Financial Accounting Mod 10 Quiz

1.The cost of a manufactured product generally consists of which of the following costs?A) Direct materials cost and factory overhead cost 

B) Direct labor cost and factory overhead cost 

C) Direct labor cost, direct materials cost, and factory overhead cost 

D) Direct materials cost and direct labor cost 

2.Which of the following is an example of direct labor cost for an airplane manufacturer?A) Cost of oil lubricants for factory machinery 

B) Cost of wages of assembly worker 

C) Salary of plant supervisor 

D) Cost of jet engines 

3.Which of the following is an example of a factory overhead cost?A) Repair and maintenance cost on the administrative building 

B) Factory heating and lighting cost 

C) Insurance premiums on salespersons' automobiles 

D) President's salary 

4.Which of the following is expensed as incurred in a manufacturing setting?A) Sales commissions 

B) Depreciation of factory buildings 

C) Factory supervisor’s salary 

D) Direct materials used 

5.What is the purpose of the Statement of Cost of Goods Manufactured?A) to determine the ending materials inventory 

B) to determine the ending work in process inventory 

C) to determine the amounts transferred to finished goods 

D) all of the answers are true 

6.Managerial accountingA) Focuses primarily on reporting to regulatory agencies

B) Is governed by generally accepted accounting principles

C) Is highly discretionary and varies greatly from business to business

D) Should be considered as a substitute for financial accounting

7.Which of the following is an example of a variable cost?A) Salary of the plant supervisor

B) Advertising costs

C) Direct materials

D) Straight-line depreciation on a factory machine

8.Which costs are not affected by the level of production?A) Total fixed costs

B) Direct materials

C) Direct labor

D) Total variable costs

9.Which of the following accounts will not be found on the balance sheet?A) Raw Materials

B) Work-in-Process

C) Cost of Goods Sold

D) Finished goods

10.Given the following information how much raw material was transferred to work in process on January 31? Inventory on January 1 is $100,000, raw materials purchased in January are $500,000, and raw materials inventory on January 31 is $200,000.A) $200,000

B) $400,000

C) $600,000

D) $700,000