ACCT 302: Accounting For Manufacturing Company Inventory! Trivia Quiz

16 Questions | By Etiennebuithanh | Last updated: Mar 19, 2022 | Total Attempts: 220

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ACCT 302: Accounting For Manufacturing Company Inventory! Trivia Quiz - Quiz

Below is a quiz on ACCT 302: Accounting For Manufacturing Company Inventory! In a manufacturing company, the inventory consists of items such as property, goods in stock, or the contents of a building. They must all be accounted for in terms of all expenses they incur while making goods for resale or producing them. Take the test and refresh your understanding!

Questions and Answers

1.

Pederson Company reported the following: Manufacturing costs $2,000,000 Units manufactured 50,000 Units sold 47,000 units sold for $75 per unit Beginning inventory 0 units What is the amount of gross profit margin?
- A.
  
  $1,750,000
- B.
  
  $3,525,000
- C.
  
  $5,405,000
- D.
  
  $1,645,000
2.

The following information pertains to Alleigh's Mannequins: Manufacturing costs $1,500,000 Units manufactured 30,000 Units sold 29,500 units sold for $85 per unit Beginning inventory 0 units What is the amount of gross margin?
- A.
  
  $1,475,000
- B.
  
  $1,500,000
- C.
  
  $2,507,500
- D.
  
  $1,032,500
3.

Insurance companies provide services or intangible products to their customers.
- A.
  
  True
- B.
  
  False
4.

Department stores, such as Target, are examples of a merchandising company.
- A.
  
  True
- B.
  
  False
5.

Merchandising companies purchase products and sell them to customers without changing their basic form.
- A.
  
  True
- B.
  
  False
6.

Merchandising companies hold only one type of inventory: direct material.
- A.
  
  True
- B.
  
  False
7.

Manufacturing sector firms normally hold three types of inventory: direct materials inventory, work-in-process inventory, and finished goods inventory.
- A.
  
  True
- B.
  
  False
8.

Work-in-process inventory is goods partially worked on but not yet completed.
- A.
  
  True
- B.
  
  False
9.

Direct material costs are the acquisition costs of all materials that eventually become part of the cost object and cannot be traced to the cost object in an economically feasible way.
- A.
  
  True
- B.
  
  False
10.

The acquisition costs of direct materials include freight-in charges, sales taxes, and customs duties.
- A.
  
  True
- B.
  
  False
11.

Indirect manufacturing costs include the compensation of all manufacturing labor that can be traced to the cost object in an economically feasible way.
- A.
  
  True
- B.
  
  False
12.

Direct manufacturing labor includes plant rent and salaries paid to plant supervisors.
- A.
  
  True
- B.
  
  False
13.

Inventoriable costs are reported as a liability in the balance sheet when incurred and expensed on the income statement when the product is sold.
- A.
  
  True
- B.
  
  False
14.

All manufacturing costs are period costs.
- A.
  
  True
- B.
  
  False
15.

Period costs are included in the cost of goods sold.
- A.
  
  True
- B.
  
  False
16.

Indirect manufacturing costs are also referred to as manufacturing overhead costs or factory overhead costs.
- A.
  
  True
- B.
  
  False