ACCT 201B EXAM REVIEW (CH. 1 -4)

ACCT 201B EXAM
REVIEW (CH. 1 -4)
Ch. 2 - CORRECT ANSWER -Job Order Costing: Calculating Unit Product Costs



Dolan Manufacturing Company's accounting records reflect the following inventories:

Dec. 31, 2011

Raw materials inventory - $310,000

Work in process inventory - $300,000

Finished goods inventory - $190,000



Dec. 31, 2010

Raw materials inventory - $260,000

Work in process inventory - $160,000

Finished goods inventory - $150,000



During 2011, $400,000 of raw materials were purchased, direct labor costs amounted to
$500,000, and manufacturing overhead incurred was $480,000.If Dolan Manufacturing
Company's cost of goods manufactured for 2011 amounted to $1,190,000, its cost of goods
sold for the year is



A. $1,300,000.

B. $1,230,000.

, C. $1,050,000.

D. $1,150,000. - CORRECT ANSWER -D. $1,150,000.



COGS = Beginning Finished Goods + COGM - End FG

COGS = (150,000 + 1,190,000) - 190,000

COGS = 1,150,000



On the costs of goods manufactured schedule, the item raw materials inventory (ending)
appears as a(n)

A. addition to raw materials available for use.

B. subtraction from raw materials purchases.

C. addition to raw materials purchases.

D. subtraction from raw materials available for use. - CORRECT ANSWER -D. subtraction
from raw materials available for use.



RM: (Beg RM + Purchases) - End RM

RM available for use = Beg RM + Purchases



A company expected its annual overhead costs to be $900,000 and direct labor costs to be
$1,000,000. Actual overhead was $870,000, and actual labor costs totaled $1,100,000. How
much is the company's predetermined overhead rate to the nearest cent?



A. $0.79

B. $0.90

C. $0.87

D. $0.82 - CORRECT ANSWER -B. $0.90