Question 1

If the cost of an additive is $5,000 + $0.50 for every unit of solvent produced, the cost is classified as a mixed cost.

Accepted Answer

A) True 
 B)False

Question 2

In an normal cost system, actual production overhead costs are accumulated in an Overhead Control account and assigned to Work in Process at the end of the period.

Accepted Answer

A) True 
 B)False

Question 3

A specific product cannot be a cost object

Accepted Answer

A) True 
 B)False

Question 4

The term "relevant range" as used in cost accounting means the range over which

Accepted Answer

A)  costs may fluctuate. 
B)  cost relationships are valid. 
C)  production may vary. 
D)  relevant costs are incurred. 
A)  costs may fluctuate. 
B)  cost relationships are valid. 
C)  production may vary. 
D)  relevant costs are incurred.

Question 5

Mitchell Company The following information has been taken from the cost records of Mitchell Company for the past year:
  $\begin{array}{ll}
\underline{\text {Inventries}}&\underline{\text { Beginning }} &\underline{ \text { Ending }} \
\text {Raw Material}&\$ 75 & \$ 85 \
\text {Wotk in Process}&80 & 30 \
\text { Finished Goods}&90 & 110
\end{array}$ 
 Refer to Mitchell Company. Cost of Goods Manufactured was

Accepted Answer

A)  $636. 
B)  $716. 
C)  $736. 
D)  $766. 
A)  $636. 
B)  $716. 
C)  $736. 
D)  $766.

Question 6

From the following information for the Seabrook Company, compute prime costs and conversion costs.
 $\begin{array}{ll}
\underline{\text {Inventries}}&\underline{\text { Beginning }} &\underline{ \text { Ending }} \
\text {Raw Material}&\$ 9,900 & \$ 7,600 \
\text {Wotk in Process}&44,500 &37,800\
\text { Finished Goods }&36,580 & 61,300
\end{array}$ 
 Raw material purchased during the period cost $40,800; overhead incurred and paid or accrued for the period was $21,750; and 23,600 direct labor hours were incurred at a rate of $13.75 per hour.

Accepted Answer

The answer of From the following information for the Seabrook...

Question 7

The final figure in the Schedule of Cost of Goods Manufactured represents the

Accepted Answer

A)  cost of goods sold for the period. 
B)  total cost of manufacturing for the period. 
C)  total cost of goods started and completed this period. 
D)  total cost of goods completed for the period. 
A)  cost of goods sold for the period. 
B)  total cost of manufacturing for the period. 
C)  total cost of goods started and completed this period. 
D)  total cost of goods completed for the period.

Question 8

Retailers generally have a much lower degree of conversion than do manufacturing or professional firms.

Accepted Answer

A) True 
 B)False

Question 9

The following miscellaneous data has been collected for a manufacturing company for the most recent year-end:
   Required: Prepare a cost of goods manufactured statement showing how all unknown amounts were determined.

Accepted Answer

The answer of The following miscellaneous data has been collected...

Question 10

A cost that remains constant on a per unit basis within the relevant range is a ____________________ cost.

Accepted Answer

The answer of A cost that remains constant on a...

Question 11

Long Enterprises   Refer to Long Enterprises. For March, Cost of Goods Manufactured was

Accepted Answer

A)  $118,000. 
B)  $115,000. 
C)  $112,000. 
D)  $109,000. 
A)  $118,000. 
B)  $115,000. 
C)  $112,000. 
D)  $109,000.

Question 12

Why should predetermined overhead rates be used?

Accepted Answer

Predetermined overhead rates should be u

Question 13

What are three reasons that overhead must be allocated to products?

Accepted Answer

Overhead must be allocated bec

Question 14

Distribution costs are an example of period costs.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a product cost component?

Accepted Answer

A)  rent on a factory building 
B)  indirect production labor wages 
C)  janitorial supplies used in a factory 
D)  commission on the sale of a product 
A)  rent on a factory building 
B)  indirect production labor wages 
C)  janitorial supplies used in a factory 
D)  commission on the sale of a product

Question 16

Long Enterprises   Refer to Long Enterprises. For March, prime cost incurred was

Accepted Answer

A)  $75,000. 
B)  $69,000. 
C)  $45,000. 
D)  $39,000. 
A)  $75,000. 
B)  $69,000. 
C)  $45,000. 
D)  $39,000.

Question 17

A cost that varies in total in direct proportion to changes in activity is known as a ____________________ cost

Accepted Answer

The answer of A cost that varies in total in...

Question 18

The following information is for the Cameron Manufacturing Company for November.
 $\begin{array}{lll}
\underline{\text { Inventories} }&\underline{\text { Beginting} } &\underline{\text { Ending }}\
\text { Raw Material } & \$ 17,400 & \$ 13,200 \
\text { Work in Process } & 31,150 & 28,975 \
\text { Finished Goods } & 19,200 & 25,500
\end{array}$
   Calculate total manufacturing costs, cost of goods manufactured, and cost of goods sold.

Accepted Answer

The answer of The following information is for the Cameron...

Question 19

Variable cost per unit remains constant within the relevant range.

Accepted Answer

A) True 
 B)False

Question 20

Fixed cost per unit varies directly with production.

Accepted Answer

A) True 
 B)False

Exam 1: Cost Terminology and Cost Behaviors

If the cost of an additive is $5,000 + $0.50 for every unit of solvent produced, the cost is classified as a mixed cost.

In an normal cost system, actual production overhead costs are accumulated in an Overhead Control account and assigned to Work in Process at the end of the period.

A specific product cannot be a cost object

The term "relevant range" as used in cost accounting means the range over which

Mitchell Company The following information has been taken from the cost records of Mitchell Company for the past year: Raw Material \ 75 \ 85 Wotk in Process 80 30 Finished Goods 90 110 Refer to Mitchell Company. Cost of Goods Manufactured was

The final figure in the Schedule of Cost of Goods Manufactured represents the

Retailers generally have a much lower degree of conversion than do manufacturing or professional firms.

The following miscellaneous data has been collected for a manufacturing company for the most recent year-end: Required: Prepare a cost of goods manufactured statement showing how all unknown amounts were determined.

A cost that remains constant on a per unit basis within the relevant range is a ____________________ cost.

Long Enterprises Refer to Long Enterprises. For March, Cost of Goods Manufactured was

Why should predetermined overhead rates be used?

What are three reasons that overhead must be allocated to products?

Distribution costs are an example of period costs.

Which of the following is not a product cost component?

Long Enterprises Refer to Long Enterprises. For March, prime cost incurred was

A cost that varies in total in direct proportion to changes in activity is known as a ____________________ cost

The following information is for the Cameron Manufacturing Company for November. Raw Material \ 17,400 \ 13,200 Work in Process 31,150 28,975 Finished Goods 19,200 25,500 Calculate total manufacturing costs, cost of goods manufactured, and cost of goods sold.

Variable cost per unit remains constant within the relevant range.

Fixed cost per unit varies directly with production.

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