Sample Questions

CAVEAT EMPTOR - I picked three questions or !ou to look at" I hope the! help
#ut I am not sa!in$ the! are totall! representati%e o testa#le materials and do
not &ant !ou to #e mislead" An! three I &ould ha%e picked &ould #e a random
sample too small to $enerali'e rom" The ans&ers are at the %er! #ottom"
1. The accounting records of Tacoma Company revealed the following costs: direct
materials used, $170,000; direct laor, $!"0,000; manufacturing overhead, $#00,000;
and selling and administrative e$penses, $%%0,000. Tacoma&s product costs total:
'. $"%0,000.
(. $7"0,000.
C. $)%0,000.
*. $1,1#0,000.
+. some other amount.
%. ,idwest ,otors manufactures automoiles. -hich of the following would not e
classified as direct materials y the company.
'. /heet metal used in the automoile&s ody.
(. Tires.
C. 0nterior leather.
*. C* player.
+. -heel luricant.
!. 1orwood 'ppliance produces washers and dryers in an assemly2line process.
3aor costs incurred during a recent period were: corporate e$ecutives, $100,000;
assemly2line wor4ers, $50,000; security guards, $15,000; and plant supervisor,
$!0,000. The total of 1orwood&s direct laor cost was:
'. $50,000.
(. $)5,000.
C. $110,000.
*. $1%5,000.
+. $%%5,000.
1. C
%. +
!. '