1.
The salary of a corporate office security guard is considered a(n):
A. 
B. 
C. 
D. 
2.
The following information is available:
Assembly line labor costs $175,000
Raw materials purchased 120,000
Indirect materials used 8,000
Depreciation on factory 25,000
Depreciation on administrative equipment 9,000
Sales salaries 78,000
Factory supervision 33,000
Sales office security guard cost 28,000
Based on the above, the cost of factory overhead was:
A. 
B. 
C. 
D. 
None of these answers is correct.
3.
The following information is available:
Beginning raw materials inventory $100,000
Ending raw materials inventory 120,000
Beginning work-in-process inventory 270,000
Ending work-in-process inventory 300,000
Beginning finished goods inventory 560,000
Ending finished goods inventory 480,000
Raw materials purchased 990,000
Based on the above, the raw materials transferred to production was:
A. 
B. 
C. 
D. 
None of these answers is correct.
4.
Touch labor is another term used interchangeably with:
A. 
B. 
C. 
D. 
5.
A cost that is incurred by the firm that is not a merchandise cost is called a(n):
A. 
B. 
None of these answers is correct.
C. 
D. 
6.
The procedures for identifying product costs for a service firm differ from a merchandiser or manufacturer because:
A. 
Manufacturers do not deal with the general public
B. 
Service firms use different advertising methods
C. 
Merchandisers have no inventory
D. 
Service firms have no inventory
7.
The following information is available:
Direct materials cost $100,000
Direct labor cost 120,000
Manufacturing overhead cost 270,000
Beginning work-in-process inventory 30,000
Ending work-in-process inventory 36,000
Beginning finished goods inventory 56,000
Ending finished goods inventory 48,000
Based on the above, the cost of goods manufactured was:
A. 
B. 
C. 
D. 
None of these answers is correct.
8.
When a product is sold, its cost is reflected by:
A. 
Reducing the cost of goods sold on the income statement
B. 
Increasing the cost of goods sold on the income statement
C. 
Increasing inventory on the balance sheet
D. 
None of these answers is correct.
9.
When goods have been completed and are transferred to finished goods, the account that will be debited is:
A. 
B. 
Cost of Goods Manufactured
C. 
D. 
Work-in-Process Inventory
10.
At what point do raw materials become a part of raw materials inventory?
A. 
When a product is complete and ready for sale
B. 
C. 
Immediately after they have been purchased
D. 
As they are used in the production process
11.
When goods have been sold to customers, the entry to remove the goods from inventory will have a credit to:
A. 
B. 
C. 
Cost of Goods Manufactured
D. 
Work-in-Process Inventory
12.
Any cost associated with the operation of a manufacturing facility that is not direct labor or direct materials is considered:
A. 
B. 
C. 
D. 
13.
The following information is available:
Beginning raw materials inventory $ 11,000
Ending raw materials inventory 13,000
Beginning work-in-process inventory 20,000
Ending work-in-process inventory 28,000
Beginning finished goods inventory 56,000
Ending finished goods inventory 48,000
Raw materials purchased 90,000
Cost of goods manufactured 229,000
Based on the above, the cost of goods sold was:
A. 
B. 
C. 
D. 
None of these answers is correct.
14.
Depreciation taken on the desk located in the office of the controller is a(n):
A. 
B. 
C. 
D. 
None of these answers is correct.
15.
A cost which would be included in inventory for any unsold products is:
A. 
The cost of purchasing the product
B. 
C. 
D. 
16.
If managers believe labor cost is insignificant, such cost can be:
A. 
B. 
Treated as an operating cost of the business
C. 
Deferred until it is significant, at which point it can be treated as direct labor
D. 
Treated as an indirect labor cost
17.
Another term used to describe manufacturing overhead is:
A. 
B. 
C. 
D. 
All of these answers are correct.
18.
Raw materials that are used in the production process can be considered:
A. 
B. 
C. 
D. 
Either direct or indirect materials
19.
The following information is available:
Direct material cost $20,000
Direct labor cost 30,000
Manufacturing overhead cost 40,000
Beginning raw materials inventory 10,000
Ending raw materials inventory 12,000
Beginning work-in-process inventory 27,000
Ending work-in-process inventory 30,000
Beginning finished goods inventory 56,000
Ending finished goods inventory 48,000
Based on the above, the cost of goods manufactured was:
A. 
B. 
C. 
D. 
None of these answers is correct.
20.
The following information is available:
Assembly line labor costs $175,000
Factory supplies used 4,000
Depreciation on factory 22,000
Depreciation on administrative equipment 9,000
Sales salaries 78,000
Factory security guard cost 33,000
Sales office security guard cost 28,000
Based on the above, cost of factory overhead was:
A. 
B. 
C. 
D. 
None of these answers is correct.
21.
For a merchandising firm, product costs includes all of the following items except:
A. 
B. 
C. 
D. 
The cost of the merchandise itself
22.
When goods have been completed and are transferred to finished goods, the account that will be credited is:
A. 
B. 
Work-in-Process Inventory
C. 
Cost of Goods Manufactured
D. 
23.
If the production process is considered reality, work-in-process inventory is considered:
A. 
B. 
C. 
A theoretical concept which has nothing to do with accounting
D. 
None of these answers is correct.
24.
An example of a product cost is:
A. 
B. 
C. 
D. 
25.
The cost of delivering an item to a customer is classified as a(n):
A. 
B. 
C. 
D.