Question 1

The following information pertains to the Petrie Company:   Required: Determine the cost of goods manufactured.

Accepted Answer

Answer may vary
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Question 2

What is the amount of total manufacturing cost?

Accepted Answer

A) $50,500. 
B) $52,000. 
C) $56,400. 
D) $58,500. 
A) $50,500. 
B) $52,000. 
C) $56,400. 
D) $58,500. D

Question 3

If finished goods inventory has increased during the period, which of the following is always true?

Accepted Answer

A) Cost of goods sold is less than cost of goods manufactured. 
B) Cost of goods sold is more than cost of goods manufactured. 
C) Cost of goods manufactured is more than total manufacturing costs. 
D) Cost of goods manufactured is less than total manufacturing costs. 
A) Cost of goods sold is less than cost of goods manufactured. 
B) Cost of goods sold is more than cost of goods manufactured. 
C) Cost of goods manufactured is more than total manufacturing costs. 
D) Cost of goods manufactured is less than total manufacturing costs. A

Question 4

What is the amount in the finished goods inventory at the beginning of the year?

Accepted Answer

A) $10,500. 
B) $15,000. 
C) $20,000. 
D) $25,000. 
A) $10,500. 
B) $15,000. 
C) $20,000. 
D) $25,000.

Question 5

Selling and administrative expenses are calculated to be:

Accepted Answer

A) $4,000. 
B) $9,000. 
C) $11,000. 
D) $12,000. 
E) $16,000. 
A) $4,000. 
B) $9,000. 
C) $11,000. 
D) $12,000. 
E) $16,000.

Question 6

Theoretically, a decision maker would probably be willing to buy cost management information if:

Accepted Answer

A) It is accurate. 
B) It is consistent with management objectives. 
C) It is timely. 
D) Its value is equal to or greater than its cost. 
A) It is accurate. 
B) It is consistent with management objectives. 
C) It is timely. 
D) Its value is equal to or greater than its cost.

Question 7

The three attributes of cost information include accuracy, timeliness, and

Accepted Answer

A) reliability. 
B) relevance. 
C) cost-benefit. 
D) understandability. 
A) reliability. 
B) relevance. 
C) cost-benefit. 
D) understandability.

Question 8

Direct materials and direct labor costs total $40,000 and factory overhead costs total $100 per machine hour. If 200 machine hours were used for Job #202, what is the total manufacturing cost for Job #202?

Accepted Answer

A) $95,000 
B) $75,000 
C) $65,000 
D) $60,000 
E) $55,000 
A) $95,000 
B) $75,000 
C) $65,000 
D) $60,000 
E) $55,000

Question 9

Cost of goods manufactured is calculated to be:

Accepted Answer

A) $289,000. 
B) $348,000. 
C) $314,000. 
D) $297,000. 
E) $323,000. 
A) $289,000. 
B) $348,000. 
C) $314,000. 
D) $297,000. 
E) $323,000.

Question 10

Which of the following is not a correct pair between the activity and the potential cost driver?

Accepted Answer

A) Provide cashier service-number of customers 
B) Process loan applications-number of loan applications processed 
C) Mail customer statements-number of accounts by customer type and size 
D) Advise customers on banking services-number of ATM transactions 
A) Provide cashier service-number of customers 
B) Process loan applications-number of loan applications processed 
C) Mail customer statements-number of accounts by customer type and size 
D) Advise customers on banking services-number of ATM transactions

Question 11

Roadmaster Equipment is an up-scale, higher-priced, specialty road construction equipment maker based in Irvine, California. The management accountant for Roadmaster compiled information for various levels of output in units:   Required:
Rounding all calculations to the nearest dollar, fill in the blanks with the correct figures.

Accepted Answer

Answer may

Question 12

Jeffrey's Bottling Co. incurred the following costs during November:   If direct materials cost was $140,000 in November, what was the conversion cost for November?

Accepted Answer

A) $255,000 
B) $240,000 
C) $215,000 
D) $235,000 
A) $255,000 
B) $240,000 
C) $215,000 
D) $235,000

Question 13

Greenbelt Hospital has the following activities in its value chain of providing service to each inpatient admission:
1. Schedule patient.
2. Verify insurance.
3. Admit patient.
4. Prepare patient's room.
5. Review doctor's report.
6. Feed patient.
7. Order tests.
8. Move to/from laboratory.
9. Administer lab tests.
10. Order pharmaceuticals.
11. Complete patient report.
12. Check patient's vital signs.
13. Prepare patient for operation.
14. Move to/from operating room.
15. Operate.
16. Collect charges.
17. Discharge patient.
18. Bill insurance.
Required: Assume that the cost object is the individual patient. Determine the appropriate cost driver(s) for each activity.

Accepted Answer

Answer may

Question 14

For the month of April, prime cost incurred was:

Accepted Answer

A) $75,000. 
B) $66,000. 
C) $65,000. 
D) $62,000. 
A) $75,000. 
B) $66,000. 
C) $65,000. 
D) $62,000.

Question 15

Which one of the following is not a type of cost driver?

Accepted Answer

A) Structural cost driver. 
B) Executional cost driver. 
C) Volume-Based cost driver. 
D) Differential cost driver. 
E) Activity-Based cost driver. 
A) Structural cost driver. 
B) Executional cost driver. 
C) Volume-Based cost driver. 
D) Differential cost driver. 
E) Activity-Based cost driver.

Question 16

Which of the following is not an example of a product cost?

Accepted Answer

A) Salary of manufacturing supervisor 
B) Power for equipment 
C) Depreciation on company-owned sales outlets 
D) Depreciation on company-owned manufacturing plant 
A) Salary of manufacturing supervisor 
B) Power for equipment 
C) Depreciation on company-owned sales outlets 
D) Depreciation on company-owned manufacturing plant

Question 17

Which of the following would not be considered a cost pool?

Accepted Answer

A) Inventory manager 
B) Revenue 
C) Engineering department 
D) Direct materials cost 
A) Inventory manager 
B) Revenue 
C) Engineering department 
D) Direct materials cost

Question 18

The following information was taken from the accounting records of Tomek Manufacturing Company. Unfortunately, some of the data were destroyed by a computer malfunction.   Required: Calculate the unknowns indicated by question marks.

Accepted Answer

Answer may

Question 19

What should be the amount in the finished goods inventory at December 31, 2013?

Accepted Answer

A) $55,500. 
B) $35,000. 
C) $43,000. 
D) $49,000. 
A) $55,500. 
B) $35,000. 
C) $43,000. 
D) $49,000.

Question 20

Consider the following for Columbia Street Manufacturing:   What are the cost of goods manufactured and cost of goods sold?

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

The following information pertains to the Petrie Company: Required: Determine the cost of goods manufactured.

What is the amount of total manufacturing cost?

If finished goods inventory has increased during the period, which of the following is always true?

What is the amount in the finished goods inventory at the beginning of the year?

Selling and administrative expenses are calculated to be:

Theoretically, a decision maker would probably be willing to buy cost management information if:

The three attributes of cost information include accuracy, timeliness, and

Direct materials and direct labor costs total $40,000 and factory overhead costs total $100 per machine hour. If 200 machine hours were used for Job #202, what is the total manufacturing cost for Job #202?

Cost of goods manufactured is calculated to be:

Which of the following is not a correct pair between the activity and the potential cost driver?

Jeffrey's Bottling Co. incurred the following costs during November: If direct materials cost was $140,000 in November, what was the conversion cost for November?

For the month of April, prime cost incurred was:

Which one of the following is not a type of cost driver?

Which of the following is not an example of a product cost?

Which of the following would not be considered a cost pool?

The following information was taken from the accounting records of Tomek Manufacturing Company. Unfortunately, some of the data were destroyed by a computer malfunction. Required: Calculate the unknowns indicated by question marks.

What should be the amount in the finished goods inventory at December 31, 2013?

Consider the following for Columbia Street Manufacturing: What are the cost of goods manufactured and cost of goods sold?

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

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Exam 3: Basic Cost Management Concepts

The following information pertains to the Petrie Company: Required: Determine the cost of goods manufactured.

What is the amount of total manufacturing cost?

If finished goods inventory has increased during the period, which of the following is always true?

What is the amount in the finished goods inventory at the beginning of the year?

Selling and administrative expenses are calculated to be:

Theoretically, a decision maker would probably be willing to buy cost management information if:

The three attributes of cost information include accuracy, timeliness, and

Direct materials and direct labor costs total $40,000 and factory overhead costs total $100 per machine hour. If 200 machine hours were used for Job #202, what is the total manufacturing cost for Job #202?

Cost of goods manufactured is calculated to be:

Which of the following is not a correct pair between the activity and the potential cost driver?

Jeffrey's Bottling Co. incurred the following costs during November: If direct materials cost was $140,000 in November, what was the conversion cost for November?

For the month of April, prime cost incurred was:

Which one of the following is not a type of cost driver?

Which of the following is not an example of a product cost?

Which of the following would not be considered a cost pool?

The following information was taken from the accounting records of Tomek Manufacturing Company. Unfortunately, some of the data were destroyed by a computer malfunction. Required: Calculate the unknowns indicated by question marks.

What should be the amount in the finished goods inventory at December 31, 2013?

Consider the following for Columbia Street Manufacturing: What are the cost of goods manufactured and cost of goods sold?

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters