Manufacturing Accounts and Overheads Quiz
12 multiple-choice questions with answers and explanations · 2 easy, 6 medium, 4 hard
Raw materials used, cost of goods manufactured, work in process, applying overhead, equivalent units, and absorption versus marginal costing.
- 1Three Types of Inventory in a Manufacturing BusinessA manufacturing business reports three categories of inventory. They are:easy
- 2Work in Process Inventory: What Is It?Work in process (work in progress) inventory consists of:easy
- 3Raw Materials Used: Computing Direct Materials ConsumedOpening raw materials inventory is $8,000, purchases of raw materials are $52,000 and closing raw materials inventory is $11,000. What is the cost of raw materials used in production?medium
- 4Cost of Goods Manufactured: The CalculationDirect materials used are $60,000, direct labour $45,000 and manufacturing overhead $30,000. Opening work in process is $10,000 and closing work in process is $15,000. What is cost of goods manufactured?medium
- 5Manufacturing Overhead: Which Cost Belongs?Which of the following is part of manufacturing overhead?medium
- 6Predetermined Overhead Rate: Applying Overhead to a JobBudgeted manufacturing overhead is $240,000 and budgeted direct labour hours are 30,000. A job uses 50 direct labour hours. How much overhead is applied to the job?medium
- 7Job Costing vs Process Costing: Which Business Uses Process Costing?Process costing is most suitable for:medium
- 8Absorption Costing vs Marginal Costing: Treatment of Fixed OverheadUnder marginal (variable) costing, fixed manufacturing overhead is:medium
- 9Ending Work in Process: Computing It from Manufacturing CostsOpening work in process is $12,000. During the period direct materials used are $40,000, direct labour $30,000 and manufacturing overhead $20,000. Cost of goods manufactured is $88,000. What is ending work in process?hard
- 10Over-Applied or Under-Applied Overhead: The CalculationOverhead is applied at $8 per direct labour hour. During the year 31,000 hours were worked and actual overhead was $255,000. Overhead was:hard
- 11Equivalent Units of Production: Weighted-Average MethodDuring a period 8,000 units were completed and transferred out, and 2,000 units remain in ending work in process, 40% complete. Using the weighted-average method, equivalent units of production are:hard
- 12Absorption vs Marginal Costing: Profit When Inventory RisesIn a period when production exceeds sales, so that inventory increases, which statement is correct?hard