SECTION 1 MULTIPLE CHOICE (40 POINTS)

1) Internal reports are generally

a.aggregated.

b.detailed.

c.regulated.

d.unreliable.

2) Manufacturing costs include

a.direct materials and direct labor only.

b.direct materials and manufacturing overhead only.

c.direct labor and manufacturing overhead only.

d. direct materials, direct labor, and manufacturing overhead

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

a.labor will increase.

b.labor will decrease.

c.materials will increase.

d.materials will decrease.

4) Cost of goods manufactured in a manufacturing company is analogous to

a.ending inventory in a merchandising company.

b.beginning inventory in a merchandising company.

c.cost of goods available for sale in a merchandising company.

d.cost of goods purchased in a merchandising company.

5) Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2018. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?

a.$70,000

b.$10,000

c.$60,000

d.$40,000

6) An important feature of a job order cost system is that each job

a.must be similar to previous jobs completed.

b.has its own distinguishing characteristics.

c.must be completed before a new job is accepted.

d.consists of one unit of output.

7. As of December 31, 2018, Stand Still Industries had $2,500 of raw materials inventory. At the beginning of 2018, there was $2,000 of materials on hand. During the year, the company purchased $375,000 of materials; however, it paid for only $312,500. How much inventory was requisitioned for use on jobs during 2018?

a.$362,000

b.$374,500

c.$375,500

d.$363,000

8) Sportly, Inc. completed Job No. B14 during 2018. The job cost sheet listed the following:

Direct materials$110,000

Direct labor$60,000

Manufacturing overhead applied$40,000

Units produced3,000 units

Units sold1,800 units

How much is the cost of the finished goods on hand from this job?

a.$210,000

b.$126,000

c.$ 84,000

d.$102,000

9) Manufacturing overhead is applied to each job

a.at the time when the overhead cost is incurred.

b.by means of a predetermined overhead rate.

c.at the end of the year when actual costs are known.

d.only if the overhead costs can be directly traced to that job.

10) Gulick Company developed the following data for the current year:

Beginning work in process inventory$240,000

Direct materials used144,000

Actual overhead288,000

Overhead applied216,000

Cost of goods manufactured264,000

Total manufacturing costs720,000

Gulick Company's direct labor cost for the year is

a.$72,000.

b.$360,000.

c.$216,000.

d.$288,000.