Reference no: EM132765563

Questions -

Q1. Quality Manufacturing Company's beginning balance of raw materials for April was $22,000. During the month of April, $126,000 of raw materials was used. If the ending raw materials inventory on April 30 was $20,000, what was the cost of raw materials purchase for the month?

A. $122,000

A. $122,000

B. $124,000

C. $146,000

D. $166,000

Q2. Jim's Company manufactured and completed $88,000 worth of goods for the month of September. Below are finished goods inventory data for the month of September: Beginning finished goods inventory $2,600 Ending finished goods inventory $3,400 Jim's September cost of goods sold was _____________

A. $96,000

B. $91,400

C. $90,600

D. $87,200

Q3. When quantity produce increases, fixed costs per unit will _______________and variable cost per unit will __________

A. remain constant; will increase

B. increase; remain constant

C. decrease; remain constant

D. remain constant; remain constant

Q4. Which of the following is an example of a variable cost?

A. Factory fire insurance policy

B. Direct materials

C. Production supervisor's salary

D. Depreciation of the factory building

Q5. It is important for businesses to be able to estimate product unit costs for they can use this information to __________

A. value inventory

B. set price

C. estimate income

D. all of the above

Q6. Which of the following would be more likely to use process costing rather than job-order costing?

A. architectural firm

B. building contractor

C. potato chips manufacturing

D. ship builder