Exam 4 Practice Questions

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter: Job 336 - $450 Job 357 - $1,235 Job 358 - $378 Job 359 - $689 Job 360 - $456 Jobs 356, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 each. What I the ending balance of COGS for Adams Co at the end of the first quarter?

c

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter: Job 336 - $450 Job 357 - $1,235 Job 358 - $378 Job 359 - $689 Job 360 - $456 Jobs 356, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 each. What is the ending balance of Finished Goods at the end of the first quarter? a. $1,685 b. $2,685 c. $1,067 d. $685

c

What type of cost is the following: depreciation of factory plant and equipment

factory overhead

What type of cost is the following: factory depreciation from an accounting department's computation of depreciation

factory overhead

What type of cost is the following: factory power from utility bills

factory overhead

What type of cost is the following: heating and lighting the factory

factory overhead

What type of cost is the following: indirect labor from the salaries of production supervisors and the wages of other employees such as janitors

factory overhead

What type of cost is the following: indirect materials from a summary of materials requisitions

factory overhead

If producing clothes, would the cost of IT support be a period or product cost?

period

Would this be a job order cost system of process cost system: chemical processors

process cost

Would this be a job order cost system of process cost system: food processors

process cost

Would this be a job order cost system of process cost system: oil refineries

process cost

Would this be a job order cost system of process cost system: paper producers

process cost

If producing clothes, would the fabric itself be a period or product cost?

product (DM)

Would sales commission be a selling or administrative expense? What type of cost is it classified as?

selling; period

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. In addition, factory overhead charged to production was $32,000. The entry to record the direct labor cost is... a. Dr. WIP 150,000 Cr. Wages Payable 150,000 b. Dr. WIP 175,000 Cr. Wages Payable 175,000 c. Dr. Wages Payable 175,000 Cr. WIP 175,000 d. Dr. Wages Payable 150,000 Cr. WIP 150,000

a

Which of the following is a part of factory overhead cost? a. sales commissions b. depreciation of factory equipment and machines c. depreciation of salesperson's vehicle d. direct materials used

b

Which of the following is an example of direct materials cost for an automobile manufacturer? a. cost of oil lubricants for factory machinery b. cost of wages of assembly worker c. salary of production supervisor d. cost of interior upholstery

d

Categorize the process of building a car into the types of costs: 1. the wheels 2. the glass for the windshield 3. the engine 4. the depreciation of the car

1 - DM 2 - FO 3 - DM 4 - FO

A company manufactured 50,000 units of a product at. cost of $450,000. It sold 45,000 units at $15 each. The gross profit is... a. $750,000 b. $240,000 c. $600,000 d. $270,000

d

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. A total of 1000 units were produced at a per-unit cost of... a. $12,400 b. $1,240 c. $124 d. $12.40

d

What type of cost is the following: assemblers' wages for assembling a laptop computer

direct labor

What type of cost is the following: machine operators' wages for manufacturing tools

direct labor

What type of cost is the following: mechanics' wages for repairing an automobile

direct labor

What type of cost is the following: the wages of employees who cut guitars out of raw lumber and assemble them

direct labor

What type of cost is the following: engine in a car

direct material

What type of cost is the following: silicon wafers for computer chips

direct material

What type of cost is the following: the cost of electronic components for a television

direct material

What type of cost is the following: the cost of the wood used in producing a guitar

direct material

What type of cost is the following: tires for an automobile

direct material

What type of cost is the following: transmission in a car

direct material

Would this be a job order cost system of process cost system: apparel manufacturer

job order

Would this be a job order cost system of process cost system: guitar manufacturer

job order

Would a CEO's salary be a selling or administrative expense? What type of cost is it classified as?

administrative; period

What type of cost is the following: insurance on factory buildings

factory overhead

What type of cost is the following: property taxes on factory buildings and land

factory overhead

What type of cost is the following: repairing and maintaining factory equipment

factory overhead

Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290. a. $533,800 b. $187,900 c. $731,700 d. $384,200

D

Would depreciation on an office building be a selling or administrative expense? What type of cost is it classified as?

administrative; period

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter: Job 336 - $450 Job 357 - $1,235 Job 358 - $378 Job 359 - $689 Job 360 - $456 Jobs 356, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 each. What is the ending balance of WIP for Adams Company at the end of the first quarter? a. $0 b. $456 c. $3,208 d. $2,752

b

Aspen Technologies has the following budget data: Estimated direct labor hours 15,000 Estimated direct labor dollars $90,000 Estimated factory overhead costs $198,000 ​ If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is a. $7.50 b. $13.20 c. $2.20 d. $16.50

b

Given the following data: Beginning raw materials inventory $30,000 Materials purchased 65,000 Ending raw materials inventory 40,000 What is the amount of raw materials used? a. $5,000 b. $55,000 c. $75,000 d. $30,000

b

Sanders Inc. has applied $567,988 of overhead to jobs in the cost ledger. Actual overhead at the end of the year is $575,000. The adjustment for over- or underapplied overhead is: a. $7,012 overapplied, increase COGS b. $7,012 underapplied, increase COGS c. $7,012 overapplied, decrease COGS d. $7,012 underapplied, decrease COGS

b

Which types of inventories does a manufacturing business report on the balance sheet? a. Finished goods inventory and work in process inventory only b. Direct materials inventory and work in process inventory only c. Direct materials inventory, work in process inventory, and finished goods inventory d. Direct materials inventory and finished goods inventory only

c