influenced by cost.
A recent study of product no. 519 revealed a traditionally-derived
total cost of $1,019, a selling price of $1,850 based on that figure, and a newly
computed activity-based total cost of $1,215. Which of the following statements is
A) All other things being equal, the company should consider a drop in its sales price.
B) The company may have been excessively competitive in the marketplace from a
C) Product no. 519 could be labeled as being overcosted by the firm's traditional
D) If product no. 519 is undercosted by traditional accounting procedures, then all of
the company's other products must be undercosted as well.
E) Generally speaking, the activity-based cost figure is "less accurate" than the
traditionally-derived cost figure.
5. The accounting records of Bronco Company revealed the following information:
Raw materials used
Work-in-process inventory, 1/1
Finished-goods inventory, 1/1
Work-in-process inventory, 12/31
Finished-goods inventory, 12/31
Bronco's cost of goods manufactured is:
E) some other amount.
6. When underapplied or overapplied manufacturing overhead is pro-rated, amounts can be
assigned to which of the following accounts?
A) Raw-Material Inventory, Manufacturing Overhead, and Direct Labor
B) Work-in-process inventory, Raw Material Inventory, and Cost of Goods Sold
C) Raw-Material Inventory, Finished Goods Inventory, and Cost of Goods Sold
D) Raw-Material Inventory, Work-in Process Inventory, and Finished Goods Inventory
E) None of the above.