Accounting Exam 4

57 Questions | By Asr591 | Updated: Mar 20, 2022 | Attempts: 285

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The exams are finally here but you still have doubts on whether you are a hundred percent prepared. The quiz below is designed to cool your nerves and point out the topics you haven’t grasped fully. Give it a try and all the best as you become a certified accountant.

Questions and Answers

1.

The cost of a manufactured product generally consists of which of the following costs?
- A.
  
  Direct materials cost and factory overhead cost
- B.
  
  Direct labor cost and factory overhead cost
- C.
  
  Direct labor cost, direct materials cost, and factory overhead cost
2.

Which of the following costs are referred to as conversion costs?
- A.
  
  Direct labor cost and factory overhead cost
- B.
  
  Direct materials cost and direct labor cost
- C.
  
  Factory overhead cost
3.

What term is used to refer to the cost of changing direct materials into a finished manufactured product
- A.
  
  Factory overhead cost
- B.
  
  Period cost
- C.
  
  Conversion cost
4.

Which of the following is considered a part of factory overhead cost?
- A.
  
  Sales commissions
- B.
  
  Depreciation of factory buildings
- C.
  
  Deprectation of office equipment
5.

Which of the following manufacturing cos is an indirect cost of producing a product?
- A.
  
  Oil lubricants used for factory machinery
- B.
  
  Commissions for sales personnel
- C.
  
  Hourly wages of an assembly worker
6.

Which of the following are the two main types of cost accounting systems for manufacturing operations?
- A.
  
  Process cost and general accounting systems
- B.
  
  Job order cost and process cost systems
- C.
  
  Job order and genral accounting systems
7.

Which of the following costs are NOT included in finished goods inventory?
- A.
  
  Direct labor
- B.
  
  Factory overhead
- C.
  
  Company president's salary
8.

At the end of the fiscal year, the balance in factory overhead is small. this balance would normally be?
- A.
  
  Transferred to work in progress
- B.
  
  Transferred to cost of goods sold
- C.
  
  Transferred to finished goods
9.

Each account in the cost ledger is called a?
- A.
  
  Finished good sheet
- B.
  
  Stock record
- C.
  
  Job cost sheet
10.

What was the balance of work i process as of april 30?
- A.
  
  8,100
- B.
  
  22,900
- C.
  
  29,900
11.

If the amount of factory overhead cost incurred exceeds the amount applied, the factory overhead account will have a
- A.
  
  Debit balance and be underapplied
- B.
  
  Debit balance and be oberabsorbed
- C.
  
  Credit balance and be overapplied
12.

The recording of the jobs completed would include a credit to
- A.
  
  Factory overhead
- B.
  
  Finished goods
- C.
  
  Work in process
13.

The recording of the jobs shipped and customers billed would include a credit to
- A.
  
  Accounts payable
- B.
  
  Cash
- C.
  
  Finished goods
14.

The finished goods account is the controlling account for the
- A.
  
  Materials ledger
- B.
  
  Work in process ledger
- C.
  
  Stock ledger
15.

In contribution margin analysis, the quantity factor is computed as
- A.
  
  The difference between actual unit price or unit cost and the planned unit price or cost, multiplied by the planned quantity sold
- B.
  
  The difference between actual unit price or unit cost and the planned unit price or cost, multiplied by the actual quantity sold
- C.
  
  The difference between the actual quantity sold and the planned quantity sold, multiplied by the planned unit sales price or unit cost
16.

If variable cost of goods sold totaled $80,000 for the year (16,000 units at $5 each) and the planned variable cost of goods sold totaled $84,000 (15,000 units at $5.60 each), the effect of the unit cost factor on the change in variable cost of goods sold is
- A.
  
  5,000
- B.
  
  9,600
- C.
  
  5,600
17.

If variable selling and administrative expenses totaled $120,000 for the year (80,000 units at $1.50 each) and the planned variable selling and administrative expenses totaled $120,900 (78,000 units at $1.55 each), the effect of the unit cost factor on the change in variable selling and administrative expenses is
- A.
  
  900 decrease
- B.
  
  4,000 decrease
- C.
  
  3,100 decrease
18.

Under which inventory costing method could increases of decreases in income from operations be misinterpreted to be the result of operating efficiencies or inefficiencies
- A.
  
  Variable costing
- B.
  
  Absorption costing
- C.
  
  Incremental costing
19.

The selling price of a product may be just above the variable costs and expenses of making and selling it in
- A.
  
  The long run
- B.
  
  The short run
- C.
  
  Both short run and long run
20.

The relative distribution of sales among various products sold is referred to as the
- A.
  
  Joint product mix
- B.
  
  Profit mix
- C.
  
  Sales mix
21.

The contribution margin ration is computed as
- A.
  
  Sales divided by contribution margin
- B.
  
  Contribution margin divided by sales
- C.
  
  Contribution margin divided by costs of sales
22.

For a supervisor of a manufacturing department, which of the following costs are controllable?
- A.
  
  Direct materials
- B.
  
  Insurance of factory building
- C.
  
  Depreciation of factory building
23.

In the variable costing income statement, deduction of variable selling and administrative expenses from manufacturing margin yields
- A.
  
  Differential margin
- B.
  
  Contribution margin
- C.
  
  Gross profit
24.

A business operated at 100% of capacity during its first month and incurred the following costs:if 1,600 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet (49)
- A.
  
  64,000
- B.
  
  56,000
- C.
  
  66,400
25.

A business operated at 100% of capacity during its first month and incurred the following costs:if 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what is the amount of income from operations reported on the variable costing income statement? (50)
- A.
  
  100,000
- B.
  
  114,800
- C.
  
  140,000