7 c 2 36 : Copied 2Bi us )>! Tanta University J Faculty of Commerce * Accounting Department Makeup exam: Fundamentals of Cost Accounting Professor: Hatem Mohamed EL-Sh Time allowed: lhour Total Marks: 30 Marks No. of pages: 4 Instructions Answer all the following questions in the answer and summarizes your answer in the answer sheet Factory overhead costs include all of the following except: Indirect labor costs, Indirect material costs. Selling costs. Machinery oil. Be or 2. Galway Co. management desires cost information regarding its Celtic brand. The Celtic brand isa a. cost driver. b. cost object. c. cost allocation, d. Cost tracing. » Direct manufacturing labor costs are a part of: Conversion cost Manufacturing cost Prime cost a. Yes Yes No b. No No No c No Yes ‘Yes d. Yes Yes Yes . Which of the following does NOT affect the direct/indirect classification of a cost? . the level of budgeted profit for the next year . the materiality of the cost in question . available technology to gather information about the cost . the design of the operation eBecs 5. Product costs: a. include administrative and marketing costs b. include direct materials, direct labor, and manufacturing overhead costs ¢. are not particularly useful in financial accounting d. are also referred to as nonmanufacturing costs 16. For a manufacturing company, which of the following is an example of a product cost rather than a period cost? a. Depreciation of factory equipment. b. Insurance on factory equipment c.aandb 4d, salespersons salaries 7. The following information relates to the Cannady Corporation: Beginning work-in-process inventory $50,000 Ending work-in-process inventory 48,000 Beginning finished goods inventory 180,000 Ending finished goods inventory 195,000 Cost of goods manufactured 1,220,000 What is cost of goods sold? a. $1,235,000 b. $1,222,000 ¢. $1,218,000 4.$1,205,000 8. During the month of July, direct labor cost totaled $12,000 and direct materials cost was 60% of prime cost. If total manufacturing costs during July were $86,000, the manufacturing overhead was: a, $20,000 b. $18,000 c, $66,000 d. none of the above Use the following information to answer questions 9 and 10. Jordan Company reported the following: Beginning finished goods inventory O units Total units manufactured 30,000 Units sold 29,500 Units selling price $85 Total manufacturing costs $1,500,0009. What is the amount of ending finished goods inventory? a. $42,500 b. $25,424 c. $25,000 d, $1,475,000 10. What is the amount of gross margin? a. $1,032,500 b. $2,550,000 c. $1,500,000 d. $1,475,000 Use the following information to answer questions, 11 and 12. For last year, a manufacturing company reported the followi Beginning inventory of direct materials, Jan., 1 22,000 Purchases of direct materials 116,000 Ending inventory of direct materials, Dec., 31 18,000 Direct manufacturing labor 20% of prime cost Manufacturing overhead costs 85,000 11. What is cost of direct materials used? a. $116,000 b. $138,000 c. $134,000 d. $120,000 12. What is the cost of direct manufacturing labor? a. $150,000 b.$ 30,000 c.$ 24,000 d. $17,000 13. Brenda Hicks is paid $10 an hour for straight-time and $15 an hour for overtime. One week she worked 42 hours, which included 2 hours of overtime. Assuming overtime premium is considered an indirect cost, the compensation would be reported as: $400 of direct labor and $30 of manufacturing overhead. $400 of direct labor and $zero of manufacturing overhead. $420 of direct labor and $10 of manufacturing overhead. $430 of direct labor and $zero of manufacturing overhead. poeP14. Using th hs . cae erecta data to aia the beginning work in process inventory: Direct labor Direct materials a Cost of goods manufactured $80 Work in process ending $10 Finished goods ending $15 Manufacturing overhead $30 a. $20. b. $15. ©. $55. d. $25. 15. If the following information is obtained: Work-in-process, ending inventory $20,000 Manufacturing costs incurred during the period 240,000 Work-in-process, beginning inventory 28,000 The of Cost of goods manufactured is: a, $232,000 b, $248,000 c. $288,000 — d. None of the above Best WishesTanta University Faculty of Commerce Accounting Department Mid-term exam: Fundamentals of Cost Accounting Date: 21 November, 2021 Professor: Hatem Mohamed EL-Shishii Time allowed: hour Total Marks: 30 Marks No. of pages: 4 ‘Answer all the following questions in the answer sheet provided Instru ns: For each of the following questions, select the best choice and shade the letter corresponding to your choice in the answer sheet provided. You must use peneil and fully cover the letter in the answer sheet. 1. Direot materials, work-in-process, and finished goods inventories commonly found in which type of the following companies: a. Manufacturing. b. Service. ¢. Merchandising d. None of the above 2. Galway Co. management desires cost information regarding its Celtic brand. The Celtic brand is @ a. cost driver. b. cost object c. cost allocation. d. Cost tracing. 3, Direct manufacturing labor costs are a part of: Conversion cost Manufacturing cost Prime cost a Yes ‘Yes No b. No No No c. No Yes Yes d. Yes Yes Yes 4. Which of the following does NOT affect the direct/indirect classification of a cost? ‘budgeted profit for the next year b. the materiality of the cost in questioniod. a. work in process inventory has decreased during Aud Liner b. finished goods inventory has increased during the period. factured. ©. total manufacturing costs must be greater than cost of goods manufact d. finished goods inventory has decreased during the perio 7 eris st was 70% of prime 8. During the month of July, direct labor cost totaled $12,000 and a eee aalea ere Pp cost. If total manufacturing costs during July were $86,000, the mar . $74,000 a. $46,000 ». $40,000 ©, $28,000 ef 9. Mohamed is paid $10 an hour for straight-time and $15 an hour for overtime. One week he worked 45 hours, which included 5 hours of overtime, and 3 hours of idle time. Labor costs would be reported as a. $ 370 of direct labor and $105 of indirect manufacturing cost. 'b. $ 450 of direct labor and $ 25 of indirect manufacturing cost. ¢. $420 of direct labor and $ 55 of indirect manufacturing cost. 4d. $ 420 of direct labor and $ 30 of indirect manufacturing cost. 10, A manufacturing company has capacity to produce 10,000 bi $40,000 for a given range of activity between 0 to 10,000 unit per month. The following per unit d: yeles. Fixed manufacturing costs is its. Currently it i Currently it pr mt lata apply for sales to regular customers: sooo bievcles _ Direct materials $50 Direct manufacturing labor Bs Variable manufacturing overhead 4 Fixed manufacturing overhead Total manufacturing costs 7 87 ‘The plant is considering expanding production to 10,000 bj " s i 000 bieyer i jucing 10,000 bicycles? ‘cycles. What is th i the per unit cost of $77 per unit $154 per unit $73 per unit $69 per unit eegeTL. The following information is obtained: Direct manufacturing labor cost 200,000 Direct material 60% of prime cost Ending inventory of direct materials Cost of direct materials purchased The amount of Beginning direct materials inventory is: a, $345,000 b, $225,000 C. $300,000 d. None of the above 30,000 75,000 12. Ifthe following information is obtained: Work-in-process, ending inventory $20,000 Manufacturing costs incurred during the period 240,000 Work-in-process, beginning inventory 24,000 The of Cost of goods manufactured is: a. $236,000 b. $244,000 c.$ 196,000 d. None of the above ee) pois proces Cog teainy cost + mars ' 13 dirs - thtkin Pra aso a Use the following info! n to answer questions 13 and 14: July 1 July 31 Raw materials inventory 0 $5,000 Work in process inventory 2 4,000 $12,000? Finished goods inventory Other data: Cost of goods manufactured $100,000 Raw materials used $40,000 Total manufacturing costs incurred during the period $120,000 Gross profit $100,000 Sales $ 190,000 13. Cost of purchases of direct materials is: 7 b. $35,000 c. $45,000 d, None of the above a. $50,000