ACCT 526 Midterm Exam 2024 with
Guaranteed Accurate Answers
Period Costs - correct answer ✔✔Costs that are matched with the revenue of a specific time period and
charged to expense as incurred.
Indirect Labor - correct answer ✔✔Work of factory employees that has no physical association with the
finished product, or it is impractical to trace the costs to the good produced.
Product Costs - correct answer ✔✔costs that are a necessary and integral part of producing the finished
product
Manufacturing Overhead - correct answer ✔✔Manufacturing costs that are indirectly associated with
the manufacture of the finished product.
Managerial Accounting - correct answer ✔✔A field of accounting that provides economic and financial
information for internal users.
Direct Labor - correct answer ✔✔The work of factory employees that can be physically and directly
associated with converting raw materials into finished goods.
Manufacturing Overhead - correct answer ✔✔Identify: Factory supervisor's salary
Period Costs - correct answer ✔✔Identify: Supplies for the general office
Direct Materials - correct answer ✔✔Identify: Rubber latex purchased for the use in the manufacture of
automobile tires
Period Costs - correct answer ✔✔Identify: Advertising
ACCT 526 Midterm Exam 2024 with Guaranteed Accurate Answers
,Manufacturing Overhead - correct answer ✔✔Identify: Rent on factory equipment
Period Costs - correct answer ✔✔Identify: Utility cost for the store
Period Costs - correct answer ✔✔Identify: Salary paid to the company's chief executive officer
Manufacturing Overhead - correct answer ✔✔Identify: Salary paid to mechanics who maintain and
repair factory equipment
Direct Labor - correct answer ✔✔Identify: Wages paid to assembly-line workers who install interiors in
automobiles
a. deal with the economic events of an enterprise - correct answer ✔✔Financial and managerial
accounting are similar in that both:
a. deal with the economic events of an enterprise.
b. produce general-purpose reports.
c. have the same primary users.
d. have reports that are prepared quarterly and annually.
c. the product is sold - correct answer ✔✔Product costs are expenses on the income statement when:
a. the product completes the manufacturing process.
b. the order is received for the product.
c. the product is sold.
d. raw materials for the product are purchased.
a. $22,500
15,500 + 44,500 - 37,500 = - correct answer ✔✔Super Tread Inc. is a large manufacturer of auto tires.
Super Tread has provided the following information:
ACCT 526 Midterm Exam 2024 with Guaranteed Accurate Answers
, Sales Revenue $55,000
Beginning Finished Goods Inventory $15,500
Cost of Goods sold $37,500
Cost of Goods Manufactured $44,500
Calculate the amount of ending Finished Goods Inventory reported on Super Tread's balance sheet.
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) - correct 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
ACCT 526 Midterm Exam 2024 with Guaranteed Accurate Answers
Guaranteed Accurate Answers
Period Costs - correct answer ✔✔Costs that are matched with the revenue of a specific time period and
charged to expense as incurred.
Indirect Labor - correct answer ✔✔Work of factory employees that has no physical association with the
finished product, or it is impractical to trace the costs to the good produced.
Product Costs - correct answer ✔✔costs that are a necessary and integral part of producing the finished
product
Manufacturing Overhead - correct answer ✔✔Manufacturing costs that are indirectly associated with
the manufacture of the finished product.
Managerial Accounting - correct answer ✔✔A field of accounting that provides economic and financial
information for internal users.
Direct Labor - correct answer ✔✔The work of factory employees that can be physically and directly
associated with converting raw materials into finished goods.
Manufacturing Overhead - correct answer ✔✔Identify: Factory supervisor's salary
Period Costs - correct answer ✔✔Identify: Supplies for the general office
Direct Materials - correct answer ✔✔Identify: Rubber latex purchased for the use in the manufacture of
automobile tires
Period Costs - correct answer ✔✔Identify: Advertising
ACCT 526 Midterm Exam 2024 with Guaranteed Accurate Answers
,Manufacturing Overhead - correct answer ✔✔Identify: Rent on factory equipment
Period Costs - correct answer ✔✔Identify: Utility cost for the store
Period Costs - correct answer ✔✔Identify: Salary paid to the company's chief executive officer
Manufacturing Overhead - correct answer ✔✔Identify: Salary paid to mechanics who maintain and
repair factory equipment
Direct Labor - correct answer ✔✔Identify: Wages paid to assembly-line workers who install interiors in
automobiles
a. deal with the economic events of an enterprise - correct answer ✔✔Financial and managerial
accounting are similar in that both:
a. deal with the economic events of an enterprise.
b. produce general-purpose reports.
c. have the same primary users.
d. have reports that are prepared quarterly and annually.
c. the product is sold - correct answer ✔✔Product costs are expenses on the income statement when:
a. the product completes the manufacturing process.
b. the order is received for the product.
c. the product is sold.
d. raw materials for the product are purchased.
a. $22,500
15,500 + 44,500 - 37,500 = - correct answer ✔✔Super Tread Inc. is a large manufacturer of auto tires.
Super Tread has provided the following information:
ACCT 526 Midterm Exam 2024 with Guaranteed Accurate Answers
, Sales Revenue $55,000
Beginning Finished Goods Inventory $15,500
Cost of Goods sold $37,500
Cost of Goods Manufactured $44,500
Calculate the amount of ending Finished Goods Inventory reported on Super Tread's balance sheet.
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) - correct 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
ACCT 526 Midterm Exam 2024 with Guaranteed Accurate Answers
