Chapter 2: an introduction to cost terms and purposes true/false
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| Answer: b Difficulty: 2 Objective: 4
(50,000 - 47,000) x $40.00 = $120,000 76. What is the amount of gross margin? a. $1,750,000 b. $3,525,000 c. $5,405,000 d. $1,645,000 Answer: d Difficulty: 3 Objective: 7 47,000 x ($75 - $40) = $1,645,000 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 77 THROUGH 79. The following information pertains to Alleigh’s Mannequins: Manufacturing costs $1,500,000 Units manufactured 30,000 Units sold 29,500 units sold for $85 per unit Beginning inventory 0 units 77. What is the average manufacturing cost per unit? a. $50.00 b. $50.85 c. $17.65 d. $85.00 Answer: a Difficulty: 1 Objective: 4 $1,500,000 / 30,000 = $50.00 78. What is the amount of ending finished goods inventory? a. $42,500 b. $25,424 c. $25,000 d. $1,475,000 Answer: c Difficulty: 2 Objective: 4 (30,000 - 29,500) x $50.00 = $25,000 79. What is the amount of gross margin? a. $1,475,000 b. $1,500,000 c. $2,507,500 d. $1,032,500 Answer: d Difficulty: 3 Objective: 7 29,500 x ($85 - $50) = $1,032,500 80. Which of the following companies is part of the service sector of our economy? a. Wal-Mart b. Bank of America c. General Motors d. Amazon.com Answer: b Difficulty: 1 Objective: 5 81. Which of the following companies is part of the merchandising sector of our economy? a. General Motors b. Intel c. The GAP d. Robert Meyer Accounting Firm Answer: c Difficulty: 1 Objective: 5 82. Which of the following companies is part of the manufacturing sector of our economy? a. Nike b. Barnes & Noble c. Corvette Law Firm d. Sears, Roebuck, and Company Answer: a Difficulty: 1 Objective: 5 83. Service-sector companies report a. only merchandise inventory. b. only finished goods inventory. c. direct materials inventory, work-in-process inventory, and finished goods inventory accounts. d. no inventory accounts. Answer: d Difficulty: 1 Objective: 6 84. Manufacturing-sector companies report a. only merchandise inventory. b. only finished goods inventory. c. direct materials inventory, work-in-process inventory, and finished goods inventory accounts. d. no inventory accounts. Answer: c Difficulty: 1 Objective: 6 85. For a manufacturing company, direct material costs may be included in a. direct materials inventory only. b. merchandise inventory only. c. both work-in-process inventory and finished goods inventory. d. direct materials inventory, work-in-process inventory, and finished goods inventory accounts. Answer: d Difficulty: 3 Objective: 6 86. For a manufacturing company, direct labor costs may be included in a. direct materials inventory only. b. merchandise inventory only. c. both work-in-process inventory and finished goods inventory. d. direct materials inventory, work-in-process inventory, and finished goods inventory accounts. Answer: c Difficulty: 3 Objective: 6 87. For a manufacturing company, indirect manufacturing costs may be included in a. direct materials inventory only. b. merchandise inventory only. c. both work-in-process inventory and finished goods inventory. d. direct materials inventory, work-in-process inventory, and finished goods inventory accounts. Download 180.5 Kb. Share with your friends:
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