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- An increase in the level of activity will have the following effects on unit costs for variable and fixed costs
A. A
B. B
C. C
D. D
ANSWER – D
- Walker Manufacturing Company reported the following year-end information
How much is Walker Manufacturing’s cost of goods manufactured for the year?
A. $734,000
B. $1,074,000
C. $1,070,000
D. $1,078,000
ANSWER – C. $1,070,000
Chmelar Manufacturing Company developed the following data
How much are total manufacturing costs for the period?
A $1,185,000
B $945,000
C $825,000
D $915,000
ANSWER – B $945,000
Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively. If direct materials used were $260,000, what was the cost of raw materials purchased?
A $260,000
B $280,000
C $244,000
D $276,000
ANSWER – D $276,000
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The flow of costs in a job order cost system
A Involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done
B Cannot be measured until all jobs are complete
C Measures product costs for a set time period
D Generally follows a LIFO cost flow assumption
ANSWER – A Involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done
A process cost system would most likely be used by a company that makes
A Motion pictures
B Repairs to automobiles
C Breakfast cereal
D College graduation announcements
ANSWER – C Breakfast cereal
Having one person post entries to accounts receivable subsidiary ledger and a different person post to the Accounts Receivable Control account in the general ledger is an example of
A Inadequate internal control
B Duplication of effort
C External verification
D Segregation of duties
ANSWER – D Segregation of duties
Given the following data for Harder Company, compute cost of goods manufactured
A $360,000
B $370,000
C $380,000
D $390,000
ANSWER – C $380,000
Which one of the following is not an objective of a system of internal controls?
A Safeguarding company assets
B Overstating liabilities in order to be conservative
C Enhancing the accuracy and reliability of accounting records
D Reducing the risks of errors
ANSWER – B Overstating liabilities in order to be conservative
If the cost of goods sold is greater than the cost of goods manufactured, then: