ACCT230 ch1-4

ACCT230 ch1-4 - SAMPLE EXAM QUESTIONS CHAPTERS 1-4*SEE...

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SAMPLE EXAM QUESTIONS: CHAPTERS 1-4 ***SEE SOLUTION AT END OF FILE*** For the next three (3) questions , determine whether each of the following items is MOST closely associated with (a) financial accounting (b) managerial accounting. 1. Focus on users external to the firm______ 2. Planning and Control______ 3. Generally accepted accounting principles______ 4. Product costs become an expense at the time the a. costs are incurred. b. costs can be identified with inventory. c. units of inventory are completed. d. units of inventory are sold. 5. Which of the following statements concerning manufacturing overhead is false? a. Manufacturing overhead costs include all costs incurred by the organization except direct materials and direct labor. b. Overhead costs are a product cost. c. As motorized production techniques are substituted for direct labor, the importance of overhead costs to the organization increases. d. Rent on the factory is a manufacturing overhead cost. 6. Which of the following costs would most likely be considered manufacturing overhead in the production of wooden tables? a. the salary paid to the individual who cuts the wood. b. the commission paid to the salesman who sells the table. c. the cost of the glue used in the table. d. the cost of wood used in the table. 7. Which one of the following shows the delegation of responsibility within a company? a. Authority outline b. Organization chart c. Company’s charter d. Sarbanes-Oxley Act
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8. At the beginning of 1997, Husker Company had direct materials inventory totaling $40,000 and Work in Process inventory with an accumulated cost of $60,000. During 1997, Husker purchased $200,000 of direct materials and incurred total production costs (including direct materials costs, direct labor costs, and applied overhead costs) of $280,000. At the end of 1997, Huskers physical inventories revealed that direct materials costing $48,000 and Work in Process with an accumulated cost of $100,000 were on hand at year-end. Determine the cost of direct materials used in production during 1997. a. $192,000 b. $208,000 c. $240,000 d. cannot be determined with the information provided. 9. Higgins Manufacturing Company reported the following year-end information: Beginning work in process inventory $23,000 Beginning raw materials inventory 12,000 Ending work in process inventory 25,000 Ending raw materials inventory 10,000 Raw materials purchased 340,000 Direct labor 120,000 Manufacturing overhead 50,000 How much is Higgins Manufacturing’s cost of goods manufactured for the year? a.$342,000 b.$512,000 c.$510,000 d.$514,000
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10. The Cecropia Candle Company incurred the following costs during 1999: Wax and Wicks Used $80 Direct Labor $50 Scents (essential oils) and Dyes Used $12 Salary of Production Manager $ 9 Heat, Light, and Power for the Plant $ 6 Factory Supplies $ 7 Depreciation on Candle Molds $ 6 Sales Commissions $58 The total product costs incurred during 1999 are: a. $228 b. $200 c. $170 d. $161
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This note was uploaded on 04/02/2008 for the course ACCT 230 taught by Professor Allen during the Spring '08 term at Texas A&M.

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ACCT230 ch1-4 - SAMPLE EXAM QUESTIONS CHAPTERS 1-4*SEE...

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