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    Cost Accounting Key Answer Sy 2012 2013

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    tonyluke
    This document contains the key answers to multiple choice and true/false questions for a midterm exam in Operations Management. It also contains sample problems and solutions related to calculating cost of goods sold, inventory amounts, and a statement of cost of goods manufactured. The document provides accounting information and calculations for a manufacturing company.

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    Cost Accounting Key Answer Sy 2012 2013

    Uploaded by

    tonyluke
    990 views3 pages
    This document contains the key answers to multiple choice and true/false questions for a midterm exam in Operations Management. It also contains sample problems and solutions related to calculating cost of goods sold, inventory amounts, and a statement of cost of goods manufactured. The document provides accounting information and calculations for a manufacturing company.

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    Cost Accounting

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    This document contains the key answers to multiple choice and true/false questions for a midterm exam in Operations Management. It also contains sample problems and solutions related to calculating cost of goods sold, inventory amounts, and a statement of cost of goods manufactured. The document provides accounting information and calculations for a manufacturing company.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    990 views3 pages

    Cost Accounting Key Answer Sy 2012 2013

    Uploaded by

    tonyluke
    This document contains the key answers to multiple choice and true/false questions for a midterm exam in Operations Management. It also contains sample problems and solutions related to calculating cost of goods sold, inventory amounts, and a statement of cost of goods manufactured. The document provides accounting information and calculations for a manufacturing company.

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    © All Rights Reserved
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    KEY ANSWER: MIDTERM SY 2012 2013 OM 103

    1. d
    2. c
    3. c
    4. a
    5. a
    6. d
    7. c
    8. c
    9. b
    10. a
    11. d
    12. d
    13. a
    14. a
    15.C
    16. a
    17. c
    18. d
    19. bonus
    20.Bonus
    Problem solving:
    ANS:
    Problem I.
    a.
    b.
    c.
    d.
    e.

    Selling and administrative expense would include costs related to stores.


    Direct material - canvas would be used to make back packs.
    Selling and administrative expense would include advertising.
    Direct labor - sewing machine operators are touch labor.
    Factory overhead - depreciation is a factory expense that cannot be traced
    directly to the products.
    f.
    Factory overhead. While thread is included in the final product, the cost is
    insignificant and would be acccounted for as an indirect cost.
    g.
    Selling and administrative expense. Transportation is incurred outside of the
    factory.
    h.
    Selling and administrative expense would include costs relating to the stores.
    i.
    Factory overhead - the factory managers salary is a factory cost that cannot
    be traced directly to products.
    j.
    Factory overhead - the security guards salary is a factory cost that cannot be
    traced directly to products.
    k.
    Selling and administrative expense would include all costs related to the
    stores.
    l.
    Factory overhead - electricity to run the machines is a factory cost that
    cannot be traced directly to products..
    m.
    Selling and administrative expense would include all costs related to the
    stores.
    II. ANS:
    Cost of Goods Sold
    Plus Merchandise Inventory, July 31
    Equals Cost of Goods Available for
    Sale
    Less Purchases
    Equals Merchandise Inventory, July

    $750,000
    25,000
    $775,000

    735,000
    $ 40,000

    III. Martinez Manufacturing Co.


    Statement of Cost of Goods Manufactured
    For the Month Ended July 31, 20-Direct Materials:
    Inventory, July 1
    Purchases
    Total cost of available materials
    Less inventory, July 31
    Cost of materials used
    Less indirect materials used

    $15,000
    21,000
    $36,000
    16,000
    $20,000
    5,000

    Cost of direct materials used in production

    $15,000

    Direct labor

    12,500

    Factory overhead:
    Indirect materials

    $ 5,000

    Indirect labor

    2,500

    Other

    4,000

    Total factory overhead

    11,500

    Total manufacturing cost

    $39,000

    Add work in process inventory, July 1

    20,000

    Total

    $59,000

    Less work in process inventory, July 31

    18,000

    Cost of goods manufactured during the month

    $41,000

    (b)

    Finished goods inventory, July 1

    $28,000

    Add cost of goods manufactured during July

    41,000

    Goods available for sale

    $69,000

    Less finished goods inventory, July 31

    30,000

    Cost of goods sold


    Work in Process (Direct Materials)

    $39,000
    12,000

    Factory Overhead (Indirect Materials)

    3,000

    Materials

    Work in Process (Direct Labor)


    Factory Overhead (Indirect Labor)

    15,000

    20,000
    4,500

    Payroll

    Factory Overhead

    24,500

    5,700

    Prepaid Insurance

    3,000

    Accounts Payable (Utilities)

    800

    Accounts Payable (Repairs)

    700

    Accumulated Depreciation (Machinery and


    Equipment)
    Work in Process
    Factory Overhead

    1,200

    13,200
    13,200

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