True / False
Questions
1.
The three basic types of manufacturing costs are direct materials, direct labor
and manufacturing overhead.
True False
2. Manufacturing overhead is a term used to describe
all manufacturing costs other than direct materials and direct labor.
True False
3. Direct materials used, direct labor, and
manufacturing overhead are included among the expenses listed in the income
statement of a manufacturing company.
True False
4.
Product costs are selling expenses that appear on the income statement.
True False
5. Manufacturing overhead is considered an indirect
cost, since overhead costs generally cannot be traced conveniently and directly
to specific units of product.
True False
6. The
James Company has incurred the following costs of production:
Direct Materials $350,000
Direct Labor $475,000
Manufacturing Overhead $722,000
Selling and Administrative Costs $256,000
The James Company prime costs are $606,000.
True False
7. The
James Company has incurred the following costs of production:
Direct Materials $350,000
Direct Labor $475,000
Manufacturing Overhead $722,000
Selling and Administrative Costs $256,000
The James Company conversion costs are $1,197,000.
True False
Multiple
Choice Questions:
1. Determine
the amount of manufacturing overhead given the following information:
A. $7,750.
B. $10,430.
C. $9,750.
D. $11,080.
2. The
following information is available about the August transactions of the Helpful
Tool Company:
The product costs to be deducted from revenue in August amount to:
A. $493,000.
B. $737,000.
C. $718,000.
D. $739,000.
3. It
is the first year of operations at Johnny’s Subs and the cost of all work in
process during the year is $830,000. Assuming the cost of finished goods
manufactured is $860,000, what is the value of the ending Work in Process
inventory?
A. $0.
B. $30,000.
C. Some other amount.
D. This is an impossible situation.
Please
answer the questions The following information has been taken from the perpetual
inventory system of Elite Mfg. Co. for the month ended August 31:
4. The
total amount of inventory to be included in Elite’s August31st
balance sheet amounts to:
A. $135,000.
B. $210,000.
C. $160,000.
D. Some other amount.
5. Total manufacturing costs charged (debited) to Work
in Process during August amount to:
A. $60,000.
B. $125,000.
C. $110,000.
D. Some other amount.
6. The
cost of finished goods manufactured in August is:
A. $147,000.
B. $92,000.
C. $57,000.
D. Some other amount.
7. The cost of goods sold in August is:
A. $75,000.
B. $17,000.
C. $135,000.
D. Some other amount.
