Question 1

If the ending work in process inventory is greater than the beginning work in process inventory then the cost of goods manufactured will be less than total manufacturing costs for the period.

Accepted Answer

A) True 
 B)False

Question 2

Controlling is the process of determining whether planned goals are being met.

Accepted Answer

A) True 
 B)False

Question 3

Wasson Company reported the following year-end information: $$\begin{array} { l r } 
\text { Beginning work in process inventory } & \$ 35,000 \
\text { Beginning raw materials inventory } & 18,000 \
\text { Ending work in process inventory } & 38,000 \
\text { Ending raw materials inventory } & 15,000 \
\text { Raw materials purchased } & 560,000 \
\text { Direct labor } & 210,000 \
\text { Manufacturing overhead } & 120,000
\end{array}$$ How much is Wasson's total cost of work in process for the year?

Accepted Answer

A) $925000 
B) $893000 
C) $890000 
D) $928000

Question 4

Which one of the following characteristics would likely be associated with a just-in-time inventory method?

Accepted Answer

A) Ending inventory of work in process that would allow several production runs 
B) A backlog of inventory orders not yet shipped 
C) Minimal finished goods inventory on hand 
D) An understanding with customers that they may come to the showroom and select from inventory on hand

Question 5

Managerial accounting is applicable to

Accepted Answer

A) service entities. 
B) manufacturing entities. 
C) not-for-profit entities. 
D) all of these.

Question 6

On the costs of goods manufactured schedule the item raw materials inventory (ending) appears as a(n)

Accepted Answer

A) addition to raw materials purchases. 
B) addition to raw materials available for use. 
C) subtraction from raw materials available for use. 
D) subtraction from raw materials purchases.

Question 7

Assuming that the cost of goods manufactured is $3460000 compute the cost of goods sold using the following information. $\begin{array}{lr}
\text { Raw materials inventory, January 1 } &\$ 30,000 \
\text { Raw materials inventory, December 31 } & 60,000 \
\text { Work in process, January 1 } & 27,000 \
\text { Work in process, December 31 } & 18,000 \
\text { Finished goods, January 1 } & 60,000 \
\text { Finished goods, December 31 } & 48,000 \
\text { Raw materials purchases } & 1,800,000 \
\text { Direct labor } & 890,000 \
\text { Factory utilities } & 225,000 \
\text { Indirect labor } & 75,000 \
\text { Factory depreciation } & 500,000 \
\text { Operating expenses } & 630,000
\end{array}$

Accepted Answer

A) $3469000. 
B) $3412000. 
C) $3448000. 
D) $3472000.

Question 8

Given the following data for Harder Company compute cost of goods manufactured: $\begin{array}{lclc}
\text { Direct materials used } & \$ 120,000 & \text { Beginning work in process } & \$ 20,000 \
\text { Direct labor } & 200,000 & \text { Ending work in process } & 10,000\
\text { Manufacturing overhead } & 180,000 & \text { Beginning finished goods } & 25,000 \
\text { Operating expenses } & 175,000 & \text { Ending finished goods } & 15,000\
\end{array}$
a. $ \$ 490,000 $
b. $ \$ 500,000 $
c. $ \$ 510,000 $
d. $ \$ 520,000 $

Accepted Answer

The answer of Given the following data for Harder Company...

Question 9

On the costs of goods manufactured schedule depreciation on factory equipment

Accepted Answer

A) is not listed because it is included with Depreciation Expense on the income statement. 
B) appears in the manufacturing overhead section. 
C) is not listed because it is not a product cost. 
D) is not an inventoriable cost.

Question 10

Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 11

Indirect materials and indirect labor are both inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 12

How have many companies significantly lowered inventory levels and costs?

Accepted Answer

A) They use activity-based costing. 
B) They utilize a balanced scorecard system. 
C) They have a just-in-time method. 
D) They focus on total quality management.

Question 13

Dolan Company's accounting records reflect the following inventories: $\begin{array}{lcc} 
& \text { Dec. 31,2022 } & \text { Dec. 31,2021 } \
\hline \text { Raw materials inventory } & \$ 310,000 & \$ 260,000 \
\text { Work in process inventory } & 300,000 & 160,000 \
\text { Finished qoods inventory } & 190,000 & 150,000
\end{array}$ During 2022 $800000 of raw materials were purchased direct labor costs amounted to $670000 and manufacturing overhead incurred was $640000. The total raw materials available for use during 2022 for Dolan Company is

Accepted Answer

A) $1110000. 
B) $660000. 
C) $750000. 
D) $1060000.

Question 14

Cotter pins and lubricants used irregularly in a production process are classified as

Accepted Answer

A) miscellaneous expense. 
B) direct materials. 
C) indirect materials. 
D) nonmaterial materials.

Question 15

Internal reports must be communicated

Accepted Answer

A) daily. 
B) monthly. 
C) annually. 
D) as needed.

Question 16

Benson Inc.'s accounting records reflect the following inventories: $\begin{array}{lcc} 
& \text { Dec. 31,2021 } & \text { Dec. 31,2022 } \
\hline  \text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \
\text { Work in process inventory } & 104,000 & 116,000 \
\text { Finished qoods inventory } & 100,000 & 92,000
\end{array}$ During 2022 Benson purchased $1450000 of raw materials incurred direct labor costs of $250000 and incurred manufacturing overhead totaling $160000. How much is total manufacturing costs incurred during 2022 for Benson?

Accepted Answer

A) $1864000 
B) $1876000 
C) $1860000 
D) $1872000

Question 17

Product costs consist of

Accepted Answer

A) direct materials and direct labor only. 
B) direct materials direct labor and manufacturing overhead. 
C) selling and administrative expenses. 
D) period costs.

Question 18

Kushman Combines Inc.has $20000 of ending finished goods inventory as of December 31 2022.If beginning finished goods inventory was $10000 and cost of goods sold was $50000 how much would Kushman report for cost of goods manufactured?

Accepted Answer

A) $70000 
B) $10000 
C) $60000 
D) $40000

Question 19

Gammil Company has beginning and ending raw materials inventories of $96000 and $120000 respectively.If direct materials used were $490000 what was the cost of raw materials purchased?

Accepted Answer

A) $490000. 
B) $520000. 
C) $466000. 
D) $514000.

Question 20

Ogleby Inc.'s accounting records reflect the following inventories: $\begin{array}{lcc} 
& \text { Dec. 31,2021 } & \text { Dec. 31,2022 } \
\hline \text { Raw materials inventory } & \$ 120,000 & \$ 96,000 \
\text { Winished qoods inventory } & 156,000 & 174,000 \
\text { Finocess inventory } & 150,000 & 138,000
\end{array}$ During 2022 Ogleby purchased $980000 of raw materials incurred direct labor costs of $175000 and incurred manufacturing overhead totaling $224000. How much would Ogleby Manufacturing report as cost of goods manufactured for 2022?

Accepted Answer

A) $1229000 
B) $1397000 
C) $1391000 
D) $1385000

Exam 10: Cost-Volume-Profit

If the ending work in process inventory is greater than the beginning work in process inventory then the cost of goods manufactured will be less than total manufacturing costs for the period.

Controlling is the process of determining whether planned goals are being met.

Which one of the following characteristics would likely be associated with a just-in-time inventory method?

Managerial accounting is applicable to

On the costs of goods manufactured schedule the item raw materials inventory (ending) appears as a(n)

On the costs of goods manufactured schedule depreciation on factory equipment

Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.

Indirect materials and indirect labor are both inventoriable costs.

How have many companies significantly lowered inventory levels and costs?

Cotter pins and lubricants used irregularly in a production process are classified as

Internal reports must be communicated

Product costs consist of

Kushman Combines Inc.has $20000 of ending finished goods inventory as of December 31 2022.If beginning finished goods inventory was $10000 and cost of goods sold was $50000 how much would Kushman report for cost of goods manufactured?

Gammil Company has beginning and ending raw materials inventories of $96000 and $120000 respectively.If direct materials used were $490000 what was the cost of raw materials purchased?