Name: ________________________________ Score:________________

Acctg 106 Quiz 1 2 nd sem SY 21-22

Instruction: Put the answer or the letter of your choice to a separate answer sheet provided. Provide and show
computations if necessary.

PART I — MULTIPLE CHOICE (10 points)

Instructions: Designate the best answer for each of the following questions.

__C__ 1. A debit balance in the Manufacturing Overhead account at the end of an interim month means that
a. the balance should be reported as an asset in the monthly balance sheet.
b. corrective action by management is necessary.
c. overhead has been underapplied.
d. cost of goods sold should be credited on the monthly income statement.

__C__ 2. When production costs are debited to Work in Process Inventory, which accounts will be credited?
a. Raw Materials Inventory, Factory Labor, and Finished Goods Inventory
b. Manufacturing Overhead, Factory Labor, and Cost of Goods Sold
c. Raw Materials Inventory, Factory Labor, and Manufacturing Overhead
b. Accounts Payable, Factory Wages Payable, and Accumulated Depreciation

__B__ 3. In the current assets section of the balance sheet, in which order are manufacturing inventories listed?
a. Raw materials, work in process, finished goods
b. Finished goods, work in process, raw materials
c. Work in process, finished goods, raw materials
d. Finished goods, raw materials, work in process

__D__ 4. Which one of the following costs is a component of both manufacturing overhead and total
manufacturing costs?
a. Direct labor
b. Direct materials
c. Selling and administrative costs
d. Factory utilities

__C__ 5. Manufacturing costs are typically classified as

a. product costs or period costs.
b. direct materials or direct labor.
c. direct materials, direct labor, or manufacturing overhead.
d. direct materials, direct labor, or selling and administrative.

The following data should be used for questions 6–9:

Raw materials inventory, January 1 $ 12,000
Raw materials inventory, December 31 16,000
Work in process, January 1 5,000
Work in process, December 31 8,000
Finished goods, January 1 17,000
Finished goods, December 31 12,000
Raw materials purchases 118,000
Direct labor 165,000
Factory utilities 64,000
Indirect labor 12,000
Factory depreciation 18,000
Selling and administrative expenses 220,000

_B___ 6. How much is the cost of the direct materials used?

a. $118,000
b. $114,000
c. $122,000
d. $130,000

__A__ 7. Assume your answer to question 6 above is $130,000. How much are total manufacturing costs?
a. $389,000
b. $393,000
c. $295,000
d. $609,000
 __C__ 8. Assume your answer to question 7 above is $400,000. How much is cost of goods manufactured?
a. $400,000
b. $389,000
c. $397,000
d. $403,000

__D__ 9. Assume your answer to question 8 above is $420,000. How much is cost of goods sold?
a. $420,000
b. $408,000
c. $295,000
d. $425,000

_C___ 10. Which one of the following is an example of a period cost?

a. Maintenance on factory machines
b. Wages of factory workers
c. Salesmen's commissions
d. Depreciation on the factory building

PART II — CLASSIFICATION OF COSTS AND EXPENSES (10 points)

Instructions: Classify the following manufacturing costs and expenses by using the following code letters:

A. Direct materials cost

B. Direct labor cost
C. Manufacturing overhead cost
D. Period cost

Wood You Manufacturing Company incurs the following costs and expenses in making furniture:

__D__ 1. Insurance on delivery equipment

__A__ 2. Oak and cherry wood used in desks and chairs

__C__ 3. Lubricants, rosin, and polishing compounds used in manufacturing

__D__ 4. Advertising in trade magazines

__C__ 5. Rent on leased factory machinery

__B__ 6. Wages of assembly line workers

__D__ 7. Salesperson's commissions

____ 8. Insurance on factory machines

__C__ 9. Depreciation on factory machinery

___C_ 10. Wages of factory janitors

PART III TRUE OR FALSE STATEMENTS (10 points)

Instructions: Write letter A if the statement is correct and B if the statement is wrong.

11. Managerial accounting is most concerned with addressing the needs of individual departments of the firm.

12. Cost accounting serves as a bridge between financial and managerial accounting.

13. Mission statements typically remain unchanged throughout the life of an organization.

14. An organization’s strategy should reflect the organization’s core competencies.

15. An organization’s strategy is the guiding force for its mission.

16. Line managers are directly responsible for achieving organizational goals.
17. Line personnel give assistance to staff employees.

18. The learning and growth perspective of the balanced scorecard focuses on using an organization’s
intellectual capital to adapt to or influence customer needs and expectations.

19. The internal business perspective of the balanced scorecard focuses on using an organization’s intellectual
capital to adapt to or influence customer needs and expectations.

20. The learning and growth perspective of the balanced scorecard focuses on using an organization’s
intellectual capital to adapt to or influence customer needs and expectations.