Business 1B Sec ON 1 Week 1 Quiz

Business 1B Sec ON 1 Week 1 Quiz | chatbot las positas college

Item 1

Period costs are production costs that are linked to specific products.

Group starts True or False

·         True

·         False 

·          

Item 2

Managerial accounting provides financial and nonfinancial information to an organization's managers.

Group starts True or False

·         True

·         False

Item 3

Planning is the process of setting goals and making plans to achieve them.

Group starts True or False

·         True

·         False

 

Item 4

Prime costs consist of direct materials costs and direct labor costs.

Group starts True or False

·         True

·         False

 

Item 5

The triple bottom line focuses on three measures: financial, social, and environmental.

Group starts True or False

·         True

·         False

 

Item 6

Customer orientation means that managers and employees understand the changing needs and wants of customers and align management and operations accordingly.

·         True

·         False

 

Item 7

Factory overhead is charged to expense as it is incurred because it is a period cost.

·         True

·         False

 

Item 8

Which of the following items is not a management concept that was created to improve company performance?            

·         Just-in-time manufacturing.

·         Total quality management.

·         GAAP constraints and guidelines.

 

Item 9

The cost of workers who assist in, or supervise, the manufacturing process, not linked to specific units of product is called:

·         Direct labor.

·         Unspecified labor.

·         Joint labor.

·         Basic labor.

·         Indirect labor

Item 10

Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. Its conversion costs total:              

·         $8,000,000.        

·         $5,000,000.

·         $10,000,000.

·         $12,000,000.

·         $15,000,000.

 

 

Item 11

Materials that are used in manufacturing that cannot be cost-effectively traced to finished goods are called:

·         Secondary materials.     

·         Direct materials.              

·         Indirect materials.          

·         Materials inventory.      

·         General materials.

 

Item 12

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

                 

·         $94,500.              

·         $44,500.              

·         $57,500.              

·         $13,000.              

·         $52,000.

 

Item 13

The salary paid to the assembly line supervisor would normally be classified as:

·         A period cost.

·         Indirect labor.

·         A general and administrative expense.  

·         Direct labor.

·         A prime cost.

 

 

Item 14

A company's prime costs total $4,500,000 and its conversion costs total $5,500,000. If direct materials costs are $2,000,000, calculate the overhead costs:

                 

·         $2,500,000.        

·         $3,000,000.        

·         $1,000,000.        

·         $2,000,000.        

·         $3,500,000.

 

Item 15

Use the cost information below for Sundar Company to determine the total manufacturing costs added during the current year:

 

Direct materials used     $ 19,000

Direct labor used              24,500

Factory overhead            55,100

Work in process inventory, beginning     10,700

Work in process inventory, ending           11,300

·         $42,900.                

·         $98,600.              

·         $98,000.              

·         $43,500.

·         $79,000.

 

Item 16

If the cost of the beginning work in process inventory is $60,000, costs of goods manufactured is $890,000, direct materials cost is $330,000, direct labor cost is $210,000, and overhead cost is $315,000, calculate the ending work in process inventory.

 

·         $355,000.            

·         $350,000.            

·         $25,000.              

·         $35,000.              

·         $45,000.

 

Item 17

A product, process, department, or customer to which costs are assigned is a(n):

•             Direct materials cost.

•             Indirect cost.

•             Cost object. Correct

•             Direct cost.

•             Direct labor cost.

 

Item 18

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year:

 

                Beginning            Ending

Raw materials inventory               $ 547,000             $ 610,000

 

The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to:

                 

·         $1,081,000.

·         $955,000.

·         $1,565,000.        

·         $408,000.

·         $892,000.

Item 19

Current information for the Healey Company follows:

 

Beginning raw materials inventory           $ 15,200

Raw material purchases                60,000

Ending raw materials inventory 16,600

Beginning work in process inventory       22,400

Ending work in process inventory             28,000

Direct labor         42,800

Total factory overhead  30,000

 

All raw materials used were direct materials. Healey Company's total manufacturing costs for the year are:         

·         $125,800.            

·         $139,000.            

·         $137,000.            

·         $128,600.

·         $131,400.

 

Item 20

Which of the following is the correct formula for calculating raw materials inventory turnover for a manufacturer?

                 

Raw materials purchased/Average raw materials inventory.

Raw materials used/Beginning raw materials inventory × 365.

Average raw materials inventory/Raw materials used.

Raw materials used/Average raw materials inventory.

Ending raw materials/Raw materials used × 365.

 

Item 21

Which of the following is not a goal of a lean business model?

                 

Eliminate waste.

                 

Continuous improvement.

Satisfying the customer.                

Consistent production levels.

Provide a positive return.

 

Item 22

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

$774,000.            

$530,000.            

$535,000.

$448,000.            

$769,000.

 

Item 23

Compute ending work in process inventory for a manufacturer using the following information.

 

Raw materials purchased             $ 120,000

Direct materials used     84,000

Direct labor used              63,000

Factory overhead            106,900

Work in process inventory, beginning     28,800

Cost of goods manufactured      228,400

 

               

 

Item 24

Compute cost of goods sold using the following information.

 

Finished goods inventory, beginning       $ 720

Cost of goods manufactured      4,560

Finished goods inventory, ending             1,400

 

 

Item 25

Compute cost of goods sold using the following information.

 

Merchandise inventory, beginning          $ 13,000

Cost of merchandise purchased                86,000

Merchandise inventory, ending                19,000