120) Which of the following costs is not included in factory overhead?
A) Payroll taxes on the wages of factory supervisors.
B) Indirect labor.
C) Depreciation of manufacturing equipment.
D) Manufacturing supplies used.
E) Direct materials.
121) Which of the following should not be included in direct materials costs for a bike
manufacturer?
A) Tires.
B) Machine lubrication oil.
C) Seats.
D) Pedals.
E) Handlebars.
122) Raw materials that are tangible components of the finished product and can be separately
and readily traced through the manufacturing process are called:
A) Raw materials sold.
B) Chargeable materials.
C) Work in process.
D) Indirect materials.
E) Direct materials.
123) The three major cost of manufacturing a product are:
A) Marketing, selling, and administrative costs.
B) Indirect labor, indirect materials, and fixed expenses.
C) Direct materials, direct labor, and factory overhead.
D) Product costs, period costs, and variable costs.
E) General, selling, and administrative costs.
124) Which of the following costs would not be classified as factory overhead?
A) Property taxes on maintenance machinery.
B) Insurance on factory building.
C) Wages of the factory janitor.
D) Rubber for the soles of shoes produced.
E) Small tools used in production.
125) A manufacturer’s total cost of making and finishing products in the period is called:
A) Ending finished goods inventory.
B) Total manufacturing costs.
C) Ending work in process inventory.
D) Cost of goods manufactured.
E) Cost of goods sold.
126) A manufacturing firm’s cost of goods manufactured is equivalent to a merchandising firm’s:
A) Cost of goods sold.
B) Cost of goods purchased.
C) Cost of goods available.
D) Beginning merchandise inventory.
E) Ending merchandise inventory.
127) Which one of the following items is not a manufacturing cost?
A) Direct materials.
B) Factory overhead.
C) General and administrative expenses.
D) Direct labor.
E) Conversion cost.
128) Which of the following is not part of the materials activity in the flow of manufacturing
activities?
A) Beginning raw materials.
B) Beginning work in process.
C) Raw materials purchases.
D) Raw materials available for use.
E) Ending raw materials.
129) Which of the following is not part of the production activity in the flow of manufacturing
activities?
A) Beginning Work in Process Inventory.
B) Cost of goods manufactured.
C) Direct labor.
D) Factory overhead.
E) Total finished goods available for sale.
130) Which of the following is not part of the sales activity in the flow of manufacturing
activities?
A) Beginning Finished Goods Inventory.
B) Cost of Goods Manufactured.
C) Total Finished Goods available for sale.
D) Ending Work in Process Inventory.
E) Cost of Goods Sold.
131) A manufacturing company has a beginning finished goods inventory of $14,600, raw
material purchases of $18,000, cost of goods manufactured of $32,500, and an ending finished
goods inventory of $17,800. The cost of goods sold for this company is:
A) $21,200.
B) $29,300.
C) $32,500.
D) $47,100.
E) $27,600.
132) A manufacturing company has a beginning finished goods inventory of $28,300, cost of
goods manufactured of $58,500, and an ending finished goods inventory of $27,600. The cost of
goods sold for this company is:
A) $114,400.
B) $57,800.
C) $2,600.
D) $86,100.
E) $59,200.
133) Romeo Corporation reports the following for the year:
Finished goods inventory, January 1
$
3,200
Finished goods inventory, December 31
4,000
Total cost of goods sold
14,200
The cost of goods manufactured for the year is:
A) $21,400.
B) $11,000.
C) $15,000.
D) $17,400.
E) $10,200.
134) Mustang Corporation reports the following for the month of April:
Finished goods inventory, April 1
$
Finished goods inventory, April 30
Total cost of goods manufactured
The cost of goods sold for April is:
A) $169,300.
B) $108,900.
C) $59,700.
D) $120,100.
E) $144,700.
135) A company’s prime costs total $3,000,000 and its conversion costs total $7,000,000. If
direct materials are $1,000,000 and factory overhead is $5,000,000, then direct labor is:
A) $4,000,000.
B) $14,000,000.
C) $2,000,000.
D) $1,000,000.
E) $3,000,000.
136) Craigmont Company’s direct materials costs are $3,000,000, its direct labor costs total
$7,000,000, and its factory overhead costs total $5,000,000. Its prime costs total:
A) $10,000,000.
B) $8,000,000.
C) $12,000,000.
D) $5,000,000.
E) $15,000,000.
137) Craigmont Company’s direct materials costs are $3,000,000, its direct labor costs total
$7,000,000, and its factory overhead costs total $5,000,000. Its conversion costs total:
A) $10,000,000.
B) $8,000,000.
C) $12,000,000.
D) $5,000,000.
E) $15,000,000.
138) A schedule of cost of goods manufactured is also known as a:
A) Raw materials processed schedule.
B) Factory supplies used schedule.
C) Manufacturing statement.
D) Total finished goods statement.
E) Cost of goods sold schedule.
139) The following information relates to the manufacturing operations of the JNR Printing
Company for the year:
Beginning
Ending
Raw materials inventory
$
57,000
$
60,000
Finished goods
68,000
60,000
The raw materials used in manufacturing during the year totaled $118,000. Raw materials
purchased during the year amount to:
A) $107,000.
B) $115,000.
C) $118,000.
D) $121,000.
E) $126,000.
140) The following information relates to the manufacturing operations of the Abbra Publishing
Company for the year:
Beginning
Ending
Raw materials inventory
$
$
610,000
The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials
purchased during the year amount to:
A) $955,000.
B) $892,000.
C) $1,565,000.
D) $408,000.
E) $1,081,000.
141) Comet Company accumulated the following account information for the year:
Beginning raw materials inventory
$
6,000
Indirect materials cost
2,000
Indirect labor cost
5,000
Maintenance of factory equipment
2,800
Direct labor cost
7,000
Using the above information, total factory overhead costs equal:
A) $9,800.
B) $16,800.
C) $15,800.
D) $13,000.
E) $7,800.
142) Asteroid Industries accumulated the following cost information for the year:
Direct materials
$
16,000
Indirect materials
4,000
Indirect labor
8,500
Factory depreciation
12,800
Direct labor
37,000
Using the above information, total factory overhead costs equal:
A) $78,300.
B) $25,300.
C) $12,800.
D) $16,800.
E) $53,000.
143) The following information is available for the year ended December 31:
Beginning raw materials inventory
$
21,500
Raw materials purchases
74,000
Ending raw materials inventory
23,000
Office supplies expense
2,400
The amount of raw materials used in production for the year is:
A) $76,400.
B) $95,500.
C) $72,500.
D) $74,900.
E) $70,100.
144) The following information is available for the year ended December 31:
Beginning raw materials inventory
$
11,000
Raw materials purchases
86,000
Ending raw materials inventory
10,400
Manufacturing supplies expense
900
The amount of raw materials used in production for the year is:
A) $87,500.
B) $85,700.
C) $86,900.
D) $85,400.
E) $86,600.
145) A financial report that summarizes the amounts and types of costs that were incurred in the
manufacturing process during the period is a:
A) Materials statement.
B) Managerial statement.
C) Schedule of cost of goods manufactured.
D) Merchandise schedule.
E) General-purpose statement.
146) If beginning and ending work in process inventories are $5,000 and $15,000, respectively,
and cost of goods manufactured is $170,000, what is the total manufacturing cost for the period?
A) $180,000.
B) $155,000.
C) $160,000.
D) $175,000.
E) $165,000.
147) Use the cost information below for Ruiz Inc. to determine the total manufacturing costs
incurred during the year:
Work in Process, January 1
$
50,000
Work in Process, December 31
37,000
Direct materials used
$
12,500
Total factory overhead
5,500
Direct labor used
26,500
A) $13,000.
B) $44,500.
C) $57,500.
D) $94,500.
E) $89,000.
148) Use the cost information below for Ruiz, Inc. to determine cost of goods manufactured for
the year:
Work in Process, January 1
$
50,000
Work in Process, December 31
37,000
Total factory overhead
5,500
Direct materials used
12,500
Direct labor used
26,500
A) $13,000.
B) $44,500.
C) $57,500.
D) $94,500.
E) $52,000.
149) Use the cost information below for Laurels Company to determine the manufacturing costs
added during the current year:
Direct materials used
$
5,000
Direct labor used
7,000
Total factory overhead
5,100
Beginning work in process inventory
3,000
Ending work in process inventory
4,000
A) $12,000.
B) $16,100.
C) $17,100.
D) $18,100.
E) $13,600.