Accounting 2110 Midterm Review Exam UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Managers Function - CORRECT ANSWER Planning, directing and controlling
Company types and inventory - CORRECT ANSWER Service company - none
Merchandising company- one inventory account
Inventory
manufacturing company- three inventory accounts
Raw material inventory
work in progress inventory
finished goods inventory
The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred
is the
a. cost of goods manufactured.
b. total manufacturing overhead.
c. total manufacturing costs.
d. total cost of work in process. - CORRECT ANSWER c. total manufacturing costs.
Sales commissions are classified as
a. overhead costs
b. period costs.
c. product costs.
d. indirect labor. - CORRECT ANSWER b. period costs
Direct materials and direct labor of a company total $8,000,000. If manufacturing overhead is
$4,000,000, what is direct labor cost?
a. $4,000,000
, b. $8,000,000
c. $0
d. Cannot be determined from the information provided - CORRECT ANSWER d.
cannot be determined from the information provided
Which of the following is not a management function?
a. Constraining
b. Planning
c. Controlling
d. Directing - CORRECT ANSWER a. constraining
The flow of costs in a job order cost system
a. involves accumulating manufacturing costs incurred and assigning the accumulated costs
to work done.
b. cannot be measured until all jobs are complete.
c. measures product costs for a set time period.
d. generally follows a LIFO cost flow assumption. - CORRECT ANSWER a. involves
accumulating manufacturing costs incurred and assigning the accumulated costs to work
done.
Process costing is not used when
a. similar goods are being produced.
b. large volumes are produced.
c. jobs have distinguishing characteristics.
d. a series of connected manufacturing processes is necessary. - CORRECT
ANSWER c. jobs have distinguishing characteristics.
Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is
charged with $150,000 of direct materials costs and $180,000 of manufacturing overhead.
The total manufacturing costs for Job No. 176 is
a. $330,000.
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Managers Function - CORRECT ANSWER Planning, directing and controlling
Company types and inventory - CORRECT ANSWER Service company - none
Merchandising company- one inventory account
Inventory
manufacturing company- three inventory accounts
Raw material inventory
work in progress inventory
finished goods inventory
The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred
is the
a. cost of goods manufactured.
b. total manufacturing overhead.
c. total manufacturing costs.
d. total cost of work in process. - CORRECT ANSWER c. total manufacturing costs.
Sales commissions are classified as
a. overhead costs
b. period costs.
c. product costs.
d. indirect labor. - CORRECT ANSWER b. period costs
Direct materials and direct labor of a company total $8,000,000. If manufacturing overhead is
$4,000,000, what is direct labor cost?
a. $4,000,000
, b. $8,000,000
c. $0
d. Cannot be determined from the information provided - CORRECT ANSWER d.
cannot be determined from the information provided
Which of the following is not a management function?
a. Constraining
b. Planning
c. Controlling
d. Directing - CORRECT ANSWER a. constraining
The flow of costs in a job order cost system
a. involves accumulating manufacturing costs incurred and assigning the accumulated costs
to work done.
b. cannot be measured until all jobs are complete.
c. measures product costs for a set time period.
d. generally follows a LIFO cost flow assumption. - CORRECT ANSWER a. involves
accumulating manufacturing costs incurred and assigning the accumulated costs to work
done.
Process costing is not used when
a. similar goods are being produced.
b. large volumes are produced.
c. jobs have distinguishing characteristics.
d. a series of connected manufacturing processes is necessary. - CORRECT
ANSWER c. jobs have distinguishing characteristics.
Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is
charged with $150,000 of direct materials costs and $180,000 of manufacturing overhead.
The total manufacturing costs for Job No. 176 is
a. $330,000.
