Cost Accounting Quiz

Product costs consist of

• period costs.

• selling and administrative expenses.

• direct materials and direct labor only.

• direct materials, direct labor, and manufacturing overhead.

Samsudin Company reported total manufacturing costs of $130,000, manufacturing overhead totaling $26,000, and direct materials totaling $32,000. How much is direct labor cost?

• $58,000.

• $188,000.

• $125,000.

• $72,000.

The one cost that would be classified as part of both prime cost and conversion cost would be:

• indirect labor.

• direct labor.

• direct material.

• indirect material.

As current technology changes manufacturing processes, it is likely that direct

• material will increase.

• material will decrease.

• labor will increase.

• labor will decrease.

Cost of raw materials is debited to Raw Materials Inventory when the

• materials are received.

• materials are put into production.

• bill for the materials is paid.

• materials are ordered.

A partial listing of costs incurred at Archut Corporation during September appears below: Direct materials $113,000 Utilities, factory $5,000 Administrative salaries $81,000 Indirect labor Sales $25,000 commissions Depreciation of production equipment $20,000 Depreciation of administrative equipment Direct labor $129,000 Advertising $135,000 The total of the product costs listed above for September is:

• $294,000.

• $586,000.

• $50,000.

• $292,000.

A partial listing of costs incurred at Archut Corporation during September appears below: Direct materials $113,000 Utilities, factory $5,000 Administrative salaries $81,000 Indirect labor Sales $25,000 commissions Depreciation of production equipment $20,000 Depreciation of administrative equipment Direct labor $129,000 Advertising $135,000 The total of the period costs listed above for September is:

• $344,000.

• $294,000.

• $292,000.

• $50,000.

In 2020, PT Bermuda, a manufacturing company, has the following cost data for inventories. Beginning Ending Materials Rp3.650.000 Rp3.800.000 Work in process 8.900.000 10.100.000 Finished goods 7.800.000 6.550.000 Cost and activities during 2020: Direct materials used Rp44.200.000 Direct labor 34.000.000 Overhead (total) 60.400.000 Marketing 21.450.000 General/administrative 18.300.000 What is the total cost of work in process during 2020?

• Rp150.980.000

• Rp138.600.000

• Rp169.020.000

• Rp149.780.000

The following costs and inventory data were taken from the accounts of SW Company for 2019: January 1, 2019 December 31, 2019 Inventories: Raw materials $8,000 $7,000 Work in process 15,000 13,000 Finished goods 16,000 12,000 Costs incurred: Raw materials purchases $98,000 Direct labor 42,000 Factory rent 8,000 Factory utilities 10,000 Indirect materials 6,000 Indirect labor 9,000 Operating expenses 17,000 Determine the amount of direct materials used in production during the year.

• $106,000.

• $176,000.

• $98,000

• $99,000

The following costs and inventory data were taken from the accounts of SW Company for 2019: January 1, 2019 December 31, 2019 Inventories: Raw materials $8,000 $7,000 Work in process 15,000 13,000 Finished goods 16,000 12,000 Costs incurred: Raw materials purchases $98,000 Direct labor 42,000 Factory rent 8,000 Factory utilities 10,000 Indirect materials 6,000 Indirect labor 9,000 Operating expenses 17,000 Compute the amount of manufacturing overhead incurred during the year.

• $189,000.

• $99,000.

• $33,000

• $174,000.