1. What term is used to describe the process of directing operations to achieve the organizations goals and plans? a. Supervising b. Control c. Directing d. Planning Answer: a

2. Compute conversion costs given the following data: Direct Materials, $452,700; Direct Labor, $186,300; Factory Overhead, $175,600, Selling Expense $45,290 a. $639,000 b. $175,600 c. $816,600 d. $361,900 Answer: d

3. The cost of a manufactured product generally consists of which of the following costs? a. Direct materials cost and factory overhead cost b. Direct labor cost and factory overhead cost c. Direct labor cost, direct materials cost, and factory overhead cost d. Direct materials cost and direct labor cost Answer: d 4. Which of the following is an example of direct labor cost for an airplane manufacturer? a. Cost of oil lubricants for factory machinery b. Cost of wages of assembly worker c. Salary of plant supervisor d. Cost of jet engines Answer: B 5. Which of the following is considered a part of factory overhead cost? a. Sales commissions b. Depreciation of factory buildings c. Depreciation of office equipment d. Direct materials used Answer: b 6. One on the following will not be found on the balance sheet of a manufacturing company. a. Cost of goods sold b. materials c. work in process d. finished goods Answer: a 7. Which of the following accounts will be found on the income statement? a. inventory b. Work in process c. finished goods d. cost of merchandise sold Answer: b 8. Cost of Materials Used $40,000 Direct Labor costs $55,000 Factory Overhead $32,000 Work in Process, beg. $28,000 Work in Process, end. $18,000 What is Cost of Goods Manufactured? a. $173,000 b. $97,000 c. $117,000 d. $137,000 ($55,000+$32,000+$28,000+440,000)-($18,000) = $137,000 Answer: d