Managerial Accounting Test

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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.

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