Latest ACCT 526 Final Exam Success Guide 2026/2027 – Newly Revised Questions with Comprehensive Correct Answers || 100% GUARANTEED PASS NEWEST VERSION

Beginning Balance - Work-in-Process Inventory $26,000 Ending Balance - Work-in-Process Inventory 55,000 Beginning Balance - Direct Materials 81,000 Ending Balance - Direct Materials 59,000 Purchases - Direct Materials 360,000 Direct Labor 471,000 Indirect Labor 19,000 Depreciation on Factory Plant and Equipment 24,000 Plant Utilities and Insurance 268,000 What was the amount of the cost of goods manufactured for the year? a. $1,363,000 b. $1,193,000 c. $1,135,000 d. $1,164,000 c. $86,620 - - ANSWER The following relates to Harrison, Inc: Advertising Costs $10,600 Sales Salary 10,000 Sales Revenue 500,000 President's Salary 230,000 Office Rent 60,500 Manufacturing Equipment Depreciation 1,200 Indirect Materials Used 8,000 Indirect Labor 13,000 Factory Repair and Maintenance 920 Direct Materials Used 27,500 Direct Labor 36,000 Delivery Vehicle Depreciation 1,550 Administrative Salaries 22,000 How much were Harrison's product costs? a. $604,650 b. $510,600 c. $86,620 d. $252,000 d. $260 - - ANSWER The following information is available from Avery Company, a manufacturer of security cameras: Cost of Goods Manufactured $312,000 Total Units Produced 1,200 Number of Units Sold 850 Cost of Goods Sold $275,000 The unit product cost for a security camera is: a. $286 b. $324 c. $1 d. $260 b. wages of assembly line personnel - - ANSWER Which of the following is an example of direct labor cost in a factory? a. wages of factory security guard b. wages of assembly line personnel c. salary of vice president of production d. salary of production manager c. spices - - ANSWER Which of the following will most likely be considered an indirect material cost for a bakery? Select one: a. flour b. eggs c. spices d. milk b. finished goods are sold - - ANSWER Costs are transferred from the balance sheet to the income statement as cost of goods sold when: a. goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account b. finished goods are sold c. the total of Cost of Goods Manufactured is determined d. direct materials, direct labor and manufacturing overhead are transferred to the beginning Work-in-Process Inventory account b. operating costs that are expensed in the accounting period in which they are incurred - - ANSWER Period costs are the a. costs related to production of products b. operating costs that are expensed in the accounting period in which they are incurred c. product costs that must be paid in the accounting period in which they are incurred d. same as manufacturing overhead costs b. depreciation on manufacturing equipment - - ANSWER Which of the following would be considered a product cost for a manufacturing company? Select one: a. depreciation on administrative building furniture and fixtures b. depreciation on manufacturing equipment c. depreciation on delivery vehicles d. depreciation on the accounting department's computer equipment d. goods that are partially completed - - ANSWER The Work-in-Process Inventory account includes: Select one: a. goods that have been sold in the market b. goods that are ready to be sold c. goods that are returned by customers d. goods that are partially completed b. variable costs per unit increases - - ANSWER The contribution margin per unit decreases when unit selling price remains the same and: a. variable cost per unit decreases b. variable costs per unit increases c. fixed costs increase d. fixed costs decrease d. Variable Cost per Unit = $8.33 and Total Fixed Cost = $267 - - ANSWER In the Gabbana Company, maintenance costs are a mixed cost. At the low level of activity (40 direct labor hours), maintenance costs are $600. At the high level of activity (100 direct labor hours), maintenance costs are $1,100. Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost? a. Variable Cost per Unit = $8.33 and Total Fixed Cost = $500 b. Variable Cost per Unit = $11.00 and Total Fixed Cost = $220 c. Variable Cost per Unit = $15.00 and Total Fixed Cost = $400 d. Variable Cost per Unit = $8.33 and Total Fixed Cost = $267 c. both (a) and (b) - - ANSWER Fixed costs are costs that: a. remain the same in total regardless of changes in the activity level b. vary inversely with activity on a per unit basis c. both (a) and (b) d. neither (a) nor (b) variable costs - - ANSWER Costs that vary in total directly and proportionately with changes in the activity level break-even point - - ANSWER The level of activity at which total revenues equal total costs relevant range - - ANSWER The range of activity index over which the company expects to operate during the year fixed costs - - ANSWER Costs that remain the same in total regardless of changes in the activity level contribution margin - - ANSWER The amount of revenue remaining after deducting variable costs cost behavior analysis - - ANSWER The study of how specific costs respond to changes in the level of activity b. 10% - - ANSWER Domino Industries makes a product that sells for $25 per unit. The product has a $5 per unit variable cost and total fixed costs of $18,000. At budgeted sales of 1,000 units, the margin of safety ratio is a. 80% b. 10% c. 20% d. 90% a. $100,000 - - ANSWER CMA, Inc. produces a product that has a variable cost of $2.50 per unit. The company's fixed costs are $30,000. The product is sold for $5.00 per unit and the company desires to earn a target profit of $20,000. What amount of sales will be necessary to earn the desired profit? a. $100,000 b. $40,000 c. $60,000 d. $20,000 a. 12,000 - - ANSWER AMC, Inc. produces a product that has a variable cost of $2.50 per unit. The company's fixed costs are $30,000. The product is sold for $5.00 a unit and the company desires to earn a $20,000 profit. The breakeven in units for AMC is which of the following amounts? a. 12,000 b. 4,000 c. 6,000 d. 5,000 c. $0.5625 - - ANSWER Clear Springs Bottling Company produces a soft drink that is sold for a dollar. The company pays $400,000 in production costs, of which $260,000 are variable production costs. General, selling and administrative costs amount to $290,000 of which $90,000 are variable costs. Assuming production and sales of 800,000 units, what is the amount of contribution margin per unit? Select one: a. $0.3125 b. None of these are correct c. $0.5625 d. $0.1375 a. $120,000 - - ANSWER Cinder Block Industries currently produces and sells 20,000 units of product at a selling price of $10. The product has variable costs of $4 per unit and a fixed cost of $50,000. The company currently earns a total contribution margin of: a. $120,000 b. $200,000 c. $50,000 d. $70,000 period costs - - ANSWER Costs that are matched with the revenue of a specific time period and charged to expense as incurred. indirect labor - - ANSWER Work of factory employees that has no physical association with the finished product, or it is impractical to trace the costs to the goods produced. product costs - - ANSWER Costs that are a necessary and integral part of producing the finished product. manufacturing overhead - - ANSWER costs that are indirectly associated with the manufacture of the finished product. managerial accounting - - ANSWER A field of accounting that provides economic and financial information for internal users. direct labor - - ANSWER The work of factory employees that can be physically and conveniently associated with converting raw materials into finished goods. manufacturing overhead - - ANSWER identify: Factory supervisor's salary period costs - - ANSWER identify: Supplies for the general office direct materials - - ANSWER identify: Rubber latex purchased for the use in the manufacture of automobile tires period costs - - ANSWER identify: advertising manufacturing overhead - - ANSWER identify: Rent on factory equipment period costs - - ANSWER identify: Utility cost for the store period costs - - ANSWER identify: Salary paid to the company's chief executive officer manufacturing overhead - - ANSWER identify: Salary paid to mechanics who maintain and repair factory equipment direct labor - - ANSWER identify: Wages paid to assembly-line workers who install interiors in automobiles a. deal with the economic events of an enterprise. - - ANSWER Financial and managerial accounting are similar in that both: a. deal with the economic events of an enterprise. b. produce general-purpose reports. c. have the same primary users. d. have reports that are prepared quarterly and annually. c. the product is sold. - - ANSWER Product costs are expenses on the income statement when: a. the product completes the manufacturing process. b. the order is received for the product. c. the product is sold. d. raw materials for the product are purchased. a. $22,500 - - ANSWER Super Tread Inc. is a large manufacturer of auto tires. Super Tread has provided the following information: Sales Revenue $55,000 Beginning Finished Goods Inventory 15,500 Cost of Goods Sold 37,500 Cost of Goods Manufactured 44,500 Calculate the amount of ending Finished Goods Inventory reported on Super Tread's balance sheet. a. $22,500 b. $10,500 c. $60,000 d. $7,000 c. $1,135,000 - - ANSWER Payton Corporation provided the following information for the year: