Question 1

For a construction contractor, the wages of carpenters would be classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 2

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 3

Another term for factory overhead is

Accepted Answer

A)  surplus 
B)  period cost 
C)  supervisory cost 
D)  factory burden 
A)  surplus 
B)  period cost 
C)  supervisory cost 
D)  factory burden

Question 4

Zoe Corporation has the following information for the month of March:? $\begin{array}{lr}
\text { Purchases } & \$ 92,000 \
\text { Materials inventory, March 1 } & 6,000 \
\text { Materials inventory, March 31 } & 8,000 \
\text { Direct labor } & 25,000 \
\text { Factory overhead } & 37,000 \
\text { Work in process inventory, March 1 } & 22,000 \
\text { Work in process inventory, March 31 } & 23,500 \
\text { Finished goods inventory, March 1 } & 21,000 \
\text { Finished goods inventory, March 31 } & 30,000 \
\text { Sales } & 257,000 \
\text { Selling and administrative expenses } & 79,000
\end{array}$  Prepare 
(a) a schedule of cost of goods manufactured, 
(b) an income statement for the month ended March 31, and 
(c) the Inventory section of the balance sheet.

Accepted Answer

The answer of Zoe Corporation has the following information for...

Question 5

Match each description to the appropriate term (a-d). Answers may be used more than once.
-Wages of assembly line personnel

Accepted Answer

A) Direct materials 
B) Selling and administrative expense 
C) Factory overhead 
D) Direct labor 
A) Direct materials 
B) Selling and administrative expense 
C) Factory overhead 
D) Direct labor

Question 6

All of the following employees hold line positions except

Accepted Answer

A)  vice president of production 
B)  vice president of finance 
C)  manager of equipment 
D)  vice president of sales 
A)  vice president of production 
B)  vice president of finance 
C)  manager of equipment 
D)  vice president of sales

Question 7

Smith Company reports the following information:?Cost of goods manufactured$68,250Direct materials used27,000Direct labor incurred25,000Work in process inventory, January 111,000?Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31 is

Accepted Answer

A)  $16,250 
B)  $8,500 
C)  $18,750 
D)  $13,500 
A)  $16,250 
B)  $8,500 
C)  $18,750 
D)  $13,500

Question 8

Match each description to the appropriate term (a-d). Answers may be used more than once.
-Cost of primary material used to make product

Accepted Answer

A) Direct materials 
B) Selling and administrative expense 
C) Factory overhead 
D) Direct labor 
A) Direct materials 
B) Selling and administrative expense 
C) Factory overhead 
D) Direct labor

Question 9

Which of the following accounts is not an example of a sustainable business activity?

Accepted Answer

A)  use of wind turbines to generate energy 
B)  crop rotation 
C)  expanded public transportation systems 
D)  reduction of employee idle time 
A)  use of wind turbines to generate energy 
B)  crop rotation 
C)  expanded public transportation systems 
D)  reduction of employee idle time

Question 10

Indirect labor would be included in factory overhead.

Accepted Answer

A) True 
 B)False

Question 11

The cost of a manufactured product generally consists of which of the following costs?

Accepted Answer

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

Question 12

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.
-Tires for the bicycles

Accepted Answer

A) Product 
B) Period 
A) Product 
B) Period

Question 13

Prime costs are the combination of direct labor costs and factory overhead costs.

Accepted Answer

A) True 
 B)False

Question 14

Magnus Industries has the following data:​ $\begin{array}{lr}
\text { Beginning raw material s inventory } & \$ 75,000 \
\text { Materials purchased } & 40,000 \
\text { Ending raw materials inventory } & 60,000
\end{array}$ Calculate the cost of raw materials used.

Accepted Answer

Raw Materials Used =

Question 15

Match each description to the appropriate term (a-d). Answers may be used more than once.
-Factory supplies used

Accepted Answer

A) Direct materials 
B) Selling and administrative expense 
C) Factory overhead 
D) Direct labor 
A) Direct materials 
B) Selling and administrative expense 
C) Factory overhead 
D) Direct labor

Question 16

Differentiate between:
(a)Direct materials versus indirect materials
(b)Direct labor versus indirect labor

Accepted Answer

(a)Direct materials must become a physic

Question 17

All of the following could be considered a direct material except

Accepted Answer

A)  steel 
B)  fabric 
C)  glue 
D)  lumber 
A)  steel 
B)  fabric 
C)  glue 
D)  lumber

Question 18

Which of the following manufacturing costs is an indirect cost of producing a product?

Accepted Answer

A)  oil lubricants used for factory machinery 
B)  commissions for sales personnel 
C)  hourly wages of an assembly worker 
D)  memory chips for a microcomputer manufacturer 
A)  oil lubricants used for factory machinery 
B)  commissions for sales personnel 
C)  hourly wages of an assembly worker 
D)  memory chips for a microcomputer manufacturer

Question 19

The following are some of the costs incurred by a cake factory. Identify them as either:
-Frosting

Accepted Answer

A) Product costs 
B) Period costs 
A) Product costs 
B) Period costs

Question 20

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.
-Plant insurance expired

Accepted Answer

A) Product 
B) Period 
A) Product 
B) Period

Exam 18: Introduction to Managerial Accounting

For a construction contractor, the wages of carpenters would be classified as factory overhead cost.

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Another term for factory overhead is

Match each description to the appropriate term (a-d). Answers may be used more than once. -Wages of assembly line personnel

All of the following employees hold line positions except

Smith Company reports the following information:?Cost of goods manufactured$68,250Direct materials used27,000Direct labor incurred25,000Work in process inventory, January 111,000?Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31 is

Match each description to the appropriate term (a-d). Answers may be used more than once. -Cost of primary material used to make product

Which of the following accounts is not an example of a sustainable business activity?

Indirect labor would be included in factory overhead.

The cost of a manufactured product generally consists of which of the following costs?

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given. -Tires for the bicycles

Prime costs are the combination of direct labor costs and factory overhead costs.

Magnus Industries has the following data:​ Beginning raw material s inventory \ 75,000 Materials purchased 40,000 Ending raw materials inventory 60,000 Calculate the cost of raw materials used.

Match each description to the appropriate term (a-d). Answers may be used more than once. -Factory supplies used

Differentiate between: (a)Direct materials versus indirect materials (b)Direct labor versus indirect labor

All of the following could be considered a direct material except

Which of the following manufacturing costs is an indirect cost of producing a product?

The following are some of the costs incurred by a cake factory. Identify them as either: -Frosting

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given. -Plant insurance expired

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

Magnus Industries has the following data: Beginning raw material s inventory \ 75,000 Materials purchased 40,000 Ending raw materials inventory 60,000 Calculate the cost of raw materials used.