Question 1

Advertising is a product cost as long as it promotes specific products.

Accepted Answer

A) True 
 B)False

Question 2

In July, Neidich Inc., a merchandising company, had sales of $295,000, selling expenses of $24,000, and administrative expenses of $29,000. The cost of merchandise purchased during the month was $215,000. The beginning balance in the merchandise inventory account was $25,000 and the ending balance was $30,000.
Required:
Prepare an Income Statement in good form for July.

Accepted Answer

The answer of In July, Neidich Inc., a merchandising company,...

Question 3

In October, Ringler Corporation had sales of $273,000, selling expenses of $26,000, and administrative expenses of $47,000. The cost of goods manufactured was $183,000. The beginning balance in the finished goods inventory account was $45,000 and the ending balance was $34,000.
Required:
Prepare an Income Statement in good form for October.

Accepted Answer

The answer of In October, Ringler Corporation had sales of...

Question 4

In August direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000 and the direct materials cost was $34,000, the direct labor cost was:

Accepted Answer

A)  $36,000 
B)  $22,667 
C)  $51,000 
D)  $81,000 
A)  $36,000 
B)  $22,667 
C)  $51,000 
D)  $81,000

Question 5

Derflinger Corporation reported the following data for the month of January:  
-The total manufacturing cost for January was:

Accepted Answer

A)  $176,000 
B)  $74,000 
C)  $106,000 
D)  $172,000 
A)  $176,000 
B)  $74,000 
C)  $106,000 
D)  $172,000

Question 6

Tart Corporation reported the following data for the month of September:  
-The conversion cost for September was:

Accepted Answer

A)  $150,000 
B)  $103,000 
C)  $117,000 
D)  $86,000 
A)  $150,000 
B)  $103,000 
C)  $117,000 
D)  $86,000

Question 7

Henscheid Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 33,000 units, the lease cost was $283,800.
-To the nearest whole dollar, what should be the total lease cost at a sales volume of 35,300 units in a month? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A)  $283,800 
B)  $293,690 
C)  $303,580 
D)  $265,309 
A)  $283,800 
B)  $293,690 
C)  $303,580 
D)  $265,309

Question 8

At a sales volume of 37,000 units, Bonham Corporation's property taxes (a cost that is fixed with respect to sales volume) total $555,000.
-To the nearest whole dollar, what should be the total property taxes at a sales volume of 34,900 units? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A)  $539,250 
B)  $588,395 
C)  $523,500 
D)  $555,000 
A)  $539,250 
B)  $588,395 
C)  $523,500 
D)  $555,000

Question 9

Management of Berndt Corporation has asked your help as an intern in preparing some key reports for August. The beginning balance in the raw materials inventory account was $33,000. During the month, the company made raw materials purchases amounting to $62,000. At the end of the month, the balance in the raw materials inventory account was $30,000. Direct labor cost was $46,000 and manufacturing overhead was $74,000. The beginning balance in the work in process account was $13,000 and the ending balance was $19,000. The beginning balance in the finished goods account was $54,000 and the ending balance was $50,000. Sales totaled $270,000. Selling expense was $18,000 and administrative expense was $49,000.
-The net operating income for August was:

Accepted Answer

A)  $20,000 
B)  $21,000 
C)  $87,000 
D)  $83,000 
A)  $20,000 
B)  $21,000 
C)  $87,000 
D)  $83,000

Question 10

Nadell Corporation reported the following data for the month of April:  
-If the raw materials purchased during April totaled $63,000, what was the cost of the raw materials used in production for the month?

Accepted Answer

A)  $63,000 
B)  $61,000 
C)  $62,000 
D)  $65,000 
A)  $63,000 
B)  $61,000 
C)  $62,000 
D)  $65,000

Question 11

Last month a manufacturing company had the following operating results:  
What was the cost of goods manufactured for the month?

Accepted Answer

A)  $350,000 
B)  $385,000 
C)  $377,000 
D)  $323,000 
A)  $350,000 
B)  $385,000 
C)  $377,000 
D)  $323,000

Question 12

Ruggeri Corporation reported the following data for the month of July:  
-The cost of goods sold for July was:

Accepted Answer

A)  $196,000 
B)  $120,000 
C)  $148,000 
D)  $244,000 
A)  $196,000 
B)  $120,000 
C)  $148,000 
D)  $244,000

Question 13

The following data (in thousands of dollars) have been taken from the accounting records of Larsen Corporation for the just completed year.   
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

The answer of The following data (in thousands of dollars)...

Question 14

Consider the following costs incurred in a recent period:  
What was the total amount of the period costs listed above for the period?

Accepted Answer

A)  $78,000 
B)  $71,000 
C)  $46,000 
D)  $37,000 
A)  $78,000 
B)  $71,000 
C)  $46,000 
D)  $37,000

Question 15

A partial listing of costs incurred at Peggs Corporation during September appears below:  
-The total of the manufacturing overhead costs listed above for September is:

Accepted Answer

A)  $71,000 
B)  $351,000 
C)  $669,000 
D)  $40,000 
A)  $71,000 
B)  $351,000 
C)  $669,000 
D)  $40,000

Question 16

Which two terms below describe the wages paid to security guards that monitor a factory 24 hours a day?

Accepted Answer

A)  variable cost and direct cost 
B)  fixed cost and direct cost 
C)  variable cost and indirect cost 
D)  fixed cost and indirect cost 
A)  variable cost and direct cost 
B)  fixed cost and direct cost 
C)  variable cost and indirect cost 
D)  fixed cost and indirect cost

Question 17

Nadell Corporation reported the following data for the month of April:  
-If the company transferred $234,000 of completed goods from work in process to finished goods inventory during April, what was the cost of goods sold for the month?

Accepted Answer

A)  $234,000 
B)  $235,000 
C)  $220,000 
D)  $248,000 
A)  $234,000 
B)  $235,000 
C)  $220,000 
D)  $248,000

Question 18

Management of Parrent Corporation has asked your help as an intern in preparing some key reports for April. The company started the month with raw materials inventories of $32,000. During the month, the company made raw materials purchases amounting to $68,000. At the end of the month, raw materials inventories totaled $35,000. Direct labor cost was $43,000 and manufacturing overhead was $62,000. The beginning balance in the work in process account was $19,000 and the ending balance was $12,000. The beginning balance in the finished goods account was $35,000 and the ending balance was $58,000. Sales totaled $240,000. Selling expense was $18,000 and administrative expense was $42,000.
-The total manufacturing cost for April was:

Accepted Answer

A)  $170,000 
B)  $173,000 
C)  $62,000 
D)  $105,000 
A)  $170,000 
B)  $173,000 
C)  $62,000 
D)  $105,000

Question 19

Rossiter Company failed to record a credit sale at the end of the year, although the reduction in finished goods inventories was correctly recorded when the goods were shipped to the customer. Which one of the following statements is correct?

Accepted Answer

A)  Accounts receivable was not affected, inventory was not affected, sales were understated, and cost of goods sold was understated. 
B)  Accounts receivable was understated, inventory was overstated, sales were understated, and cost of goods sold was overstated. 
C)  Accounts receivable was not affected, inventory was understated, sales were understated, and cost of goods sold was understated. 
D)  Accounts receivable was understated, inventory was not affected, sales were understated, and cost of goods sold was not affected. 
A)  Accounts receivable was not affected, inventory was not affected, sales were understated, and cost of goods sold was understated. 
B)  Accounts receivable was understated, inventory was overstated, sales were understated, and cost of goods sold was overstated. 
C)  Accounts receivable was not affected, inventory was understated, sales were understated, and cost of goods sold was understated. 
D)  Accounts receivable was understated, inventory was not affected, sales were understated, and cost of goods sold was not affected.

Question 20

Within the relevant range, the difference between variable costs and fixed costs is:

Accepted Answer

A)  variable costs per unit fluctuate and fixed costs per unit remain constant. 
B)  variable costs per unit are constant and fixed costs per unit fluctuate. 
C)  both total variable costs and total fixed costs are constant. 
D)  both total variable costs and total fixed costs fluctuate. 
A)  variable costs per unit fluctuate and fixed costs per unit remain constant. 
B)  variable costs per unit are constant and fixed costs per unit fluctuate. 
C)  both total variable costs and total fixed costs are constant. 
D)  both total variable costs and total fixed costs fluctuate.

Exam 2: Managerial Accounting and Cost Concepts

Advertising is a product cost as long as it promotes specific products.

In August direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000 and the direct materials cost was $34,000, the direct labor cost was:

Derflinger Corporation reported the following data for the month of January: -The total manufacturing cost for January was:

Tart Corporation reported the following data for the month of September: -The conversion cost for September was:

Nadell Corporation reported the following data for the month of April: -If the raw materials purchased during April totaled $63,000, what was the cost of the raw materials used in production for the month?

Last month a manufacturing company had the following operating results: What was the cost of goods manufactured for the month?

Ruggeri Corporation reported the following data for the month of July: -The cost of goods sold for July was:

Consider the following costs incurred in a recent period: What was the total amount of the period costs listed above for the period?

A partial listing of costs incurred at Peggs Corporation during September appears below: -The total of the manufacturing overhead costs listed above for September is:

Which two terms below describe the wages paid to security guards that monitor a factory 24 hours a day?

Nadell Corporation reported the following data for the month of April: -If the company transferred $234,000 of completed goods from work in process to finished goods inventory during April, what was the cost of goods sold for the month?

Rossiter Company failed to record a credit sale at the end of the year, although the reduction in finished goods inventories was correctly recorded when the goods were shipped to the customer. Which one of the following statements is correct?

Within the relevant range, the difference between variable costs and fixed costs is:

Managerial Accounting and the Business Environment

Systems Design: Job-Order Costing

Systems Design: Process Costing

Cost Behavior Analysis and Use

Cost-Volume-Profit Relationship

Variable Costing: a Tool for Management

Activity Based Costing: a Tool to Aid Decision-Making

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Operating Performance Measures

Segment Reporting, Decentralization, and the Balanced Scorecard

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

Pricing Products and Services

Profitability Analysis

Further Classification of Labor Costs

Cost of Quality

the Predetermined Overhead Rate and Capacity

Fifo Method

Service Department Allocations

Least-Squares Regression Computations

Abc Action Analysis

Using a Modified Form of Activity-Based Costing to

Predetermined Overhead Rates and Overhead Analysis

Journal Entries to Record Variances

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

The Direct Method of Determining the Net Cash Provided by

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