ACCT 526 MIDTERM COMPREHENSIVE EXAM
2026 QUESTIONS WITH ANSWERS GRADED
A+
◉ c. $1,135,000
Direct Materials (81,000+360,000-59,000) + Direct Labor (471,000)
+ Factory Overhead (19,000+24,000+268,000) + Work-in-Process
(26,000-55,000). Answer: Payton Corporation provided the
following information for the year:
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
Product Costs = Direct Materials (27,500) + Direct Labor (36,000) +
factory repair and maintenance (920) + Manufacturing equipment
depreciation (1,200) + Indirect materials (8,000) + Indirect labor
(13,000). 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?
◉ d. $260
312,000/1200. 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?
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 good are sold
c. the total of Cost of Goods Manufactured is determined
2026 QUESTIONS WITH ANSWERS GRADED
A+
◉ c. $1,135,000
Direct Materials (81,000+360,000-59,000) + Direct Labor (471,000)
+ Factory Overhead (19,000+24,000+268,000) + Work-in-Process
(26,000-55,000). Answer: Payton Corporation provided the
following information for the year:
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
Product Costs = Direct Materials (27,500) + Direct Labor (36,000) +
factory repair and maintenance (920) + Manufacturing equipment
depreciation (1,200) + Indirect materials (8,000) + Indirect labor
(13,000). 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?
◉ d. $260
312,000/1200. 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?
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 good are sold
c. the total of Cost of Goods Manufactured is determined
