BUS 1B – Pretest Exam 2, 2026 – Fully Worked Practice Exam
Craigmont Company's direct materials costs are $4,200,000, its direct labor costs total
$8,080,000, and its factory overhead costs total $6,080,000. Its prime costs total: - correct
answer ✔✔ $12,280,000.
Prime Costs = Direct Materials + Direct Labor; $4,200,000 + $8,080,000 = $12,280,000.
Craigmont Company's direct materials costs are $4,600,000, its direct labor costs total
$8,440,000, and its factory overhead costs total $6,440,000. Its conversion costs total: - correct
answer ✔✔ $14,880,000.
Conversion Costs = Direct Labor + Factory Overhead; $8,440,000 + $6,440,000 = $14,880,000.
Comet Company accumulated the following account information for the year:
Direct materials cost $6,100
Indirect materials cost $2,100
Indirect labor cost $5,100
Maintenance of factory equipment $2,900
Direct labor cost $7,100
Using the above information, total factory overhead costs equal: - correct answer ✔✔ $10,100
Factory Overhead = Indirect materials + Indirect labor + MaintenanceFactory Overhead = $2,100
+ $5,100 + $2,900 = $10,100
If beginning and ending work in process inventories are $6,600 and $16,600, respectively, and
cost of goods manufactured is $186,000, what is the total manufacturing cost for the period? -
correct answer ✔✔ $196,000
Manufacturing Costs + Beginning Work in Process − Ending Work in Process = Cost of Goods
Manufactured;Manufacturing Costs + $6,600 − $16,600 = $186,000;Manufacturing Costs −
$10,000 = $186,000;Manufacturing Costs = $196,000.
, A company's prime costs total $4,635,000 and its conversion costs total $5,650,000. If direct
materials costs are $2,165,000, calculate the overhead costs: - correct answer ✔✔ $3,180,000.
Overhead Costs = Conversion Costs − (Prime Costs − Direct Materials Costs)Overhead Costs =
$5,650,000 − ($4,635,000 − $2,165,000) = $3,180,000
Current information for the Healey Company follows:
Beginning raw materials inventory $14,300
Raw material purchases $51,000
Ending raw materials inventory $15,700
Beginning work in process inventory $21,500
Ending work in process inventory $27,100
Direct labor $38,300
Total factory overhead $29,100
All raw materials used were direct materials. Healey Company's total manufacturing costs for
the year are: - correct answer ✔✔ $117,000
Total Manufacturing Costs = Raw Materials Used + Direct Labor + Factory OverheadRaw
materials used = Beginning Raw Materials Inventory + Raw Materials Purchases − Ending Raw
Materials Inventory = $14,300 + $51,000 − $15,700 = $49,600$49,600 + $38,300 + $29,100 =
$117,000
Using the information below, calculate the cost of goods manufactured for the period:
Beginning Raw Materials Inventory $28,000
Ending Raw Materials Inventory $19,600
Beginning Work in Process Inventory $58,000
Ending Work in Process Inventory $67,000
Beginning Finished Goods Inventory $84,500
Ending Finished Goods Inventory $70,000
Cost of Goods Sold $543,000
Craigmont Company's direct materials costs are $4,200,000, its direct labor costs total
$8,080,000, and its factory overhead costs total $6,080,000. Its prime costs total: - correct
answer ✔✔ $12,280,000.
Prime Costs = Direct Materials + Direct Labor; $4,200,000 + $8,080,000 = $12,280,000.
Craigmont Company's direct materials costs are $4,600,000, its direct labor costs total
$8,440,000, and its factory overhead costs total $6,440,000. Its conversion costs total: - correct
answer ✔✔ $14,880,000.
Conversion Costs = Direct Labor + Factory Overhead; $8,440,000 + $6,440,000 = $14,880,000.
Comet Company accumulated the following account information for the year:
Direct materials cost $6,100
Indirect materials cost $2,100
Indirect labor cost $5,100
Maintenance of factory equipment $2,900
Direct labor cost $7,100
Using the above information, total factory overhead costs equal: - correct answer ✔✔ $10,100
Factory Overhead = Indirect materials + Indirect labor + MaintenanceFactory Overhead = $2,100
+ $5,100 + $2,900 = $10,100
If beginning and ending work in process inventories are $6,600 and $16,600, respectively, and
cost of goods manufactured is $186,000, what is the total manufacturing cost for the period? -
correct answer ✔✔ $196,000
Manufacturing Costs + Beginning Work in Process − Ending Work in Process = Cost of Goods
Manufactured;Manufacturing Costs + $6,600 − $16,600 = $186,000;Manufacturing Costs −
$10,000 = $186,000;Manufacturing Costs = $196,000.
, A company's prime costs total $4,635,000 and its conversion costs total $5,650,000. If direct
materials costs are $2,165,000, calculate the overhead costs: - correct answer ✔✔ $3,180,000.
Overhead Costs = Conversion Costs − (Prime Costs − Direct Materials Costs)Overhead Costs =
$5,650,000 − ($4,635,000 − $2,165,000) = $3,180,000
Current information for the Healey Company follows:
Beginning raw materials inventory $14,300
Raw material purchases $51,000
Ending raw materials inventory $15,700
Beginning work in process inventory $21,500
Ending work in process inventory $27,100
Direct labor $38,300
Total factory overhead $29,100
All raw materials used were direct materials. Healey Company's total manufacturing costs for
the year are: - correct answer ✔✔ $117,000
Total Manufacturing Costs = Raw Materials Used + Direct Labor + Factory OverheadRaw
materials used = Beginning Raw Materials Inventory + Raw Materials Purchases − Ending Raw
Materials Inventory = $14,300 + $51,000 − $15,700 = $49,600$49,600 + $38,300 + $29,100 =
$117,000
Using the information below, calculate the cost of goods manufactured for the period:
Beginning Raw Materials Inventory $28,000
Ending Raw Materials Inventory $19,600
Beginning Work in Process Inventory $58,000
Ending Work in Process Inventory $67,000
Beginning Finished Goods Inventory $84,500
Ending Finished Goods Inventory $70,000
Cost of Goods Sold $543,000
