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EAC 2212 Week 1 Quizzes 1&2, Ch. 19, 20 For a manufacturing company, which of the following is an example of a period cost rather than a product cost? A Depreciation on factory equipment B Wages of salespersons C Wages of machine operators D Insurance on factory equipment Ans. B The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is A Manufacturing overhead B Indirect materials C Indirect labor D Direct labor Ans. D Molina Company has beginning and ending work in process inventories of $130,000 and $145, respectively. If total manufacturing costs are $620,000, what is the total cost of goods manufactured? A 750, B $765, C $605, D $635, Ans. C Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $390,000, what was the cost of raw materials purchased? A $390, B $420, C $366, D $414, Ans. D
Managerial accounting applies to each of the following types of businesses except A Service firms B Merchandising firms C Manufacturing firms D Managerial accounting applies to all types of firms Ans. D Internal reports must be communicated A Daily B Monthly C Annually D As Needed Ans. D A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n) A Period cost B Indirect material C Direct material D Miscellaneous expense Ans. B Which one of the following does not appear on the balance sheet of a manufacturing company? A Finished goods inventory B Work in process inventory C Cost of goods manufactured D Raw materials inventory Ans. C 131046
If the Manufacturing Overhead account has a debit balance at the end of a period, it means that A Actual overhead costs were less than overhead costs applied to jobs B Actual overhead costs were greater than overhead costs applied to jobs C Actual overhead costs were equal to overhead costs applied to jobs D No jobs have been completed Ans. B Cost of goods manufactured equals $55,000 for 2010. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Beginning and ending work in process for 2010 are $4,000 and $5,000, respectively. How much is cost of goods sold for the year? A $57, B $53, C $51, D $58, Ans. C Process costing is used when A The production process is continuous B Production is aimed at filling a specific customer order C Dissimilar products are involved D Costs are to be assigned to specific jobs Ans. A
Gulick Company developed the following data for the current year: Beginning work in process inventory
Direct materials used 72, Actual overhead 144, Overhead applied 108, Cost of goods manufactured
Total manufacturing costs 360, Gulick Company's ending work in process inventory is A$348, B $240, C $228, D $108, Ans. A Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $75,000 of direct materials costs and $90,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is A $165, B $300, C $225, D $202, Ans. C
