Question 1

For a manufacturer, manufacturing costs incurred to date for goods in various stages of production, but not yet completed is:

Accepted Answer

A) Merchandise Inventory. 
B) Finished Goods. 
C) Work in Process. 
D) Materials.

Question 2

Which of the following statements best describes a characteristic of a performance report prepared for use by a production line department head?

Accepted Answer

A) The costs in the report should include only those controllable by the department head. 
B) The report should be stated in dollars rather than in physical units so the department head knows the financial magnitude of any variances. 
C) The report should include information on all costs chargeable to the department, regardless of their origin or control. 
D) It is more important that the report be precise than timely.

Question 3

Examples of service businesses include:

Accepted Answer

A) Airlines, architects, and hair stylists. 
B) Department stores, poster shops, and wholesalers. 
C) Aircraft producers, home builders, and machine tool makers. 
D) None of these are correct.

Question 4

Payroll is debited and Wages Payable is credited to:

Accepted Answer

A) Pay the payroll taxes. 
B) Record the payroll. 
C) Pay the payroll. 
D) Distribute the payroll.

Question 5

Following is a list of costs incurred by the Sitka Products Co. during the month of June:  Prepare the journal entries necessary to record the issuance of materials, the distribution of labor cost, the recording of factory overhead, and the entry transferring Factory Overhead to Work in Process.

Accepted Answer

The answer of Following is a list of costs incurred...

Question 6

Responsibility accounting would most likely hold a manager of a manufacturing unit responsible for:

Accepted Answer

A) cost of raw materials. 
B) quantity of raw materials used. 
C) the number of units ordered. 
D) amount of taxes incurred.

Question 7

The following data was taken from the general ledger and other records of Marwick Manufacturing Co. at January31, the end of the first month of operations in the current fiscal year:  
a.Prepare a statement of cost of goods manufactured.
b.Determine the cost of goods sold for the month.

Accepted Answer

The answer of The following data was taken from the...

Question 8

Under a job order system of cost accounting, Cost of Goods Sold is debited and Finished Goods is credited for a:

Accepted Answer

A) Transfer of materials to the factory. 
B) Shipment of completed goods to the customer. 
C) Transfer of completed production to the finished goods storeroom. 
D) Purchase of goods on account.

Question 9

For a manufacturer, the total cost of manufactured goods completed but still on hand is:

Accepted Answer

A) Merchandise Inventory. 
B) Finished Goods. 
C) Work in Process. 
D) Materials.

Question 10

Selected data concerning the past fiscal year's operations (000's omitted) of the Stanley Manufacturing Company are presented below:  Assuming Stanley does not use indirect materials, the cost of materials purchased during the year amounted to:

Accepted Answer

A) $455. 
B) $450. 
C) $365. 
D) $360.

Question 11

A standard cost system is one:

Accepted Answer

A) that provides a separate record of cost for each special-order product. 
B) that uses predetermined costs to furnish a measurement that helps management make decisions regarding the efficiency of operations. 
C) that accumulates costs for each department or process in the factory. 
D) where costs are accumulated on a job cost sheet.

Question 12

The following inventory data relate to the Reta Company:  Revenues and costs for the period:  Compute the following for the year: 
a.Direct materials purchased
b.Direct labor costs incurred
c.Cost of goods sold
d.Gross profit

Accepted Answer

The answer of The following inventory data relate to the...

Exam 1: Introduction to Cost Accounting

For a manufacturer, manufacturing costs incurred to date for goods in various stages of production, but not yet completed is:

Which of the following statements best describes a characteristic of a performance report prepared for use by a production line department head?

Examples of service businesses include:

Payroll is debited and Wages Payable is credited to:

Following is a list of costs incurred by the Sitka Products Co. during the month of June: Prepare the journal entries necessary to record the issuance of materials, the distribution of labor cost, the recording of factory overhead, and the entry transferring Factory Overhead to Work in Process.

Responsibility accounting would most likely hold a manager of a manufacturing unit responsible for:

The following data was taken from the general ledger and other records of Marwick Manufacturing Co. at January31, the end of the first month of operations in the current fiscal year: a.Prepare a statement of cost of goods manufactured. b.Determine the cost of goods sold for the month.

Under a job order system of cost accounting, Cost of Goods Sold is debited and Finished Goods is credited for a:

For a manufacturer, the total cost of manufactured goods completed but still on hand is:

Selected data concerning the past fiscal year's operations (000's omitted) of the Stanley Manufacturing Company are presented below: Assuming Stanley does not use indirect materials, the cost of materials purchased during the year amounted to:

A standard cost system is one:

The following inventory data relate to the Reta Company: Revenues and costs for the period: Compute the following for the year: a.Direct materials purchased b.Direct labor costs incurred c.Cost of goods sold d.Gross profit