1, Cost of goods manufactured is used to determine product costs. The cost of goods manufactured during the period includes which of the following elements?

a.Overhead costs incurred during the current period.

b.Beginning finished goods inventory.

c.Ending finished goods inventory.

d.Includes Overhead costs incurred during the current period and Beginning finished goods inventory.

e.Some other costs not included here.

2, Sally is about to start overhead allocations. The allocation of overhead costs requires which of the following steps: 1. Identifying the overhead cost driver. 2. Calculating a predetermined overhead rate per unit of product. 3. Calculating a predetermined overhead rate per unit of cost driver. 4. Applying overhead costs to products.

a.1, 2 and 3.

b.2, 3 and 4.

c.1, 2 and 4.

d.1, 3 and 4.

e.All of the above

3, It is true that ethics is related to human behavior. Please indicate the focus of ethical behavior is to deal with

a.Some other behavior not listed here.

b.involves never making a mistake.

c.involves acting in ones self interest even if it is detrimental to society as a whole.

d.involves no need to sacrifice.

e.involves choosing actions that are "right, proper, and just".

Clear my choice

4, Annita Di is reviewing the cost structure of different products. The following information relate a product. Work in Process Inventory, beginning of the year$ 9,000 Manufacturing overhead applied during the year$20,000 Work in Process Inventory, end of the year$14,000 Under-applied Manufacturing overhead$ 2,000 What was the actual manufacturing overhead incurred during the year?

a.$24,000.

b.$22,000.

c.$20,000.

d.$18,000.

e.Cannot be calculated with the information given.

5, AL & Fi manufacture furniture. They began April with a finished goods inventory of $25,000. The cost of goods manufactured during the month was $40,000and the cost of goods sold during April was $50,000. The inventory remaining in finished goods at the end of April was:

a.$35,000.

b.$25,000.

c.$20,000.

d.$15,000.

e.Some other amount.

6, Tilly is considering how cost of goods sold is calculated. Please indicate which of the following equations is used to calculate cost of goods sold during the period?

a. Cost of goods manufactured + ending finished goods + Beginning finished goods.

b. Beginning finished goods - ending finished goods.

c. Cost of goods manufactured + Beginning finished goods.

d. Some other formula not listed here.

e. Beginning finished goods + ending finished goods - cost of goods manufactured.

7, Far West company is considering its work in process inventory balances which show the following figures Work-in-process inventory, 1 January 2019 $43,000 Work-in-process inventory, 31 December 2019 $48,500 Conversion costs during the year $415,000 If the cost of goods manufactured for the year was $565,000, what was the amount of direct materials used during the year?

a.$155,500.

b.$140,500.

c.$150,000.

d.$145,500.

e.some other amount.

8, Emma is trying to classify cost in terms of their characteristics. Indirect material, indirect labour and other manufacturing costs which are neither labour nor material costs are classified as:

a.Manufacturing overhead.

b.Product costs.

c.Prime costs.

d.Both Manufacturing overhead and product costs.

e.Both manufacturing overhead and prime costs.

9, Sam & Company is in the manufacturing business. They began the month of June with a finished goods inventory of $15,000. The finished goods inventory at the end of June was $10,000 and the cost of goods sold during the month was $20,000. The cost of goods manufactured during the month of June was:

a.$35,000.

b.$25,000.

c.$20,000.

d.$15,000.

e.Some other amount.

10, Agfi wants to understand how cost varies. She found that when 10,000 units are produced, fixed costs are $14 per unit. Therefore, when 20,000 units are produced fixed costs per unit will be

a.will increase to $28 per unit.

b.will remain at $14 per unit.

c.will decrease to $7 per unit.

d.will total $280,000.

e.Some other amount.

11, Indirect costs are part of manufacturing costs. Why are indirect costs usually allocated rather than traced to cost objects?

a.Some other reason not listed here.

b.Allocation is required by external reporting requirements.

c.Overall accuracy is improved by allocation.

d.No causal relationship exists between indirect costs and the cost object.

e.Allocation is more convenient than tracing.

12, MAZ company is currently producing 1,000 units per month. The following per unit data apply for sales to regular customers: Direct materials $50 Direct manufacturing labor 5 Variable manufacturing overhead 14 Fixed manufacturing overhead 10 Total manufacturing costs $79 MAZ has a capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per unit cost of producing 2,000 bicycles?

a.$79 per unit.

b.$158 per unit.

c.$74 per unit.

d.$134 per unit.

e.Some other amount.

13, BCB & Company has the following information available about supplies cost for the first three months of the year 2020: Month Suppliers Cost Production Volume January $21,700 4,800 February 20,900 5,000 March 16,100 3,400 Using the high-low method, an estimate of supplies cost at 4,500 units of production would be

a.$19,400.

b.$20,500.

c.$19,950.

d.none of the above.

14, Dimi company is calculating it product cost. Its accountant reveals total costs are $180,000 when 10,000 units are produced; of this amount, variable costs are $64,000. What are the total costs when 13,000 units are produced?

a.$199,200.

b.$214,800.

c.$234,000.

d.Some other amount.

Clear my choice

15, Overheads are applied to work-in-process for calculating cost of manufacturing. BX company underestimated the manufacturing overhead budget and underestimates the activity base for the year, what is the result?

a.Over-applied factory overhead.

b.Under-applied factory overhead.

c.Overstated finished goods inventory.

d.Understated work in process inventory.

e.Cannot be determined by the information given.

16, Management accounting information supports internal decision makers. Which of the following is necessary for management accounting information to be useful?

a.It must report to external users.

b.It must develop a framework of principles and guidelines.

c.Some other activity not listed here

d.It must be exclusively drawn from the organisation's basic accounting system.

e.It must focus on the enterprise in its entirety.

17, Wild West has developed a cost function for its manufacturing overhead costs. Various manufacturing overhead costs along with their cost functions are shown below: Manufacturing Overhead Cost Cost Function Electricity $400 + $140 per direct labour hour Maintenance $800 + $40 per direct labour hour Supervisors' salaries $16,000 per month Indirect materials $50 per direct labour hour If July production is expected to be 200 units that require 300 direct labour hours, estimated manufacturing overhead costs would be

a.$17,430.

b.$55,200.

c.$63,200.

d.$86,200.

e.Some other figure not listed here.

18, A predetermined overhead rate is used to apply overheads to jobs. CBS company uses a predetermined overhead rate of $20 per machine hour. In obtaining this figure, the company's accountant used:

a. Some other denominator for the current accounting period.

b. a denominator of actual machine hours for the current accounting period.

c. a denominator of actual machine hours for the previous accounting period.

d. a numerator of budgeted machine hours for the current accounting period.

e. a numerator of actual machine hours for the current accounting period.

19, Das Ben is reviewing the cost structure of different products. The following information relate a product. Direct Materials Inventory, beginning of the year$ 5,500 Direct Materials Inventory, end of the year$ 3,000 Direct Materials purchased during the year$45,000 Calculate the amount of direct materials used during the year.

a.$36,500.

b.$42,500.

c.$47,500.

d.$48,000.

e.Cannot be calculated with the information given.

Clear my choice

20, O'Max is considering the nature of cost behavior. He thinks the costs that can be traced to a particular cost object are called

a.Direct costs.

b.Some other costs.

c.Product costs.

d.Manufacturing costs.

e.Period costs.

Clear my choice