Acc206 Principles of Accounting: Week 3 Quiz (Version 4 - July 2012)

Acc206 Principles of Accounting
Week 3 Quiz (Version 4 - July 2012)

1. The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.
Purchases $ 126,000
Selling and Administrative Expenses 90,000
Merchandise inventory, 1/1/2012 14,000
Merchandise inventory, 12/31/2012 10,000
Sales Revenue 250,000
What is the cost of goods available for sale for 2012? (Points : 1)
$140,000
$126,000
$104,000
$130,000
None of these is correct

2. In a manufacturing operation, depreciation of the plant and plant equipment should be debited to Depreciation expense. (Points : 1)
True
False

3. Which of the following statements is INCORRECT? (Points : 1)
Managerial accounting is used to determine the cost of products and services.
Managerial accounting is used to plan and control business operations.
Managerial accounting is used to report the company's financial position and results of operations to creditors and investors.
Managerial accounting is used to prepare budgets.

4. Village Company's selected cost data for 2012 are shown below:
Cost of goods manufactured $145,200
Work in process inventory, Jan. 1, 2012 18,500
Work in process inventory, Dec. 31, 2012 22,500
Direct materials used 15,800
Assuming manufacturing overhead costs of $83,375, what is the amount of direct labor incurred by Village Company in 2012? (Points : 1)
$50,025
$62,550
$41,700
$83,400
None of these is correct

5. The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.
Purchases $ 126,000
Selling and Administrative Expenses 90,000
Merchandise inventory, 1/1/2012 14,000
Merchandise inventory, 12/31/2012 10,000
Sales Revenue 250,000
What is the cost of goods sold for 2012? (Points : 1)
$104,000
$124,000
$130,000
$140,000
None of these is correct

6. Village Company's selected cost data for 2012 are shown below:
Cost of goods manufactured $145,200
Work in process inventory, Jan. 1, 2012 18,500
Work in process inventory, Dec. 31, 2012 22,500
Direct materials used 15,800
What are total manufacturing costs incurred by Village Company in 2012? (Points : 1)
$149,200
$158,300
$139,800
$117,100
None of these is correct

7. Which of the following companies would NOT use job order costing? (Points : 1)
A lawn maintenance company
A legal firm
An auto repair shop
A beverage manufacturer

8. Indirect materials and indirect labor are tracked to individual job costing records and recorded in the Work in process account. (Points : 1)
True
False

9. The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.
Purchases $ 126,000
Selling and Administrative Expenses 90,000
Merchandise inventory, 1/1/2012 14,000
Merchandise inventory, 12/31/2012 10,000
Sales Revenue 250,000
What is the operating income for 2012? (Points : 1)
$250,000
$140,000
$ 30,000
$ 90,000
None of these is correct

10. The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.
Purchases $ 126,000
Selling and Administrative Expenses 90,000
Merchandise inventory, 1/1/2012 14,000
Merchandise inventory, 12/31/2012 10,000
Sales Revenue 250,000
What is the cost per unit sold? (Points : 1)
$13.00
$12.40
$14.00
$10.40
None of these is correct
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