Cost Accounting Midterm Exam

COST ACCOUNTING
1. C
2. B
3. B
4. D
5. B
6. B
7. D
8. B
9. A
10. B
11. D
12. C
13. D
14. B
15. B
16. D
17. B
18. B
19. D
20. C
21. B
22. C
23. D
24. B
25. C
26. D
27. C
28. C
29. A
30. C
31. A
32. C
33. A
34. B
35. B
36. A
37. B
38. A
39. C
40. B
41. A
42. C
43. C
44. A
45. D
46. C
47. A
48. A
49. B
50. A
51. B
52. A
53. D
54. A
55. C
56. A
57. B
58. A
59. C
60. D
61. C
62. C
63. B
64. B
65. D
66. A
67. A
68. A
69. D
70. C
71. A
72. B
73. C
74. B
75. C
76. C
77. D
78. B
79. C
80. A
81. A
82. A
83. A
84. C
85. D
86. C
87. D
88. B
89. C
90. B
The beginning finished goods inventory was:
P30,000
P5,000
P25,000
P15,000
Correct
1/1 Points
2
The following information has been taken from the cost records of Wilson
Company for the past year:
Raw material used in production
• Raw material used in production - P326

• Total manufacturing costs charged to production during the year (includes direct
material, direct labor, and overhead equal to 60% of direct labor cost) - P686
• Cost of goods available for sale - P826
• Selling and Administrative expenses - P25
Inventories
Beginning Ending
• Raw Material P75 P85
• Work in Process P80 P30
• Finished Goods P90 P110
Refer to Wilson Company. The cost of raw material purchased during the year
was
P316.
P336.
P360.
P411.
Incorrect
0/1 Points
3
Management of Power Company is considering whether to purchase a new
model ABC machine costing P360,000 or a new model XYZ machine costing
P340,000 to replace a machine that was purchased 5 years ago for P348,000. The
old machine was used to make product LOVE until it broke down last week.
Unfortunately, the old machine cannot be repaired.
Management has decided to buy the new model XYZ machine. It has less
capacity than the new model ABC machine, but its capacity is sufficient to
continue making product LOVE.
Management also considered, but rejected, the alternative of simply dropping

product LOVE. If that were done, instead of investing P340,000 in the new
machine, the money could be invested in a project that would return a total of
P411,000.
In making decision to buy an XYZ machine rather than the model ABC machine,
the sunk cost was
P340,000
P348,000
P411,000
P360,000
Incorrect
0/1 Points
4
Brandt Company manufactures wood file cabinets. The following information is
available for June 2021:
Beginning Ending
• Raw Material Inventory P 6,000 P 7,500

• Work in Process Inventory 17,300 11,700
• Finished Goods Inventory 21,000 16,300
Refer to Brandt Company. Direct labor is paid P9.60 per hour and overhead for
the month was P9,600. If there were 1,500 direct labor hours and P21,000 of raw
material purchased, how much is Cost of Goods Sold?
P64,500.
P59,800.
P38,800.
P53,800.
Incorrect
0/1 Points
5
S1: Depreciation is always considered a period cost for external financial
reporting purposes in a manufacturing company.
S2: Opportunity costs at a manufacturing company are not part of manufacturing
overhead.
Statement 1 is correct
Both statements are correct
Both statements are incorrect
Correct
1/1 Points
6
The following information that pertains to beta manufacturing company:
• Beginning direct materials inventory P20,000

• Beginning WIP inventory 20,000
• Beginning finished goods inventory 40,000
• Ending direct materials inventory 10,000
• Ending WIP inventory 100,000
• Ending finished goods inventory 50,000
• Purchases 140,000
• Direct labor 160,000
• Factory overhead 200,000
What is the amount of cost of goods sold during the period?
P430,000
P420,000
P470,000
P510,000
Incorrect
0/1 Points
7
S1: Prime cost equals manufacturing overhead cost.
S2: Differential costs can only be variable.
Correct
1/1 Points
8
In the Omara Manufacturing Company, at an activity level of 80,000 machine
hours, total overhead costs were P223,000. Of this amount, utilities were P48,000
(all variable) and depreciation was P60,000 (all fixed). The balance of the
overhead cost consisted of maintenance cost (mixed). At 100,000 machine hours,
maintenance costs were P130,000. Assume that all of the activity levels
mentioned in this problem are within the relevant range. If 110,000 machine
hours of activity are projected for the next period, total expected overhead cost
would be:
P256,000.
P263,500.
P306,625.
P242,500.
Correct
1/1 Points
9
The salary paid to the president of a company would be classified on the income
statement as a(n):
administrative expense
direct labor cost
manufacturing overhead cost.
selling expense
Correct
1/1 Points
10
Beginning Ending

the month was P9,600. What are prime costs and conversion costs, respectively if
there were 1,500 direct labor hours and P21,000 of raw material was purchased?
P29,100 and P33,900

P33,900 and P24,000
P33,900 and P29,100
P24,000 and P33,900
Correct
1/1 Points
11
At an activity level of 7,200 machine-hours in a month, Falks Corporation's total
variable production engineering cost is P556,416 and its total fixed production
engineering cost is P226,008. What would be the total production engineering
cost per machine-hour, both fixed and variable, at an activity level of 7,300
machine-hours in a month? Assume that this level of activity is within the relevant
range. (Round intermediate calculations to 2 decimal places.)
107.93
107.18
108.67
108.24
Correct
1/1 Points
12
The product cost which is determined in a conventional standard cost accounting
system is a(an)
Joint cost.
Fixed cost.
Expected cost.
Direct cost.
Correct
1/1 Points
13
The following costs were incurred in May:
• Direct materials 33,000

• Manufacturing overhead 23,000
• Selling Expenses 16,000
• Administrative expenses 34,000
Prime costs during the month totaled:
36,000
119,000
69,000
46,000
Correct
1/1 Points
14
Haack Inc. is a merchandising company. Last month the company's cost of goods
sold was P84,000. The company's beginning merchandise inventory was P20,000
and its ending merchandise inventory was
P18,000. What was the total amount of the company's merchandise purchases for
the month?
86,000
82,000
84,000
122,000
Correct
1/1 Points
15
The total prime cost
P45,000
P80,000
P100,000
P140,000
Correct
1/1 Points
16
Perkey Corporation has provided the following information:
Cost per Unit Cost
per Period
• Direct materials 5.00

• Direct labor 2.90
• Variable manufacturing overhead 1.25
• Fixed manufacturing overhead 21,000
• Sales commissions 1.00

• Variable administrative expense 0.55
• Fixed selling and administrative expense 7,500
If 4,000 units are produced, the total amount of direct manufacturing cost
incurred is closest to:
53,400
35,600
36,600
31,600
Correct
1/1 Points
17
Total conversion cost Refer to no. 1
P60,000
P100,000
P40,000
P140,000
Correct
1/1 Points
18
Advantages of the method of least squares over the high-low method include all
of the following except
a statistical method is used to mathematically derive the cost function
only two points are used to develop the cost function
the squared differences between actual observations and the line (cost function) are minimized
all the observations have an effect on the cost function
Incorrect
0/1 Points
19
Leas Corporation staffs a helpline to answer questions from customers. The costs
of operating the helpline are variable with respect to the number of calls in a
month. At a volume of 25,000 calls in a month, the costs of operating the helpline
total P452,500. To the nearest whole dollar, what should be the total cost of
operating the helpline costs at a volume of 23,900 calls in a month? (Assume that
this call volume is within the relevant range.) (Round intermediate calculations
to 2 decimal places.)
442,545
452,500
473,326
432,590
Correct
1/1 Points
20
At a sales volume of 20,000 units, Choice Corporation's sales commissions (a cost
that is variable with respect to sales volume) total P132,000. To the nearest whole
dollar, what should be the total sales commissions at a sales volume of 18,400
units? (Assume that this sales volume is within the relevant range.) (Round
intermediate calculations to 2 decimal places.)
126,720
132,000
121,440
143,478
Correct
1/1 Points
21
Phaup Corporation's relevant range of activity is 3,000 units to 7,000 units. When
it produces and sells
5,000 units, its average costs per unit are as follows:

• Fixed manufacturing overhead 3.90
• Fixed selling expense 0.90
• Fixed administrative expense 0.60
For financial reporting purposes, the total amount of period costs incurred to sell
5,000 units is closest to:
8,200
12,250
7,500
4,750
Incorrect
0/1 Points
22
During the month of May, direct labor cost totaled P10,000 and direct labor cost
was 40% of prime cost. If total manufacturing costs during May were P86,000, the
manufacturing overhead was:
76,000
25,000
61,000
15,000
Correct
1/1 Points
23
Total manufacturing cost
P160,000
P180,000
P200,000
P140,000
Correct
1/1 Points
24
Samsung produces washing machines and home theatre in an assembly line
process. Labor costs incurred during the recent period were: board of directors
P3,750,000; assembly line workers P1,350,000; office building security guards
P337,500; and plant supervisors, P825,000. How much is the total period costs?
P3,750,000
P4,087,500
P4,912,500
P2,512,500
Correct
1/1 Points
25
The following costs were incurred in May:

• Manufacturing overhead 46,000
• Selling Expenses 18,000
• Administrative expenses 15,000
Conversion costs during the month totaled:
54,000
133,000
59,000
87,000
Correct
1/1 Points
26
Gabel Inc. is a merchandising company. Last month the company's merchandise
purchases totaled P63,000. The company's beginning merchandise inventory was
P13,000 and its ending merchandise inventory was P15,000. What was the
company's cost of goods sold for the month?
91,000
63,000
65,000
61,000
Correct
1/1 Points
27
S1: A factory supervisor's salary would be classified as an indirect cost with
respect to a unit of product.
S2: A direct cost is a cost that can be easily traced to the particular cost object
under consideration.
Correct
1/1 Points
28
At a sales volume of 20,000 units, Choice Corporation's sales commissions (a cost
that is variable with respect to sales volume) total P132,000. To the nearest whole
dollar, what should be the total sales commissions at a sales volume of 18,400
units? (Assume that this sales volume is within the relevant range.) (Round
126,720
132,000
121,440
143,478
Correct
1/1 Points
29
Which of the following best describes a fixed cost?
It may change in total when such change is unrelated to changes in production.

It may change in total when such change is related to changes in production.
It is constant per unit of change in production.
It may change in total when such change depends on production within the relevant range.
Correct
1/1 Points
30
mentioned in this problem are within the relevant range. The variable cost for
maintenance per machine hour is:
P1.30.
P1.44.
P0.75.
P1.35.
Incorrect
0/1 Points
31
Wofril Corporation uses the cost formula Y = P5,300 + P0.60X for the
maintenance cost, where X is machine-hours. The August budget is based on
8,000 hours of planned machine time. Maintenance cost expected to be incurred
during August is:
10,100
4,800
500
5,300
Correct
1/1 Points
32
Manufacturing overhead includes
all direct material, direct labor and administrative costs.
all manufacturing costs except direct labor.
all manufacturing costs except direct labor and direct materials.
all selling and administrative costs.
Incorrect
0/1 Points
33
Weaknesses of the high-low method include all of the following except
Only two observations are used to develop the cost function.

The high and low activity levels may not be representative.
the method does not detect if the cost behavior is nonlinear.
the mathematical calculations are relatively complex.
Correct
1/1 Points
34
The ending materials inventory was:
P10,000
P5,000
P15,000
P20,000
Correct
1/1 Points
35
Natalie Jillienne Co. produced 5,500 outdoor chairs for Job Order 123. Total
material cost was P51,700. Each chair required 2.2 hours of direct labor at
P8.90/hour. A total of P53,845 of factory overhead was traced to Order 123. What
is the prime cost per unit of this order?
19.58
28.98
29.37
38.77
Incorrect
0/1 Points
36
Davis Company manufacturers desks. The beginning balance of Raw Material
Inventory was P4,500; raw material purchases of P29,600 were made during the
month. At month end, P7,700 of raw material was on hand. Raw material used
during the month was
P26,400.
P34,100.
P37,300.
P29,600.
Correct
1/1 Points
37
The total direct labor cost was:
P25,000
P40,000
P35,000
D. P30,000
Incorrect
0/1 Points
38
Which of the following is NOT a period cost?
Depreciation of factory maintenance equipment
Salary of a clerk who handles customer billing
Insurance on a company showroom where customers can view new products.
Cost of a seminar concerning tax law updates that was attended by the company's controller.
Correct
1/1 Points
39

Inventories
Beginning Ending

Refer to Wilson Company. Direct labor cost charged to production during the
year was
P135
P216
P225
P360
Correct
1/1 Points
40
Which of the following costs is classified as both a prime cost and a conversion
cost?
Direct materials.
Direct labor.
Variable overhead.
Fixed overhead.
Correct
1/1 Points
41
At a volume of 5,000 units, Pwerson Company incurred P32,000 in factory
overhead costs, including P14,000 in fixed costs. If volume increases to 6,000
units and both 5,000 units and 6,000 units are within the relevant range, then the
company would expect to incur total factory overhead costs of: (Round
35,600
21,600
32,000
18,000
Correct
1/1 Points
42
Given the cost formula, Y = P16,000 + P3.40X, total cost for an activity level of
4,000 units would be
13,600
3,600
29,600
16,000
Incorrect
0/1 Points
43
The high-low method is criticized because it
is not a graphical method.
is a mathematical method.
ignores much of the available data by concentrating on only the extreme points.
does not provide reasonable estimates.Weaknesses of the high-low method include all of the
following except
Correct
1/1 Points
44
Costs that increase as the volume of activity decreases within the relevant range
are
Average cost per unit.

Average variable cost per unit.
Total fixed costs.
Total variable costs.
Correct
1/1 Points
45
A partial listing of costs incurred during March at Febbo Corporation appears
below:
• Factory supplies P9,000

• Administrative wages and salaries 85,000
• Sales staff salaries 30,000
• Factory depreciation 33,000
• Corporate headquarters building rent 43,000
• Indirect labor 26,000
• Marketing 65,000
The total of the period costs listed above for March is
68,000
293,000
291,000
223,000
Correct
1/1 Points
46
Beginning Ending

Refer to Brandt Company. Direct labor is P9.60 per hour and overhead for the
month was P9,600. Compute total manufacturing costs for June, if there were
1,500 direct labor hours and P21,000 of raw material was purchased.
P58,500
P46,500
P43,500
P43,100
Correct
1/1 Points
47
A partial listing of costs incurred during March at Febbo Corporation appears
below:
• Factory supplies P9,000

• Administrative wages and salaries 85,000
• Sales staff salaries 30,000
• Factory depreciation 33,000
• Corporate headquarters building rent 43,000
• Indirect labor 26,000
• Marketing 65,000
The total of the manufacturing overhead costs listed above for March is:
68,000
35,000
516,000
293,000
Correct
1/1 Points
48
In the standard cost formula Y = a + bX, what does the "Y" represent?
total cost
total fixed cost
total variable cost
variable cost per unit
Correct
1/1 Points
49

Inventories
Beginning Ending

Refer to Wilson Company. Cost of Goods Sold was
P691
P716
P736
P801
Correct
1/1 Points
50
The recording of jobs completed would include a credit to
Work in Process
Finished Goods
Cost of Goods Manufactured
Cost of Goods Sold
Correct
1/1 Points
51
At an activity level of 8,400 units in a month, Braughton Corporation's total
variable maintenance and repair cost is P697,284 and its total fixed maintenance
and repair cost is P464,100. What would be the total maintenance and repair
cost, both fixed and variable, at an activity level of 8,500 units in a month?
Assume that this level of activity is within the relevant range. (Round
1,175,210
1,169,685
1,161,384
1,168,297
Incorrect
0/1 Points
52
S1: Conversion cost is the sum of direct labor cost and manufacturing overhead
cost.
S2: In a manufacturing company, all costs are period costs.
Correct
1/1 Points
53
Machine hours used to set the predetermined overhead rate were 25,000, actual
hours were 24,000, and overhead applied was P60,000. Budgeted overhead for
the year was
P57,600.
P59,000.
P60,000.
P62,500.
Incorrect
0/1 Points
54
Cost accounting involves the measuring, recording, and reporting of
product costs
manufacturing process
future costs
managerial accounting decisions
Correct
1/1 Points
55
What kind of costs can be conveniently and economically traced to a cost object
or pool?
Indirect Costs.
Relevant Costs.
Direct Costs.
Overhead Costs.
Correct
1/1 Points
56
The Total Cost of Goods Sold
P140,000
P135,000
P200,000
P160,000
Correct
1/1 Points
57
In the equation Y = P4,000 + P3X; Y is the cost of workers' compensation
insurance and X is direct labor hours. According to this equation, a 100-hour
change in total direct labor hours will change the cost of workers compensation
insurance by
P4,000.
P 300.
P4,300.
none of the above amounts.
Correct
1/1 Points
58
The following data pertains to activity and costs for two months:
June July
• Activity level in units 10,000 11,000
• Direct materials P17,000 ?

• Fixed factory rent 21,000 ?
• Other production costs 20,000 ?
• Total Cost P58,000 P61,300
Assuming that these activity levels are within the relevant range, the other
production costs for July were: (Round intermediate calculations to 2 decimal
places)
21,600
20,000
22,000
19,500
Correct
1/1 Points
59
is the conversion cost per unit of this order?
19.58
28.98
29.37
38.77
Correct
1/1 Points
60
In the cost equation TC = F + VX, the X term is:
total fixed costs
total variable costs.
unit variable cost.
activity units.
Correct
1/1 Points
61
Mark is an engineer who has designed a telecommunications device. He is
convinced that there is a big potential market for the device. Accordingly, he has
decided to quit his present job and start a company to manufacture and market
the device. Rent on the administrative office space is
a variable cost
an opportunity cost
a period cost
a product cost
Incorrect
0/1 Points
62

P411,000.
The differential cost would be:
P8,000
P12,000
P20,000
P63,000
Correct
1/1 Points
63
Which of the following items is not a characteristic of a process cost system?
Once production begins, it continues until the finished product emerges

The products produced are heterogeneous in nature
The focus is on continually producing homogeneous products
When the finished product emerges, all units have precisely the same amount of materials, labor,
and overhead
Correct
1/1 Points
64
is the unit cost of this order?
37.88
38.77
28.09
36.99
Correct
1/1 Points
65
Materials used in a factory that are not an integral part of the final product, such
as cleaning supplies, should be classified as
direct materials.
a period cost.
administrative expense
manufacturing overhead.
Incorrect
0/1 Points
66
Samsung produces washing machines and home theatre in an assembly line
process. Labor costs incurred during the recent period were: board of directors
P3,750,000; assembly line workers P1,350,000; office building security guards
P337,500; and plant supervisors, P825,000. The total direct labor of the company
is:
P1,350,000
P825,000
P1,762,000
P5,512,500
Correct
1/1 Points
67
mentioned in this problem are within the relevant range. The total fixed overhead
cost for Omara is:
P115,000.
P130,000.
P60,000.
P55,000
Correct
1/1 Points
68
S1: A cost can be direct or indirect. The classification can change if the cost object
changes.
S2: Selling costs are indirect costs.
Correct
1/1 Points
69
Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units.
When it produces and sells 5,000 units, its average costs per unit are as follows:

incurred is closest to
79,200
63,600
62,700
53,700
Correct
1/1 Points
70
The following cost data pertain to the operations of Ladwig Department Stores,
Inc., for the month of December.
• Corporate legal office salaries P68,000

• Shoe Department cost of sales--Brentwood Store 66,000
• Corporate headquarters building lease 86,000
• Store manager's salary--Brentwood Store 10,000
• Shoe Department sales commissions--Brentwood Store 5,000
• Store utilities--Brentwood Store 11,000
• Shoe Department manager's salary--Brentwood Store 3,000
• Central warehouse lease cost 3,000
• Janitorial costs--Brentwood Store 11,000
The Brentwood Store is just one of many stores owned and operated by the
company. The Shoe Department is one of many departments at the Brentwood
Store. The central warehouse serves all of the company's stores. What is the total
amount of the costs listed above that are NOT direct costs of the Brentwood?
74,000
32,000
157,000
86,000
Correct
1/1 Points
71
Sharp Enterprises
Inventories:
• Raw material
o Beg-P18,000; End P15,000
• Work in process
o Beg-P9,000; End P6,000
• Finished goods
o Beg-P27,000; End P36,000
Additional information for March:
• Raw material purchased - P42,000

• Direct labor payroll - P30,000
• Direct labor rate per hour - P7.50
• Overhead rate per direct labor hour - P10.00
Refer to Sharp Enterprises. For March, prime cost incurred was
P75,000.
P69,000.
P45,000.
P39,000.
Incorrect
0/1 Points
72
Which of the following would most likely NOT be included as manufacturing
overhead in a furniture factory?
The cost of the glue in a chair
The amount paid to the individual who stains a chair
The workman's compensation insurance of the supervisor who oversees production
The factory utilities of the department in which production takes place.
Incorrect
0/1 Points
73
Management of Mcgibboney Corporation has asked your help as an intern in
preparing some key reports for November. Direct materials cost was P42,000,
direct labor cost was P25,000, and manufacturing overhead was P62,000. Selling
expense was P21,000 and administrative expense was P38,000. The prime cost for
November was
79,000
59,000
67,000
87,000
Correct
1/1 Points
74
Given the cost formula Y = P23,000 + P8X, total cost at an activity level of 7,000
units would be:
33,000
79,000
23,000
56,000
Correct
1/1 Points
75
Urban Company manufacturers tables. If raw material used was P80,000 and Raw
Material Inventory at the beginning and end of the period, respectively, was
P17,000 and P21,000, what was amount of raw material was purchased?
P76,000
P118,000
P84,000
P101,000
Correct
1/1 Points
76
Cost behavior analysis is a study of how a firm's costs
relate to competitors' costs.
relate to general price level changes.
respond to changes in activity levels within the company.
Feedback: Message for respondents who select this answer
respond to changes in the gross national product.
Correct
1/1 Points
77
The equation(s) required for applying the least squares method in the
computation of fixed and variable production costs could be expressed as
Exy = ax + b Ex2
y = a + bx2, and Exy = na + bEx
E y = na + bEx
Exy = aEx + b Ex2, and Ey = na + bEx
Correct
1/1 Points
78
Abburi Company's manufacturing overhead is 60% of its total conversion costs. If
direct labor is P52,000 and if direct materials are P28,000, the manufacturing
overhead is
34,667
78,000
42,000
120,000
Correct
1/1 Points
79
Rotonga Manufacturing Company leases a vehicle to deliver its finished products
to customers. Which of the following terms correctly describes the monthly lease
payments made on the delivery vehicle?
Direct Cost - Yes; Fixed Cost – Yes
Direct Cost - Yes; Fixed Cost – No
Direct Cost - No; Fixed Cost – Yes
Direct Cost - No; Fixed Cost – No
Correct
1/1 Points
80

What is the amount of cost of goods manufactured during the period?
P430,000
P420,000
P470,000
P510,000
Correct
1/1 Points
81
Beginning Ending

the month was P9,600. If there were 1,500 direct labor hours and P21,000 of raw
material purchased, Cost of Goods Manufactured is:
P49,100.
P45,000.
P51,000.
P49,500.
Incorrect
0/1 Points
82

P411,000.
The opportunity cost was:
P411,000
P340,000
P360,000
P348,000
Correct
1/1 Points
83
Putnam Company manufacturers computer stands. What is the beginning
balance of Finished Goods Inventory if Cost of Goods Sold is P107,000; the
ending balance of Finished Goods Inventory is P20,000; and Cost of Goods
Manufactured is P50,000 less than Cost of Goods Sold?
P70,000
P77,000
P157,000
P127,000
Correct
1/1 Points
84
In May direct labor was 60% of conversion cost. If the manufacturing overhead
for the month was
P54,000 and the direct materials cost was P30,000, the direct labor cost was
36,000
20,000
81,000
45,000
Correct
1/1 Points
85

What is the amount of direct materials used during the period?

P140,000
P130,000
P 60,000
P150,000
Correct
1/1 Points
86

Inventories
Beginning Ending

Refer to Wilson Company. Cost of Goods Manufactured was
P636.
P716.
P736.
P766.
Incorrect
0/1 Points
87
Controllable costs are:
Costs that management decides to incur in the current period to enable the company to achieve
operating objectives other than the filling of orders placed by customers.
Costs that are governed mainly by past decisions that established the present levels of operating
and organizational capacity and that only change slowly in response to small changes in capacity.
Costs that will unaffected by current managerial decisions.
Costs that are likely to respond to the amount of attention devoted to them by a specified
manager.
Incorrect
0/1 Points
88
Ouelette Corporation's relevant range of activity is 3,000 units to 7,000 units.
When it produces and sells 5,000 units, its average costs per unit are as follows:

incurred is closest to
15,000
22,800
7,800
25,800
Correct
1/1 Points
89
Direct costs:
are incurred to benefit a particular accounting period.
are incurred due to a specific decision.
can be easily traced to a particular cost object
are the variable costs of producing a product
Incorrect
0/1 Points
90
Which of the following is an example of a committed fixed costs?
direct materials
depreciation on a factory building
supervisor’s salary
insurance on a building

Cost Accounting Midterm Exam

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Cost Accounting Midterm Exam

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COST ACCOUNTING

The beginning finished goods inventory was:

• Raw material used in production - P326

Management also considered, but rejected, the alternative of simply dropping

• Raw Material Inventory P 6,000 P 7,500

• Beginning direct materials inventory P20,000

What is the amount of cost of goods sold during the period?

• Raw Material Inventory P 6,000 P 7,500

P29,100 and P33,900

• Direct materials 33,000

Prime costs during the month totaled:

• Direct materials 5.00

• Sales commissions 1.00

• Fixed selling and administrative expense 7,500

• Direct materials 4.85

• Direct materials 41,000

Conversion costs during the month totaled:

It may change in total when such change is unrelated to changes in production.

Only two observations are used to develop the cost function.

• Raw material used in production - P326

• Raw Material P75 P85

Average cost per unit.

• Factory supplies P9,000

The total of the period costs listed above for March is

• Raw Material Inventory P 6,000 P 7,500

• Factory supplies P9,000

• Raw material used in production - P326

• Raw Material P75 P85

Refer to Wilson Company. Cost of Goods Sold was

• Activity level in units 10,000 11,000

• Direct materials P17,000 ?

Management also considered, but rejected, the alternative of simply dropping

The differential cost would be:

Once production begins, it continues until the finished product emerges

• Direct materials 5.20

• Corporate legal office salaries P68,000

Additional information for March:

• Raw material purchased - P42,000

Refer to Sharp Enterprises. For March, prime cost incurred was

• Beginning direct materials inventory P20,000

What is the amount of cost of goods manufactured during the period?

• Raw Material Inventory P 6,000 P 7,500

Management also considered, but rejected, the alternative of simply dropping

The opportunity cost was:

• Beginning direct materials inventory P20,000

What is the amount of direct materials used during the period?

• Raw material used in production - P326

• Raw Material P75 P85

Refer to Wilson Company. Cost of Goods Manufactured was

• Direct materials 5.25

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