Question 1

Cost of goods manufactured for the year was:

Accepted Answer

A)  $160,000. 
B)  $171,000. 
C)  $243,000. 
D)  $244,000. 
A)  $160,000. 
B)  $171,000. 
C)  $243,000. 
D)  $244,000.

Question 2

The following account balances has been extracted from Jimbob Co.'s general ledger:   What was the total of nonmanufacturing costs?

Accepted Answer

A)  $150,000. 
B)  $160,000. 
C)  $180,000. 
D)  $230,000. 
A)  $150,000. 
B)  $160,000. 
C)  $180,000. 
D)  $230,000.

Question 3

The following inventory valuation errors were discovered by Knox Corporation's new controller just after the annual financial statements were published at the end of Year 3. > The Year 3 ending inventory was understated by $17,000.
> The Year 2 ending inventory was understated by $61,000.
> The Year 1 ending inventory was overstated by $23,000.
The net income for Knox in each of these years was:   Assuming there were no income taxes and no corrections were made prior to the discovery of the errors after the end of year 3,the net income in each year should be adjusted to:

Accepted Answer

A)  choice a. 
B)  choice b. 
C)  choice c. 
D)  choice d. 
A)  choice a. 
B)  choice b. 
C)  choice c. 
D)  choice d.

Question 4

The following information was provided by Wilson Company for the year just ended:   The cost of goods manufactured for the year was:

Accepted Answer

A)  $314,725. 
B)  $325,000. 
C)  $333,275. 
D)  $334,275. 
A)  $314,725. 
B)  $325,000. 
C)  $333,275. 
D)  $334,275.

Question 5

The following information was provided by Grand Company for the year just ended:   The cost of goods manufactured for the year was:

Accepted Answer

A)  $95,345. 
B)  $104,655. 
C)  $395,345. 
D)  $404,655. 
A)  $95,345. 
B)  $104,655. 
C)  $395,345. 
D)  $404,655.

Question 6

Manufacturing overhead consists of:

Accepted Answer

A)  all manufacturing costs. 
B)  all manufacturing costs,except direct materials and direct labour. 
C)  indirect materials but not indirect labour. 
D)  indirect labour but not indirect materials. 
A)  all manufacturing costs. 
B)  all manufacturing costs,except direct materials and direct labour. 
C)  indirect materials but not indirect labour. 
D)  indirect labour but not indirect materials.

Question 7

Opportunity costs are always recorded as expenses in the accounts of an organization.

Accepted Answer

A) True 
 B)False

Question 8

An accounting course is taught in two classes per week for one hour and fifty minutes each.The classes are held in a building with 36 classrooms that are used for a variety of courses.There are 15 other courses taught in the Accounting Department at this university.If the cost object is the accounting course,which of the following is a direct cost?

Accepted Answer

A)  The course Instructor's salary for teaching the course (he only teaches this one course). 
B)  The property taxes on the land and classroom building. 
C)  The salary of the building's custodian. 
D)  The Accounting Department's secretary salary. 
A)  The course Instructor's salary for teaching the course (he only teaches this one course). 
B)  The property taxes on the land and classroom building. 
C)  The salary of the building's custodian. 
D)  The Accounting Department's secretary salary.

Question 9

The cost of the raw materials used in production during the year (in thousands of dollars)was:

Accepted Answer

A)  $40. 
B)  $120. 
C)  $160. 
D)  $180. 
A)  $40. 
B)  $120. 
C)  $160. 
D)  $180.

Question 10

Assume that cost of goods sold for Boardman Company for January was $140,000.What was the cost of goods manufactured for the month?

Accepted Answer

A)  $135,000 
B)  $139,000 
C)  $140,000 
D)  $145,000 
A)  $135,000 
B)  $139,000 
C)  $140,000 
D)  $145,000

Question 11

The cost of goods manufactured for the year (in thousands of dollars)was:

Accepted Answer

A)  $460. 
B)  $500. 
C)  $520. 
D)  $530. 
A)  $460. 
B)  $500. 
C)  $520. 
D)  $530.

Question 12

Gabel Inc.is a merchandising company.Last month the company's merchandise purchases totalled $63,000.The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $15,000.What was the company's cost of goods sold for the month?

Accepted Answer

A)  $61,000. 
B)  $63,000. 
C)  $65,000. 
D)  $91,000. 
A)  $61,000. 
B)  $63,000. 
C)  $65,000. 
D)  $91,000.

Question 13

Micro Computer Company has set up a toll-free telephone line for customer inquiries regarding computer hardware produced by the company.The cost of this toll-free line would be classified as which of the following?

Accepted Answer

A)  Product cost. 
B)  Manufacturing overhead. 
C)  Direct labour. 
D)  Period cost. 
A)  Product cost. 
B)  Manufacturing overhead. 
C)  Direct labour. 
D)  Period cost.

Question 14

The cost of rent for a manufacturing plant is generally considered to be a:

Accepted Answer

A)  choice a. 
B)  choice b. 
C)  choice c. 
D)  choice d. 
A)  choice a. 
B)  choice b. 
C)  choice c. 
D)  choice d.

Question 15

The inventory accounts reported on the balance sheet of a manufacturing company will differ from those of a merchandising company.

Accepted Answer

A) True 
 B)False

Question 16

The following information is from Marchant Manufacturing Co.for September:

Accepted Answer

@#IMG-DLM& 
Required:
a.Compute the Cost of Goods

Question 17

Conversion cost consists of which of the following?

Accepted Answer

A)  Manufacturing overhead cost. 
B)  Direct materials and direct labour costs. 
C)  Direct labour cost. 
D)  Direct labour and manufacturing overhead costs. 
A)  Manufacturing overhead cost. 
B)  Direct materials and direct labour costs. 
C)  Direct labour cost. 
D)  Direct labour and manufacturing overhead costs.

Question 18

Stony Electronics Corporation manufactures a portable radio designed for mounting on the wall of the bathroom.The following list represents some of the different types of costs incurred in the manufacture of these radios:
1)The plant manager's salary.
2)The cost of heating the plant.
3)The cost of heating executive offices.
4)The cost of printed circuit boards used in the radios.
5)Salaries and commissions of company salespersons.
6)Depreciation on office equipment used in the executive offices.
7)Depreciation on production equipment used in the plant.
8)Wages of janitorial personnel who clean the plant.
9)The cost of insurance on the plant building.
10)The cost of electricity to light the plant.
11)The cost of electricity to power plant equipment.
12)The cost of maintaining and repairing equipment in the plant.
13)The cost of printing promotional materials for trade shows.
14)The cost of solder used in assembling the radios.
15)The cost of telephone service for the executive offices.
Required:
Classify each of the items above as product (inventoriable)cost or period (noninventoriable)costs for the purpose of preparing external financial statements.

Accepted Answer

1)Product.
2)Product.
3)Period

Question 19

The cost of fire insurance for a manufacturing plant is generally considered to be a:

Accepted Answer

A)  product cost. 
B)  period cost. 
C)  variable cost. 
D)  all of the answers are correct. 
A)  product cost. 
B)  period cost. 
C)  variable cost. 
D)  all of the answers are correct.

Question 20

The cost of goods sold for the year (in thousands of dollars)was:

Accepted Answer

A)  $500. 
B)  $540. 
C)  $650. 
D)  $670. 
A)  $500. 
B)  $540. 
C)  $650. 
D)  $670.

Cost of goods manufactured for the year was:

The following account balances has been extracted from Jimbob Co.'s general ledger: What was the total of nonmanufacturing costs?

The following information was provided by Wilson Company for the year just ended: The cost of goods manufactured for the year was:

The following information was provided by Grand Company for the year just ended: The cost of goods manufactured for the year was:

Manufacturing overhead consists of:

Opportunity costs are always recorded as expenses in the accounts of an organization.

The cost of the raw materials used in production during the year (in thousands of dollars)was:

Assume that cost of goods sold for Boardman Company for January was $140,000.What was the cost of goods manufactured for the month?

The cost of goods manufactured for the year (in thousands of dollars)was:

Gabel Inc.is a merchandising company.Last month the company's merchandise purchases totalled $63,000.The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $15,000.What was the company's cost of goods sold for the month?

Micro Computer Company has set up a toll-free telephone line for customer inquiries regarding computer hardware produced by the company.The cost of this toll-free line would be classified as which of the following?

The cost of rent for a manufacturing plant is generally considered to be a:

The inventory accounts reported on the balance sheet of a manufacturing company will differ from those of a merchandising company.

The following information is from Marchant Manufacturing Co.for September:

Conversion cost consists of which of the following?

The cost of fire insurance for a manufacturing plant is generally considered to be a:

The cost of goods sold for the year (in thousands of dollars)was:

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters

Exam 2: Systems Design: Job-Order Costing

Cost of goods manufactured for the year was:

The following account balances has been extracted from Jimbob Co.'s general ledger: What was the total of nonmanufacturing costs?

The following information was provided by Wilson Company for the year just ended: The cost of goods manufactured for the year was:

The following information was provided by Grand Company for the year just ended: The cost of goods manufactured for the year was:

Manufacturing overhead consists of:

Opportunity costs are always recorded as expenses in the accounts of an organization.

The cost of the raw materials used in production during the year (in thousands of dollars)was:

Assume that cost of goods sold for Boardman Company for January was $140,000.What was the cost of goods manufactured for the month?

The cost of goods manufactured for the year (in thousands of dollars)was:

Gabel Inc.is a merchandising company.Last month the company's merchandise purchases totalled $63,000.The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $15,000.What was the company's cost of goods sold for the month?

Micro Computer Company has set up a toll-free telephone line for customer inquiries regarding computer hardware produced by the company.The cost of this toll-free line would be classified as which of the following?

The cost of rent for a manufacturing plant is generally considered to be a:

The inventory accounts reported on the balance sheet of a manufacturing company will differ from those of a merchandising company.

The following information is from Marchant Manufacturing Co.for September:

Conversion cost consists of which of the following?

The cost of fire insurance for a manufacturing plant is generally considered to be a:

The cost of goods sold for the year (in thousands of dollars)was:

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters