MANAGEMENT ACCOUNTING 1 EXAMINATION
Time: 3 Hours
Except for multiple-choice questions, all calculations must be shown to obtain full marks.
for each of the following unrelated items. Answer
of these items
by giving the number of your choice. For example, if the best answer for item (a)
is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will
not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations.
3 marks each
The accounts at year end of Hippo Manufacturing Company contained the following information:
Finished goods (FG) had one completed job that had not been sent out to the customer. The total
cost of $280,000 for this job included $48,000 in applied manufacturing overhead.
Work-in-process (WIP) inventory had a balance of $750,000, which included $92,000 in applied
Cost of goods sold (COGS) for the year was $3,070,000, of which $460,000 is applied
The manufacturing overhead account had a debit balance of $300,000 remaining after overhead had
been applied using the predetermined rate.
What is the
accurate disposition of the remaining balance in the manufacturing overhead
To debit work-in-process inventory by $46,000, debit finished goods inventory by $24,000, and
debit cost of goods sold by $230,000
To debit cost of goods sold by $300,000
To debit work-in-process inventory by $75,000, finished goods inventory by $75,000, and cost of
goods sold by $75,000
To credit work-in-process inventory by $46,000, credit finished goods inventory by $24,000, and
credit cost of goods sold by $230,000
The following describes the cost components of a costing system and their relationship to each other:
Beginning inventory + Direct labour + Direct materials + Manufacturing overhead – Finished goods
= Ending inventory.
Which of the following
describes the costing system(s) that these components belong to?
Job-order costing system
Process costing system
Activity-based costing system
Job-order costing system, process costing system, and activity-based costing system