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1. Since indirect cost cannot be conveniently or economically traced directly to a cost pool
or cost object, the management accountant will:
2. All indirect manufacturing costs are commonly combined into a single cost pool called:
3. Variable costs within the relevant range for a firm are assumed:
4. How will unit (average) cost of manufacturing (materials, labor and overhead) usually
change if the production level rises?
5. Structural cost drivers are to executional cost drivers as:
6. Theoretically, a decision maker would probably be willing to buy cost management
information if:
7. Any product, service, or organizational unit to which costs are assigned for some
management purpose is a(n):
8. Which one of the following is not a type of cost driver?
9. The range of the cost driver in which the actual value of the cost driver is expected to fall
is called the:
10. The change in total cost associated with each change in the quantity of the cost driver is:
11. The additional cost incurred as the cost driver increases by one unit is:
12. Strategic analysis uses which of the following to help a firm improve its competitive
position through an analysis of product and production complexity?
13. Which one of the following would not be found in a merchandising company?
14. The cost of goods that were finished and transferred out of work-in-process during the
current period is:
15. Which of the following tend to be non-differential in the short term since they cannot be
changed, but are more likely to be differential in the long term?
16. Assume the following information pertaining to Cub Company:
Prime costs $195,000
Conversion costs 221,000
Direct materials used 85,000
Beginning work in process 98,000
Ending work in process 81,000
Direct labor used is calculated to be:
17. Assume the following information pertaining to Cub Company:
Prime costs $195,000
Conversion costs 221,000
Direct materials used 85,000
Beginning work in process 98,000
Ending work in process 81,000
Factory overhead is calculated to be:
18. Assume the following information pertaining to Cub Company:
Prime costs $195,000
Conversion costs 221,000
Direct materials used 85,000
Beginning work in process 98,000
Ending work in process 81,000
Total manufacturing cost is calculated to be:
19. Assume the following information pertaining to Cub Company:
Prime costs $195,000
Conversion costs 221,000
Direct materials used 85,000
Beginning work in process 98,000
Ending work in process 81,000
Cost of goods manufactured is calculated to be:
20. Assume the following information pertaining to Moonbeam Company:
Beginning Ending
Finished goods inventory $130,000 $124,000
Work in process inventory 85,000 104,000
Direct materials 117,000 130,000
Costs incurred during the period are as follows:
Total manufacturing costs $896,000
Factory overhead 199,000
Direct materials used 156,000
Materials purchases are calculated to be:
21. Assume the following information pertaining to Moonbeam Company:
Beginning Ending
Finished goods inventory $130,000 $124,000
Work in process inventory 85,000 104,000
Direct materials 117,000 130,000
Costs incurred during the period are as follows:
Total manufacturing costs $896,000
Factory overhead 199,000
Direct materials used 156,000
Cost of goods sold is calculated to be:
22. The following information was taken from the accounting records of Elliott Manufacturing
Corp. Unfortunately, some of the data were destroyed by a computer malfunction.
Sales Revenue $58,000
Finished Goods Inventory, Beginning 9,000
Finished Goods Inventory, Ending 6,000
Cost of Goods Sold ?
Gross Margin 25,000
Direct Materials Used 10,000
Selling and Administrative Expense ?
Operating Income 14,000
Work-in-Process Inventory, Beginning ?
Work-in-Process Inventory, Ending 5,000
Direct Labor Used 9,000
Factory Overhead 12,000
Total Manufacturing Cost ?
Cost of Goods Manufactured ?
Cost of goods sold is calculated to be:
23. The following information was taken from the accounting records of Elliott Manufacturing
Corp. Unfortunately, some of the data were destroyed by a computer malfunction.
Sales Revenue $58,000
Finished Goods Inventory, Beginning 9,000
Finished Goods Inventory, Ending 6,000
Cost of Goods Sold ?
Gross Margin 25,000
Direct Materials Used 10,000
Selling and Administrative Expense ?
Operating Income 14,000
Work-in-Process Inventory, Beginning ?
Work-in-Process Inventory, Ending 5,000
Direct Labor Used 9,000
Factory Overhead 12,000
Total Manufacturing Cost ?
Cost of Goods Manufactured ?
Cost of goods manufactured is calculated to be:
24. The following information was taken from the accounting records of Elliott Manufacturing
Corp. Unfortunately, some of the data were destroyed by a computer malfunction.
Sales Revenue $58,000
Finished Goods Inventory, Beginning 9,000
Finished Goods Inventory, Ending 6,000
Cost of Goods Sold ?
Gross Margin 25,000
Direct Materials Used 10,000
Selling and Administrative Expense ?
Operating Income 14,000
Work-in-Process Inventory, Beginning ?
Work-in-Process Inventory, Ending 5,000
Direct Labor Used 9,000
Factory Overhead 12,000
Total Manufacturing Cost ?
Cost of Goods Manufactured ?
Selling and administrative expenses are calculated to be:
25. The following information was taken from the accounting records of Elliott Manufacturing
Corp. Unfortunately, some of the data were destroyed by a computer malfunction.
Sales Revenue $58,000
Finished Goods Inventory, Beginning 9,000
Finished Goods Inventory, Ending 6,000
Cost of Goods Sold ?
Gross Margin 25,000
Direct Materials Used 10,000
Selling and Administrative Expense ?
Operating Income 14,000
Work-in-Process Inventory, Beginning ?
Work-in-Process Inventory, Ending 5,000
Direct Labor Used 9,000
Factory Overhead 12,000
Total Manufacturing Cost ?
Cost of Goods Manufactured ?
Work in process inventory, beginning, is calculated to be:
26. The following data pertains to Lam Co.'s manufacturing operations:
Inventories 4/1 4/30
Direct Materials $18,000 $15,000
Work in Process 9,000 6,000
Finished Goods 27,000 36,000
Additional information for the month of April:
Direct materials purchased $32,000
Direct labor $30,000
Direct labor rate per hour $10.00
Factor overhead incurred $40,000
Overhead is applied at $12 per direct labor hour.
For the month of April, prime cost incurred was:
27. The following data pertains to Lam Co.'s manufacturing operations:
Inventories 4/1 4/30
Direct Materials $18,000 $15,000
Work in Process 9,000 6,000
Finished Goods 27,000 36,000
Additional information for the month of April:
Direct materials purchased $32,000
Direct labor $30,000
Direct labor rate per hour $10.00
Factor overhead incurred $40,000
Overhead is applied at $12 per direct labor hour.
For the month of April, conversion cost incurred was:
