Chapter 002, Managerial Accounting and Cost Concepts

| October 3, 2018

66.
The total of the product
costs listed above for February is:

A. $277,000

B.
$595,000

C. $318,000

D.
$61,000

2-22

Chapter 002, Managerial Accounting and Cost Concepts

Nadell
Corporation reported the following data for the month of April:
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69. If the raw materials purchased during April totaled $63,000, what
was the cost of the raw materials used in production for the month?
A. $63,000
B. $61,000 C. $62,000 D. $65,000

70. If the company transferred $234,000 of completed goods from work
in process to finished goods inventory during April, what was the cost of goods
sold for the month?
A. $234,000
B. $235,000 C. $220,000 D. $248,000

2-23

Chapter 002, Managerial Accounting and Cost Concepts

Tart
Corporation reported the following data for the month of September:
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71. The conversion cost for September was: A. $150,000
B. $103,000
C. $117,000 D. $86,000

72.
The prime cost for September
was:

A.
$50,000

B. $83,000

C.
$86,000

D.
$103,000

2-24

Chapter 002, Managerial Accounting and Cost Concepts

Management
of Solman Corporation has asked your help as an intern in preparing some key
reports for June. The beginning balance in the raw materials inventory account
was $20,000. During the month, the company made raw materials purchases
amounting to $69,000. At the end of the month, the balance in the raw materials
inventory account was $32,000. Direct labor cost was $24,000 and manufacturing
overhead was $71,000. The beginning balance in the work in process account was
$24,000 and the ending balance was $19,000. The beginning balance in the
finished goods account was $53,000 and the ending balance was $58,000. Selling
expense was $20,000 and administrative expense was $35,000.

73. The conversion cost for June was: A. $95,000
B. $140,000 C. $93,000 D. $152,000

74.
The prime cost for June was:

A.
$95,000
B.
$93,000

C. $81,000

D.
$55,000

2-25

Chapter 002, Managerial Accounting and Cost Concepts

The
following data (in thousands of dollars) have been taken from the accounting
records of Karlana Corporation for the just completed year.
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75. The cost of the raw materials used in production during the year
(in thousands of dollars) was:
A. $180 B. $40 C. $120 D. $160

76.
The cost of goods
manufactured (finished) for the year (in thousands of dollars) was:

A.
$530
B.
$520

C. $500

D.
$460

77. The cost of goods sold for the year (in thousands of dollars)
was:

A.
$670

B. $500

C.
$540

D.
$650

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