Managerial Accounting Quiz 1

Managerial Acctg Quiz 1 – Fall 2012 NAME_ ______________________

Chapters 1 and 2
10 Points

1. Complete the answer sheet below by placing an "X" under each heading that identifies the cost involved. The "Xs" can be placed under more than one heading for a single cost. (5 Points)

Variable Cost Fixed Cost
Direct Materials
Direct Labor
Manufactu
ring Overhead
Period Cost
Materials costs
X

X

Production line workers wages
X

X

Production Equipment rental
X

X
Factory Building depreciation

X

X

Advertising costs

X

X

2. A partial listing of costs incurred at Rust Corporation during August appears below:

Purchases of raw materials ……… $ 135,000

Direct labor ……… 73,000

Factory Utilities………………………………………………. 11,000
Sales Commissions…………………………………………… 69,000
Administrative Salaries……………………………………….. 101,000
Indirect Labor………………………………………………… 89,000
Depreciation of Production Equipment………………………. 18,000
Indirect Materials……………………………………………... 10,000
Depreciation of Office Copy Machine……………………….. 5,000

Raw materials inventory, beginning ……… 97,000

Raw materials inventory, ending ……… 84,000

Work in process inventory, beginning ……… 39,000

Work in process inventory, ending ……… 52,000

Finished goods inventory, beginning ……… 106,000

Finished goods inventory, ending ……… 71,000

a. Prepare a Schedule of Cost of Goods Manufactured in good form. (3 Points)

Direct Materials: Beginning raw materials inventory: $97,000 Add: Purchase of raw materials 135,000 Raw materials available for use 232,000 Deduct: Ending raw materials inventory 84,000