1. Plano Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $866,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $574,000. Plano Company's cost of goods sold for the year is

a.

$544,000.

b.

$812,000

c.

$626,000.

d.

$874,000.

QUESTION 2

1. JHS Inc. has reported the following data:
2. Purchases of Raw Material $5,400
3. Freight In 150
4. Property Tax 950
5. Ending Inventory of Raw Materials 1,700
6. Beginning Inventory of Raw Materials 3,500
8. Assuming that all materials used are direct materials, compute the amount of direct materials used.

a.

$7,350

b.

$7,200

c.

$8,300

d.

$7,500

QUESTION 3

1. The equation which reflects a CVP income statement is

a.

Sales + Fixed costs = Variable costs + Net income.

b.

Sales - Variable costs + Fixed costs = Net income.

c.

Sales - Variable costs - Fixed costs = Net income.

d.

Sales = Cost of goods sold + Operating expenses + Net income.

QUESTION 4

1. An increase in the level of activity will have the following effects on unit costs for variable and fixed costs:

a.

Unit Variable Cost Unit Fixed Cost

Decreases Remains constant

b.

Unit Variable Cost Unit Fixed Cost

Remains constant Remains constant

c.

Unit Variable Cost Unit Fixed Cost

Remains constant Decreases

d.

Unit Variable Cost Unit Fixed Cost

Increases Decreases

QUESTION 5

1. The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is

a.

direct labor.

b.

indirect materials.

c.

manufacturing overhead.

d.

indirect labor.

QUESTION 6

• Frisco Company's accounting records reflect the following inventories:

1. Dec. 31, 2019 Dec. 31, 2018
2. Raw materials inventory $310,000 $260,000
3. Work in process inventory 300,000 160,000
4. Finished goods inventory 790,000 250,000
5. During 2019, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000.
6. If Frisco's cost of goods manufactured for 2019 amounted to $1,890,000, its cost of goods sold for the year is

a.

$790,000.

b.

$2,290,000.

c.

$1,990,000.

d.

$1,350,000.

QUESTION 7

1. Which one of the following is not a cost element in manufacturing a product?

a.

Manufacturing overhead

b.

Office salaries

c.

Direct labor

d.

Direct materials

QUESTION 8

1. If accounts receivable have increased during the period,

a.

revenues on an accrual basis are less than revenues on a cash basis.

b.

revenues on an accrual basis are greater than revenues on a cash basis.

c.

expenses on an accrual basis are greater than expenses on a cash basis.

d.

revenues on an accrual basis are the same as revenues on a cash basis.