Exam On Accounting: Quiz!

25 Questions | By Amphib2007 | Updated: Mar 21, 2022 | Attempts: 1140

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Questions and Answers

1.

The salary of a corporate office security guard is considered a(n):
- A.
  
  Period cost
- B.
  
  Factory overhead
- C.
  
  Inventoriable cost
- D.
  
  Product cost
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.
  
  $181,000
- B.
  
  $66,000
- C.
  
  $476,000
- 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.
  
  $970,000
- B.
  
  $990,000
- C.
  
  $1,020,000
- D.
  
  None of these answers is correct.
4.

Touch labor is another term used interchangeably with:
- A.
  
  Administrative salaries
- B.
  
  Indirect labor
- C.
  
  Direct labor
- D.
  
  Independent contractor
5.

A cost that is incurred by the firm that is not a merchandise cost is called a(n):
- A.
  
  Product cost
- B.
  
  None of these answers is correct.
- C.
  
  Period cost
- D.
  
  Inventoriable cost
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.
  
  $492,000
- B.
  
  $484,000
- C.
  
  $100,000
- 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.
  
  Finished Goods Inventory
- B.
  
  Cost of Goods Manufactured
- C.
  
  Cost of Goods Sold
- 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.
  
  Never
- 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.
  
  Finished Goods Inventory
- B.
  
  Cost of Goods Sold
- 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.
  
  Finished goods inventory
- B.
  
  Administrative cost
- C.
  
  Merchandise inventory
- D.
  
  Manufacturing overhead
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.
  
  $98,000
- B.
  
  $237,000
- C.
  
  $317,000
- D.
  
  None of these answers is correct.
14.

Depreciation taken on the desk located in the office of the controller is a(n):
- A.
  
  Inventoriable cost
- B.
  
  Period cost
- C.
  
  Product cost
- 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.
  
  Advertising charges
- C.
  
  Freight-out
- D.
  
  Sales commissions paid
16.

If managers believe labor cost is insignificant, such cost can be:
- A.
  
  Ignored
- 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.
  
  Factory overhead
- B.
  
  Factory burden
- C.
  
  Overhead
- D.
  
  All of these answers are correct.
18.

Raw materials that are used in the production process can be considered:
- A.
  
  Direct materials only
- B.
  
  Administrative use only
- C.
  
  Indirect materials only
- 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.
  
  $90,000
- B.
  
  $18,000
- C.
  
  $87,000
- 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.
  
  $349,000
- B.
  
  $174,000
- C.
  
  $59,000
- D.
  
  None of these answers is correct.
21.

For a merchandising firm, product costs includes all of the following items except:
- A.
  
  Freight-in costs
- B.
  
  Merchandise packaging
- C.
  
  Advertising expense
- 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.
  
  Cost of Goods Sold
- B.
  
  Work-in-Process Inventory
- C.
  
  Cost of Goods Manufactured
- D.
  
  Finished Goods Inventory
23.

If the production process is considered reality, work-in-process inventory is considered:
- A.
  
  A measurement of reality
- B.
  
  Reality
- 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.
  
  Advertising charges
- B.
  
  Sales commissions paid
- C.
  
  Freight-in
- D.
  
  Freight-out
25.

The cost of delivering an item to a customer is classified as a(n):
- A.
  
  Inventory cost
- B.
  
  Manufacturing cost
- C.
  
  Product cost
- D.
  
  Selling cost