Question 1

The type of merchandiser who purchases goods from the producer and sells to stores who sell to the consumer is a:

Accepted Answer

A) Manufacturer. 
B) Retailer. 
C) Wholesaler. 
D) Service business. 
A) Manufacturer. 
B) Retailer. 
C) Wholesaler. 
D) Service business.

Question 2

According to the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice, under the Integrity Standard, each member has the responsibility to:

Accepted Answer

A) Communicate information fairly and objectively. 
B) Keep information confidential. 
C) Mitigate actual conflicts of interest. 
D) Maintain an appropriate level of professional competence. 
A) Communicate information fairly and objectively. 
B) Keep information confidential. 
C) Mitigate actual conflicts of interest. 
D) Maintain an appropriate level of professional competence.

Question 3

The following data was taken from the general ledger and other records of Martinez Manufacturing Co. at July 31, the end of the first month of operations in the current fiscal year:   
a.Prepare a statement of cost of goods manufactured.
b.Determine the cost of goods sold for the month.

Accepted Answer

The answer of The following data was taken from the...

Question 4

A(n) __________ requires estimating inventory balances during the year for interim financial statements and shutting down operations to count all inventory items at the end of the year.

Accepted Answer

A) periodic inventory system 
B) inventory control account 
C) perpetual inventory system 
D) inventory cost method 
A) periodic inventory system 
B) inventory control account 
C) perpetual inventory system 
D) inventory cost method

Question 5

A law firm wanting to track the costs of serving different clients may use a:

Accepted Answer

A) process cost system. 
B) job order cost system. 
C) cost control system. 
D) standard cost system. 
A) process cost system. 
B) job order cost system. 
C) cost control system. 
D) standard cost system.

Question 6

At a certain level of operations, per unit costs and selling price are as follows: manufacturing costs, $50; selling and administrative expenses, $10; selling price, $80. Given this information, the mark-on percentage to manufacturing cost used to determine selling price must have been:

Accepted Answer

A) 40 percent. 
B) 60 percent. 
C) 33 percent. 
D) 25 percent. 
A) 40 percent. 
B) 60 percent. 
C) 33 percent. 
D) 25 percent.

Question 7

For a manufacturer, the cost of all materials purchases and on hand to be used in the manufacturing process is:

Accepted Answer

A) Merchandise Inventory. 
B) Finished Goods. 
C) Work in Process. 
D) Materials. 
A) Merchandise Inventory. 
B) Finished Goods. 
C) Work in Process. 
D) Materials.

Question 8

The following data are from Burton Corporation, a manufacturer, for the month of September:   Compute the conversion costs.

Accepted Answer

A) $335,000 
B) $209,000 
C) $281,000 
D) $256,000 
A) $335,000 
B) $209,000 
C) $281,000 
D) $256,000

Question 9

In job order costing, the basic document for accumulating the cost of each job is the:

Accepted Answer

A) Job cost sheet. 
B) Requisition sheet. 
C) Purchase order. 
D) Invoice. 
A) Job cost sheet. 
B) Requisition sheet. 
C) Purchase order. 
D) Invoice.

Question 10

The term "conversion costs" refers to:

Accepted Answer

A) The sum of direct labor costs and all factory overhead costs. 
B) The sum of direct material costs and direct labor costs. 
C) All costs associated with manufacturing other than direct labor costs. 
D) Direct labor costs incurred to produce units of output. 
A) The sum of direct labor costs and all factory overhead costs. 
B) The sum of direct material costs and direct labor costs. 
C) All costs associated with manufacturing other than direct labor costs. 
D) Direct labor costs incurred to produce units of output.

Question 11

Umberg Merchandise Company's cost of goods sold last month was $1,350,000. the Merchandise Inventory at the beginning of the month was $250,000 and there was $325,000 of Merchandise Inventory at the end of the month. Umberg's merchandise purchases were:

Accepted Answer

A) $1,350,000 
B) $1,275,000 
C) $1,425,000 
D) $1,675,000 
A) $1,350,000 
B) $1,275,000 
C) $1,425,000 
D) $1,675,000

Question 12

Which of the following items of cost would be least likely to appear on a performance report based on responsibility accounting for the supervisor of an assembly line in a large manufacturing situation?

Accepted Answer

A) Direct labor 
B) Indirect materials 
C) Selling expenses 
D) Repairs and maintenance 
A) Direct labor 
B) Indirect materials 
C) Selling expenses 
D) Repairs and maintenance

Question 13

The following data were taken from the general ledger and other data of Spargus Manufacturing on May 31:   Compute the cost of goods sold for Spargus Manufacturing, selecting the appropriate items from the list provided.

Accepted Answer

The answer of The following data were taken from the...

Question 14

When should process costing techniques be used in assigning costs to products?

Accepted Answer

A) In situations where standard costing techniques should not be used 
B) If products manufactured are substantially identical 
C) When production is only partially completed during the accounting period 
D) If products are manufactured on the basis of each order received 
A) In situations where standard costing techniques should not be used 
B) If products manufactured are substantially identical 
C) When production is only partially completed during the accounting period 
D) If products are manufactured on the basis of each order received

Question 15

The following data are from Burton Corporation, a manufacturer, for the month of September:   Compute the prime costs.

Accepted Answer

A) $344,000 
B) $135,000 
C) $335,000 
D) $256,000 
A) $344,000 
B) $135,000 
C) $335,000 
D) $256,000

Question 16

Witt Company, like most manufacturers, maintains a continuous record of purchases, materials issued into production and balances of all goods in stock, so that inventory valuation data is available at any time. This is an example of a(n)

Accepted Answer

A) perpetual inventory system. 
B) inventory control account. 
C) periodic inventory system. 
D) inventory cost method. 
A) perpetual inventory system. 
B) inventory control account. 
C) periodic inventory system. 
D) inventory cost method.

Question 17

Joshua Company prepares monthly performance reports for each department. The budgeted amounts of wages for the Finishing Department for the month of August and for the eight-month period ended August 31 were $12,000 and $100,000, respectively. Actual wages paid through July were $91,500, and wages for the month of August were $11,800. The month and year-to-date variances, respectively, for wages on the August performance report would be:

Accepted Answer

A) $200 F; $8,500 F 
B) $200 F; $3,300 U 
C) $200 U; $3,300 U 
D) $200 U; $8,500 F 
A) $200 F; $8,500 F 
B) $200 F; $3,300 U 
C) $200 U; $3,300 U 
D) $200 U; $8,500 F

Question 18

Selected data concerning the past fiscal year's operations (000's omitted) of the Stanley Manufacturing Company are presented below:   The cost of goods sold during the year was:

Accepted Answer

A) $730. 
B) $775. 
C) $675. 
D) $765. 
A) $730. 
B) $775. 
C) $675. 
D) $765.

Question 19

The Macke Company's payroll summary showed the following in November:   What is the amount that would be included in factory overhead in November?

Accepted Answer

A) $20,000 
B) $35,000 
C) $95,000 
D) $120,000 
A) $20,000 
B) $35,000 
C) $95,000 
D) $120,000

Question 20

Custom Cabinets Inc. manufactures goods on a job order basis. During the month of November, three jobs were started. (There was no work in process at the beginning of the month.) Jobs 401 and 402 were completed and sold for $14,500 and $19,000, respectively, during the month; Job 403 was still in process at the end of November.
The following data are taken from the job cost sheets for each job. Factory overhead charges include a total of $900 of indirect materials and $600 of indirect labor. One work in process control account is used.   Prepare a journal entry to record each of the following: 
a.Materials used
b.Factory wages and salaries earned
c.Factory Overhead transferred to Work in Process
d.Jobs completed
e.
Jobs sold

Accepted Answer

(a)
 @#IMG-DLM& (b)

The type of merchandiser who purchases goods from the producer and sells to stores who sell to the consumer is a:

According to the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice, under the Integrity Standard, each member has the responsibility to:

The following data was taken from the general ledger and other records of Martinez Manufacturing Co. at July 31, the end of the first month of operations in the current fiscal year: a.Prepare a statement of cost of goods manufactured. b.Determine the cost of goods sold for the month.

A(n) __________ requires estimating inventory balances during the year for interim financial statements and shutting down operations to count all inventory items at the end of the year.

A law firm wanting to track the costs of serving different clients may use a:

At a certain level of operations, per unit costs and selling price are as follows: manufacturing costs, $50; selling and administrative expenses, $10; selling price, $80. Given this information, the mark-on percentage to manufacturing cost used to determine selling price must have been:

For a manufacturer, the cost of all materials purchases and on hand to be used in the manufacturing process is:

The following data are from Burton Corporation, a manufacturer, for the month of September: Compute the conversion costs.

In job order costing, the basic document for accumulating the cost of each job is the:

The term "conversion costs" refers to:

Umberg Merchandise Company's cost of goods sold last month was $1,350,000. the Merchandise Inventory at the beginning of the month was $250,000 and there was $325,000 of Merchandise Inventory at the end of the month. Umberg's merchandise purchases were:

Which of the following items of cost would be least likely to appear on a performance report based on responsibility accounting for the supervisor of an assembly line in a large manufacturing situation?

The following data were taken from the general ledger and other data of Spargus Manufacturing on May 31: Compute the cost of goods sold for Spargus Manufacturing, selecting the appropriate items from the list provided.

When should process costing techniques be used in assigning costs to products?

The following data are from Burton Corporation, a manufacturer, for the month of September: Compute the prime costs.

Witt Company, like most manufacturers, maintains a continuous record of purchases, materials issued into production and balances of all goods in stock, so that inventory valuation data is available at any time. This is an example of a(n)

Selected data concerning the past fiscal year's operations (000's omitted) of the Stanley Manufacturing Company are presented below: The cost of goods sold during the year was:

The Macke Company's payroll summary showed the following in November: What is the amount that would be included in factory overhead in November?

Accounting for Materials

Accounting for Labor

Accounting for Factory Overhead

Process Cost Accounting General Procedures

Process Cost Accounting Additional Procedures

Master Budget and Flexible Budgeting

Standard Cost Accounting Materials, Labor, and Factory Overhead

Cost Accounting for Service Businesses

Cost Analysis for Management Decision Making

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Exam 1: Introduction to Cost Accounting

The type of merchandiser who purchases goods from the producer and sells to stores who sell to the consumer is a:

According to the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice, under the Integrity Standard, each member has the responsibility to:

The following data was taken from the general ledger and other records of Martinez Manufacturing Co. at July 31, the end of the first month of operations in the current fiscal year: a.Prepare a statement of cost of goods manufactured. b.Determine the cost of goods sold for the month.

A(n) __________ requires estimating inventory balances during the year for interim financial statements and shutting down operations to count all inventory items at the end of the year.

A law firm wanting to track the costs of serving different clients may use a:

At a certain level of operations, per unit costs and selling price are as follows: manufacturing costs, $50; selling and administrative expenses, $10; selling price, $80. Given this information, the mark-on percentage to manufacturing cost used to determine selling price must have been:

For a manufacturer, the cost of all materials purchases and on hand to be used in the manufacturing process is:

The following data are from Burton Corporation, a manufacturer, for the month of September: Compute the conversion costs.

In job order costing, the basic document for accumulating the cost of each job is the:

The term "conversion costs" refers to:

Umberg Merchandise Company's cost of goods sold last month was $1,350,000. the Merchandise Inventory at the beginning of the month was $250,000 and there was $325,000 of Merchandise Inventory at the end of the month. Umberg's merchandise purchases were:

Which of the following items of cost would be least likely to appear on a performance report based on responsibility accounting for the supervisor of an assembly line in a large manufacturing situation?

The following data were taken from the general ledger and other data of Spargus Manufacturing on May 31: Compute the cost of goods sold for Spargus Manufacturing, selecting the appropriate items from the list provided.

When should process costing techniques be used in assigning costs to products?

The following data are from Burton Corporation, a manufacturer, for the month of September: Compute the prime costs.

Witt Company, like most manufacturers, maintains a continuous record of purchases, materials issued into production and balances of all goods in stock, so that inventory valuation data is available at any time. This is an example of a(n)

Selected data concerning the past fiscal year's operations (000's omitted) of the Stanley Manufacturing Company are presented below: The cost of goods sold during the year was:

The Macke Company's payroll summary showed the following in November: What is the amount that would be included in factory overhead in November?

Accounting for Materials

Accounting for Labor

Accounting for Factory Overhead

Process Cost Accounting General Procedures

Process Cost Accounting Additional Procedures

Master Budget and Flexible Budgeting

Standard Cost Accounting Materials, Labor, and Factory Overhead

Cost Accounting for Service Businesses

Cost Analysis for Management Decision Making

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