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First Quiz

The document contains a quiz on manufacturing costs, including true/false questions and multiple-choice questions related to direct labor, product costs, and conversion costs. It covers various scenarios and calculations involving direct materials, direct labor, manufacturing overhead, and cost of goods sold. The quiz aims to test knowledge on cost classifications and financial implications in a manufacturing context.

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janasnsai
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6 views7 pages

First Quiz

The document contains a quiz on manufacturing costs, including true/false questions and multiple-choice questions related to direct labor, product costs, and conversion costs. It covers various scenarios and calculations involving direct materials, direct labor, manufacturing overhead, and cost of goods sold. The quiz aims to test knowledge on cost classifications and financial implications in a manufacturing context.

Uploaded by

janasnsai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FIRST QUIZ

True 1. Direct labor is a part of both prime cost and conversion cost

False 2. Wages paid to production supervisors would be considered direct labor

False 3. Direct material cost combined with a manufacturing overhead cost is known as conversion cost

True 4. Although depreciation is always a period cost in a merchandising firm, it can be a product cost in
a manufacturing firm

True 5 The cost of shipping parts from a supplier is considered a product cost.

False 6. if the finished goods inventory increases between the beginning and the end of the period , then
the cost of goods manufactured for the period is larger than the cost of goods sold

True 7. The cost of goods manufactured for a period is the amount transferred from work in process
inventory to finished goods inventory during the period.

True 8. Manufacturing overhead can be either a variable cost or a fixed cost

True 9. Price must be greater than cost in order for the firm to generate revenue.

False 10. Glue used in the manufacture of cabinets would be an example of a fixed cost.

1. The cost of direct materials is classified as:

a. conversion cost Yes - manufacturing cost Yes - Prime cost Yes

b. conversion cost no - manufacturing cost no - Prime cost no

c. conversion cost Yes - manufacturing cost Yes - Prime cost no

d. conversion cost no - manufacturing cost Yes - Prime cost Yes

2. The three basic elements of manufacturing cost are direct materials, direct labor, and a cost of goods
manufactured c. work in process. b. cost of goods sold. d. overhead

3. The cost of fire insurance for a manufacturing plant is generally considered to be a:

a. product cost b. period cost c. variable cost d. all of the above

4. The following costs were incurred in August. Direct materials $37,000, Direct labor $14,000,
Manufacturing overhead control $38,000, Selling expenses $10,000 and Administrative expense $28,000.
Applied manufacturing overhead was 200% of direct labor cost.

Conversion costs during the month totaled: a. $65,000 b. $42,000 c. $52,000 d. $79,000

Use this situation until number 8 - 5. During the month of August, direct labor cost totaled $13,000 and
direct labor cost was 20% of prime cost. If total manufacturing costs during August were $88,000, the
manufacturing overhead was

a. $37,500 b. $23,000 c. $65,000 d. $52,500


6. How much is the cost of Direct materials used in the production?

a. $37,500

b. $23,000

c. $65,000

d. $52,000

7. How much is the Prime Cost?

a. $37,500

b. $23,000

c. $65,000

d. $52,000

8. How much is the Conversion Cost?

a. $52,000

b. $36,000

c. $56,000

d. $52,000

9. In August direct labor was 60% of conversion cost. If the manufacturing overhead for the month was
$54,000 and the direct materials cost was $34,000, the direct labor cost:

a. $36,000

b. $22,667

c. $51,000

d. $81,000

10. The total manufacturing cost in August:

a. $124,000

b. $110,667

c. $139,000

d. $169,000
11. The Prime Cost in August

a $70,000

b. $56,667

c. $85,000

d. $115,000

12. The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and
its gross profit was $220,000. If the ending inventory of finished goods was $30,000, the beginning
inventory of finished goods must have been a. $20,000 b. $50,000 c. $110,000 d. $150,000

13. Last month a manufacturing company had the following operating results:

Beg finished goods inventory $90,000

Ending finished goods inventory $63,000

Sales $412,000

Gross profit $62,000

What was the cost of goods manufactured for the month?

a. $350,000

b. $385,000

c. $377,000

d. $323,000
14. The following inventory balances relate to Lequin Manufacturing Corporation at the beginning and
end of the year

Raw materials - Beginning = $14,000 Ending = $19,000

Work in process - Beginning =$31,000 Ending =$7,000

Finished goods - Beginning =$25,000 Ending =$23,000

Lequin's total manufacturing cost was $543,000. What was Lequin's cost of goods sold?

a. $517,000

b. $545,000

c. $569,000

d. $567,000

Use the following data for the next 2 questions:

15. Sofia Inc., submits the following data for December:

Direct labor cost-P30,000

Cost of goods sold-P111,000

Factory overhead is applied at 150% of direct labor cost

Inventory accounts showed these beginning and ending balances:

Finished Goods - December 1 = P15,000 December 31 = P17,500

Work in Process - December 1 = P9,600 December 31 = P13,000

Materials - December 1 = P7,000 December 31 = P7,400

Other data:

Marketing Expenses - P14,000

Gen and admin Expenses - P22,900

Sales for the month - P182,000

Compute for December cost of goods available for sale.

a. P128,500

b. P125,000

c. P113,500

d. P115,300
16. The operating income of Sofia Inc:

a. P34,100

b. P31,400

c. P31,500

d. P35,100

17. The following data are provided by the controller of Sofia Corporation

Cash P240,000

Accounts receivable P348,000

Finished goods July 1, 2017=P44,200 July 31, 2018=P66,000

Work in process July 1, 2017= P29,800 July 31, 2018= P38,800

Materials July 1, 2017=P88,000 July 31, 2018=P64,000

Materials purchased P366,000

Sales discount P8,000

Factory overhead (excluding depreciation)P468,400

Marketing and Admin Expenses(excluding depreciation) P344,200

Depreciation (90% overhead & 10% marketing & admin) P116,000

Sales P1,844,000

Direct labor P523,000

Freight on materials purchased P6,000

Rent income P64,000

Interest on bonds payable P16,000


Compute for manufacturing cost:

a. P1,590,800

b. P1,509,800

c. P1,498,100

d. P1,491,800

18. The cost of goods sold:

a. P1,461,000

c. P1,484,000

b. P1,478,200

d. P1,448,500

19. Which of the following items is not included in (charged to) factory overhead?

a. Factory depreciation and supplies

b. Cost of service departments

c. Cost of marketing departments

d. Cost of maintenance departments

20. The following cost data were taken from the records of JGG manufacturing company:

Depreciation of factory equipment

P 1,000

Depreciation of sales office 500

Advertising 7,000

Freight out 3,000

Wages of production workers 28,000

Raw materials used 47,000

Sales salaries and commissions 10,000

Factory rent 2,000


Factory insurance 500

Materials handling 1,500

Administrative salaries 2,000

Based on this information, the manufacturing cost incurred during the year was:

a. P81,000

b. P80,000

c. P80,500

d. P83,000

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