Cost Accounting Final Complete Exam 2025

Cost Accounting Final Complete Exam 2025 When manufacturing overhead is applied to production, it is added to: A) the Raw Materials account B) the Finished Goods inventory account C) the Work in Process account D) the Cost of Goods Sold account - Correct Answer-the Work in Process account Cassius A) 16,400 units B) 9,400 units C) 42,000 units D) 35,000 units - Correct Answer-9,400 units In a job-order costing system that is based on machine-hours, which of the following formulas is correct? A) Predetermined overhead rate = Estimated manufacturing overhead / Actual machine hours B) Predetermined overhead rate = Estimated manufacturing overhead / Estimated machine-hours C) Predetermined overhead rate = Actual manufacturing overhead / Estimated machine hours D) Predetermined overhead rate = Actual manufacturing overhead / Actual machine hours - Correct Answer-Predetermined overhead rate = Estimated manufacturing overhead / Estimated machine-hours The journal entry to record applying overhead during the production process is: A) Finished Goods XXX Manufacturing Overhead XXX B) Manufacturing Overhead XXX Finished Goods XXX C) Work in Process XXX Manufacturing Overhead XXX D) Manufacturing Overhead XXX Work in Process XXX - Correct Answer-Work in Process XXX Manufacturing Overhead XXX When computing the cost per equivalent unit, weighted-average method of process costing considers: A) costs incurred during the current period less cost of beginning work in process inventory ACCOUTING ACCOUTING B) costs incurred during the current period plus cost beginning work in process inventory C) costs incurred during the current period only D) costs incurred during the current period plus cost of ending work in process inventory - Correct Answer-costs incurred during the current period plus cost of beginning work in process inventory Stauffer A) 33% B) 60% C) 67% D) 40% - Correct Answer-60% Atteberry A) $73,696 B) $24,500 C) $35,796 D) $13,400 - Correct Answer-$73,696 A cost incurred in the past that is not relevant to any current decision is classified as a(n): A) differential cost B) opportunity cost C) sunk cost D) period cost - Correct Answer-sunk cost To obtain the dollar sales volume necessary to attain a given target profit, which of the following formulas should be used? A) (Fixed expenses + Target net profit)/Contribution margin ratio B) (Fixed expenses + Target net profit)/Total contribution margin C) Fixed expenses/Contribution margin per unit D) Target net profit/Contribution margin ratio - Correct Answer-(Fixed expenses + Target net profit)/Contribution margin ratio If the degree of operating leverage is 4, then a one percent change in quantity sold should result in a four percent change in: A) unit contribution margin B) variable expense C) revenue D) net operating income - Correct Answer-net operating income For an automobile manufacturer, the cost of a driver's side air bag purchased from a supplier and installed in every automobile would best described as a: A) fixed cost B) mixed cost C) variable cost ACCOUTING ACCOUTING D) step-variable cost - Correct Answer-variable cost Johansen Jameson A) $2.79 per direct-labor hour B) $3.00 per direct-labor hour C) $4.00 per direct-labor hour D) $2.50 per direct-labor hour - Correct Answer-$2.50 per direct labor-hour During March, Zea Inc. transferred $50,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $56,000. The journal entries to record these transactions would include a: A) credit to Cost of Goods Sold of $56,000 B) credit to Finished Goods of $50,000 C) debit to Finished Goods of $56,000 D) credit to Work in Process of $50,000 - Correct Answer-credit to Work in Process of $50,000 Which of the following would most likely NOT be included as manufacturing overhead in a furniture factory? A) The cost of the glue in a chair B) The amount paid to the individual who stains a chair C) The factory utilities of the department in which production takes place D) The workman's compensation insurance of the supervisor who oversees production - Correct Answer-The amount paid to the individual who stains a chair Valvano A) $550,000 B) $110,000 C) $440,002 D) $440,000 - Correct Answer-$550,000 Bims A) 55,800 B) 54,400 C) 45,000 D) 77,000 - Correct Answer-55,800 Sargent A) $12,500 B) $8,000 C) $10,000 D) $11,000 - Correct Answer-$12,500 ACCOUTING ACCOUTING In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the "Total raw materials available" is computed by adding together the "Beginning raw materials inventory" and: A) Raw materials used in production B) Purchases of raw materials C) Ending raw materials inventory D) Indirect materials included in manufacturing overhead - Correct Answer-Purchases of raw materials Stockmaster A) $121,600 B) $6,400 C) $16,000 D) $128,000 - Correct Answer-$16,000 In October, Raddatz Inc. incurred $73,000 of direct labor costs and $6,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a: A) debit to Manufacturing Overhead of $6,000 B) credit to Work in Process of $79,000 C) credit to Manufacturing Overhead of $6,000 D) debit to Work in Process of $79,000 - Correct Answer-debit to Manufacturing Overhead of $6,000 Bernson A) $464,120 B) $25,000 C) $487,703 D) $492,000 - Correct Answer-$464,120 Fisher A) $16,700 B) $12,800 C) $10,600 D) $23,400 - Correct Answer-$10,600 Carver A) $7 B) $17 C) $16 D) $22 - Correct Answer-$16 Darden A) $9,963 B) $9,000 C) $8,804 D) $8,286 - Correct Answer-$8,804 ACCOUTING ACCOUTING The Assembly Department A) 333,000 B) 362,000 C) 314,000 D) 304,000 - Correct Answer-304,000 Within the relevant range, variable costs can be expected to: A) increase on a per unit basis as the activity level increases B) remain constant in total as the activity level changes C) vary in total in direct proportion to changes in the activity level D) increase on a per unit basis as the activity level decreases - Correct Answer-vary in total in direct proportion to changes in the activity level In process costing, a separate work in process account is kept for each: A) equivalent unit B) processing department C) individual order D) cost category (i.e., materials, conversion cost) - Correct Answer-processing department In the cost reconciliation report under the weighted-average method, the "Total cost accounted for" equals: A) Cost of ending work inventory + Cost of units transferred out B) Cost of beginning work inventory + Cost of units transferred in C) Cost of beginning work inventory + Cost of units transferred out D) Cost of ending work inventory + Cost added to production during the period - Correct Answer-Cost of ending work inventory + Cost of units transferred out Juanita A) $1,330 B) $1,230 C) $1,730 D) $500 - Correct Answer-$1,730 Depreciation on a personal computer used in the marketing department of a manufacturing company would be classified as: A) a period cost that is variable with respect to the company's output B) a period cost that is fixed with respect to the company's output C) a product cost that is fixed with respect to the company's output D) a product cost that is variable with respect to the company's output - Correct Answer a period cost that is fixed with respect to the company's output Break-even analysis assumes that: A) Unit fixed expense is constant B) Unit variable expense is constant ACCOUTING ACCOUTING C) Total revenue D) Selling prices must fall in order to generate more revenue - Correct Answer-Unit variable expense is constant Product costs that have become expenses can be found in: A) cost of goods sold B) administrative expenses C) selling expenses D) period costs - Correct Answer-cost of goods sold Werner A) 22,000 units B) 17,000 units C) 21,000 units D) 26,000 units - Correct Answer-21,000 units Direct costs: A) are incurred to benefit a particular accounting period B) are the variable costs of producing a product C) can be easily traced to a particular cost object D) are incurred due to a specific decision - Correct Answer-can be easily traced to a particular cost object Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June. During the same period, the Manufacturing Overhead applied to Work in Process was $92,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a: A) credit to Manufacturing Overhead of $92,000 B) credit to Work in Process of $90,000 C) debit to Manufacturing Overhead of $92,000 D) debit to Work in Process of $90,000 - Correct Answer-credit to Manufacturing Overhead of $92,000 Malcolm Company uses weighted-average process costing system. All materials at Malcolm are added at the beginning of the production process. The equivalent units for materials at Malcolm would be the sum of: A) units in beginning work in process and the units started and completed B) units in beginning work in process and the units started C) units in ending work in process and the units started and completed D) units in ending work in process and the units started - Correct Answer-units in beginning work in process and the units started