Question 1  Amoeba Manufacturing Inc. provided the following information for the year 2015:

 

Purchases Raw Materials $90,000

Plant Utilities & Insurance 67,500

Indirect Materials 11,750

Indirect Labor 4,750

Direct Materials Used in Production 96,000

Direct Labor 117,500

Depreciation on Factory Plant & Equipment 6,000

Cost of Goods Manufactured 290,850

 

The inventory account balances as of January 1st 2015 are given below.

Raw Materials Inventory $42,000

Work-in-Process Inventory 12,000

Finished Goods Inventory 49,500

 

What is the ending balance in the Work-in-Process Inventory account?

 

$65,350 

$49,500 

$24,650 

$12,000

 

Question 2  Barricades Corporation provided the following information for the year 2015:

 

Beginning Balance Work-in-Process Inventory $24,000

Ending Balance Work-in-Process Inventory 56,000

Beginning Balance Raw Materials Inventory 84,000

Ending Balance Raw Materials Inventory 60,000

Purchases Raw Materials 360,000

Direct Labor 470,000

Indirect Materials 47,000

Indirect Labor 19,000

Depreciation on Factory Plant & Equipment 24,000

Plant Utilities & Insurance 270,000

 

What was the amount of direct materials used in production during 2015?

 

$504,000 

$360,000

 $328,000 

$384,000      

 

Question 3  Which of the following is an objective of management accounting?

 

to provide information to business managers to assist them in controlling their business 

to ensure that the reports produced for internal and external business purposes are GAAP compliant 

to provide information to shareholders to assist them with their investment decisions 

to generate financial statements of a company for tax reporting

 

Question 4  Jasper Corporation reports the following cost information for March:

 

Cost of Goods Manufactured $75,000

Direct Materials Used 16,850

Finished Goods Inventory, March 1 4,500

Finished Goods Inventory, March 31 2,650

Work-in-Process Inventory, March 1 9,670

Work-in-Process Inventory, March 31 1,250

Direct Labor 36,300

 

What is the amount of manufacturing overhead incurred by the company in March?

 

$30,270 

$20,000 

$13,430   

$136,570

 

Question 5  Which of the following is an example of direct labor cost in a factory?

 

wages of factory security guard 

salary of production manager 

wages of assembly line personnel 

salary of vice president of production

 

Question 6  Damsel Inc. is a large manufacturer of auto tires. Damsel has provided the following information:

 

Sales Revenue $45,500

Beginning Finished Goods Inventory 1,500

Cost of Goods Sold 32,500

Cost of Goods Manufactured 35,000

 

Calculate the amount of ending finished goods inventory reported in Damsel’s balance sheet.

 

$4,000      

$10,500 

$3,500 

$36,500

 

Question 7  The balance sheet of a ________ company will show Work-in-Process Inventory as a line item.

 

trading 

service 

manufacturing 

merchandising

 

Question 8  Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information:

Sales Revenue $557,000

Purchases (excluding freight in) 300,000

Selling and Administrative Expenses 69,000

Freight In 15,000

Beginning Merchandise Inventory 45,000

Ending Merchandise Inventory 55,700

 

What is the cost of goods sold for 2015?

 

$360,000 

$330,000 

$304,300       

$358,300

 

Question 9  Given the following information, determine the cost of goods sold.

 

Direct Labor Incurred $63,000

Manufacturing Overhead Incurred 179,500

Direct Materials Used 150,000

Finished Goods Inventory, 1/1/2015 197,500

Finished Goods Inventory, 12/31/2015 221,000

Work-in-Process Inventory, 1/1/2015 96,500

Work-in-Process Inventory, 12/31/2015 109,000

 

$1,016,500 

$414,000 

$356,500     

$380,000

 

Question 10  Barricades Corporation provided the following information for the year 2015:

 

Beginning Balance Work-in-Process Inventory $24,000

Ending Balance Work-in-Process Inventory 56,000

Beginning Balance Raw Materials Inventory 84,000

Ending Balance Raw Materials Inventory 60,000

Purchases Raw Materials 360,000

Direct Labor 470,000

Indirect Materials 47,000

Indirect Labor 19,000

Depreciation on Factory Plant & Equipment 24,000

Plant Utilities & Insurance 270,000

 

What was the amount of the cost of goods manufactured for the year 2015?

 

$1,182,000  

$1,246,000 

$1,414,000 

$1,214,000

 

Question 11 Which of the following would be included as manufacturing overhead for a manufacturing business?

 

direct labor 

advertising 

indirect materials cost 

direct materials cost

 

Question 12  For a manufacturing company, which of the following is a period cost?

 

wages expense of factory workers 

office rent 

indirect materials 

direct materials

 

Question 13  Which of the following correctly describes the accounting for indirect labor costs?

 

Indirect labor costs are period costs and are expensed when the manufactured product is sold. 

Indirect labor costs are period costs and are expensed as incurred. 

Indirect labor costs are product costs and are expensed when the manufactured product is sold.

 Indirect labor costs are product costs and are expensed as incurred.

 

Question 14  Which of the following is the primary objective of managerial accounting?

 

providing summarized results of operations 

providing information that managers need to make operational decisions 

providing information to comply with laws and regulations of government bodies 

providing historical data to investors and creditors

 

Question 15  Selected data for Lemon Grass Inc. for 2015 is provided below:

 

Factory Utilities $1,500

Indirect Materials Used 37,500

Direct Materials Used 300,000

Property Taxes on Factory Building 6,900

Sales Commissions 85,000

Indirect Labor Incurred 25,000

Direct Labor Incurred 150,000

Depreciation on Factory Equipment 6,500

 

What is the total factory overhead? 

$450,000 

$62,400 

$612,000 

$77,400    

 

Question 16 Samson Inc. reported the following information for the year 2015:

 

Service Revenue $40,000

Operating Expenses $23,625

Net Income $16,375

Number of Services Provided for the Year 10,500

How much was the unit cost per service?

 

$2.25      

$3.81 

$1.56 

$3.20

 

Question 17 Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information:

 

Sales Revenue $557,000

Purchases (excluding freight in) 300,000

Selling and Administrative Expenses 69,000

Freight In 15,000

Beginning Merchandise Inventory 45,000

Ending Merchandise Inventory 55,700

 

What is the cost of goods available for sale for 2015?

 

$304,300 

$360,000      

 $330,000 

$345,000

 

Question 18  Which of the following is an example of a period cost for a manufacturing company?

 

advertising expense 

property taxes for the factory 

indirect materials 

depreciation on factory equipment

 

Question 19  Which of the following is the primary focus of financial accounting?

 

providing information that managers need to make operational decisions 

providing highly detailed information on product lines, regions, and divisions 

providing budgets for future periods 

providing summarized information on operational results to investors and creditors

 

Question 20  Evanston Manufacturing Inc. reported the following information for the year 2015:

 

Number of Units Produced 4,800

Number of Units Sold 5,250

Cost of Goods Manufactured $460,800

Cost of Goods Sold $488,250

Sales Revenue $1,260,000

Gross Profit $771,750

Operating Expense $724,900

 

What was the unit product cost?

 

$87.77 

$93.00 

$262.50 

$96.00