Leonard N. Stern School of Business
Final Exam Version C
C10.0002 Principles of Managerial Accounting
Answer all questions of this examination in the exam booklet provided.
Multiple Choice 54 points
Question 1 20
Question 2 20
Question 3 646
Total 100 points
Part A - Multiple Choice
1 | Conversion cost consists of which of the following?a. Manufacturing overhead cost.b. Direct materials and direct labor cost.c. Direct labor cost.d. Direct labor and manufacturing overhead cost. | 2.| Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?a. Product costb. Manufacturing overheadc. Period costd. Administrative cost| 3.| The salary of the president of a manufacturing company would be classified as which of the following?a. Product costb. Period costc. Manufacturing overheadd. Direct labor| 4 | Which one of the following costs should NOT be considered a direct cost of serving a particular customer who orders a customized personal computer by phone directly from the manufacturer?a. the cost of the hard disk drive installed in the computer.b. the cost of shipping the computer to the customer.c. the cost of leasing a machine on a monthly basis that automatically tests hard disk drives before they are installed in computers.d. the cost of packaging the computer for shipment.| 5| Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?a. the cost of the hamburger patty in the burger they ordered.b. the wages of the employee who takes the customer's order.c. the cost of heating and lighting the kitchen.d. the salary of the outlet's manager.| 6| Micro Computer Company has set up a toll-free telephone line for customer inquiries regarding computer hardware produced by the company. The cost of this toll-free line would be classified as which of the following?a. Product costb. Manufacturing overheadc. Direct labord. Period cost| 7 | Prime cost consists of direct materials combined with:a. direct labor.b. manufacturing overhead.c. indirect materials.d. cost of goods manufactured.| 8| Jawara Company uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below: PercentageUnits complete Beginning work in process inventory ... 7,300 10% Transferred in from the prior department during April ............ 65,600 Units completed ............ ............67,300 Ending work in process inventory ...... 5,600 80%What were the equivalent units of production for conversion costs in the Painting Department for April?a. 65,600b. 71,780c. 70,520d. 69,980e. None of the above| 9| The Assembly Department started the month with 3,500 units in its beginning work in process inventory. An additional units 47,200 were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 3,600 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month?a. 50,700b. 47,300c. 47,100d. 54,100e. None of the above| 10| Kelsh Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year: Direct materials .................. $10,000 Direct labor ...................... 30,000 Sales commissions ................. 40,000 Salary of Marketing supervisor...