BUSINESS

Question 1

Green Company’s costs for the month of August were as follows: direct materials, $27,000; direct labor, $34,000; selling, $14,000; administrative, $12,000; and manufacturing overhead, $44,000. The beginning work in process inventory was $16,000 and the ending work in process inventory was $9,000. What was the cost of goods manufactured for the month?

[removed] A. $105,000
[removed] B. $132,000
[removed] C. $138,000
[removed] D. $112,000

 

Question 2

Consider the following costs incurred in a recent period:

Direct Materials  $       33,000
Depreciation on factory equipment  $       12,000
Factory janitor’s salary  $       23,000
Direct labor  $       28,000
Utilities for factory  $         9,000
Selling expenses  $       16,000
Production supervisor’s salary  $       34,000
Administrative expenses  $       21,000

What was the total amount of the period costs listed above for the period?

[removed] a. $78,000
[removed] b. $71,000
[removed] c.  $37,000
[removed] d.  $46,000

 

Question 3

The following inventory balances relate to Lequin Manufacturing Corporation at the beginning and end of the year:

     Beginning        Ending
Raw materials  $       14,000  $     19,000
Work in proces  $       31,000  $       7,000
Finished goods  $       25,000  $     23,000

Lequin’s total manufacturing cost was $543,000. What was Lequin’s cost of goods sold?

[removed] a.   $517,000
[removed] b.  $545,000
[removed] c. $569,000
[removed] d. $567,000

 

Question 4

Corcetti Company manufactures and sells prewashed denim jeans. Large rolls of denim cloth are purchased and are first washed in a giant washing machine. After the cloth is dried, it is cut up into jean pattern shapes and then sewn together. The completed jeans are sold to various retail chains.

Which of the following terms could be used to correctly describe the cost of the soap used to wash the denim cloth?

Direct Cost Product Cost
A) Yes Yes
B) Yes No
C) No Yes
D) No No
[removed] a.
A)
 
[removed] b.
B)
 
[removed] c.
C)
 
[removed] d.
D)
 

 

Question 5

The variable cost per unit is constant and does not depend on how many units are produced.

[removed]True

[removed]False

 

Question 6

Which two terms below describe the wages paid to security guards that monitor a factory 24 hours a day?

[removed] A.  

variable cost and direct cost

 

[removed] B.  

fixed cost and direct cost

 

[removed] C.  

variable cost and indirect cost

 

[removed] D. fixed cost and indirect cost

 

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