Question

7. Reducing reliance on human workers and instead investing heavily in computers and online technology will

Select one:

a. have no effect on the relative proportion of fixed and variable costs

b. make the company less susceptible to economic swings

c. reduce fixed costs and increase variable costs

d. reduce variable costs and increase fixed costs

8. Both direct materials and indirect materials are

Select one:

a. raw materials

b. fixed costs

c. manufacturing overhead

d. selling expenses

9. The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is

Select one:

a. indirect labor

b. direct labor

c. manufacturing overhead

d. indirect materials

10. The product cost that is most difficult to associate with a product is

Select one:

a. direct labor

b. manufacturing overhead

c. direct materials

d. advertising expenses

11. A manufacturing company calculates cost of goods sold as follows:

Select one:

a. Ending FG inventory – cost of goods manufactured + beginning FG inventory

b. Beginning FG inventory + cost of goods purchased – ending FG inventory

c. Beginning FG inventory + cost of goods manufactured – ending FG inventory

d. Beginning FG inventory – cost of goods manufactured – ending FG inventory

12. Walker Company reported the following year-end information:

Beginning work in process inventory                             $ 46,000

Beginning raw materials inventory                                    24,000

Ending work in process inventory                                     50,000

Ending raw materials inventory                                         20,000

Raw materials purchased                                                830,000

Direct labor                                                                      240,000

Manufacturing overhead                                                 100,000

How much is Walker’s cost of goods manufactured for the year?

Select one:

a. $1,170,000

b. $1,178,000

c. $1,174,000

d. $834,000

Answer 1

Q7.
Answer is d. reduce variable cost and increasse fixed cost.
Q8.
Answer is a. raw materials.
Q9.
Answer is b. direct labor
Q10.
Answer is b. manufacturing overheads.
Q11.
Answer is c. Beginning FG inventory+Cost of Goods manufactured-Ending FG inventory.
Q12.
Answer is a. $ 1170,000
Explanation:
Beginning WIP					46000
Current cost of manufacturing
Raw material beg inventory				24000
Add: Purchase				830000
Total material available				854000
Less: Ending inventory of Rm				20000
Material consumed				834000
Labour cost				240000
Manufacturing overheads				100000
Total current manufacturing cost					1174000
Total cost of Goods in manufacturing					1220000
Less: Ending inventory of Wip					50000
Cost of Goods manufactured					1170000