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Cost Test1

This 3 sentence summary provides the key information from the document: 1) The document is a practice test for a Cost and Management Accounting course, containing 10 multiple choice questions testing concepts like direct costs, prime costs, conversion costs, and calculating manufacturing overhead. 2) It also includes a practice problem involving calculating various cost and inventory amounts for a company using selected financial data for the month of January. 3) Students are asked to choose the correct answers for the multiple choice questions and calculate 10 specified amounts for the practice problem using the selected January financial data provided.

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yesuneh98
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20 views3 pages

Cost Test1

This 3 sentence summary provides the key information from the document: 1) The document is a practice test for a Cost and Management Accounting course, containing 10 multiple choice questions testing concepts like direct costs, prime costs, conversion costs, and calculating manufacturing overhead. 2) It also includes a practice problem involving calculating various cost and inventory amounts for a company using selected financial data for the month of January. 3) Students are asked to choose the correct answers for the multiple choice questions and calculate 10 specified amounts for the practice problem using the selected January financial data provided.

Uploaded by

yesuneh98
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Dilla University

College Of Business And Economics

Department Of Accounting And Finance

Cost And Management Accounting I, Test One For Logistics And Supply Chain Management 3rd Year Students

Time allowed 1:30

Maximum weight 20 Mark

Name_________________________________________ Group ______ ID.No_________

Part one choice

 Chose the correct Answer and fill it in the space provided.


1. All are the elements of production /manufacturing /cost except one
A) Direct material cost C) Office depreciation
B) Factory overhead cost D) Direct labor cost
2. Prime cost and conversion cost share what common element of total cost?
A) Direct materials. C) Variable overhead.
B) Direct labor. D) Fixed overhead.
3. The set of actions that a manager takes to satisfy customers while continuously reducing and
controlling cost is ____________.
A) Cost driver C) Cost management
B) Cost object D) Cost Accumulation
4. Which one is odd
A) Raw material C) Manufacturing over head
B) Work in progress D) Finished goods
5. The salary paid to the president of the Company would be classified on the income
statement as
A) Administrative expense C) MOH
B) Direct labor cost D) selling expense
6. Aple Company's manufacturing overhead is 20% of its total conversion costs. If direct labor is
$45,000 and if direct materials are $53,000, the manufacturing overhead is:
A) $11,250 C) $180,000
B) $13,250 D) $24,500
7. Abla Company's direct labor cost is 80% of its total conversion costs. If Company's
manufacturing overhead is $11,250and direct materials are $53,000 the prime cost of the
company
A) $11,250 C) $180,000
B) $98,000 D) $24,500

8. During the month of January, direct labor cost totaled $17,000 and direct labor cost was 60% of
prime cost. If total manufacturing costs during January were $82,000, the manufacturing overhead
was:
A) $11,333 C) $28,333
B) $53,667 D) $65,000
9. In January direct labor was 40% percent of conversion cost. If the manufacturing overhead cost
for the month was $78,000 and the direct materials cost was $22,000, the direct labor cost was:
A) $14,667 C) $33,000
B) $52,000 D) $117,000

10. During March, the cost of goods manufactured was $62,000. The beginning finished goods
inventory was $11,000 and the ending finished goods inventory was $19,000. What was the cost
of goods sold for the month?
A) $70,000 C) $54,000
B) $92,000 D) $62,000

Part two: Work out Part (10 mark )

The following selected data are for ABC plastic company for the month of January 2004.

Work in process inventory January 1, 2004 $200.000

Direct material inventory January 1, 2004 90,000

Direct material purchased in January 360,000

Direct material used in January 375,000

Variable manufacturing overhead cost 250,000

Total manufacturing overhead cost 480,000

Total manufacturing cost incurred in January 1, 600.000


Cost of goods manufactured 1,650,000

Cost of goods sold in January 1,700,000

Finished goods inventory January 1, 2004 125,000

Gross profit for January 150,000

Operating income for January 50,000

Requirements:

For the month of January calculate the following

i. Direct material inventory on January 31, 2004


ii. Fixed manufacturing overhead cost for January
iii. Direct manufacturing labor cost for January
iv. Work in process inventory on January31, 2004
v. Goods available for sale in January
vi. Finished goods inventory January 31, 2004
vii. Sales revenue
viii. Operating expenses
ix. Prime cost
x. Conversion cost

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