1 Choose Beginning Raw Materials + Raw Material Purchases a. Cost of Goods Sold b. Work in Process When you are finished Ending Raw Materials equals : This status will show Direct Materials d. Cost of Goods Manufactured Choose Mel's Woodworks had beginning Finished Goods of $15,000, Cost of Goods Manufactured was $160,000, and Ending Finished Goods was $18.000. What was the Cost of Goods Sold? a $157,000 b. $163.000 $175,000 d. $193,000 Choose: When a master budget is prepared, which budget is created first? Production Budget b. Cash Budget C. Capital Budget a d Sales Budget 4 Choose Which budget uses only units (not dollars)? Sales Revenue Budget b. Direct Labor Budget a c. Direct Materials Budget d. Production Budget 5 Choose: Mary invested $4,000 in a 3-year project that generated 5% interest. How much will Mary be able to withdraw at the end of three years? $4,200 b. $4,630.50 c. $4.764.06 d. $3,455.35 Choose The cost of depreciation on factory equipment would be classified as what? a period cost b an expense c. Depreciation Expense d. Factory Overhead a Choose Bob computed the net present value of a project and found that the NPV was 0 when he discounted the cash flows at 6%. What was the internal rate of return in this case? Greater than 6% b. Exactly 6% c. Less than 6% d. No way to determine the rate a 8 Choose: Mandy sells a product with a price of $15 per unit. The variable cost per unit is $9. Fixed costs are $180.000. What is the formula that will derive the breakeven point in revenue? BERev=180.000/6 b. BERev=180,000/9 C. BERev=180,000/ .4 d BERey = a 6/180,000 Choose NPV, IRR and Payback period. Which of these techniques Capital Budgeting techniques include: ignores the time value of money? NPV b. IRR a c. Payback Period d. None of these ignore the time value of money 10 Choose The standard cost per pound Johnson Company paid a price of $8.40 per pound of raw material. was $8.00 Which variance will be unfavorable as a result? DMPV b. DMOV C. DLRV d. DLTV a 11 Choose How would costs such as rent, property taxes and depreciation be categorized ? Variable costs b. Fixed costs c. Mixed costs d. Semivariable costs 12 Choose If there is overapplied or underapplied overhead at the end of the year, that overhead is closed to: Finished Goods Inventory b. Work in Process Cost of Goods Sold d. Sales a 13 Choose Which of the following costs would be considered a period cost? Salesman's salary b. Production Supervisors' salary c. Factory laborer's salary watchman's salary a d. Factory 1 Choose: Which of the following costs would be considered a period cost? Salesman's salary b. Production Supervisors' salary c. Factory laborer's salary watchman's salary a d Factory 141 Choose: Lemon Company's Predetermined overhead rate is $30 per direct labor hour. Lemon produced job 101 using direct material costing $140. Direct labor was 3 direct labor hours at $20 per hour The cost of job 101 would be: $230 b. $170 c. $200 d. $290 a 15 Choose and a credit to a. The journal entry to apply factory overhead consists of a debit to and a credit to Factory Overhead. Work in Process b Finished Goods. Work in Process Cost of Goods Sold-Finished Goods d. Work in Process ---Factory Overhead 16 Choose If a company's income tax rate is 30%, a company earning $140.000 after taxes would have what amount of earnings before taxes ? 42.000 b. 98.000 c. 200.000 d none of these 7 1 Choose Jen is creating a Production Budget. How is the Units to Produce calculated? a. Units to Produce = Sales Ending Inventory Beginning Inventory b. Units to Produce = Sales + Ending Inventory Beginning Inventory C. Units to Produce = Sales + Ending Inventory + Beginning Inventory d. Units to Produce - Sales - Ending Inventory + Beginning Inventory 12 Choose A company analyzes its costs and determines that its operating leverage factor is 3.5. evenu 10%? By how much will 10% b. 20% increase, if sales C. 30% increases d 35% a. 19 Choose What is the interest Sally is creating a present value of $1.00 table for an interest rate of 3.5%. factor in the PV table for 5 years at 3.5%? 9662 9335 a b 9019 d 8420 201 Choose Phillips completed and transferred 1,500 units that were 100% complete and 400 units that were 40% complete How many Equivalent Units were manufactured ? a. 1.500 b. 1.900 c. 1.560 d. 1.660