exam acc 240 ch 1-4 - Uses of Accounting Information II -...

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Uses of Accounting Information II - Online (It is suggested that you print out this page.) PART I (20 Points, 2 Points each) Multiple Choice: Indicate the answer that best completes the opening statement. 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 work in process inventory Ending work in process inventory b. Beginning work in process inventory Ending finished goods inventory c. Beginning raw materials inventory Ending finished goods inventory d. Beginning finished goods inventory Ending finished goods inventory 2. Raw materials that can be physically and conveniently associated with the finished product are called a. indirect materials. b. direct materials. c. conversion costs. d. finished materials. 3. Which one of the following would NOT be classified as a component of conversion costs? a. Indirect materials b. Direct labor c. Indirect labor d. Direct materials 4. In a process cost system, equivalent units of production are the a. units completed and transferred to finished goods. b. units that are transferred to the next processing department. c. work done on physical units expressed in fully completed units. d. units that are incomplete at the end of a period. Use the following information for questions 5 and 6.
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In the month of April, a department had 500 units in the beginning work in process inventory that were 60% complete. These units had $4,000 of materials cost and $3,000 of conversion costs. Materials are added at the beginning of the process and conversion costs are added uniformly throughout the process. During April, 10,000 units were completed and transferred to the finished goods
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This note was uploaded on 02/27/2011 for the course ACCOUNTING 240 taught by Professor Franco during the Spring '11 term at Paradise Valley Community College .

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exam acc 240 ch 1-4 - Uses of Accounting Information II -...

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