ACCT 2521 ExAm 1 NEwEsT 2025/2026 wiTh ComplETE
QuEsTioNs ANd CorrECT ANswErs |AlrEAdy GrAdEd
A+||BrANd NEw VErsioN!
Which account is credited if direct materials of $20,000 are sent to the manufacturing plant
floor?
a.Manufacturing Overhead Control
b.Work-in-Process Control
c.Accounts Payable Control
d.Materials Control - ANswEr-D
At what point are manufacturing costs expensed?
a.When they are transferred out of Work in Process
b.When they are entered into production
c.When finished goods are sold
d.At the end of the accounting period - ANswEr-C
Period costs
a. are treated as expenses in the period they are incurred
b. are directly traceable to products
c. are treated as expenses in the following period after are incurred
d. are also referred to as manufacturing overhead costs - ANswEr-A
Mosely Company's per-unit cost is the same at all levels of activity. The company's cost
structure must have all:
a.Fixed costs
,b.Variable costs
c.Mixed costs
d.Stepped costs - ANswEr-B
Owl Electronics is a manufacturing company. The wages of Owl's assembly line workers can be
described as:
Inventoriable costs - Direct costs
a.Yes - No
b.No - Yes
c.Yes - Yes
d.No - No - ANswEr-C
Which of the following statements about CVP analysis is correct?
a.At the breakeven point, sales revenue is exactly equal to total costs, and there is no operating
profit or loss.
b.On the breakeven graph, any level of sales to the left of the breakeven point represents a
profit.
c.The difference between total revenues and total costs is called contribution margin
d.None of the above statements is correct - ANswEr-A
Which of the following is not classified as a period cost?
a.The cost of toner for the sales department laser printer
b.The salary for the president of the company
c.The cost of utilities for the factory building
d.Advertising costs - ANswEr-C
ABC Inc. incurred a cost of $450 for the plant manager's salary. The journal entry for this
transaction would include
a.A debit to manufacturing overhead control
b.A credit to manufacturing overhead allocated
, c.A debit to salaries expense
d.A debit to manufacturing overhead control - ANswEr-A
Which of the following are debited to the Work-in-Process account?
a.actual plant insurance costs
b.customer services costs
c.marketing expenses
d.direct manufacturing labor costs - ANswEr-D
ABC company incurred $32,000 in manufacturing overhead and applied $32,500. The company
uses the most common and simple method (i.e. COGS) of handling differences between actual
and applied overhead. The journal entry to dispose of the difference would include
a.A debit to manufacturing overhead control
b.A debit to cost of goods sold
c.A credit to manufacturing overhead allocated
d.A credit to cost of goods sold - ANswEr-D
Factory machine operator wages are classified as
a.Product costs & indirect labor costs
b. Period costs & indirect labor costs
c. Product costs & direct labor costs
d. Period costs & direct labor costs - ANswEr-C
Blue Company is a manufacturing company. Salaries for sales personnel are classified as
a. Period costs & indirect labor costs
b. Period costs & selling costs
c. Selling costs & direct labor costs
d. Period costs & direct labor costs - ANswEr-B
QuEsTioNs ANd CorrECT ANswErs |AlrEAdy GrAdEd
A+||BrANd NEw VErsioN!
Which account is credited if direct materials of $20,000 are sent to the manufacturing plant
floor?
a.Manufacturing Overhead Control
b.Work-in-Process Control
c.Accounts Payable Control
d.Materials Control - ANswEr-D
At what point are manufacturing costs expensed?
a.When they are transferred out of Work in Process
b.When they are entered into production
c.When finished goods are sold
d.At the end of the accounting period - ANswEr-C
Period costs
a. are treated as expenses in the period they are incurred
b. are directly traceable to products
c. are treated as expenses in the following period after are incurred
d. are also referred to as manufacturing overhead costs - ANswEr-A
Mosely Company's per-unit cost is the same at all levels of activity. The company's cost
structure must have all:
a.Fixed costs
,b.Variable costs
c.Mixed costs
d.Stepped costs - ANswEr-B
Owl Electronics is a manufacturing company. The wages of Owl's assembly line workers can be
described as:
Inventoriable costs - Direct costs
a.Yes - No
b.No - Yes
c.Yes - Yes
d.No - No - ANswEr-C
Which of the following statements about CVP analysis is correct?
a.At the breakeven point, sales revenue is exactly equal to total costs, and there is no operating
profit or loss.
b.On the breakeven graph, any level of sales to the left of the breakeven point represents a
profit.
c.The difference between total revenues and total costs is called contribution margin
d.None of the above statements is correct - ANswEr-A
Which of the following is not classified as a period cost?
a.The cost of toner for the sales department laser printer
b.The salary for the president of the company
c.The cost of utilities for the factory building
d.Advertising costs - ANswEr-C
ABC Inc. incurred a cost of $450 for the plant manager's salary. The journal entry for this
transaction would include
a.A debit to manufacturing overhead control
b.A credit to manufacturing overhead allocated
, c.A debit to salaries expense
d.A debit to manufacturing overhead control - ANswEr-A
Which of the following are debited to the Work-in-Process account?
a.actual plant insurance costs
b.customer services costs
c.marketing expenses
d.direct manufacturing labor costs - ANswEr-D
ABC company incurred $32,000 in manufacturing overhead and applied $32,500. The company
uses the most common and simple method (i.e. COGS) of handling differences between actual
and applied overhead. The journal entry to dispose of the difference would include
a.A debit to manufacturing overhead control
b.A debit to cost of goods sold
c.A credit to manufacturing overhead allocated
d.A credit to cost of goods sold - ANswEr-D
Factory machine operator wages are classified as
a.Product costs & indirect labor costs
b. Period costs & indirect labor costs
c. Product costs & direct labor costs
d. Period costs & direct labor costs - ANswEr-C
Blue Company is a manufacturing company. Salaries for sales personnel are classified as
a. Period costs & indirect labor costs
b. Period costs & selling costs
c. Selling costs & direct labor costs
d. Period costs & direct labor costs - ANswEr-B
