,Test Bank for Managerial Accounting, Fourth Canadian Edition
COMPREHENSIVE EXAMINATION A
(Chapters 1 - 5)
Approximate
Problem Topic `Marks Minutes
A-I Multiple Choice ............................................ 20 20
A - II Cost of Goods Manufactured and Sold ........ 20 15
A - III Job Order Cost Accounting .......................... 20 15
A - IV Process Cost Accounting ............................. 25 20
A-V Activity-Based Costing ................................. 15 15
100 85
Checking Work ............................................ 5
90
,A-2 Test Bank for Managerial Accounting, Third Canadian Edition
Problem A - I — Multiple Choice (20 marks)
Circle the one best answer.
1. Cost of goods manufactured during a period is obtained by taking the total manufacturing
costs incurred during the period and adding and subtracting the following inventories:
Adding Subtracting
a. Beginning finished goods inventory Ending finished goods inventory
b. Beginning work in process inventory Ending finished goods inventory
c. Beginning raw materials inventory Ending work in process inventory
d. Beginning work in process inventory Ending work in process inventory
2. Cost of goods sold is equal to
a. total manufacturing costs plus beginning work in process less ending work in process.
b. cost of goods sold plus beginning work in process less ending work in process.
c. total manufacturing costs plus ending work in process less beginning work in process.
d. cost of goods manufactured plus beginning finished goods less ending finished goods.
3. Inventory accounts for a manufacturer consist of
a. direct materials, work in process, and finished goods.
b. direct labour, work in process, and finished goods.
c. manufacturing overhead, direct materials, and direct labour.
d. work in process, direct labour, and manufacturing overhead.
4. In a process cost system, equivalent units of production are the
a. work done on physical units expressed in fully completed units.
b. units that are transferred to the next processing department.
c. units completed and transferred to finished goods.
d. units that are incomplete at the end of a period.
Use the following information for questions 5 and 6.
In the month of November, a department had 1,000 units in the beginning work in process
inventory that were 70% complete. These units had $9,000 of materials cost and $10,000 of
conversion costs. Materials are added at the beginning of the process and conversion costs are
added uniformly throughout the process. During November, 15,000 units were completed and
transferred to the finished goods inventory and there were 4,000 units that were 50% complete in
the ending work in process inventory on November 30. During November, manufacturing costs
charged to the department were: Materials $371,000; Conversion costs $245,000.
5. The cost assigned to the units transferred to finished goods during November was
a. $525,000.
b. $493,500.
c. $700,000.
d. $800,000.
6. The cost assigned to the units in the ending work in process inventory on November 30
was
a. $140,000.
b. $110,000.
c. $70,000.
d. $164,267.
, Comprehensive Examination A A-3
7. An appropriate cost driver for ordering and receiving materials cost is the
a. direct labour hours.
b. machine hours.
c. number of parts.
d. number of purchases orders.
8. Benefits of activity-based costing include all of the following except
a. more accurate product costing.
b. fewer cost pools used to assign overhead costs to products.
c. enhanced control over overhead costs.
d. better management decisions.
9. An example of a value-added activity in a manufacturing operation is
a. machine repair.
b. inventory control.
c. engineering design.
d. building maintenance.
10. Assigning manufacturing costs to work in process results in credits to all of the following
accounts except
a. Factory Labour.
b. Manufacturing Overhead.
c. Raw Materials Inventory.
d. Work in Process Inventory.
COMPREHENSIVE EXAMINATION A
(Chapters 1 - 5)
Approximate
Problem Topic `Marks Minutes
A-I Multiple Choice ............................................ 20 20
A - II Cost of Goods Manufactured and Sold ........ 20 15
A - III Job Order Cost Accounting .......................... 20 15
A - IV Process Cost Accounting ............................. 25 20
A-V Activity-Based Costing ................................. 15 15
100 85
Checking Work ............................................ 5
90
,A-2 Test Bank for Managerial Accounting, Third Canadian Edition
Problem A - I — Multiple Choice (20 marks)
Circle the one best answer.
1. Cost of goods manufactured during a period is obtained by taking the total manufacturing
costs incurred during the period and adding and subtracting the following inventories:
Adding Subtracting
a. Beginning finished goods inventory Ending finished goods inventory
b. Beginning work in process inventory Ending finished goods inventory
c. Beginning raw materials inventory Ending work in process inventory
d. Beginning work in process inventory Ending work in process inventory
2. Cost of goods sold is equal to
a. total manufacturing costs plus beginning work in process less ending work in process.
b. cost of goods sold plus beginning work in process less ending work in process.
c. total manufacturing costs plus ending work in process less beginning work in process.
d. cost of goods manufactured plus beginning finished goods less ending finished goods.
3. Inventory accounts for a manufacturer consist of
a. direct materials, work in process, and finished goods.
b. direct labour, work in process, and finished goods.
c. manufacturing overhead, direct materials, and direct labour.
d. work in process, direct labour, and manufacturing overhead.
4. In a process cost system, equivalent units of production are the
a. work done on physical units expressed in fully completed units.
b. units that are transferred to the next processing department.
c. units completed and transferred to finished goods.
d. units that are incomplete at the end of a period.
Use the following information for questions 5 and 6.
In the month of November, a department had 1,000 units in the beginning work in process
inventory that were 70% complete. These units had $9,000 of materials cost and $10,000 of
conversion costs. Materials are added at the beginning of the process and conversion costs are
added uniformly throughout the process. During November, 15,000 units were completed and
transferred to the finished goods inventory and there were 4,000 units that were 50% complete in
the ending work in process inventory on November 30. During November, manufacturing costs
charged to the department were: Materials $371,000; Conversion costs $245,000.
5. The cost assigned to the units transferred to finished goods during November was
a. $525,000.
b. $493,500.
c. $700,000.
d. $800,000.
6. The cost assigned to the units in the ending work in process inventory on November 30
was
a. $140,000.
b. $110,000.
c. $70,000.
d. $164,267.
, Comprehensive Examination A A-3
7. An appropriate cost driver for ordering and receiving materials cost is the
a. direct labour hours.
b. machine hours.
c. number of parts.
d. number of purchases orders.
8. Benefits of activity-based costing include all of the following except
a. more accurate product costing.
b. fewer cost pools used to assign overhead costs to products.
c. enhanced control over overhead costs.
d. better management decisions.
9. An example of a value-added activity in a manufacturing operation is
a. machine repair.
b. inventory control.
c. engineering design.
d. building maintenance.
10. Assigning manufacturing costs to work in process results in credits to all of the following
accounts except
a. Factory Labour.
b. Manufacturing Overhead.
c. Raw Materials Inventory.
d. Work in Process Inventory.
