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Cost Accounting Exam 1, AC642 Exam 1, Cost Acct Practice Exam Questions And Answers Latest Update $13.99   Add to cart

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Cost Accounting Exam 1, AC642 Exam 1, Cost Acct Practice Exam Questions And Answers Latest Update

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Cost Accounting Exam 1, AC642 Exam 1, Cost Acct Practice Exam Questions And Answers Latest Update

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  • November 1, 2024
  • 35
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
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Solution 2024/2025
Pepper

Cost Accounting Exam 1, AC642 Exam 1, Cost
Acct Practice Exam Questions And Answers
Latest Update

Which of the following would be considered a line function? ANS✔✔
Production



The standards of ethical conduct for management accountants include
ANS✔✔ Competence, confidentiality, integrity, and credibility



Altering dates of shipping documents of next January's sales to record them
as sales in the current year would be a violation of which standard of ethical
conduct for management accountants? ANS✔✔ All of these (competence,
integrity, credibility)



Which of the following is an example of a loss? ANS✔✔ The write-off of an
obsolete inventory



Which cost assignment method would likely assign the cost of an assembly-
line supervisor when the assembly line is the cost object? ANS✔✔ Direct
tracing



Which of the following costs would NOT be included in operating product
costs? ANS✔✔ Research and Development



Which of the following costs is a period cost for a manufacturing company?
ANS✔✔ Controller's salary

, Solution 2024/2025
Pepper



Information from the records of Cain Corporation for August, 20xx, was as
follows:

Sales $1,230,000

Selling and Admin $210,000

Direct Materials $264,000

Direct Labor $300,000

Factory overhead ($205,000 variable, $200,000 fixed)



What are the total variable product costs? ANS✔✔ $769,000

($264,000 + $300,000 + $205,000)



What is the total prime cost? ANS✔✔ Direct Materials + Direct Labor =
Prime Cost



If beginning work in process inventory is $120,000, ending work in process
inventory is $160,000, cost of goods manufactured is $400,000, and direct
materials used are $100,000, what are the conversion costs? ANS✔✔
$340,000

(Cost of goods manufactured = beginning work-in-process inventory +
direct materials used + conversion costs - ending work-in-process
inventory)



$400000 = $120000 + $100000 + conversion costs - $160000



so, Conversion costs = $340,000

, Solution 2024/2025
Pepper
Income for the month of December is ANS✔✔ $62,000



The following information has been provided:



COGM $83,000

Work in progress:

Beginning $12,000

Ending $29,000

Direct Labor $40,000

Materials in production $25,000

Overhead ??



What is the amount of overhead? ANS✔✔ $35,000

($83,000-$40,000-$25000+($29,000-$12,000))



An appliance repair shop purchased materials costing $12,000 in May. The
beginning inventory of material parts was $4,500 and the ending inventory
of material parts was $4,300. Payments for direct labor for May totaled
$27,000, secretarial costs were $2,000, and overhead of $6,000 was
incurred. In addition, $5,000 was spent on advertising and $2,000 for the
franchise name. Revenue for May was $67,000.



What is the cost of services sold for May? ANS✔✔ $45,200



($12,000 + $4,500 - $4,300 + $27,000 + $6,000 = $45,200)

, Solution 2024/2025
Pepper
If all the activity capacity is not used, this is an example of ANS✔✔ Unused
capacity



__________________________ result when organizations acquire many
multiperiod service capacities by paying cash up front or by entering into an
explicit contract that requires periodic cash payments ANS✔✔ Committed
fixed expenses



A coefficient of determination of 0.91 means ANS✔✔ That the independent
variable explains 91 percent of the variation in cost



Boss Company currently leases a delivery van from Check Enterprises for a
fee of $250 per month plus $0.40 per mile. Management is evaluating the
desirability of switching to a modern, fuel-efficient van, which can be leased
from David, Inc., for a fee of $600 per month plus $0.05 per mile. All
operating costs and fuel are included in the rental fees.



Boss calculated that Check Enterprises was the better choice if monthly
miles were below what milage? ANS✔✔ 1,000 miles



The following information is available for electrical costs for the last six
months of the year:



September- 3,200 units at $5,700

November - 1,200 units at $2,300



Using the high-low method, calculate the estimated electrical cost for a year
with 21,600 units.

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