Question 1

In a manufacturing firm,depreciation is always considered a product cost for external financial reporting purposes.

Accepted Answer

A) True 
 B)False

Question 2

What is the outcome if the cost of goods sold is greater than the cost of goods manufactured?

Accepted Answer

A)  Work-in-process inventory has decreased during the period. 
B)  Finished goods inventory has increased during the period. 
C)  Total manufacturing costs must be greater than cost of goods manufactured. 
D)  Finished goods inventory has decreased during the perioD. 
A)  Work-in-process inventory has decreased during the period. 
B)  Finished goods inventory has increased during the period. 
C)  Total manufacturing costs must be greater than cost of goods manufactured. 
D)  Finished goods inventory has decreased during the perioD.

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 net income for Knox in each of these years was:  
Assuming there were no income taxes,what was the adjusted net income in each year?

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

Question 4

The following data (in thousands of dollars)have been taken from the accounting records of Larmont Corporation for the year just completed:   
*Raw Materials Inventory consist of both direct and indirect materials.
Required:
(a. )Prepare a schedule of cost of goods manufactured in good form.
(b. )Compute the cost of goods sold.
(c. )Using data from your answers above as needed,prepare an income statement in good form.

Accepted Answer

(a. )Schedule of cost of goods manufactu

Question 5

What was the balance of the finished goods inventory at the end of the year?

Accepted Answer

A)  $95,000. 
B)  $50,000. 
C)  $193,000. 
D)  $45,000.= 288,000 - 238,000 = $50,000 
A)  $95,000. 
B)  $50,000. 
C)  $193,000. 
D)  $45,000.= 288,000 - 238,000 = $50,000

Question 6

Which of the following best defines an opportunity cost?

Accepted Answer

A)  The difference in total costs from selecting one alternative instead of another. 
B)  The benefit forgone by selecting one alternative instead of another. 
C)  A cost that may be saved by NOT adopting an alternative. 
D)  A cost that may be shifted to the future with little or no effect on current operations. 
A)  The difference in total costs from selecting one alternative instead of another. 
B)  The benefit forgone by selecting one alternative instead of another. 
C)  A cost that may be saved by NOT adopting an alternative. 
D)  A cost that may be shifted to the future with little or no effect on current operations.

Question 7

Prime cost consists of direct materials and what?

Accepted Answer

A)  Direct labour. 
B)  Manufacturing overhead. 
C)  Indirect materials. 
D)  Cost of goods manufactureD. 
A)  Direct labour. 
B)  Manufacturing overhead. 
C)  Indirect materials. 
D)  Cost of goods manufactureD.

Question 8

What was the ending finished goods inventory?

Accepted Answer

A)  $17,000. 
B)  $12,000. 
C)  $7,000. 
D)  $2,000.= 12,000 + 105,000 - (210,000 - 100,000)= $7,000 
A)  $17,000. 
B)  $12,000. 
C)  $7,000. 
D)  $2,000.= 12,000 + 105,000 - (210,000 - 100,000)= $7,000

Question 9

What was the beginning work-in-process inventory?

Accepted Answer

A)  $10,000. 
B)  $14,000. 
C)  $1,000. 
D)  $4,000.= 105,000 + 4,000 - 40,000 - 39,000 - 20,000 = $10,000 
A)  $10,000. 
B)  $14,000. 
C)  $1,000. 
D)  $4,000.= 105,000 + 4,000 - 40,000 - 39,000 - 20,000 = $10,000

Question 10

The following costs should be considered by a law firm to be indirect costs of defending a particular client in court: rent on the law firm's offices,the law firm's receptionist's wages,the costs of heating the law firm's offices,and the depreciation on the personal computer in the office of the attorney who has been assigned the client.

Accepted Answer

A) True 
 B)False

Question 11

You are given the following data for January:  
Which of the following is the cost of goods manufactured?

Accepted Answer

A)  $89,000. 
B)  $78,000. 
C)  $79,000. 
D)  $80,000. 
A)  $89,000. 
B)  $78,000. 
C)  $79,000. 
D)  $80,000.

Question 12

Which of the following would be considered a product cost for external financial reporting purposes?

Accepted Answer

A)  Cost of a warehouse used to store finished goods. 
B)  Cost of guided public tours through the company's facilities. 
C)  Cost of travel necessary to sell the manufactured product. 
D)  Cost of sand spread on the factory floor to absorb oil from manufacturing machines. 
A)  Cost of a warehouse used to store finished goods. 
B)  Cost of guided public tours through the company's facilities. 
C)  Cost of travel necessary to sell the manufactured product. 
D)  Cost of sand spread on the factory floor to absorb oil from manufacturing machines.

Question 13

How should the cost of the fire insurance for a manufacturing plant be classified?

Accepted Answer

A)  Prime cost. 
B)  Product cost. 
C)  Period cost. 
D)  Variable cost. 
A)  Prime cost. 
B)  Product cost. 
C)  Period cost. 
D)  Variable cost.

Question 14

Which of the following is the conversion cost?

Accepted Answer

A)  $700. 
B)  $800. 
C)  $900. 
D)  $1,200. 
A)  $700. 
B)  $800. 
C)  $900. 
D)  $1,200.

Question 15

If CD Company sells 43,000 units,what is the total expected cost (Do not round your intermediate calculations)?

Accepted Answer

A)  $146,000. 
B)  $166,625. 
C)  $144,625. 
D)  $124,000.Total Cost = VC + FC 
A)  $146,000. 
B)  $166,625. 
C)  $144,625. 
D)  $124,000.Total Cost = VC + FC

Question 16

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

Accepted Answer

A)  $314,725. 
B)  $335,275. 
C)  $325,000. 
D)  $464,725.(475,000 - 150,000)+ 140,475 - 150,750 = $314,725 
A)  $314,725. 
B)  $335,275. 
C)  $325,000. 
D)  $464,725.(475,000 - 150,000)+ 140,475 - 150,750 = $314,725

Question 17

Haack Inc.is a merchandising company.Last month,the company's cost of goods sold was $84,000.The company's beginning merchandise inventory was $20,000,and its ending merchandise inventory was $18,000.What was the total amount of the company's merchandise purchases for the month?

Accepted Answer

A)  $86,000. 
B)  $82,000. 
C)  $84,000. 
D)  $122,000. 
A)  $86,000. 
B)  $82,000. 
C)  $84,000. 
D)  $122,000.

Question 18

Which of the following is the prime cost?

Accepted Answer

A)  $900. 
B)  $800. 
C)  $1,200. 
D)  $700. 
A)  $900. 
B)  $800. 
C)  $1,200. 
D)  $700.

Question 19

What was the cost of goods manufactured (finished)for the year (in thousands of dollars)?

Accepted Answer

A)  $450. 
B)  $460. 
C)  $530. 
D)  $540.= 170 + 100 + 190 + 70 - 80 = $450 
A)  $450. 
B)  $460. 
C)  $530. 
D)  $540.= 170 + 100 + 190 + 70 - 80 = $450

Question 20

During January,the cost of goods manufactured was $93,000.The beginning finished goods inventory was $16,000,and the ending finished goods inventory was $20,000.What was the cost of goods sold for the month?

Accepted Answer

A)  $129,000. 
B)  $89,000. 
C)  $93,000. 
D)  $97,000. 
A)  $129,000. 
B)  $89,000. 
C)  $93,000. 
D)  $97,000.

In a manufacturing firm,depreciation is always considered a product cost for external financial reporting purposes.

What is the outcome if the cost of goods sold is greater than the cost of goods manufactured?

What was the balance of the finished goods inventory at the end of the year?

Which of the following best defines an opportunity cost?

Prime cost consists of direct materials and what?

What was the ending finished goods inventory?

What was the beginning work-in-process inventory?

You are given the following data for January: Which of the following is the cost of goods manufactured?

Which of the following would be considered a product cost for external financial reporting purposes?

How should the cost of the fire insurance for a manufacturing plant be classified?

Which of the following is the conversion cost?

If CD Company sells 43,000 units,what is the total expected cost (Do not round your intermediate calculations)?

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

Haack Inc.is a merchandising company.Last month,the company's cost of goods sold was $84,000.The company's beginning merchandise inventory was $20,000,and its ending merchandise inventory was $18,000.What was the total amount of the company's merchandise purchases for the month?

Which of the following is the prime cost?

What was the cost of goods manufactured (finished)for the year (in thousands of dollars)?

During January,the cost of goods manufactured was $93,000.The beginning finished goods inventory was $16,000,and the ending finished goods inventory was $20,000.What was the cost of goods sold for the month?

Managerial Accounting and the Business Environment

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

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Exam 2: Cost Terms, Concepts, and Classifications

In a manufacturing firm,depreciation is always considered a product cost for external financial reporting purposes.

What is the outcome if the cost of goods sold is greater than the cost of goods manufactured?

What was the balance of the finished goods inventory at the end of the year?

Which of the following best defines an opportunity cost?

Prime cost consists of direct materials and what?

What was the ending finished goods inventory?

What was the beginning work-in-process inventory?

You are given the following data for January: Which of the following is the cost of goods manufactured?

Which of the following would be considered a product cost for external financial reporting purposes?

How should the cost of the fire insurance for a manufacturing plant be classified?

Which of the following is the conversion cost?

If CD Company sells 43,000 units,what is the total expected cost (Do not round your intermediate calculations)?

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

Haack Inc.is a merchandising company.Last month,the company's cost of goods sold was $84,000.The company's beginning merchandise inventory was $20,000,and its ending merchandise inventory was $18,000.What was the total amount of the company's merchandise purchases for the month?

Which of the following is the prime cost?

What was the cost of goods manufactured (finished)for the year (in thousands of dollars)?

During January,the cost of goods manufactured was $93,000.The beginning finished goods inventory was $16,000,and the ending finished goods inventory was $20,000.What was the cost of goods sold for the month?

Managerial Accounting and the Business Environment

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

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