Question 1

If the cost of goods sold is greater than the cost of goods manufactured,then:

Accepted Answer

A)  work in process inventory has decreased during the period. 
B)  finished goods inventory has increased during the period. 
C)  total manufacturing costs must be greater than cost of goods manufactured. 
D)  finished goods inventory has decreased during the period. 
A)  work in process inventory has decreased during the period. 
B)  finished goods inventory has increased during the period. 
C)  total manufacturing costs must be greater than cost of goods manufactured. 
D)  finished goods inventory has decreased during the period.

Question 2

The net income for the year (in thousands of dollars)was:

Accepted Answer

A)  $70. 
B)  $130. 
C)  $190. 
D)  $390. 
A)  $70. 
B)  $130. 
C)  $190. 
D)  $390.

Question 3

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

Accepted Answer

A)  $90. 
B)  $150. 
C)  $160. 
D)  $190. 
A)  $90. 
B)  $150. 
C)  $160. 
D)  $190.

Question 4

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 total cost of goods manufactured will be?

Accepted Answer

A)  $585,000. 
B)  $600,000. 
C)  $615,000. 
D)  $630,000. 
A)  $585,000. 
B)  $600,000. 
C)  $615,000. 
D)  $630,000.

Question 5

All the following would typically be considered indirect costs of manufacturing a particular Boeing 747 to be delivered to Singapore Airlines: electricity to run production equipment,the factory manager's salary,and the cost of the General Electric jet engines installed on the aircraft.

Accepted Answer

A) True 
 B)False

Question 6

For a manufacturing company,which of the following is an example of a period rather than a product cost?

Accepted Answer

A)  Depreciation of factory equipment. 
B)  Wages of salespersons. 
C)  Wages of machine operators. 
D)  Insurance on factory equipment. 
A)  Depreciation of factory equipment. 
B)  Wages of salespersons. 
C)  Wages of machine operators. 
D)  Insurance on factory equipment.

Question 7

Mueller Company reported the following data for the year just ended:   The beginning work in process inventory was:

Accepted Answer

A)  $100,000. 
B)  $300,000. 
C)  $500,000. 
D)  $1,300,000. 
A)  $100,000. 
B)  $300,000. 
C)  $500,000. 
D)  $1,300,000.

Question 8

During the month of June,Reardon Company incurred $17,000 of direct labour,$8,500 of manufacturing overhead and purchased $15,000 of raw materials.Between the beginning and the end of the month,the raw materials inventory increased by $2,000,the finished goods inventory increased by $1,500,and the work in process inventory decreased by $3,000.The cost of goods manufactured would be:

Accepted Answer

A)  $38,500. 
B)  $40,500. 
C)  $41,500. 
D)  $43,500. 
A)  $38,500. 
B)  $40,500. 
C)  $41,500. 
D)  $43,500.

Question 9

Advertising costs are considered product costs for external financial reports since they are incurred in order to promote specific products.

Accepted Answer

A) True 
 B)False

Question 10

All costs incurred in a merchandising firm are considered to be period costs.

Accepted Answer

A) True 
 B)False

Question 11

The following account balances has been extracted from Jimbob Co.'s general ledger:   What was the total of manufacturing overhead?

Accepted Answer

A)  $110,000. 
B)  $160,000. 
C)  $400,000. 
D)  $740,000. 
A)  $110,000. 
B)  $160,000. 
C)  $400,000. 
D)  $740,000.

Question 12

Variable costs are costs whose per unit costs vary as the activity level rises and falls.

Accepted Answer

A) True 
 B)False

If the cost of goods sold is greater than the cost of goods manufactured,then:

The net income for the year (in thousands of dollars)was:

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

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 total cost of goods manufactured will be?

All the following would typically be considered indirect costs of manufacturing a particular Boeing 747 to be delivered to Singapore Airlines: electricity to run production equipment,the factory manager's salary,and the cost of the General Electric jet engines installed on the aircraft.

For a manufacturing company,which of the following is an example of a period rather than a product cost?

Mueller Company reported the following data for the year just ended: The beginning work in process inventory was:

Advertising costs are considered product costs for external financial reports since they are incurred in order to promote specific products.

All costs incurred in a merchandising firm are considered to be period costs.

The following account balances has been extracted from Jimbob Co.'s general ledger: What was the total of manufacturing overhead?

Variable costs are costs whose per unit costs vary as the activity level rises and falls.

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

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

Filters

Exam 2: Systems Design: Job-Order Costing

If the cost of goods sold is greater than the cost of goods manufactured,then:

The net income for the year (in thousands of dollars)was:

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

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 total cost of goods manufactured will be?

All the following would typically be considered indirect costs of manufacturing a particular Boeing 747 to be delivered to Singapore Airlines: electricity to run production equipment,the factory manager's salary,and the cost of the General Electric jet engines installed on the aircraft.

For a manufacturing company,which of the following is an example of a period rather than a product cost?

Mueller Company reported the following data for the year just ended: The beginning work in process inventory was:

Advertising costs are considered product costs for external financial reports since they are incurred in order to promote specific products.

All costs incurred in a merchandising firm are considered to be period costs.

The following account balances has been extracted from Jimbob Co.'s general ledger: What was the total of manufacturing overhead?

Variable costs are costs whose per unit costs vary as the activity level rises and falls.

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

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

Filters