Managerial Accounting Exam Paper
AC202
Managerial Accounting
Unit 1 exam (Chapters 13-17)
Multiple choice (each question is worth 5 points)
1. When preparing an income statement, which of the following is the proper order for income statement components?
a. Comprehensive income, Other comprehensive income items, irregular items, Net income
b. Net income, irregular items, Comprehensive income, Other comprehensive income items
c. Irregular items, Net income, Other comprehensive income items, Comprehensive income
d. Irregular items, Net income, Comprehensive income, Other comprehensive income items
2. All of the following statements regarding changes in accounting principles are true except which of the following?
a. Most changes in accounting principles are …show more content…
one Work in Process account is maintained for all the processes, similar to a job order cost system.
8. A process cost accounting system is most appropriate when
a. a variety of different products are produced, each one requiring different types of materials, labor, and overhead.
b. the focus of attention is on a particular job or order.
c. similar products are mass-produced.
d. individual products are custom made to the specification of customers.
9. Activity-based costing
a. allocates overhead to activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers.
b. accumulates overhead in one cost pool, then assigns the overhead to products and services by means of a cost driver.
c. assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools.
d. allocates overhead directly to products and services based on activity levels.
10. A well-designed activity-based costing system starts with
a. identifying the activity-cost pools.
b. computing the activity-based overhead rate.
c. assigning overhead costs to products.
d. analyzing the activities performed to manufacture a …show more content…
Production: 25,000 units started into production; 20,000 units transferred out and 5,000 units 100% completed as to materials and 40% completed as to conversion costs.
Manufacturing Costs: Materials added at beginning of process, $90,000; labor, $72,000; overhead $60,000.
Instructions
Prepare a production cost report for the month of May.
Garner Company begins operations on July 1, 2013. Information from job cost sheets shows the following:
Manufacturing Costs Assigned
Job No. July August September 100 $12,000 $8,800 101 8,800 9,700 $12,000 102 5,000 103 11,800 6,000 104 5,800 7,000
Job 102 was completed in July. Job 100 was completed in August, and Jobs 101 and 103 were completed in September. Each job was sold for 80% above its cost in the month following completion.
Instructions
(a) Compute the balance in Work in Process Inventory at the end of July.
(b) Compute the balance in Finished Goods Inventory at the end of September.
(c) Compute the gross profit for
Managerial Accounting
Unit 1 exam (Chapters 13-17)
Multiple choice (each question is worth 5 points)
1. When preparing an income statement, which of the following is the proper order for income statement components?
a. Comprehensive income, Other comprehensive income items, irregular items, Net income
b. Net income, irregular items, Comprehensive income, Other comprehensive income items
c. Irregular items, Net income, Other comprehensive income items, Comprehensive income
d. Irregular items, Net income, Comprehensive income, Other comprehensive income items
2. All of the following statements regarding changes in accounting principles are true except which of the following?
a. Most changes in accounting principles are …show more content…
one Work in Process account is maintained for all the processes, similar to a job order cost system.
8. A process cost accounting system is most appropriate when
a. a variety of different products are produced, each one requiring different types of materials, labor, and overhead.
b. the focus of attention is on a particular job or order.
c. similar products are mass-produced.
d. individual products are custom made to the specification of customers.
9. Activity-based costing
a. allocates overhead to activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers.
b. accumulates overhead in one cost pool, then assigns the overhead to products and services by means of a cost driver.
c. assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools.
d. allocates overhead directly to products and services based on activity levels.
10. A well-designed activity-based costing system starts with
a. identifying the activity-cost pools.
b. computing the activity-based overhead rate.
c. assigning overhead costs to products.
d. analyzing the activities performed to manufacture a …show more content…
Production: 25,000 units started into production; 20,000 units transferred out and 5,000 units 100% completed as to materials and 40% completed as to conversion costs.
Manufacturing Costs: Materials added at beginning of process, $90,000; labor, $72,000; overhead $60,000.
Instructions
Prepare a production cost report for the month of May.
Garner Company begins operations on July 1, 2013. Information from job cost sheets shows the following:
Manufacturing Costs Assigned
Job No. July August September 100 $12,000 $8,800 101 8,800 9,700 $12,000 102 5,000 103 11,800 6,000 104 5,800 7,000
Job 102 was completed in July. Job 100 was completed in August, and Jobs 101 and 103 were completed in September. Each job was sold for 80% above its cost in the month following completion.
Instructions
(a) Compute the balance in Work in Process Inventory at the end of July.
(b) Compute the balance in Finished Goods Inventory at the end of September.
(c) Compute the gross profit for