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STRATEGIC COST
MANAGEMENT
(STRACOS)
Home / My courses / STRACOS / General
/ MID-TERM EXAMINATION

Started on Tuesday, 6 August 2019, 1608 PM

State Finished
Completed on Tuesday, 6 August 2019, 2648 PM
Time taken 1 hour 40 mins

Question 1

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Dauenhauer Corporation reported the following data for the month of April:

The total manufacturing cost for April was:

Select one:
a. $61,000

b. $167,000

c. $91,000

d. $174,000

Question 2

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The following inventory balances relate to Komiza Manufacturing Corporation at

the beginning and end of the year:

Komiza's cost of goods available for sale was $622,000. What was Komiza's cost
of goods manufactured?

Select one:
a. $581,000

b. $615,000

c. $629,000

d. $663,000

Question 3

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Which of the following items is NEVER relevant to the cost flows of a service organization?

Select one:
a. finished goods inventory

b. materials inventory

c. work-in-process inventory

d. all of the above are always relevant.

Question 4

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Management of Mcgibboney Corporation has asked your help as an intern in

preparing some key reports for November. The beginning balance in the raw
materials inventory account was $25,000. During the month, the company made
raw materials purchases amounting to $54,000. At the end of the month, the
balance in the raw materials inventory account was $37,000. Direct labor cost was
$25,000 and manufacturing overhead cost was $62,000. The beginning balance
in the work in process account was $22,000 and the ending balance was
$23,000. The beginning balance in the finished goods account was $44,000 and
the ending balance was $50,000. Selling expense was $21,000 and administrative
expense was $38,000.

The conversion cost for November was:

Select one:
a. $116,000

b. $79,000

c. $87,000

d. $129,000

Question 5

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The cost of goods manufactured for October at Toule Manufacturing Corporation

was $907,000. The following changes occurred in Toule inventory accounts
during October:

What was Toule's cost of goods sold for October?

Select one:
a. $869,000

b. $886,000

c. $928,000

d. $945,000

Question 6

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The resources given up that are expected to bring a current or future benefit to the
organization are represented by:

Select one:
a. Costs

b. Expired costs

c. Expenses

d. Losses

Question 7

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Conversion costs do NOT include

Select one:
a. direct materials.

b. direct labor.

c. factory overhead.

d. any of these costs.

Question 8

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Which of the following costs is a period cost?

Select one:
a. depreciation of factory equipment

b. transportation-in for material shipments

c. amortization of a patent for the company's product

d. depreciation of office computers

Question 9

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The following data are for a recent period's operations:

The cost of goods manufactured was:

Select one:
a. $115,275

b. $284,725

c. $275,275

d. $124,725

Question 10

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Mammoser Manufacturing Corporation rents a building for $8,000 per month and
uses it for a number of different purposes. The building space is utilized by the
various activities as follows:

How much of the $8,000 monthly rent cost should be classified as manufacturing
overhead?

Select one:
a. $5,600

b. $6,000

c. $6,800

d. $7,200

Question 11

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The idle time cost of assembly line workers in a manufacturing company is usually
included as a part of:

Select one:
a. selling cost.

b. direct labor cost.

c. administrative cost.

d. manufacturing overhead cost.

Question 12

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Within the relevant range, as the number of units produced increases:

Select one:
a. the variable cost per unit remains the same.

b. fixed costs in total remain the same.

c. variable costs increase in total.

d. all of the above.

Question 13

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Which of the following is a service organization?

Select one:
a. grocery store

b. CPA firm

c. cattle ranch

d. department store

Question 14

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Which of the following is NOT an example of a difference between the income statement of
a service organization and the income statement of a manufacturing organization?

Select one:
a. A service company will never have work in process.

b. The service company will not have a finished goods inventory.

c. Fulfillment costs may be added to cost of goods sold of a service company.

d. Research and development expenses are not usually a major component of a service
organization.

Question 15

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Manufacturing overhead includes:

Select one:
a. all direct material, direct labor and administrative costs.

b. all manufacturing costs except direct labor.

c. all manufacturing costs except direct labor and direct materials.

d. all selling and administrative costs.

Question 16

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The cost of units completed during a period is called

Select one:
a. cost of goods sold.

b. cost of goods manufactured.

c. current manufacturing costs.

d. finished goods inventory.

Question 17

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Yokum Company has provided the following data for the month of August:

The beginning work in process inventory was:

Select one:
a. $6,000

b. $9,000

c. $15,000

d. $2,000

Question 18

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Larry is a quality inspector on the assembly line of a manufacturing company. He

is paid $16 per hour for regular time and time and a half for all work in excess of
40 hours per week. He is classified as a direct labor worker.

Larry works 45 hours in a given week but is idle for 4 hours during the week due
to equipment breakdowns. The allocation of Larry's wages for the week between
direct labor cost and manufacturing overhead cost would be:

Select one:
a. Item A

b. Item B

c. Item C

d. Item D

Question 19

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The precision of driver tracing depends upon

Select one:
a. physically observable relationships.

b. the strength of causal relationships described by the driver.

c. allocation estimations.

d. both b and c.

Question 20

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Fassino Corporation reported the following data for the month of November:

The prime cost for November was:

Select one:
a. $136,000

b. $60,000

c. $105,000

d. $112,000

Question 21

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The following data (in thousands of dollars) have been taken from the accounting
records of Karling Corporation for the just completed year.

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

Select one:
a. $540

b. $500

c. $570

d. $590

Question 22

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Management of Thede Corporation has asked your help as an intern in preparing

some key reports for July. The beginning balance in the raw materials inventory
account was $29,000. During the month, the company made raw materials
purchases amounting to $55,000. At the end of the month, the balance in the raw
materials inventory account was $37,000. Direct labor cost was $41,000 and
manufacturing overhead cost was $61,000. The beginning balance in the work in
process account was $22,000 and the ending balance was $23,000. The
beginning balance in the finished goods account was $42,000 and the ending
balance was $55,000. Sales totaled $230,000. Selling expense was $13,000 and
administrative expense was $32,000.

The total manufacturing cost for July was:

Select one:
a. $157,000

b. $149,000

c. $61,000

d. $102,000

Question 23

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Shown below are a number of costs incurred last year at Mecca Publishing Co., a
manufacturer of elementary school textbooks:

What is the total of the manufacturing overhead costs above?

Select one:
a. $500

b. $2,500

c. $6,200

d. $6,700

Question 24

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Which of the following costs is an indirect product cost?

Select one:
a. president's salary

b. wages of assembly workers

c. materials used

d. property taxes on plant facilities

Question 25

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Mendoza, Inc. manufactures and sells aluminum dishes for camping and outdoor
enthusiasts through a mail order catalog operation. Large rectangular sheets of
aluminum are purchased by Mendoza. These sheets are cut down into smaller
squares and are then fed into a machine where they are trimmed down into a
circular shape. These aluminum circles are then fed into a stamping machine
where they are formed into plates and bowls. After production, the dishes are
shipped to warehouses where they are packed and then shipped to customers.

Which of the following terms could be used to correctly describe the wages paid
to the machine operator who operates the stamping machine?

Select one:
a. direct labor cost

b. administrative cost

c. opportunity cost

d. manufacturing overhead cost

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