 1

Which of the following would NOT be included in the conversion cost of an automobile?

Accepted Answer

A) screws used in assembly 
B) assembly worker wages 
C) depreciation on machinery 
D) steel 
A) screws used in assembly 
B) assembly worker wages 
C) depreciation on machinery 
D) steel

Question 2

Information about Mobile Enterprises for the year ending December 31, 2018, is as follows:
 $\begin{array}{lr}
\text { Sales } & \$ 300,000 \
\text { Selling and administrative expenses } & 18,000 \
\text { Net income } & 8,000\\
\text { Beginning inventories: }\
\text { Direct materials } & 20,000 \
\text { Work in process } & 18,000 \
\text { Finished goods } & 62,000
\end{array}$ 
Ending direct materials is 20 percent larger than beginning direct materials. Ending work in process is half of the beginning work in process. Ending finished goods increased by $8,000 during the year. Prime costs and conversion costs are 70 percent and 60 percent of total manufacturing costs added, respectively. Materials purchases are $113,200.
Required: 
a.Prepare a statement of cost of goods manufactured.
b.Prepare an income statement.Note: Find the numbers for the income statement first.

Accepted Answer

@#IMG-DLM& 
 @#IMG-DLM& 
*Thes

Question 3

Inventory balances for the Jameson Company in October 2018 are as follows: $$\begin{array} { l c c } 
& \text { October } 1,2018 & \text { October } 31,2018 \
\text { Raw materials } & \$ 27,000 & \$ 21,000 \
\text { Work in process } & 48,000 & 37,200 \
\text { Finished goods } & 108,000 & 90,000
\end{array}$$ During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively.
What is the cost of goods manufactured?

Accepted Answer

A) $180,000 
B) $186,000 
C) $194,000 
D) $196,800 
A) $180,000 
B) $186,000 
C) $194,000 
D) $196,800

Question 4

A subsystem of the accounting information system designed to satisfy costing, controlling and decision making objectives is called the __________ system.

Accepted Answer

The answer of A subsystem of the accounting information system...

Question 5

Information from the records of Chrome Ponies Enterprises for June 2018 is as follows: $\begin{array}{lr}
\text { Sales } & \$ 41,000 \
\text { Direct labor } & 10,000 \
\text { Selling and administrative expenses } & 7,000 \
\text { Direct materials purchases } & 6,000 \
\text { Factory overhead } & 13,500
\end{array}$

$\begin{array} { l r r } 
& { \text { Inventories } } \
& \text { June 1,2018 } & \text { June } 30,2018 \
& \$ 1,200 & \$ 1,400 \
\text { Direct materials } & 2,500 & 2,800 \
\text { Work in process } & 2,300 & 1,900
\end{array}$
What was the cost of materials used in production?

Accepted Answer

A) $6,200 
B) $6,000 
C) $5,800 
D) $19,500 
A) $6,200 
B) $6,000 
C) $5,800 
D) $19,500

Question 6

Period costs do NOT include

Accepted Answer

A) order-getting costs. 
B) order-filling costs. 
C) order-making costs. 
D) all of the above are period costs. 
A) order-getting costs. 
B) order-filling costs. 
C) order-making costs. 
D) all of the above are period costs.

Question 7

Information from the records of Chrome Ponies Enterprises for June 2018 is as follows: $\begin{array}{lr}
\text { Sales } & \$ 41,000 \
\text { Direct labor } & 10,000 \
\text { Selling and administrative expenses } & 7,000 \
\text { Direct materials purchases } & 6,000 \
\text { Factory overhead } & 13,500
\end{array}$

$\begin{array} { l r r } 
& { \text { Inventories } } \
& \text { June 1,2018 } & \text { June } 30,2018 \
& \$ 1,200 & \$ 1,400 \
\text { Direct materials } & 2,500 & 2,800 \
\text { Work in process } & 2,300 & 1,900
\end{array}$ What are the total manufacturing costs added?

Accepted Answer

A) $18,500 
B) $19,300 
C) $29,000 
D) $29,300 
A) $18,500 
B) $19,300 
C) $29,000 
D) $29,300

Question 8

Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation?

Accepted Answer

A) the wood and upholstery materials that are in the final piece 
B) the depreciation paid on factory equipment t 
C) he labor of the worker assembling the piece of furniture 
D) the labor of the woodworker who finishes the wood of the piece 
A) the wood and upholstery materials that are in the final piece 
B) the depreciation paid on factory equipment t 
C) he labor of the worker assembling the piece of furniture 
D) the labor of the woodworker who finishes the wood of the piece

Question 9

Assigning costs accurately to cost objects is of low priority. Accuracy is not evaluated based on knowledge of some underlying "true cost".

Accepted Answer

A) True 
 B)False

Question 10

Which type of inventory is normally sold to other organizations?

Accepted Answer

A) direct materials 
B) factory supplies 
C) work in process 
D) finished goods 
A) direct materials 
B) factory supplies 
C) work in process 
D) finished goods

Question 11

Information from the records of the Conundrum Company for September 2018 was as follows: $\begin{array} { l r } \text { Sales } & \$ 307,500 \ \text { Selling and administrative expenses } & 52,500 \ \text { Direct materials used } & 66,000 \ \text { Direct labor } & 75,000 \ \text { Variable factory overhead } & 50,000 \ \text { Factory overhead } & 51,250 \end{array}$

Inventories
$\begin{array}{lcc}&\text { Sept. 1,2018}&\text { Sept 30,2018 }\\hline
\text { Direct materials } & \$ 8,000 & \$ 10,500 \
\text { Work in process } & 18,750 & 21,000 \
\text { Finished goods } & 17,250 & 14,250
\end{array}$
Conundrum Corporation produced 20,000 units.
What are the conversion costs per unit?

Accepted Answer

A) $7.05 
B) $8.8125 
C) $12.1125 
D) $14.7375 
A) $7.05 
B) $8.8125 
C) $12.1125 
D) $14.7375

Question 12

In a traditional manufacturing company, product costs include

Accepted Answer

A) direct materials only. 
B) direct materials, direct labor, and factory overhead. 
C) direct materials and direct labor only. 
D) direct labor only. 
A) direct materials only. 
B) direct materials, direct labor, and factory overhead. 
C) direct materials and direct labor only. 
D) direct labor only.

Question 13

All of Eva Enterprise's operations are housed in one building with the costs of occupying the building accumulated in a separate account. The total costs incurred in July amounted to $48,000. The company allocates these costs on the basis of square feet of floor space occupied. Administrative offices, sales offices, and factory operations occupy 9,000, 6,000, and 30,000 square feet, respectively. How much will be classified as a product cost for July?

Accepted Answer

A) $9,600 
B) $6,400 
C) $16,000 
D) $32,000 
A) $9,600 
B) $6,400 
C) $16,000 
D) $32,000

Question 14

Which of the following is NOT a trait of a traditional cost management system?

Accepted Answer

A) unit-based drivers 
B) narrow and rigid product costing 
C) allocation-intensive 
D) focus on managing activities 
A) unit-based drivers 
B) narrow and rigid product costing 
C) allocation-intensive 
D) focus on managing activities

Question 15

Define activity-based management. In your answer, present the activity-based management model in good form.

Accepted Answer

Activity-based management focuses on the

Question 16

The overall objective of accounting information is to provide information to __________.

Accepted Answer

The answer of The overall objective of accounting information is...

Question 17

Which is NOT a benefit of an activity-based cost management system?

Accepted Answer

A) greater product costing accuracy 
B) increased cost of implementing the system 
C) improved decision making 
D) enhanced strategic planning 
A) greater product costing accuracy 
B) increased cost of implementing the system 
C) improved decision making 
D) enhanced strategic planning

Question 18

The difference between a supply and an indirect material is that

Accepted Answer

A) supplies are not necessary for production. 
B) indirect materials are not physically part of the product. 
C) supplies are not necessary for production and are not physically part of the product. 
D) supplies are necessary for production and are not physically part of the product. 
A) supplies are not necessary for production. 
B) indirect materials are not physically part of the product. 
C) supplies are not necessary for production and are not physically part of the product. 
D) supplies are necessary for production and are not physically part of the product.

Question 19

The ending work-in-process inventory is deducted on the

Accepted Answer

A) balance sheet. 
B) income statement. 
C) statement of cost of goods manufactured. 
D) statement of cash flows. 
A) balance sheet. 
B) income statement. 
C) statement of cost of goods manufactured. 
D) statement of cash flows.

Question 20

The cost of goods sold is the cost of direct materials, direct labor and overhead attached to the units sold.

Accepted Answer

A) True 
 B)False

Which of the following would NOT be included in the conversion cost of an automobile?

A subsystem of the accounting information system designed to satisfy costing, controlling and decision making objectives is called the __________ system.

Period costs do NOT include

Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation?

Assigning costs accurately to cost objects is of low priority. Accuracy is not evaluated based on knowledge of some underlying "true cost".

Which type of inventory is normally sold to other organizations?

In a traditional manufacturing company, product costs include

Which of the following is NOT a trait of a traditional cost management system?

Define activity-based management. In your answer, present the activity-based management model in good form.

The overall objective of accounting information is to provide information to __________.

Which is NOT a benefit of an activity-based cost management system?

The difference between a supply and an indirect material is that

The ending work-in-process inventory is deducted on the

The cost of goods sold is the cost of direct materials, direct labor and overhead attached to the units sold.

Introduction to Cost Management

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 2: Basic Cost Management Concepts

Which of the following would NOT be included in the conversion cost of an automobile?

A subsystem of the accounting information system designed to satisfy costing, controlling and decision making objectives is called the __________ system.

Period costs do NOT include

Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation?

Assigning costs accurately to cost objects is of low priority. Accuracy is not evaluated based on knowledge of some underlying "true cost".

Which type of inventory is normally sold to other organizations?

In a traditional manufacturing company, product costs include

Which of the following is NOT a trait of a traditional cost management system?

Define activity-based management. In your answer, present the activity-based management model in good form.

The overall objective of accounting information is to provide information to __________.

Which is NOT a benefit of an activity-based cost management system?

The difference between a supply and an indirect material is that

The ending work-in-process inventory is deducted on the

The cost of goods sold is the cost of direct materials, direct labor and overhead attached to the units sold.

Introduction to Cost Management

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters