Multiple choice question. Please select the correct answer letter.
1. Which of the following inventories applies to goods that are purchased from a manufacturer and sold by a merchandising Company?
a. Materials Inventory
b. Work-In-Process Inventory
c. Merchandise Inventory
d. Finished Goods Inventory
e. None of the above answer is correct.
2. Douglas Wireless Company reported the following information for the year 2014:
Service Revenue $ 20,000
Operating Expenses 15,750
Net Income 4,250
Number of Service Calls for the year 21,000. Calculate the Unit cost per service.
a. $0.95
b. $2.20
c. $0.20
d. $0.75
e. $0.80
3. Which of the following applies to goods that are produced by a manufacturing company and ready for sale?
a. Materials Inventory
b. Work-In-Process Inventory
c. Finished Goods Inventory
d. Cost of Goods sold
e. Profit Margin
4. Which of the following applies to goods that are partially completed?
a. Materials Inventory
b. Work-In-Process Inventory
c. Merchandise Inventory
d. Finished Goods Inventory
e. Manufacturing Overhead
5. Which of the following is an inventory account for a merchandising company?
a. Finished Goods Inventory
b. Merchandising Inventory
c. Manufacturing Overhead Inventory
d. Patents
e. None of the above answer is correct.
6. Gomez Corporation has the following information on operating activities for 2014. The Corporation sold light box toys and sold 10,000 units in 2014:
Purchases $ 126,000
Selling and Administrative Expenses 90.000
Merchandise Inventory 01/01/14 14,000
Merchandise Inventory 12/31/14 10,000
Sales Revenue 250,000
What is the amount of Cost of Goods Sold?
a. $140,000
b. $124,000
c. $104,000
d. $130,000
e. $216,000
7. Which of the following is an example of a Direct Labor Cost?
a. Wages of a factory Security Guard.
b. Wages of a production manager.
c. Wages of an Assembly line personnel.
d. Wages of a supervisor of the Sales Department.
e. None of the above answers is correct.
8. Manufacturing Overhead includes which of the following?
a. Indirect Labor and Direct labor.
b. Direct Labor and Indirect Materials.
c. Indirect Labor and Indirect Materials.
d. Plant Assets and Intangible Assets.
e. None of the above answers is correct.
9. Which of the following describes the Cost of Goods Manufactured?
a. The cost of goods that were sold during the period.
b. The cost of goods which were completed during the period.
c. The cost of all goods that were completed or partially completed during the period.
d. The total cost of all goods in inventory at the end of the period.
e. None of the above answers is correct.
10. For a Manufacturing business which of the following would be charged to manufacturing Overhead / factory overhead?
a. Indirect Materials such as glue.
b. Indirect labor such as wages of a janitor.
c. Employer Payroll Taxes such as Federal Unemployment Taxes.
d. Overtime premiums for factory workers.
e. All of the above items are charged to manufacturing overhead / factory overhead.