Question 1

Tator Corporation reported the following data for the month of April:  
-The cost of goods sold for April was:

Accepted Answer

A) $178,000 
B) $146,000 
C) $126,000 
D) $234,000 
A) $178,000 
B) $146,000 
C) $126,000 
D) $234,000

Question 2

Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?

Accepted Answer

A) Product cost 
B) Manufacturing overhead 
C) Period cost 
D) Administrative cost 
A) Product cost 
B) Manufacturing overhead 
C) Period cost 
D) Administrative cost

Question 3

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year.  
-The cost of goods sold for the year (in thousands of dollars) was:

Accepted Answer

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

Question 4

The following data have been provided by a company for a recent accounting period:   The cost of goods manufactured for the period was:

Accepted Answer

A) $147,000 
B) $151,000 
C) $153,000 
D) $154,000 
A) $147,000 
B) $151,000 
C) $153,000 
D) $154,000

Question 5

The plans of management are expressed formally in:

Accepted Answer

A) the annual report to shareholders. 
B) Form 10-Q submitted to the Securities and Exchange Commission. 
C) performance reports. 
D) budgets. 
A) the annual report to shareholders. 
B) Form 10-Q submitted to the Securities and Exchange Commission. 
C) performance reports. 
D) budgets.

Question 6

Derflinger Corporation reported the following data for the month of January:  
-The cost of goods sold for January was:

Accepted Answer

A) $126,000 
B) $180,000 
C) $255,000 
D) $170,000 
A) $126,000 
B) $180,000 
C) $255,000 
D) $170,000

Question 7

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 8

The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000.If the ending inventory of finished goods was $30,000,the beginning inventory of finished goods must have been:

Accepted Answer

A) $20,000 
B) $50,000 
C) $110,000 
D) $150,000 
A) $20,000 
B) $50,000 
C) $110,000 
D) $150,000

Question 9

The following data pertain to Harriman Company's operations during July:  
-The ending finished goods inventory was:

Accepted Answer

A) $17,000 
B) $12,000 
C) $7,000 
D) $2,000 
A) $17,000 
B) $12,000 
C) $7,000 
D) $2,000

Question 10

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year.  
-The cost of the raw materials used in production during the year (in thousands of dollars) was:

Accepted Answer

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

Question 11

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 12

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 13

Weygandt Corporation reported the following data for the month of February:  
-The net operating income for February was:

Accepted Answer

A) $48,000 
B) $6,000 
C) $68,000 
D) -$4,000 
A) $48,000 
B) $6,000 
C) $68,000 
D) -$4,000

Question 14

Dodridge Corporation has provided the following data for February.The beginning balance in the raw materials inventory account was $23,000.During the month,the company made raw materials purchases amounting to $59,000.At the end of the month,the balance in the raw materials inventory account was $33,000.Direct labor cost was $28,000 and manufacturing overhead was $74,000.The beginning balance in the work in process account was $12,000 and the ending balance was $17,000.The beginning balance in the finished goods account was $48,000 and the ending balance was $54,000.
-The cost of goods manufactured for February was:

Accepted Answer

A) $156,000 
B) $146,000 
C) $151,000 
D) $161,000 
A) $156,000 
B) $146,000 
C) $151,000 
D) $161,000

Question 15

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 cost of goods sold for April was:

Accepted Answer

A) $123,000 
B) $200,000 
C) $217,000 
D) $154,000 
A) $123,000 
B) $200,000 
C) $217,000 
D) $154,000

Question 16

Sid Freeman has developed a new electronic device that he has decided to produce and market.The production facility will be in a nearby industrial park which Sid will rent for $4,000 per month.Utilities will cost about $500 per month.He will use his personal computer,which he purchased for $2,000 last year,to monitor the production process.The computer will become obsolete before it wears out from use.The computer will be depreciated at the rate of $1,000 per year.He will rent production equipment at a monthly cost of $8,000.Sid estimates the material cost per finished unit of product to be $50,and the labor cost to be $10.He will hire workers,and spend his time promoting the product.To do this he will quit his job which pays $4,500 per month.Advertising will cost $2,000 per month.Sid will not draw a salary from the new company until it gets well established.
Required:
Complete the chart below by placing an "X" under each heading that helps to identify the cost involved.There can be "Xs" placed under more than one heading for a single cost;e.g. ,a cost might be a sunk cost,an overhead cost,and a product cost.There would be an "X" placed under each of these headings opposite the cost.   *Between the alternatives of producing and not producing the device.

Accepted Answer

The answer of Sid Freeman has developed a new electronic...

Question 17

Geneva Steel Corporation produces large sheets of heavy gauge steel.The company showed the following amounts relating to its production for the year just completed:  
-Cost of goods manufactured for the year was:

Accepted Answer

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

Question 18

Each of the following would be classified as variable in terms of cost behavior except:

Accepted Answer

A) cost of shipping goods to customers via express mail. 
B) sales commissions. 
C) plant manager's salary. 
D) direct materials. 
A) cost of shipping goods to customers via express mail. 
B) sales commissions. 
C) plant manager's salary. 
D) direct materials.

Question 19

Haan Inc.is a merchandising company.Last month the company's cost of goods sold was $66,000.The company's beginning merchandise inventory was $14,000 and its ending merchandise inventory was $16,000.What was the total amount of the company's merchandise purchases for the month?

Accepted Answer

A) $68,000 
B) $96,000 
C) $64,000 
D) $66,000 
A) $68,000 
B) $96,000 
C) $64,000 
D) $66,000

Question 20

Management of Solman Corporation has asked your help as an intern in preparing some key reports for June.The beginning balance in the raw materials inventory account was $20,000.During the month,the company made raw materials purchases amounting to $69,000.At the end of the month,the balance in the raw materials inventory account was $32,000.Direct labor cost was $24,000 and manufacturing overhead was $71,000.The beginning balance in the work in process account was $24,000 and the ending balance was $19,000.The beginning balance in the finished goods account was $53,000 and the ending balance was $58,000.Selling expense was $20,000 and administrative expense was $35,000.
-The prime cost for June was:

Accepted Answer

A) $95,000 
B) $93,000 
C) $81,000 
D) $55,000 
A) $95,000 
B) $93,000 
C) $81,000 
D) $55,000

Tator Corporation reported the following data for the month of April: -The cost of goods sold for April was:

Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year. -The cost of goods sold for the year (in thousands of dollars) was:

The following data have been provided by a company for a recent accounting period: The cost of goods manufactured for the period was:

The plans of management are expressed formally in:

Derflinger Corporation reported the following data for the month of January: -The cost of goods sold for January was:

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

The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000.If the ending inventory of finished goods was $30,000,the beginning inventory of finished goods must have been:

The following data pertain to Harriman Company's operations during July: -The ending finished goods inventory was:

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year. -The cost of the raw materials used in production during the year (in thousands of dollars) was:

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?

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

Weygandt Corporation reported the following data for the month of February: -The net operating income for February was:

Geneva Steel Corporation produces large sheets of heavy gauge steel.The company showed the following amounts relating to its production for the year just completed: -Cost of goods manufactured for the year was:

Each of the following would be classified as variable in terms of cost behavior except:

Haan Inc.is a merchandising company.Last month the company's cost of goods sold was $66,000.The company's beginning merchandise inventory was $14,000 and its ending merchandise inventory was $16,000.What was the total amount of the company's merchandise purchases for the month?

Managerial Accounting and the Business Environment

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

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

Pricing Products and Services

Profitability Analysis

Least-Squares Regression Computations

The Predetermined Overhead Rate and Capacity

Abc Action Analysis

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

Filters

Exam 2: Managerial Accounting and Cost Concepts

Tator Corporation reported the following data for the month of April: -The cost of goods sold for April was:

Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year. -The cost of goods sold for the year (in thousands of dollars) was:

The following data have been provided by a company for a recent accounting period: The cost of goods manufactured for the period was:

The plans of management are expressed formally in:

Derflinger Corporation reported the following data for the month of January: -The cost of goods sold for January was:

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

The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000.If the ending inventory of finished goods was $30,000,the beginning inventory of finished goods must have been:

The following data pertain to Harriman Company's operations during July: -The ending finished goods inventory was:

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year. -The cost of the raw materials used in production during the year (in thousands of dollars) was:

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?

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

Weygandt Corporation reported the following data for the month of February: -The net operating income for February was:

Geneva Steel Corporation produces large sheets of heavy gauge steel.The company showed the following amounts relating to its production for the year just completed: -Cost of goods manufactured for the year was:

Each of the following would be classified as variable in terms of cost behavior except:

Haan Inc.is a merchandising company.Last month the company's cost of goods sold was $66,000.The company's beginning merchandise inventory was $14,000 and its ending merchandise inventory was $16,000.What was the total amount of the company's merchandise purchases for the month?

Managerial Accounting and the Business Environment

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

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

Pricing Products and Services

Profitability Analysis

Least-Squares Regression Computations

The Predetermined Overhead Rate and Capacity

Abc Action Analysis

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

Filters