11) Calculate the cost of goods sold when beginning finished goods inventory equals $70,000, ending finished goods inventory $85,000, and cost of goods manufactured $600,000.

A) $615,000

B) $445,000

C) $685,000

D) $585,000

 

12) What inventories are included in determining the cost of goods sold?

A) Beginning and ending finished goods

B) Beginning and ending raw materials

C) Beginning and ending work-in-process

D) None of these answers are correct.

13) What inventories are included in determining total manufacturing costs?

A) Beginning and ending finished goods

B) Beginning and ending raw materials

C) Beginning and ending work-in-process

D) None of the above answers is correct.

 

14) The formula for cost of goods manufactured is:

A) raw materials plus direct labor minus overhead plus beginning work-in-process inventory plus ending work-in-process inventory.

B) raw materials minus direct labor plus overhead plus beginning work-in-process inventory plus ending work-in-process inventory.

C) beginning work-in-process plus total manufacturing cost minus ending work-in-process.

D) raw materials plus direct labor less overhead plus beginning work-in-process inventory less ending work-in-process inventory.

 

15) The second step in determining total manufacturing costs is to calculate:

A) the raw material cost for the month.

B) the direct labor cost for the month.

C) factory overhead cost for the month.

D) None of these answers are correct.

 

16) The statement of cost of goods manufactured does not include:

A) direct labor costs.

B) raw material costs.

C) manufacturing overhead.

D) All of the above are included.

17) Manufacturing cost includes:

A) raw material.

B) direct labor.

C) manufacturing overhead.

D) All of these answers are correct.

 

18) Raw material inventory appears on the:

A) balance sheet.

B) income statement.

C) cost of goods manufactured statement.

D) Both A and C are correct.

 

19) A material requisition is a:

A) document prepared to show the movement of materials or products between departments.

B) document used to order materials or supplies from the vendor or supplier.

C) document used for charging material to production.

D) document used to record receipt of materials or supplies from the vendor or supplier.

 

20) A clock card is:

A) the basis for payroll.

B) the basis for charging cost of goods sold.

C) a document to show movement of materials.

D) a document used to order materials.

 

 



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