Question 1

Using the following data,calculate the beginning work in process inventory.  The beginning work in process inventory is:

Accepted Answer

A)   $15.
B)   $20.
C)   $25.
D)   $55.E) All of the above
F) B) and C)

Question 2

The salary of the president of a manufacturing company would be classified as which of the following?

Accepted Answer

A)   Product cost.
B)   Period cost.
C)   Manufacturing overhead.
D)   Direct labour.E) A) and D)
F) C) and D)

Question 3

Which of the following statements regarding fixed costs is incorrect?

Accepted Answer

A)   Expressing fixed costs on a per unit basis usually is the best approach for decision-making.
B)   Fixed costs expressed on a per unit basis will react inversely with changes in activity.
C)   Assumptions by accountants regarding the behaviour of fixed costs rest heavily on the concept of the relevant range.
D)   Fixed costs frequently represent long-term investments in property,plant,and equipment.E) All of the above
F) C) and D)

Question 4

In a manufacturing company,goods available for sale equals the sum of the cost of goods manufactured and the beginning finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 5

The cost of goods manufactured or the year (in thousands of dollars) was:

Accepted Answer

A)   $450.
B)   $470.
C)   $530.
D)   $540.E) None of the above
F) B) and D)

Question 6

The cost of the raw materials used in production during the year (in thousands of dollars) was:

Accepted Answer

A)   $170.
B)   $190.
C)   $240.
D)   $250.E) None of the above
F) B) and D)

Question 7

The following costs relate to one month's activity in Martin Company:

Accepted Answer

Required:
a.Prepare a Schedu...

Question 8

The following costs should be considered by a law firm to be indirect costs of defending a particular client in court: rent on the law firm's offices,the law firm's receptionist's wages,the costs of heating the law firm's offices,and the depreciation on the personal computer in the office of the attorney who has been assigned the client.

Accepted Answer

A) True 
 B)False

Question 9

Jimbob Company has two business alternatives - A & B with different total annual costs as set out below:  Additionally,if alternative B is chosen the business will have to use some space for its own purposes that is currently being rented to an outside business for $5,000 per year. What are the total differential costs between the two alternatives?

Accepted Answer

A)   $2,000.
B)   $3,000.
C)   $5,000.
D)   $7,000.E) A) and B)
F) A) and C)

Question 10

The gross margin for Cushing Company for the first quarter of last year was $325,000 when sales were $700,000.The beginning inventory of finished goods was $60,000 and the ending inventory of finished goods was $85,000.The cost of goods manufactured for the first quarter would have been:

Accepted Answer

A)   $350,000.
B)   $375,000.
C)   $400,000.
D)   $485,000.E) A) and B)
F) A) and C)

Question 11

The prime cost was:

Accepted Answer

A)   $500.
B)   $700.
C)   $800.
D)   $900.E) None of the above
F) B) and D)

Question 12

Williams Company's direct labour cost is 25% of its conversion cost.If the manufacturing overhead cost for the last period was $45,000 and the direct materials cost was $25,000,the direct labour cost was:

Accepted Answer

A)   $15,000.
B)   $20,000.
C)   $33,333.
D)   $60,000.E) B) and D)
F) B) and C)

Question 13

Prime cost consists of direct materials combined with:

Accepted Answer

A)   direct labour.
B)   manufacturing overhead.
C)   indirect materials.
D)   cost of goods manufactured.E) A) and B)
F) A) and C)

Question 14

Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 15

Last month,when 10,000 units of a product were manufactured,the cost per unit was $60.At this level of activity,variable costs are 50% of total unit costs.If 10,500 units are manufactured next month and cost behaviour patterns remain unchanged the?

Accepted Answer

A)   total variable cost will remain unchanged.
B)   fixed costs will increase in total.
C)   variable cost per unit will increase.
D)   total cost per unit will decrease.E) A) and D)
F) All of the above

Question 16

Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?

Accepted Answer

A)   The cost of the hamburger patty in the burger they ordered.
B)   The wages of the employee who takes the customer's order.
C)   The cost of heating and lighting the kitchen.
D)   The salary of the outlet's manager.E) A) and C)
F) B) and D)

Question 17

During the month of May,Bennett Manufacturing Company purchased $43,000 of raw materials.Total manufacturing overhead was$27,000 and the total manufacturing costs were $106,000.Assuming a beginning inventory of raw materials of $8,000 and an ending inventory of raw materials of $6,000,direct labour was:

Accepted Answer

A)   $34,000.
B)   $36,000.
C)   $38,000.
D)   $45,000.E) A) and B)
F) B) and D)

Question 18

During January,the cost of goods manufactured was $93,000.The beginning finished goods inventory was $16,000 and the ending finished goods inventory was $20,000.What was the cost of goods sold for the month?

Accepted Answer

A)   $89,000.
B)   $93,000.
C)   $97,000.
D)   $129,000.E) B) and D)
F) A) and C)

Question 19

The following data have been taken from the accounting records of Jimbob Co.for the year.

Accepted Answer

Required:
a.Prepare a Schedule of Cost...

Question 20

If CD Company were to sell 50,000 units,the total expected cost per unit would be (Do not round intermediate calculations.Round the final answer to two decimal places) :

Accepted Answer

A)   $2.48.
B)   $3.16.
C)   $3.20.
D)   $3.88.E) B) and C)
F) A) and C)

Exam 2: Systems Design: Job-Order Costing

In a manufacturing company,goods available for sale equals the sum of the cost of goods manufactured and the beginning finished goods inventory.

Correct Answer
verified

The following costs relate to one month's activity in Martin Company:

Correct Answer
verified

Required:
a.Prepare a Schedu...
View Answer

The cost of goods manufactured or the year (in thousands of dollars) was:

Correct Answer
verified

The following data have been taken from the accounting records of Jimbob Co.for the year.

Correct Answer
verified

Required:
a.Prepare a Schedule of Cost...
View Answer

The cost of the raw materials used in production during the year (in thousands of dollars) was:

Correct Answer
verified

The salary of the president of a manufacturing company would be classified as which of the following?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

If CD Company were to sell 50,000 units,the total expected cost per unit would be (Do not round intermediate calculations.Round the final answer to two decimal places) :

Correct Answer
verified

Which of the following statements regarding fixed costs is incorrect?

Correct Answer
verified

Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?

Correct Answer
verified

Williams Company's direct labour cost is 25% of its conversion cost.If the manufacturing overhead cost for the last period was $45,000 and the direct materials cost was $25,000,the direct labour cost was:

Correct Answer
verified

Using the following data,calculate the beginning work in process inventory. The beginning work in process inventory is:

Correct Answer
verified

The prime cost was:

Correct Answer
verified

Prime cost consists of direct materials combined with:

Correct Answer
verified

The gross margin for Cushing Company for the first quarter of last year was $325,000 when sales were $700,000.The beginning inventory of finished goods was $60,000 and the ending inventory of finished goods was $85,000.The cost of goods manufactured for the first quarter would have been:

Correct Answer
verified

During January,the cost of goods manufactured was $93,000.The beginning finished goods inventory was $16,000 and the ending finished goods inventory was $20,000.What was the cost of goods sold for the month?

Correct Answer
verified

Last month,when 10,000 units of a product were manufactured,the cost per unit was $60.At this level of activity,variable costs are 50% of total unit costs.If 10,500 units are manufactured next month and cost behaviour patterns remain unchanged the?

Correct Answer
verified

Correct Answer
verified

Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead.

Correct Answer
verified

Exam 2: Systems Design: Job-Order Costing

In a manufacturing company,goods available for sale equals the sum of the cost of goods manufactured and the beginning finished goods inventory.

Correct AnswerverifiedShow Answer

The following costs relate to one month's activity in Martin Company:

Correct Answerverified Required:a.Prepare a Schedu...View AnswerShow Answer

The cost of goods manufactured or the year (in thousands of dollars) was:

Correct AnswerverifiedShow Answer

The following data have been taken from the accounting records of Jimbob Co.for the year.

Correct Answerverified Required:a.Prepare a Schedule of Cost...View AnswerShow Answer

The cost of the raw materials used in production during the year (in thousands of dollars) was:

Correct AnswerverifiedShow Answer

The salary of the president of a manufacturing company would be classified as which of the following?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If CD Company were to sell 50,000 units,the total expected cost per unit would be (Do not round intermediate calculations.Round the final answer to two decimal places) :

Correct AnswerverifiedShow Answer

Which of the following statements regarding fixed costs is incorrect?

Correct AnswerverifiedShow Answer

Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?

Correct AnswerverifiedShow Answer

Williams Company's direct labour cost is 25% of its conversion cost.If the manufacturing overhead cost for the last period was $45,000 and the direct materials cost was $25,000,the direct labour cost was:

Correct AnswerverifiedShow Answer

Using the following data,calculate the beginning work in process inventory. The beginning work in process inventory is:

Correct AnswerverifiedShow Answer

The prime cost was:

Correct AnswerverifiedShow Answer

Prime cost consists of direct materials combined with:

Correct AnswerverifiedShow Answer

The gross margin for Cushing Company for the first quarter of last year was $325,000 when sales were $700,000.The beginning inventory of finished goods was $60,000 and the ending inventory of finished goods was $85,000.The cost of goods manufactured for the first quarter would have been:

Correct AnswerverifiedShow Answer

During January,the cost of goods manufactured was $93,000.The beginning finished goods inventory was $16,000 and the ending finished goods inventory was $20,000.What was the cost of goods sold for the month?

Correct AnswerverifiedShow Answer

Last month,when 10,000 units of a product were manufactured,the cost per unit was $60.At this level of activity,variable costs are 50% of total unit costs.If 10,500 units are manufactured next month and cost behaviour patterns remain unchanged the?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Required:
a.Prepare a Schedu...
View Answer

Correct Answer
verified

Correct Answer
verified

Required:
a.Prepare a Schedule of Cost...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified