JSR+Final+Exam+Review - Final Exam Review Chapters 1-4...

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Final Exam Review Chapters 1-4 Multiple Choice Questions 1. Cost of goods manufactured during a period is obtained by taking the total manufacturing costs incurred during the period and adding and subtracting the following inventories: Adding Subtracting a. Beginning finished goods inventory Ending finished goods inventory b. Beginning work in process inventory Ending finished goods inventory c. Beginning raw materials inventory Ending work in process inventory d. Beginning work in process inventory Ending work in process inventory 2. Raw materials that can be physically and conveniently associated with the finished product are called a. Indirect materials. b. Conversion costs. c. Direct materials. d. Finished materials. 3. An appropriate cost driver for ordering and receiving materials cost is the a. Direct labor hours. b. Machine hours. c. Number of parts. d. Number of purchases orders. 4. Benefits of activity-based costing include all of the following except a. More accurate product costing. b. Fewer cost pools used to assign overhead costs to products. c. Enhanced control over overhead costs. d. Better management decisions. 5. An example of a value-added activity in a manufacturing operation is a. Machine repair. b. Inventory control. c. Engineering design. d. Building maintenance. Problem 1 Selected account balances of Coulter Manufacturing Company appear below for 2002: Beginning of Year End of Year Finished Goods Inventory $20,000 $ 26,000 Work In Process Inventory 30,000 35,000 Raw Materials Inventory 46,000 26,000 Sales 340,000 Direct Labor 55,000 Factory Supervisory Salaries 18,000 Income Tax Expense 25,000 Factory Insurance 12,000 Raw Material Purchases 90,000 Administrative Expenses 27,000 Sales Returns and Allowances 15,000 Factory Depreciation 22,000 Indirect Labor 11,000 Selling Expenses 35,000
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Instructions Using the above information for Coulter Manufacturing Company, answer the following questions. Support your answers with clearly identified computations. 1. What was the amount of direct materials used in production? 2. What were the total conversion costs incurred? 3. What was the cost of goods manufactured? 4. What was the cost of goods sold? 5. What was the amount of net income? Problem 2 Cost classification Consider the following items taken from the accounting records of Bedanova Manufacturing for 2002 (all figures in thousands): Advertising expense $ 40 Depreciation on factory building 110 Direct labor cost incurred 410 Direct materials used in production 290 Finished Goods, December 31 190 Income tax expense 130 Indirect materials 90 Indirect labor 230 Raw Materials, December 31 460 Sales commissions expense 70 Sales manager’s salary 80 Sales revenue 1,400 Utilities on factory building 60 Work in Process, December 31 340 Required: Calculate the following: a. Total manufacturing overhead b. Prime costs c. Conversion costs d. Total manufacturing costs e. Period costs Problem 3 Cost-Volume-Profit Analysis Ignatieva Instruments is a major producer of electronic keyboards. Key financial data for its best-selling
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This note was uploaded on 02/25/2011 for the course ECON 2035 taught by Professor Stahl during the Spring '08 term at LSU.

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JSR+Final+Exam+Review - Final Exam Review Chapters 1-4...

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