ACC 202- Exam Questions with Correct Answers Latest Version 2024 ( Fully Solved)

ACC 202- Exam Questions with Correct Answers Latest Version 2024 ( Fully Solved) Unlike merchandising companies, income statements of service companies include cost of goods sold as a line item. True / False (Chapter 16) - Answers False In a manufacturing plant, indirect material costs such as lubricants and cleaning fluids are product costs True / False (Chapter 16) - Answers True Factory rent, as well as factory property taxes and insurance, are included in manufacturing overhead. True / False (Chapter 16) - Answers True In a manufacturing company, advertising and manufacturing costs are included in manufacturing overhead True / False (Chapter 16) - Answers False The three categories of period costs are direct materials, direct labor, and manufacturing overhead True / False (Chapter 16) - Answers False Which of the following would appear as a line on the income statements of both a merchandiser and a manufacture? A. Cost of Goods Manufactured B. Direct Materials C. Cost of Goods Sold D. Direct Labor (Chapter 16) - Answers Cost of Goods Sold Which of the following statements is true of the flow of products and periods costs for a manufacture? A. The cost of the finished goods that the manufacturer sells becomes its Cost of Goods Sold on the income statement. B. When the manufacturing process is completed, the costs are transferred to the Work-in-Process Inventory account. C. All product costs that have been paid are expensed and reported on the income statement at the end of the accounting period. D. Period costs remain in inventory accounts on the balance sheet until the product is sold. (Chapter 16) - Answers The cost of the finished goods that the manufacturer sells becomes its Cost of Goods Sold on the income statement The Works-in-Process Inventory account includes the ______________. A. goods that are damaged during production B. goods that partially completed C. goods that have been sold in the market D. goods that are ready to be sold (Chapter 16) - Answers Goods that are partially completed Seria, Inc. has received a bulk order from an overseas client. As a result, the reported earnings of this year are expected to be significantly higher than the estimates of financial analysts. Joshua, an accountant at Seria, tells this to one of his friends. Which of the IMA standards has Joshua violated? A. Nontechnical B. Confidentiality C. Objectivity D. Competence (Chapter 16) - Answers Confidentiality In which of the following ways is the management of a company accountable to its communities? A. repaying principal and interest to the suppliers B. providing a capital return on the shareholders' investment C. ensuring the company's environmental impact is not harmful to its community D. making timely interest payments to creditors and dividend payments to investors (Chapter 16) - Answers Ensuring the company's environmental impact is not harmful to its community Anything for which managers want a separate measurement of cost is called a _____________. A. profit object B. conversion cost C. cost object D. responsibility center (Chapter 16) - Answers Cost Object Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed when customer orders need to be filled? A. Total Quality Management (TQM) B. Supply Chain Management (SCM) C. Enterprise Resource Planning (ERP) D. Just-in-Time (JIT) Management (Chapter 16) - Answers Just-in-Time (JIT) Management For decision-making purposes, ______________ costs are often divided into prime costs and conversion costs. A. Period costs B. Fixed costs C. Product costs D. Sunk costs (Chapter 16) - Answers Product Costs Arturo Manufacturing, Inc. provided the following information for the year: Beginning Balance—Work-in-Process Inventory $150,000 Ending Balance—Work-in-Process Inventory 62,500 Beginning Balance—Raw Materials Inventory 269,000 Ending Balance—Raw Materials Inventory 53,700 Purchases—Raw Materials 133,000 Direct Labor 74,380 Indirect Materials 52,350 Indirect Labor 132,500 Depreciation on Factory Plant and Equipment 72,160 Plant Utilities and Insurance 70,980 How much is the cost of goods manufactured? A. $750,670 B. $900,670 C. $766,010 D. $838,170 (Chapter 16) - Answers $838,170 Which of the following formulas represents cost of goods sold for a merchandising business? A. Beginning Merchandise Inventory + Purchases and Freight In - Ending Merchandise Inventory = Cost of Goods Sold B. Beginning Merchandise Inventory - Ending Merchandise Inventory = Cost of Goods Sold C. Purchases and Freight In - Ending Merchandise Inventory = Cost of Goods Sold D. Ending Merchandise Inventory + Purchases and Freight In - Beginning Merchandise Inventory = Cost of Goods Sold (Chapter 16) - Answers Beginning Merchandise Inventory + Purchases and Freight In - Ending Merchandise Inventory = Cost of Goods Sold Which of the following would be considered a product cost for a manufacturing company? A. salary of the sales manager B. salary of the CEO C. salary of the production manager D. salaries of the accounting staff (Chapter 16) - Answers Salary of the production manager Viva, Inc. has provided the following information for the year: Cost of Goods Manufactured $1,261,000 Beginning Balance—Finished Goods Inventory 99,000 Ending Balance—Finished Goods Inventory 85,000 How much is the cost of goods sold? (Chapter 16) - Answers $1,275,000 Fire Cat, Inc. selected cost data for the year are shown below: Cost of Goods Manufactured $145,500