Managerial Accounting Test
TEST QUESTIONS:
Questions 1-3 refer to the following:
The following selected data for March were taken from Rubenstein
Company's financial statements: Cost of goods available for sale Manufacturing overhead
Cost of goods manufactured
Finished goods inventory ‑ ending
Direct materials used
Sales
Selling and administrative expenses
Direct labor
Work in process inventory ‑ beginning
$ 65,000
20,000
51,000
10,000
15,000
105,000
30,000
20,000
0
1. The gross margin was:
1. $55,000. 2. $54,000. 3. $50,000. 4. $40,000.
2. The beginning finished goods inventory was:
1. $24,000. 2. $ 9,000. 3. $10,000. 4. $14,000.
3. The ending work in process inventory was:
1. $ 4,000. 2. $ 8,000. 3. $10,000. 4. $0.
4. Farber Company uses a job order cost system. The information below is from the financial records of the company for last year: Total manufacturing costs $2,500,000 Cost of goods manufactured $2,425,000 Predetermined overhead rate 80% of direct labor cost
Applied overhead was 30% of total manufacturing costs. The Work in Process inventory at January 1 was 75% of the Work in Process inventory at December 31. Farber Company's total direct labor cost was:
1. $750,000. 2. $600,000. 3. $900,000. 4. $937,500.
5. Dukes Company used a predetermined overhead rate this year of $2 per direct labor hour, based on an estimate of 20,000 direct labor hours to be worked during the year. Actual costs and activity during the year were:
Actual manufacturing overhead cost incurred $38,000 Actual direct labor hours worked 18,500
The under‑ or overapplied overhead for the year was:
1. $1,000 underapplied. 2. $1,000 overapplied. 3. $3,000 underapplied. 4. $3,000 overapplied.
6. Krumbly Company uses the FIFO method in its process costing system. At the beginning of the month, Department D's work in process inventory contained 2,000 units.
Questions 1-3 refer to the following:
The following selected data for March were taken from Rubenstein
Company's financial statements: Cost of goods available for sale Manufacturing overhead
Cost of goods manufactured
Finished goods inventory ‑ ending
Direct materials used
Sales
Selling and administrative expenses
Direct labor
Work in process inventory ‑ beginning
$ 65,000
20,000
51,000
10,000
15,000
105,000
30,000
20,000
0
1. The gross margin was:
1. $55,000. 2. $54,000. 3. $50,000. 4. $40,000.
2. The beginning finished goods inventory was:
1. $24,000. 2. $ 9,000. 3. $10,000. 4. $14,000.
3. The ending work in process inventory was:
1. $ 4,000. 2. $ 8,000. 3. $10,000. 4. $0.
4. Farber Company uses a job order cost system. The information below is from the financial records of the company for last year: Total manufacturing costs $2,500,000 Cost of goods manufactured $2,425,000 Predetermined overhead rate 80% of direct labor cost
Applied overhead was 30% of total manufacturing costs. The Work in Process inventory at January 1 was 75% of the Work in Process inventory at December 31. Farber Company's total direct labor cost was:
1. $750,000. 2. $600,000. 3. $900,000. 4. $937,500.
5. Dukes Company used a predetermined overhead rate this year of $2 per direct labor hour, based on an estimate of 20,000 direct labor hours to be worked during the year. Actual costs and activity during the year were:
Actual manufacturing overhead cost incurred $38,000 Actual direct labor hours worked 18,500
The under‑ or overapplied overhead for the year was:
1. $1,000 underapplied. 2. $1,000 overapplied. 3. $3,000 underapplied. 4. $3,000 overapplied.
6. Krumbly Company uses the FIFO method in its process costing system. At the beginning of the month, Department D's work in process inventory contained 2,000 units.