Question 1

Selected data concerning the past fiscal year's operations (000's omitted)of Hercules Mills are presented below:  The cost of goods sold during the year was:

Accepted Answer

A) $135. 
B) $146. 
C) $153. 
D) $155.

Question 2

At a certain level of operations,per unit costs and selling price are as follows: manufacturing costs,$50;selling and administrative expenses,$10;selling price,$80.Given this information,the mark-on percentage to manufacturing cost used to determine selling price must have been:

Accepted Answer

A) 20 percent. 
B) 60 percent. 
C) 33 percent. 
D) 25 percent.

Question 3

Factory overhead includes:

Accepted Answer

A) Wages of office clerk. 
B) Sales manager's salary. 
C) Supervisor's salary. 
D) Tax accountant's salary.

Question 4

The Shawshank Manufacturing Co.uses a job order cost system of accounting.The following information was taken from the books of the company after all posting had been completed at the end of January:  ​ 
a.Prepare the journal entries to allocate the costs of materials,labor,and factory overhead to each job and to transfer the costs of jobs completed to Finished Goods.
b.Compute the total production cost of each job.
c.Compute the unit cost of each job.
d.Compute the selling price per unit for each job,assuming a mark-on percentage of 40 percent.

Accepted Answer

The answer of The Shawshank Manufacturing Co.uses a job order...

Question 5

Unit cost information is important for making all of the following marketing decisions except:

Accepted Answer

A) Determining the selling price of a product. 
B) Bidding on contracts. 
C) Determining the amount to spend on social media to promote the product. 
D) Determining the amount of profit that each product earns.

Question 6

Effective control of a company's operations is achieved through all of the following except:

Accepted Answer

A) periodically measuring and comparing company results. 
B) assigning responsibility for costs to employees responsible for those costs. 
C) constantly monitoring employees to ensure they do exactly as they are told. 
D) taking necessary corrective action when variances suggest it is needed.

Question 7

For a manufacturer,the cost of all materials purchases and on hand to be used in the manufacturing process is:

Accepted Answer

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

Question 8

Factory overhead includes:

Accepted Answer

A) Indirect labor but not indirect materials. 
B) Indirect materials but not indirect labor. 
C) All manufacturing costs,except indirect materials and indirect labor. 
D) All manufacturing costs,except direct materials and direct labor.

Question 9

The following inventory data relate to the Anaheim Ltd.:  Revenues and costs for the period:  Prepare journal entries for the following,making any necessary computations: 
a.Purchase of materials on account
b.Issuance of materials into production
c.Transfer the cost of completed work to Finished Goods
d.Record the sale of the goods on account and the related cost of goods sold.

Accepted Answer

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

Question 10

The following data are from Burton Corporation,a manufacturer,for the month of September:  ​ Total prime costs are:

Accepted Answer

A) $354,000 
B) $145,000 
C) $345,000 
D) $256,000

Question 11

Tom Jones,a management accountant,was faced with an ethical conflict at the office.According to the Institute of Management Accountants' (IMA)Statement of Professional Practice,the first action Tom should pursue is to:

Accepted Answer

A) follow his organization's established policies on the resolution of such conflict. 
B) contact the local newspaper. 
C) contact the company's audit committee. 
D) consult an attorney.

Question 12

Which of the following is most likely to be considered an indirect material in the manufacture of a sofa?

Accepted Answer

A) Lumber 
B) Glue 
C) Fabric 
D) Foam rubber

Question 13

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...

Question 14

The January performance report for cab no.52 of Teri's Taxi Service was as follows:  Possible reason(s)for the variance in the driver's wages could be:

Accepted Answer

A) A new driver was assigned to cab no.52 on January 5,replacing one who retired after 30 years of service. 
B) The cab was in the shop for repairs for a few days. 
C) Business was slow so cab no.52 was idled for two days. 
D) All of the above are possible reasons.

Question 15

The statement of cost of goods manufactured includes:

Accepted Answer

A) Office supplies used in accounting office. 
B) Deprecation of factory building. 
C) Salary of sales manager. 
D) Rent paid on finished goods warehouse.

Question 16

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 17

As a result of recent accounting scandals involving companies such as Enron and World Com,the Sarbanes-Oxley Act of 2002 was written to protect shareholders of public companies by improving

Accepted Answer

A) management accounting. 
B) corporate governance. 
C) professional competence. 
D) the corporate legal process.

Question 18

The Institute of Management Accountants (IMA)Statement of Professional Practice includes all of the following standards except:

Accepted Answer

A) Confidentiality. 
B) Commitment. 
C) Integrity. 
D) Competence.

Question 19

Examples of service businesses include:

Accepted Answer

A) Airlines,accountants,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 20

Arnold Furniture Company produced 4,000 chairs in July.The manufacturing costs were:  ​ The cost per tent is:

Accepted Answer

A) $14.75. 
B) $12.00. 
C) $9.00. 
D) $6.25.

Exam 1: Introduction to Cost Accounting

Selected data concerning the past fiscal year's operations (000's omitted) of Hercules Mills are presented below: The cost of goods sold during the year was:

At a certain level of operations,per unit costs and selling price are as follows: manufacturing costs,$50;selling and administrative expenses,$10;selling price,$80.Given this information,the mark-on percentage to manufacturing cost used to determine selling price must have been:

Factory overhead includes:

Unit cost information is important for making all of the following marketing decisions except:

Effective control of a company's operations is achieved through all of the following except:

For a manufacturer,the cost of all materials purchases and on hand to be used in the manufacturing process is:

Factory overhead includes:

The following data are from Burton Corporation,a manufacturer,for the month of September: Total prime costs are:

Tom Jones,a management accountant,was faced with an ethical conflict at the office.According to the Institute of Management Accountants' (IMA) Statement of Professional Practice,the first action Tom should pursue is to:

Which of the following is most likely to be considered an indirect material in the manufacture of a sofa?

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

The January performance report for cab no.52 of Teri's Taxi Service was as follows: Possible reason(s) for the variance in the driver's wages could be:

The statement of cost of goods manufactured includes:

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

As a result of recent accounting scandals involving companies such as Enron and World Com,the Sarbanes-Oxley Act of 2002 was written to protect shareholders of public companies by improving

The Institute of Management Accountants (IMA) Statement of Professional Practice includes all of the following standards except:

Examples of service businesses include:

Arnold Furniture Company produced 4,000 chairs in July.The manufacturing costs were: The cost per tent is:

Exam 1: Introduction to Cost Accounting

Selected data concerning the past fiscal year's operations (000's omitted) of Hercules Mills are presented below: The cost of goods sold during the year was:

At a certain level of operations,per unit costs and selling price are as follows: manufacturing costs,$50;selling and administrative expenses,$10;selling price,$80.Given this information,the mark-on percentage to manufacturing cost used to determine selling price must have been:

Factory overhead includes:

Unit cost information is important for making all of the following marketing decisions except:

Effective control of a company's operations is achieved through all of the following except:

For a manufacturer,the cost of all materials purchases and on hand to be used in the manufacturing process is:

Factory overhead includes:

The following data are from Burton Corporation,a manufacturer,for the month of September: ​ Total prime costs are:

Tom Jones,a management accountant,was faced with an ethical conflict at the office.According to the Institute of Management Accountants' (IMA) Statement of Professional Practice,the first action Tom should pursue is to:

Which of the following is most likely to be considered an indirect material in the manufacture of a sofa?

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

The January performance report for cab no.52 of Teri's Taxi Service was as follows: Possible reason(s) for the variance in the driver's wages could be:

The statement of cost of goods manufactured includes:

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

As a result of recent accounting scandals involving companies such as Enron and World Com,the Sarbanes-Oxley Act of 2002 was written to protect shareholders of public companies by improving

The Institute of Management Accountants (IMA) Statement of Professional Practice includes all of the following standards except:

Examples of service businesses include:

Arnold Furniture Company produced 4,000 chairs in July.The manufacturing costs were: ​ The cost per tent is:

The following data are from Burton Corporation,a manufacturer,for the month of September: Total prime costs are:

Arnold Furniture Company produced 4,000 chairs in July.The manufacturing costs were: The cost per tent is: