Question 1

Supervisor salaries, equipment repairs, depreciation of machinery, and indirect materials are all examples of manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 2

The total manufacturing costs deducted from revenue in 2011: amounted to:

Accepted Answer

A)  $890,000. 
B)  $880,000. 
C)  $845,000. 
D)  Some other amount. $_____________ 
A)  $890,000. 
B)  $880,000. 
C)  $845,000. 
D)  Some other amount. $_____________

Question 3

The cost of goods sold in September is:

Accepted Answer

A)  $190,000. 
B)  $158,000. 
C)  $168,000. 
D)  Some other amount. 
A)  $190,000. 
B)  $158,000. 
C)  $168,000. 
D)  Some other amount.

Question 4

The total amount of inventory to be included in Imperial 's September 30th balance sheet amounts to:

Accepted Answer

A)  $255,000. 
B)  $123,000. 
C)  $185,000. 
D)  Some other amount. 
A)  $255,000. 
B)  $123,000. 
C)  $185,000. 
D)  Some other amount.

Question 5

When products held in inventory are sold:

Accepted Answer

A)  Cost of Goods Sold is credited. 
B)  Work in Process Inventory is credited. 
C)  Finished Goods Inventory is credited. 
D)  Finished Goods Inventory is debited. 
A)  Cost of Goods Sold is credited. 
B)  Work in Process Inventory is credited. 
C)  Finished Goods Inventory is credited. 
D)  Finished Goods Inventory is debited.

Question 6

The total manufacturing costs charged to the Work in Process Inventory account during 2011 amounted to:

Accepted Answer

A)  $850,000. 
B)  $820,000. 
C)  $810,000. 
D)  Some other amount. $_____________ 
A)  $850,000. 
B)  $820,000. 
C)  $810,000. 
D)  Some other amount. $_____________

Question 7

In an aircraft factory, the inventory of direct materials would not include:

Accepted Answer

A)  Electronic instruments to be installed in aircraft. 
B)  Completed aircraft, available for sale. 
C)  Sheet aluminum to be used for the exterior "skin" of the aircraft. 
D)  Ejection seats to be installed only in military aircraft. 
A)  Electronic instruments to be installed in aircraft. 
B)  Completed aircraft, available for sale. 
C)  Sheet aluminum to be used for the exterior "skin" of the aircraft. 
D)  Ejection seats to be installed only in military aircraft.

Question 8

Since manufacturing costs (direct materials, direct labor, and overhead) are incurred in the process of manufacturing units of product, these costs are credited to:

Accepted Answer

A)  The Direct Materials Inventory, Direct Labor, and Manufacturing Overhead accounts respectively. 
B)  Liability accounts. 
C)  The Work in Process Inventory account. 
D)  The Cost of Goods Sold account. 
A)  The Direct Materials Inventory, Direct Labor, and Manufacturing Overhead accounts respectively. 
B)  Liability accounts. 
C)  The Work in Process Inventory account. 
D)  The Cost of Goods Sold account.

Question 9

The total manufacturing costs charged to production during April were:

Accepted Answer

A)  $74,000. 
B)  $72,000. 
C)  $76,000. 
D)  Some other amount. $_____________ 
A)  $74,000. 
B)  $72,000. 
C)  $76,000. 
D)  Some other amount. $_____________

Question 10

If the salaries of the sales staff of a manufacturing company are improperly recorded as a product cost, what will be the likely effect on net income of the period in which the error occurs?

Accepted Answer

A)  Net income will be overstated. 
B)  Net income will be understated. 
C)  Net income will be unaffected. 
D)  Net income will be understated only if inventory levels rise. 
A)  Net income will be overstated. 
B)  Net income will be understated. 
C)  Net income will be unaffected. 
D)  Net income will be understated only if inventory levels rise.

Question 11

The cost of the employee who computes total manufacturing costs would be considered:

Accepted Answer

A)  Direct labor. 
B)  Indirect labor. 
C)  Manufacturing overhead. 
D)  Administrative costs. 
A)  Direct labor. 
B)  Indirect labor. 
C)  Manufacturing overhead. 
D)  Administrative costs.

Question 12

The following information is available about the August transactions of the Helpful Tool Company: The product costs to be deducted from revenue in August amount to:

Accepted Answer

A)  $493,000. 
B)  $737,000. 
C)  $718,000. 
D)  $739,000. 
A)  $493,000. 
B)  $737,000. 
C)  $718,000. 
D)  $739,000.

Question 13

The ending inventory of a merchandising company corresponds most closely to which of the following amounts of a manufacturer?

Accepted Answer

A)  Ending inventory of finished goods. 
B)  Cost of finished goods manufactured. 
C)  Ending inventory of work in process. 
D)  Total manufacturing costs incurred during the period. 
A)  Ending inventory of finished goods. 
B)  Cost of finished goods manufactured. 
C)  Ending inventory of work in process. 
D)  Total manufacturing costs incurred during the period.

Question 14

Which of the following is not a product cost?

Accepted Answer

A)  Depreciation on a warehouse where raw materials are stored. 
B)  An employee working directly on assembling a car. 
C)  The leather seats of a motorcycle. 
D)  The real estate tax of the showroom. 
A)  Depreciation on a warehouse where raw materials are stored. 
B)  An employee working directly on assembling a car. 
C)  The leather seats of a motorcycle. 
D)  The real estate tax of the showroom.

Question 15

Amounts debited to the Work in Process Inventory account may best be described as:

Accepted Answer

A)  Direct materials purchased, direct labor costs paid, and payments for items classified as manufacturing overhead. 
B)  The cost of finished goods manufactured during the period. 
C)  Total manufacturing costs charged to production. 
D)  The cost of goods sold. 
A)  Direct materials purchased, direct labor costs paid, and payments for items classified as manufacturing overhead. 
B)  The cost of finished goods manufactured during the period. 
C)  Total manufacturing costs charged to production. 
D)  The cost of goods sold.

Question 16

Determine the amount of manufacturing overhead given the following information:

Accepted Answer

A)  $7,750. 
B)  $10,430. 
C)  $9,750. 
D)  $11,080. 
A)  $7,750. 
B)  $10,430. 
C)  $9,750. 
D)  $11,080.

Question 17

In the year-end financial statements, the Manufacturing Overhead account should have:

Accepted Answer

A)  A debit balance, representing overhead on hand and available for use. 
B)  A credit balance, representing accumulated depreciation and amounts owed to suppliers of overhead items. 
C)  Either a debit or a credit balance, depending upon whether the overhead application rate used throughout the year was higher or lower than 100%. 
D)  A zero balance, since all overhead costs incurred during the period should have been assigned to the production of the period. 
A)  A debit balance, representing overhead on hand and available for use. 
B)  A credit balance, representing accumulated depreciation and amounts owed to suppliers of overhead items. 
C)  Either a debit or a credit balance, depending upon whether the overhead application rate used throughout the year was higher or lower than 100%. 
D)  A zero balance, since all overhead costs incurred during the period should have been assigned to the production of the period.

Question 18

The cost of goods sold in August is:

Accepted Answer

A)  $75,000. 
B)  $17,000. 
C)  $135,000. 
D)  Some other amount. 
A)  $75,000. 
B)  $17,000. 
C)  $135,000. 
D)  Some other amount.

Question 19

Which of the following costs would not be considered part of the manufacturing overhead of a furniture manufacturer?

Accepted Answer

A)  The cost of compliance with federal factory safety regulations. 
B)  Depreciation expense on factory equipment. 
C)  The cost of grease used to lubricate factory equipment. 
D)  The cost of wood used in furniture construction. 
A)  The cost of compliance with federal factory safety regulations. 
B)  Depreciation expense on factory equipment. 
C)  The cost of grease used to lubricate factory equipment. 
D)  The cost of wood used in furniture construction.

Question 20

Which of the following is a period cost?

Accepted Answer

A)  Direct materials used. 
B)  Direct labor costs applicable to production. 
C)  Manufacturing overhead. 
D)  Advertising expense. 
A)  Direct materials used. 
B)  Direct labor costs applicable to production. 
C)  Manufacturing overhead. 
D)  Advertising expense.

Exam 16: Management Accounting: a Business Partner

Supervisor salaries, equipment repairs, depreciation of machinery, and indirect materials are all examples of manufacturing overhead.

The total manufacturing costs deducted from revenue in 2011: amounted to:

The cost of goods sold in September is:

The total amount of inventory to be included in Imperial 's September 30th balance sheet amounts to:

When products held in inventory are sold:

The total manufacturing costs charged to the Work in Process Inventory account during 2011 amounted to:

In an aircraft factory, the inventory of direct materials would not include:

Since manufacturing costs (direct materials, direct labor, and overhead) are incurred in the process of manufacturing units of product, these costs are credited to:

The total manufacturing costs charged to production during April were:

If the salaries of the sales staff of a manufacturing company are improperly recorded as a product cost, what will be the likely effect on net income of the period in which the error occurs?

The cost of the employee who computes total manufacturing costs would be considered:

The following information is available about the August transactions of the Helpful Tool Company: The product costs to be deducted from revenue in August amount to:

The ending inventory of a merchandising company corresponds most closely to which of the following amounts of a manufacturer?

Which of the following is not a product cost?

Amounts debited to the Work in Process Inventory account may best be described as:

Determine the amount of manufacturing overhead given the following information:

In the year-end financial statements, the Manufacturing Overhead account should have:

The cost of goods sold in August is:

Which of the following costs would not be considered part of the manufacturing overhead of a furniture manufacturer?

Which of the following is a period cost?

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values Answer Key

Filters

The total amount of inventory to be included in Imperial 's September 30^th balance sheet amounts to: