Scribd
Upload
41 views2 pages

Extra Exercises On Chapter 1 - Q&A

This document contains 6 multiple choice questions related to accounting concepts like prime cost, conversion cost, direct costs, fixed costs, and variable costs. Question 1 asks to calculate conversion cost given information about prime cost, direct material cost, and manufacturing overhead cost. Question 2 asks to calculate overhead costs given information about direct labor costs, prime costs, and total manufacturing costs. Question 3 asks to identify conversion costs from a list of direct costs, overhead costs, and other expenses.

Uploaded by

amel.aljasmii
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
41 views2 pages

Extra Exercises On Chapter 1 - Q&A

This document contains 6 multiple choice questions related to accounting concepts like prime cost, conversion cost, direct costs, fixed costs, and variable costs. Question 1 asks to calculate conversion cost given information about prime cost, direct material cost, and manufacturing overhead cost. Question 2 asks to calculate overhead costs given information about direct labor costs, prime costs, and total manufacturing costs. Question 3 asks to identify conversion costs from a list of direct costs, overhead costs, and other expenses.

Uploaded by

amel.aljasmii
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
You are on page 1/ 2

Exercises & Questions on Chapter 1

1. During a month the prime cost in a company was $ 700,000, direct material cost was $
300,000, and manufacturing overhead cost was $ 200,000. How much will be the
conversion cost?
a. $ 200,000 Prime cost = direct material + direct labor

b. $ 600,000 Conversion cost = Direct Labor + Overhead


c. $ 800,000
d. $ 500,000
2. During the month of August, the cost of direct labor in a company was $ 17,000 (60%
of the prime cost). Assume that the total manufacturing costs during that month were
$ 82,000. How much will be the overhead costs?
a. $ 11,333
b. $ 53,667
c. $ 28,333
d. $ 65,000
3. The following costs were incurred in May:

Direct materials $ 41,000


Direct labor $ 13,000
Manufacturing overhead $ 46,000
Selling expenses $ 18,000
Administrative expenses $ 15,000

Conversion costs during the month totaled:


a. $54,000
b. $133,000
c. $59,000
d. $87,000

Page 1 of 2
4. Consider the following costs incurred in a recent period:

What was the total amount of the period costs listed above for the period?
a. $78,000
b. $71,000
c. $46,000
d. $37,000

5. Alfa Corporation has provided the following information


Cost per Unit Cost per Period
Direct materials $ 5.00
Direct labor $ 2.90
Variable manufacturing overhead $ 1.25
Fixed manufacturing overhead $ 21,000
Sales commissions $ 1.00
Variable administrative expense $ 0.55
Fixed selling and administrative expense $ 7,500

If 4,000 units are produced, the total amount of direct manufacturing cost incurred is
closest to:
a. $53,400
b. $35,600
c. $36,600
d. $31,600

6. Fixed cost per unit is £9 when 20 000 units are produced and its £6 when 30 000 units are
produced. What is the total fixed cost when nothing is produced?
a. £120 000
b. £270 000
c. £15
d. £180 000

Page 2 of 2

You might also like