Question 1

The inventory of a merchandising company consists of Raw Materials Inventory,Work-in-Process Inventory,and Finished Goods Inventory.

Accepted Answer

A) True 
 B)False

Question 2

Fuchsia,Inc.provides automobile repair services in the local community.The company provides the following information for the month of March: $$\begin{array} { | l | r | } 
\hline \text { Building Rent Expense } & \$ 5200 \
\hline \text { Depreciation Expense-Equipment } & 1600 \
\hline \text { Supplies Expense } & 8000 \
\hline \text { Utilities Expense } & 2350 \
\hline
\end{array}$$ Fuchsia provided services to 1600 clients in the month of March and generated $23,500 as revenue.
How much is the cost per service? (Round your answer to the nearest cent.)

Accepted Answer

A) $10.72 
B) $3.25 
C) $10.00 
D) $5.72 
A) $10.72 
B) $3.25 
C) $10.00 
D) $5.72

Question 3

Jasper,Inc.reports the following cost information for March: $$\begin{array} { | l | r | } 
\hline \text { Cost of Goods Manufactured } & \$ 74,100 \
\hline \text { Manufacturing Overhead } & 18,500 \
\hline \text { Finished Goods Inventory, March 1 } & 4000 \
\hline \text { Finished Goods Inventory, March 31 } & 2700 \
\hline \text { Work-in-Process Inventory, March 1 } & 9800 \
\hline \text { Work-in-Process Inventory, March 31 } & 1400 \
\hline \text { Direct Materials Used } & 25,200 \
\hline
\end{array}$$ What is the cost of goods sold for March?

Accepted Answer

A) $3100 
B) $72,800 
C) $75,400 
D) $78,100 
A) $3100 
B) $72,800 
C) $75,400 
D) $78,100

Question 4

Which of the following is true of product costs?

Accepted Answer

A) They are expensed in the period they are paid. 
B) For external reporting,GAAP requires that they be expensed before the products are sold. 
C) They are first recorded in an inventory account. 
D) For merchandising companies,product costs do not include freight costs. 
A) They are expensed in the period they are paid. 
B) For external reporting,GAAP requires that they be expensed before the products are sold. 
C) They are first recorded in an inventory account. 
D) For merchandising companies,product costs do not include freight costs.

Question 5

Which of the following would appear as a line item on the income statements of both a merchandiser and a manufacturer?

Accepted Answer

A) Direct Labor 
B) Cost of Goods Manufactured 
C) Direct Materials 
D) Cost of Goods Sold 
A) Direct Labor 
B) Cost of Goods Manufactured 
C) Direct Materials 
D) Cost of Goods Sold

Question 6

A manufacturer produced 7,500 total units.The cost of goods manufactured is $88,000 and the cost of goods sold is $71,000.The unit product cost is $9.47.

Accepted Answer

A) True 
 B)False

Question 7

Product costs,such as manufacturing overhead,should be treated as an asset in an inventory account until the product is sold.

Accepted Answer

A) True 
 B)False

Question 8

A merchandiser does not need to calculate cost per unit because it resells goods that are already manufactured.

Accepted Answer

A) True 
 B)False

Question 9

The following information was obtained from Durand,Inc.: $$\begin{array} { | l | r | } 
\hline \text { Advertising Costs } & \$ 11,600 \
\hline \text { Indirect Labor } & 8000 \
\hline \text { CEO's Salary } & 470,000 \
\hline \text { Direct Labor } & 53,000 \
\hline \text { Indirect Materials Used } & 8000 \
\hline \text { Direct Materials Used } & 390,000 \
\hline \text { Factory Utilities } & 840 \
\hline \text { Factory Janitorial Costs } & 1000 \
\hline \text { Manufacturing Equipment Depreciation } & 1700 \
\hline \text { Delivery Vehicle Depreciation } & 2110 \
\hline \text { Administrative Wages and Salaries } & 22,300 \
\hline
\end{array}$$ How much were Durand's period costs?

Accepted Answer

A) $462,540 
B) $506,010 
C) $13,710 
D) $503,900 
A) $462,540 
B) $506,010 
C) $13,710 
D) $503,900

Question 10

In a manufacturing company,advertising and marketing costs are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

The inventory of a merchandising company consists of Raw Materials Inventory,Work-in-Process Inventory,and Finished Goods Inventory.

Which of the following is true of product costs?

Which of the following would appear as a line item on the income statements of both a merchandiser and a manufacturer?

A manufacturer produced 7,500 total units.The cost of goods manufactured is $88,000 and the cost of goods sold is $71,000.The unit product cost is $9.47.

Product costs,such as manufacturing overhead,should be treated as an asset in an inventory account until the product is sold.

A merchandiser does not need to calculate cost per unit because it resells goods that are already manufactured.

In a manufacturing company,advertising and marketing costs are included in manufacturing overhead.

Accounting Information Systems

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 16: Introduction to Managerial Accounting

The inventory of a merchandising company consists of Raw Materials Inventory,Work-in-Process Inventory,and Finished Goods Inventory.

Which of the following is true of product costs?

Which of the following would appear as a line item on the income statements of both a merchandiser and a manufacturer?

A manufacturer produced 7,500 total units.The cost of goods manufactured is $88,000 and the cost of goods sold is $71,000.The unit product cost is $9.47.

Product costs,such as manufacturing overhead,should be treated as an asset in an inventory account until the product is sold.

A merchandiser does not need to calculate cost per unit because it resells goods that are already manufactured.

In a manufacturing company,advertising and marketing costs are included in manufacturing overhead.

Accounting Information Systems

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters