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