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!!!!!Quiz !!!!
1. Presented is selected information from Till's April income statement and statement of cost of goods manufactured. Use T-accounts to determine the beginning balance of finished goods inventory on April 1.
Cost of goods sold $230,000
Cost of goods manufactured $210,000
Ending finished goods inventory, April 30 $40,000
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$80,000 |
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$20,000 |
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$60,000 |
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$40,000 |
If a company accumulated $45,000 of actual overhead but applied $48,000 of overhead into work in process, we would conclude
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That overhead was incorrectly applied to WIP. |
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That overhead was over-applied by $3,000. |
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That overhead was under-applied by $3,000. |
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That overhead should have been expensed instead of included in WIP. |
3.
Which of the following refers to goods that are produced by a manufacturing company and ready to sell?
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supplies inventory |
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materials inventory |
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work in process inventory |
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finished goods inventory |
4. Period costs are classified as inventory until sold and are then expensed as Cost Of Goods Sold.
True/False
5. Absorption costing is the idea that all manufacturing overhead should be treated as a period cost and expensed immediately.
True/False
6.
Conversion costs are
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The combined costs of converting raw materials to finished goods. |
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The overhead costs associated with processing a product. |
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The direct labor costs associated with processing a product. |
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All the costs that go into the manufacturing of a product (DM, DL and OH). |
7.
A company requisitioned $40,000 of materials during the year and incurred direct labor charges of $50,000. If the company began the year with a work-in-process inventory balance of $15,000 and applied overhead of $60,000, what is the ending balance of work-in-process inventory assuming no goods were moved to finished goods inventory for the year?
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$150,000 |
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$165,000 |
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$135,000 |
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$85,000 |
8. A company that produces products in “batches” as ordered would most likely use a job order costing system.
True/False
9.
Which of the following is NOT a characteristic of product costs?
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The costs go into inventory until the product is sold and then the expense flows through Cost of Goods Sold |
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They include items such as raw materials, direct labor and manufacturing overhead costs |
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They may include overhead costs allocated using a predetermined rate |
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These costs get recognized as expenses immediately as incurred |
10.
Estimated machine hours used to set the predetermined overhead rate were 68,000, while actual hours were 64,000 for the period. Estimated (budgeted) overhead was $142,800. Assuming the company used a predetermined overhead rate, how much overhead was applied for the year?
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$142,800 |
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$134,400 |
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$151,725 |
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$136,500 |