ACCT 212 Week 8 Final Exam With Rationale
The series of activities that add value to a company's products or services is called a
value chain. - ANSWER: TRUE
Factory overhead is charged to expense as it is incurred because it is a period cost. -
ANSWER: FALSE
Using the above information, total factory overhead costs equal:
Salesperson salaries $ 15,100
Indirect materials 3,100
Indirect labor 7,600
Factory depreciation 11,900
Direct labor 36,100 - ANSWER: Factory Overhead = Indirect Materials + Indirect
Labor + Factory Depreciation
Factory Overhead = $3,100 + $7,600 + $11,900 = $22,600.
A company manufactures motorcycles. Compute the total amount of direct materials
costs from the following costs.
a. Tires, $10,000
b. Motorcycle seats, $17,000
c. Handlebars, $6,000
d. Factory accounting, $10,000
e. Factory equipment depreciation, $5,000
f. Assembly worker wages, $15,000
g. Factory rent, $60,000
h. Assembly worker benefits, $5,000
i. Bike frames, $14,000 - ANSWER: Direct Materials Costs = Tires + Motorcycle Seats +
Handlebars + Bike Frames
Factory Overhead = $10,000 + $17,000 + $6,000 + $14,000
Factory Overhead = $47,000
Using the information below, compute the raw materials inventory turnover:
Raw materials used$ 155,600
Beginning raw materials inventory 19,700
Ending raw materials inventory 21,900 - ANSWER: Raw materials inventory turnover
= Raw materials used/Average raw materials inventory
Raw materials inventory turnover = $155,600/[($19,700 + $21,900/2]
Raw materials inventory turnover = $155,600/$20,800 = 7.48
A report that lists the types and amounts of costs incurred in manufacturing is a: -
ANSWER: Schedule of cost of goods manufactured.
A manufacturing company has a beginning finished goods inventory of $28,300, cost
of goods manufactured of $58,500, and an ending finished goods inventory of
$27,600. The cost of goods sold for this company is: - ANSWER: Beginning Finished
, Goods + Cost of Goods Manufactured − Ending Finished Goods = Cost of Goods Sold;
$28,300 + $58,500 − $27,600 = $59,200
Using the information below, calculate cost of goods sold for the period:
Sales$ 1,304,000
Selling expenses 239,000
Finished Goods Inventory, beginning 36,000
Finished Goods Inventory, ending 41,000
Cost of goods manufactured 540,000 - ANSWER: Beginning Finished Goods Inventory
+ Cost of goods manufactured − Ending Finished Goods Inventory = Cost of goods
sold.
$36,000 + 540,000 − 41,000 = $535,000.
A company manufactures bicycles. Compute the total amount of factory overhead
from the following costs.
a. Factory maintenance salary, $9,000
b. Assembly worker wages, $25,000
c. Office staff salaries, $20,000
d. Depreciation on factory equipment, $10,000
e. Indirect materials costs, $5,000
f. Office insurance, $1,000
g. Direct materials costs, $6,000
h. Factory rent, $8,000
i. Property taxes on factory, $4,000 - ANSWER: Factory Overhead = Factory
Maintenance Salary + Depreciation on Factory Equipment + Indirect Materials +
Factory Rent + Property Taxes on Factory
Factory Overhead = $9,000 + $10,000 + $5,000 + $8,000 + $4,000
Factory Overhead = $36,000
Under a just-in-time manufacturing system, large quantities of inventory are
acquired to produce products in advance of customer orders - ANSWER: FALSE
Use the cost information below for Ruiz, Incorporated to determine cost of goods
manufactured for the year:
Work in Process, beginning$ 50,000
Work in Process, ending 37,000
Total factory overhead 5,500
Direct materials used 12,500
Direct labor used 26,500 - ANSWER: Cost of Goods Manufactured = Costs Added +
Beginning Work in Process − Ending Work in Process
Cost of Goods Manufactured = ($12,500 + $26,500 + $5,500) + $50,000 − $37,000 =
$57,500
Use the cost information below for Ruiz, Incorporated to determine cost of goods
manufactured for the year:
The series of activities that add value to a company's products or services is called a
value chain. - ANSWER: TRUE
Factory overhead is charged to expense as it is incurred because it is a period cost. -
ANSWER: FALSE
Using the above information, total factory overhead costs equal:
Salesperson salaries $ 15,100
Indirect materials 3,100
Indirect labor 7,600
Factory depreciation 11,900
Direct labor 36,100 - ANSWER: Factory Overhead = Indirect Materials + Indirect
Labor + Factory Depreciation
Factory Overhead = $3,100 + $7,600 + $11,900 = $22,600.
A company manufactures motorcycles. Compute the total amount of direct materials
costs from the following costs.
a. Tires, $10,000
b. Motorcycle seats, $17,000
c. Handlebars, $6,000
d. Factory accounting, $10,000
e. Factory equipment depreciation, $5,000
f. Assembly worker wages, $15,000
g. Factory rent, $60,000
h. Assembly worker benefits, $5,000
i. Bike frames, $14,000 - ANSWER: Direct Materials Costs = Tires + Motorcycle Seats +
Handlebars + Bike Frames
Factory Overhead = $10,000 + $17,000 + $6,000 + $14,000
Factory Overhead = $47,000
Using the information below, compute the raw materials inventory turnover:
Raw materials used$ 155,600
Beginning raw materials inventory 19,700
Ending raw materials inventory 21,900 - ANSWER: Raw materials inventory turnover
= Raw materials used/Average raw materials inventory
Raw materials inventory turnover = $155,600/[($19,700 + $21,900/2]
Raw materials inventory turnover = $155,600/$20,800 = 7.48
A report that lists the types and amounts of costs incurred in manufacturing is a: -
ANSWER: Schedule of cost of goods manufactured.
A manufacturing company has a beginning finished goods inventory of $28,300, cost
of goods manufactured of $58,500, and an ending finished goods inventory of
$27,600. The cost of goods sold for this company is: - ANSWER: Beginning Finished
, Goods + Cost of Goods Manufactured − Ending Finished Goods = Cost of Goods Sold;
$28,300 + $58,500 − $27,600 = $59,200
Using the information below, calculate cost of goods sold for the period:
Sales$ 1,304,000
Selling expenses 239,000
Finished Goods Inventory, beginning 36,000
Finished Goods Inventory, ending 41,000
Cost of goods manufactured 540,000 - ANSWER: Beginning Finished Goods Inventory
+ Cost of goods manufactured − Ending Finished Goods Inventory = Cost of goods
sold.
$36,000 + 540,000 − 41,000 = $535,000.
A company manufactures bicycles. Compute the total amount of factory overhead
from the following costs.
a. Factory maintenance salary, $9,000
b. Assembly worker wages, $25,000
c. Office staff salaries, $20,000
d. Depreciation on factory equipment, $10,000
e. Indirect materials costs, $5,000
f. Office insurance, $1,000
g. Direct materials costs, $6,000
h. Factory rent, $8,000
i. Property taxes on factory, $4,000 - ANSWER: Factory Overhead = Factory
Maintenance Salary + Depreciation on Factory Equipment + Indirect Materials +
Factory Rent + Property Taxes on Factory
Factory Overhead = $9,000 + $10,000 + $5,000 + $8,000 + $4,000
Factory Overhead = $36,000
Under a just-in-time manufacturing system, large quantities of inventory are
acquired to produce products in advance of customer orders - ANSWER: FALSE
Use the cost information below for Ruiz, Incorporated to determine cost of goods
manufactured for the year:
Work in Process, beginning$ 50,000
Work in Process, ending 37,000
Total factory overhead 5,500
Direct materials used 12,500
Direct labor used 26,500 - ANSWER: Cost of Goods Manufactured = Costs Added +
Beginning Work in Process − Ending Work in Process
Cost of Goods Manufactured = ($12,500 + $26,500 + $5,500) + $50,000 − $37,000 =
$57,500
Use the cost information below for Ruiz, Incorporated to determine cost of goods
manufactured for the year:
