Accounting Exam 4

57 Questions | Total Attempts: 237

SettingsSettingsSettings
Please wait...
Accounting Exam 4

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

Back to Top Back to top