ACCT 5302 Exam 1 Multiple Choice Review Questions And Answers Rev

Topics: Costs, Variable cost, Fixed cost Pages: 14 (1416 words) Published: April 15, 2015
1. Dorra Corporation manufactures lawnmowers in five work stations. Dorra's weekly demand is 5,000 mowers but Dorra can only produce 4,200. According to the theory of constraints, to increase production output Dorra would benefit the most by concentrating improvement efforts on the:  A. first work station.

B. last work station.
C. largest work station.
D. slowest work station.

2. Managerial accounting is applicable to
A. service entities.
B. manufacturing entities.
C. not-for-profit entities.
D. all of these.
3.  The Sarbanes-Oxley Act of 2002 contains all of the following provisions EXCEPT:  A. A CFO must be a CPA or CMA.
B. The audit committee of the board of directors of a company must hire, compensate, and terminate the public accounting firm that audits the company's financial reports. C. Severe penalties are established for altering or destroying documents that may eventually be used in an official proceeding. D. Both the CEO and CFO must certify in writing that their company's financial statements and accompanying disclosures fairly represent the results of operations. 4. Green Company's costs for the month of August were as follows: direct materials, $27,000; direct labor, $34,000; selling, $14,000; administrative, $12,000; and manufacturing overhead, $44,000. The beginning work in process inventory was $16,000 and the ending work in process inventory was $9,000. What was the cost of goods manufactured for the month?  A. $105,000

B. $132,000
C. $138,000
D. $112,000
5. During August, the cost of goods manufactured was $73,000. The beginning finished goods inventory was $15,000 and the ending finished goods inventory was $21,000. What was the cost of goods sold for the month?  A. $79,000

B. $109,000
C. $67,000
D. $73,000
6. Walton Manufacturing Company gathered the following data for the month.   
How much net operating income will be reported for the period?  A. $54,000
B. $17,000
C. $52,000
D. Cannot be determined.
7. Using the following data for August, calculate the cost of goods manufactured:   
The cost of goods manufactured was: 
A. $106,000
B. $92,000
C. $95,000
D. $89,000
8. The following data have been provided by a company for a recent accounting period:   
The cost of goods manufactured for the period was: 
A. $147,000
B. $151,000
C. $153,000
D. $154,000
Questions 9-12 are based on the following information
 Corcetti Company manufactures and sells prewashed denim jeans. Large rolls of denim cloth are purchased and are first washed in a giant washing machine. After the cloth is dried, it is cut up into jean pattern shapes and then sewn together. The completed jeans are sold to various retail chains. 9. Which of the following terms could be used to correctly describe the cost of the soap used to wash the denim cloth?    

A. Option A
B. Option B
C. Option C
D. Option D
 10. Which of the following terms could be used to correctly describe the wages paid to the workers that cut up the cloth into the jean pattern shapes?    
A. Option A
B. Option B
C. Option C
D. Option D
 
11. Which of the following terms could be used to correctly describe the cost of the thread used to sew the jeans together?    
A. Option A
B. Option B
C. Option C
D. Option D
 12. Which of the following terms could be used to correctly describe the wages paid to the data entry clerk who enters customer order information into the company's computer system?    
A. Option A
B. Option B
C. Option C
D. Option D
Questions 13-15 are based on the following information
 A partial listing of costs incurred at Peggs Corporation during September appears below:   
 13. The total of the manufacturing overhead costs listed above for September is:  A. $71,000
B. $351,000
C. $669,000
D. $40,000

 14. The total of the product costs listed above for September is:  A. $351,000
B. $669,000
C. $71,000
D. $318,000

15. The total of the period costs listed above for September is: ...
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