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Mid Exam For COST I - Its Cost Lecture Note

This document appears to be a midterm exam for a cost accounting course. It contains multiple choice and true/false questions covering topics like direct materials, work in process inventory, finished goods inventory, cost of goods sold, manufacturing overhead, and cost allocation methods. It also includes two word problems asking students to calculate values like direct material purchases and direct labor costs based on financial information provided. The exam is out of a total of 30% and students have 1 hour and 20 minutes to complete it.

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100 views3 pages

Mid Exam For COST I - Its Cost Lecture Note

This document appears to be a midterm exam for a cost accounting course. It contains multiple choice and true/false questions covering topics like direct materials, work in process inventory, finished goods inventory, cost of goods sold, manufacturing overhead, and cost allocation methods. It also includes two word problems asking students to calculate values like direct material purchases and direct labor costs based on financial information provided. The exam is out of a total of 30% and students have 1 hour and 20 minutes to complete it.

Uploaded by

hatenon1415
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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2/22/24, 12:16 PM Mid Exam For COST I - its cost lecture note

Royal University College


Cathedral campus
Department of Accounting & Finance
mid examination for Cost and management accounting I (30%)
Maximum time allowed 1 hour& 20 Minute
Name_____________________________________, Section_______, Id No_____________
Instruction: During the examination time cheating and using any electronic devices (except calculator) is for bidden!!
Part one True or False questions (One point each); Write True if the statement is correct and False if the
statement is in correct on the attached answer sheet.
1) Computing unit cost is very difficult, because some costs have direct relation with individual units produced.
2) A debit balance in the manufacturing overhead account at year end means that overhead is under applied
3) Job order costing is used in manufacturing companies and process costing is used in service companies.
4) All direct material and labor costs may not necessarily traceable to products being produced.
5) Advertising, warehousing and customer’s service costs can be considered as good examples for
manufacturing overhead cost.
Part two multiple choice questions (One point each); Chose the best answer from the alternatives and
write the answer in the attached answer sheet.
1) Which of the following is a period cost?
a) Direct materials b) Direct Labor c) Factory overhead d) selling & administrative
2) A company has purchased some steel to use in the production of steel railings. If this steel has NOT been put
into production, it would be classified as:
a) DM inventory b) WIP inventory c) Factory supplies d) Finished goods inventory.

3) The beginning Finished Goods Inventory plus ________ minus ending finished goods inventory equals Cost
of goods sold.
a) DM inventory b) Finished goods inventory c) Cost of goods manufactured d) None

4) _________ are costs that directly traceable to a particular product.


a) DM b) FOH c) DL d) a and c

5) GSK furniture produces tables and sold to the market, the tables are made of wood that cost $100 per table,
and this cost can be classified as?
a) FOH b) Variable cost c) DM d) b and c
6) What source document is used to determine the actual amount of direct material used in production in a job
cost system?
A) Bill of materials B) Production Order
C) Material purchase order D) Material requisitions form

7) Term which describes assigning of indirect cost to any cost abject is classified as
A) Cost allocation B) Cost tracing C) Cost assignment D) All

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2/22/24, 12:16 PM Mid Exam For COST I - its cost lecture note

Part three work out (Twenty points)


The following data relates to Q10- Q12 Beginning Ending
Direct materials $40,000 $50,000
Work in process $25,000 $30,000
Finished goods $75,000 $60,000
The income statement for January 2007 showed
Cost of goods manufactured $515,000
Factory overhead $150,000

Direct material used $190,000


8) How much will be the Cost of goods sold?
a) $531,000 b) $535,000 c) $530,000 d) None
9) How much will be the direct material purchased?
a) $204,000 b) $200,000 c) $201,000 d) $205,000
10) How much will be the cost of direct labor incurred?
a) $186,000 b) $183,000 c) $180,000 d) None
Part two work out (Twenty points)
Q1. XYZ Company produces different plastic products and sold to the local market, data pertaining to XYZ Company is
give below:
Beginning Ending
Direct materials $22,000 $26,000
Work in process $21,000 $20,000
Finished goods $18,000 $23,000
The income statement for the period showed
Cost of goods manufactured $136,000
Factory overhead $39,000
Direct material used $71,000
Required: a) Compute XYZ’s direct material purchased (3 points)
b) Compute XYZ’s cost of goods sold (3 points)
c) Compute XYZ’s direct labor (4 points)

Q2. Xyz Company produces plastic products and sold to the local market, the job is started during the current year and
had ending balance of WIP birr 50,000, CGS birr 30,000 and Finished goods birr 20,000. During the year the company
applied birr 50,000 FOH cost but the actual FOH cost incurred during the period is birr 60,000.
Required: Dispose under applied or over applied, if any by using:
a) Direct write of method (4 point)
b) Proration method (6point)

Answer Sheet
Name ___________________________________ID No. ___________ Section __________

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2/22/24, 12:16 PM Mid Exam For COST I - its cost lecture note

Part I True or False (5 points)

1. ________ 2. _______ 3._______ 4.________ 5. _______

Part II Multiple Choices (10 points)

1. _______2. ______ 3._______4._______ 5. ______ 6. _______ 7. _______ 8. ______


9. _______ 10. _______
Part II Workout (20 points)

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