1|Page
(FL_1_MAF) Management Accounting Fundamentals
Exam Actual Verified Test Questions and Correct
Answers With Rationales LATEST THIS YEAR||Newest
Exam!!!
For inventoriable costs to become expenses under the
matching principle,
a) all accounts payable must be settled.
b) the product must be finished and in stock.
c) the product must be expensed based on its percentage-
of-completion.
d) the product to which they attach must be sold. -
Answer-d) the product to which they attach must be sold.
Sheridan Company's accounting records reflect the
following inventories:
December 31st 2016
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Raw materials inventory $80000
Work in progress inventory $104000
Finished goods inventory $100000
December 31st 2017
Raw materials inventory $64000
Work in progress inventory $116000
Finished goods inventory $92000
During 2017, Sheridan purchased $1370000 of raw
materials, incurred direct labor costs of $250000, and
incurred manufacturing overhead totaling $160000.
Assume Sheridan's cost of goods manufactured for 2017
amounted to $1784000. How much would it report as cost
of goods sold for the year?
a) $1884000
b) $1792000
c) $1692000
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d) $1776000 - Answer-b) $1792000
Bonita Industries has beginning and ending work in
process inventories of $50000 and $65000 respectively. If
total manufacturing costs are $680000, what is the total
cost of goods manufactured?
a) $665000.
b) $745000.
c) $695000.
d) $730000. - Answer-a) $665000.
Cost of raw materials is debited to Raw Materials
Inventory when the
a) materials are ordered.
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b) bill for the materials is paid.
c) materials are received.
d) materials are put into production - Answer-c) materials
are received.
Which one of the following should be equal to the balance
of the Work In Process Inventory account at the end of the
period?
a) The total manufacturing costs for the period
b) The sum of the costs shown on the job cost sheets of
unfinished jobs
c) The total of the amounts transferred from raw materials
for the current period
d) The total of manufacturing overhead applied to work in
process for the period - Answer-b) The sum of the costs
shown on the job cost sheets of unfinished jobs
(FL_1_MAF) Management Accounting Fundamentals
Exam Actual Verified Test Questions and Correct
Answers With Rationales LATEST THIS YEAR||Newest
Exam!!!
For inventoriable costs to become expenses under the
matching principle,
a) all accounts payable must be settled.
b) the product must be finished and in stock.
c) the product must be expensed based on its percentage-
of-completion.
d) the product to which they attach must be sold. -
Answer-d) the product to which they attach must be sold.
Sheridan Company's accounting records reflect the
following inventories:
December 31st 2016
,2|Page
Raw materials inventory $80000
Work in progress inventory $104000
Finished goods inventory $100000
December 31st 2017
Raw materials inventory $64000
Work in progress inventory $116000
Finished goods inventory $92000
During 2017, Sheridan purchased $1370000 of raw
materials, incurred direct labor costs of $250000, and
incurred manufacturing overhead totaling $160000.
Assume Sheridan's cost of goods manufactured for 2017
amounted to $1784000. How much would it report as cost
of goods sold for the year?
a) $1884000
b) $1792000
c) $1692000
,3|Page
d) $1776000 - Answer-b) $1792000
Bonita Industries has beginning and ending work in
process inventories of $50000 and $65000 respectively. If
total manufacturing costs are $680000, what is the total
cost of goods manufactured?
a) $665000.
b) $745000.
c) $695000.
d) $730000. - Answer-a) $665000.
Cost of raw materials is debited to Raw Materials
Inventory when the
a) materials are ordered.
, 4|Page
b) bill for the materials is paid.
c) materials are received.
d) materials are put into production - Answer-c) materials
are received.
Which one of the following should be equal to the balance
of the Work In Process Inventory account at the end of the
period?
a) The total manufacturing costs for the period
b) The sum of the costs shown on the job cost sheets of
unfinished jobs
c) The total of the amounts transferred from raw materials
for the current period
d) The total of manufacturing overhead applied to work in
process for the period - Answer-b) The sum of the costs
shown on the job cost sheets of unfinished jobs
