The balance in the Finished Goods Inventory account on July 1, 2007, was

$34,000 and the June 30, 2008, balance in the Finished Goods Inventory account was $41,000. If the cost of goods manufactured was $200,000, what was the cost of goods sold?

A. $285,000

B. $193,000

C. $207,000

D. $278,000

Which of the following describes the differences between job-order and process costing? A. Job-order costing is used in financial accounting while process costing is used in managerial accounting.

B. Job-order costing can only be used by manufacturers; service enterprises must use process costing.

Job-order costing is voluntary while process costing is mandatory.

D. Job-order costing traces costs to jobs while process costing traces costs to departments and averages the costs among the units worked on during the period.

Which of the following costs is not added to the Work in Process account in a process costing system?

manufacturing overhead

direct materials

direct labor

advertising

You have tickets to go to Mexico (Cancun specifically) over spring break. Just this week your best friend informs you that s/he is getting married over spring break and would like you to be in the wedding as an attendant. Which of the following is a sunk cost that should not be relevant to your decision as to whether be in the wedding or go on the trip to Mexico?

The cost of the airline tickets to Mexico

The amount of refund you could get on the airline tickets to Mexico

The cost of the clothing you will have to buy/rent to be in the wedding.

The fact that you have never been anywhere for Spring Break and were really looking forward to going to Mexico

Department A began the period with 45,000 units. During the period the department received another 30,000 units from the prior department and completed 60,000 units during the period. The remaining units were 75% complete. The amount of equivalent units in Department As work-in-process inventory at the end of the period is:

A. 30,000.

B. 22,500.

C. 15,000.

D. 11,250.

Which of the following costs is least likely to be a variable cost?

sales commissions

direct labor

indirect materials

supervisory salaries

Which of the following components are included in a mixed cost?

a sunk cost and an opportunity cost

a fixed cost and a variable cost

a manufacturing cost and a selling cost

a product cost and a period cost

Karis Kookies has total costs of $5,000 when 2,000 units are produced and $11,000 when 5,000 units are produced. What is the variable cost per unit?

$2.50

$2.20

$2.00

$0.50

Which of the following items appears on a contribution margin income statement but not on a GAAP income statement?

A. Sales

B. Gross margin

C. Net income

D. Contribution margin

Well Water Inc. wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2.00 per 12 oz. bottle. The following data has been collected:

Annual sales 50,000 bottles

Projected selling and administrative costs $8,000

Desired profit $70,000

The target cost per bottle is

a. $0.44.

b. $0.60.

c. $0.16.

d. $0.40.

The formal documents that quantify a companys plans for achieving its goals are called

A. variance reports.

B. budgets.

C. exception logs.

D. cost of production reports.

Which of the following costs does not change when the level of business activity changes? A. total fixed costs B. total variable costs C. total direct materials costs D. fixed costs per unit

When work is completed on a job, costs for the completed job are found in which of the following accounts?

Raw Materials Inventory

Work in Process Inventory

Finished Goods Inventory

Cost of Goods Sold

In a process costing system, when raw materials are put into process, the cost of the items is moved from A. Work in Process to Finished Goods.

Finished Goods to Cost of Goods Sold.

Raw Materials to Work in Process.

Finished Goods to Work in Process

Conversion costs are A. often assumed to be added at the beginning of the production process in each department. B. the sum of the direct materials and direct labor costs. C. impossible to measure for any particular department. D. often assumed to be added evenly throughout the process within the department.