Chap 2 Practice Quiz

Chap 2 Practice Quiz - No change Increase 4 Wages paid to...

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Accounting 230 Practice Quiz Chapter 2 For each of the following multiple choice questions, circle the letter of the best answer. 1. The cost of goods manufactured for a period will usually include: A. only costs incurred during the current period. B. Only conversion costs. C. Some costs incurred during the prior period as well as costs incurred during the current period. D. Some period costs as well as some product costs. E. None of the above. 2. Indirect labor is a: A. Nonmanufacuring cost D. Period cost B. Conversion cost E. None of these C. Prime cost 3. When production levels are expected to decline within a relevant range, and a flexible budget is used, what effects would be anticipated with respect to each of the following: Fixed Cost per unit Variable Cost per unit A. Increase Increase B. Increase No change C. No change No change D.
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Unformatted text preview: No change Increase 4. Wages paid to factory machine operators of a manufacturing plant are an element of: Prime cost Conversion cost A. No No B. No Yes C. Yes No D. Yes Yes Problem #5 is on the next page 5. Use the following data: January 1, 200X January 31, 200X Raw materials inventory $ 8,000 ? Work in process inventory ? $ 14,000 Finished goods inventory $25,000 $ 35,000 Other data: Sales $350,000 Utilities, factory $ 32,000 Depreciation, sales cars $ 10,000 Direct labor $ 80,000 Purchase of raw materials $ 94,000 Administrative salaries $ 40,000 Indirect labor $ 12,000 Cost of goods manufactured $206,000 Raw materials used in production $ 87,000 Sales commissions $ 15,000 The ending raw materials inventory would be: A. $ 3,000 B. $ 7,000 C. $15,000 D. $11,000 E. None of the above...
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Chap 2 Practice Quiz - No change Increase 4 Wages paid to...

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