2 Activity-based costing Answer is a traditional costing method encourages process value analysis always results in a lower cost assigned to goods or services all of these .4 points Question 3 The controller of an organization participates in Answer planning controlling decision making all of these .4 points Question 4 The objective of profit maximization Answer should be the only goal of an organization is an objective of Financial accounting but not Management accounting should be achieved through legal and ethical means should outweigh the goal of product quality .4 points Question 5 Which of the following areas is not emphasized on the CMA examination? Answer external auditing and business law economics, finance, and management decision analysis and information systems financial accounting and reporting .4 points Question 6 An indirect cost Answer can be easily and accurately traced to a cost object. is hard to trace. should never be assigned to a cost object. do none of these. .4 points Question 7 Which of the following is an example of an intangible product? Answer hamburgers computers automobiles dental care .4 points Question 8 Which of the following is an example of direct labor? Answer chef in a restaurant janitor in a production plant security guard for the factory management accountant .4 points Question 9 Overhead includes Answer indirect labor. indirect materials. supplies. all of these. .4 points Question 10 The unit cost Answer is the total product costs divided by the number of units produced includes period costs is the total prime costs divided by the number of units produced is the total conversion costs divided by the number of units produced .4 points Question 11 Prime cost is Answer indirect materials cost and indirect labor cost direct materials cost and direct labor cost direct labor cost and overhead cost selling cost and administrative cost .4 points Question 12 Conversion cost is the sum of Answer direct materials cost and direct labor cost indirect labor cost and overhead cost product costs and period costs direct labor cost and overhead cost .4 points Question 13 Which of the following is an example of a period cost? Answer research and development selling and marketing general accounting all of these .4 points Question 14 The cost of the partially completed goods at the end of the period would be Answer beginning work in process inventory cost of goods manufactured ending work in process inventory ending finished goods inventory .4 points Question 15 Which of the following would be found on the Balance Sheet of a manufacturer? Answer cost of goods sold cost of goods manufactured factory building all of the these .4 points Question 16 Figure 2-1. Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances. Refer to Figure 2-1: The per-unit conversion cost was: Answer $218.75 $156.25 $162.50 $100.00 .4 points Question 17 Figure 2-1. Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances. Refer to Figure 2-1: The total product costs for last month were: Answer $1,750,000 $2,110,000 $1,300,000 $1,250,000 .4 points Question 18 Figure 2-1. Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances. Refer to Figure 2-1: The total per unit prime cost was: Answer $263.75 $62.50 $162.50 $156.25 .4 points Question 19 Figure 2-1. Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances. Refer to Figure 2-1: What was the amount of cost of goods manufactured last month? Answer $1,750,000 $1,250,000 $1,300,000 $2,110,000 .4 points Question 20 During the month of June, Telecom Inc. had cost of goods manufactured of $112,000, direct materials cost of $52,000, direct labor cost of $37,000 and overhead cost of $26,000. The Work in Process balance at June 30 equaled $10,000. What was the Work in Process balance on June 1? Answer $7,000 $13,000 $10,000 $115,000 .4 points Question 21 Lakeland, Inc. manufactured 5,000 units during the month of March. They incurred direct materials cost of $100,000 and overhead cost of $40,000. If their per-unit prime cost was $26.00 per unit how much direct labor cost did they incur during March? Answer $20,000 $35,000 $90,000 $30,000 .4 points Question 22 Figure 2-3. Bartlow, Inc. had the following Income Statement for the month of May. Sales Revenue $428,000 Cost of Goods Sold 205,440 Gross Margin 222,560 Less: Selling Expenses 81,320 Administrative Expenses 72,760 Operating Income $ 68,480 Refer to Figure 2-3: What was the sales revenue percent? Answer 100% 48% 52% 16% .4 points Question 23 Figure 2-3. Bartlow, Inc. had the following Income Statement for the month of May. Sales Revenue $428,000 Cost of Goods Sold 205,440 Gross Margin 222,560 Less: Selling Expenses 81,320 Administrative Expenses 72,760 Operating Income $ 68,480 Refer to Figure 2-3: What was the cost of goods sold percent? Answer 100% 19% 52% 48% .4 points Question 24 Figure 2-4. Junko Company makes typewriters. During the year Junko manufactured 97,000 typewriters. Finished Goods Inventory had the following units on hand: January 1 1,260 December 31 1,040 Refer to Figure 2-4: How many typewriters did Junko sell during the year? Answer 96,780 97,220 97,000 98,260 .4 points Question 25 Figure 2-5. In July, Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000. Overhead totaled $32,000 for the month. Information on inventories was as follows: July 1 July 31 Materials $6,200 $7,100 Work in Process $ 700 $1,200 Finished Goods $3,300 $2,700 Refer to Figure 2-5: What was the cost of direct materials used in July? Answer $21,000 $20,100 $21,900 $20,500 .4 points Save and Submit Links to Test Questions and Answers Read question 1 Read answers for question 1 Read question 2 Read answers for question 2 Read question 3 Read answers for question 3 Read question 4 Read answers for question 4 Read question 5 Read answers for question 5 Read question 6 Read answers for question 6 Read question 7 Read answers for question 7 Read question 8 Read answers for question 8 Read question 9 Read answers for question 9 Read question 10 Read answers for question 10 Read question 11 Read answers for question 11 Read question 12 Read answers for question 12 Read question 13 Read answers for question 13 Read question 14 Read answers for question 14 Read question 15 Read answers for question 15 Read question 16 Read answers for question 16 Read question 17 Read answers for question 17 Read question 18 Read answers for question 18 Read question 19 Read answers for question 19 Read question 20 Read answers for question 20 Read question 21 Read answers for question 21 Read question 22 Read answers for question 22 Read question 23 Read answers for question 23 Read question 24 Read answers for question 24 Read question 25 Read answers for question 25