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- 1. Open EndedCost of goods manufactured represents a. cost of goods sold during the period b. cost of all products that were started during the period c. total cost to manufacture completed finished goods during the period d. total cost for everything paid for at the manufacturing plant during the period
- 2. Open EndedThe formula to calculate cost of goods sold is a. beginning finished goods plus ending finished goods plus cost of goods manufactured b. beginning work in process less ending work in process plus cost of goods manufactured c. beginning raw materials purchased plus cost of goods manufactured less ending raw materials d. beginning finished goods plus cost of goods manufactured less ending finished goods
- 3. Open EndedThe formula to calculate cost of goods manufactured is a. beginning finished goods plus ending finished goods plus cost of goods manufactured b. beginning work in process less ending work in process plus all costs this period to manufacture products c. beginning raw materials purchased plus cost of good manufactured less ending raw materials d. beginning finished goods plus cost of goods manufactured less ending finished goods
- 4. Open EndedDirect materials used a. is the same thing as direct materials purchased b. is not a part of cogs c. is included in the cost of making products d. is not included in the cost of making products
- 5. Open EndedDirect labor would include a. a worker who put the product together b. a worker who inspects the product after it is complete c. a worker who cleans the manufacturing facility d. a worker who supervises assembly workers
- 6. Open EndedManufacturing overhead would not include a. rent for the manufacturing facility b. utilities at the manufacturing facility c. quality inspectors at the manufacturing facility d. human resources at the corporate office
- 7. Open EndedWhat types of costs are included in cost of goods manufactured? a. only direct costs b. only indirect costs c. direct costs plus manufacturing overhead d. direct material used, beginning work in process and ending work in process
- 8. Open EndedEnding work in process is subtracted from total manufacturing costs to get COGM because a. beginning work in process is added b. it is not complete and cost of goods manufactured is completed products only c. cost of goods sold can include unfinished products d. manufacturing overhead would be counted twice if it was not taken out
- 9. Open EndedIndirect material and indirect labor a. are not included in COGM b. are included as part of material used and labor used in COGM c. are included in COGM as MOH d. are never a part of work in process
- 10. Open EndedWhich of the following costs would not be part of COGS on the IS? a. labor incurred to assemble the product b. marketing costs c. manufacturing supplies d. material that is part of the product
- 11. Open EndedWhich of the following items would not be reported on the BS? a. the cost of unsold FG b. the cost of RM that are in the warehouse c. the cost of products sold to the customer d. the cost of products that are not yet complete
- 12. Open EndedCOGM includes a. direct materials, indirect materials, and direct labor b. direct labor, indirect labor, and salesperson commission c. plant manager's salary and executive management salary d. rent on manufacturing facility and rent on corporate headquarters
- 13. Open EndedWhich of the following is the calculation for COGM? a. beginning FG plus COGS less ending FG b. ending FG plus COGS less ending WIP c. beginning WIP plus product costs less ending WIP d. beginning FG plus product costs less ending WIP
- 14. Open EndedWhich of the following inventory accounts is not used when calculating COGM? a. RM b. WIP c. FG d. all of the above are included
- 15. Open EndedWhich of the following is included when calculating COGM? a. FG b. selling expenses c. administrated expenses d. beginning WIP
- 16. Open EndedThe three major components of COGM are a. direct materials purchased, direct labor, MOH b. direct materials used, WIP, FG c. direct materials used, direct labor, FG d. direct materials used, direct labor, MOH
- 17. Open EndedA manufacturing company incurred $50,000, $60,000, and $75,000 respectively for direct materials used, direct labor, and MOH. COGM is $195,000 and beginning WIP is $10,000. What is ending WIP? a. $0 b. $20,000 c. ($10,000) d. $160,000
- 18. Open EndedA manufacturing company incurred the following costs: 1) $15,000 for insurance and property tax on the manufacturing building 2) $39,000 for salary to the quality inspectors at the manufacturing plant 3) $10,000 for shipping to the customer 4) $32,000 for rent on corporate headquarters building What is the total cost of MOH that will be included in the COGM? a. $54,000 b. $64,000 c. $96,000 d. $86,000
- 19. Open EndedCOGM means the same thing as a. inventory costs b. product costs of completed goods c. MOH costs d. period costs
- 20. Open EndedThe cost of goods that is moved from WIP to FG is also called a. COGS b. inventory costs c. COGM d. ending WIP
- 21. Open EndedA manufacturing company has COGM of $200,000. Inventory was as follows: Ending RM: $100,000; Beginning RM: $125,000; Ending FG: $75,000; Beginning FG: $85,000. COGS is: a. $190,000 b. $225,000 c. $210,000 d. $175,000
- 22. Open EndedCOGM is a. expensed in the period it is incurred b. expensed in the period it is sold to the customer c. always reported as inventory on the balance sheet d. all the costs of a manufacturing company
- 23. Open EndedWhich of the following would not be a part of COGM? a. FG inventory b. RM purchased c. depreciation of factory machines d. beginning WIP
- 24. Open EndedIf ending WIP is overstated a. manufacturing overhead will be incorrect b. COGS will be overstated c. COGM will be overstated d. COGM will be understated
- 25. Open EndedA manufacturing company has beginning FG of $60,000, RM purchased of $20,000, COGM of $98,000 and ending FG inventory of $35,000. Sales are $120,000 and selling expenses are $32,000. COGS is a. $106,000 b. $123,000 c. $88,000 d. ($10,000)
- 26. Open EndedA manufacturing company reported the following during the first year of operations: 1) Sales $500,000 2) GP $200,000 3) Ending FG $15,000 What was the COGM during the first year? a. $315,000 b. $285,000 c. $300,000 d. not enough information to calculate COGM
- 27. Open EndedCOGM is a. expensed in the period it is incurred b. the cost of inventory that is not available to the customer c. reported on the IS and the BS d. only reported on the IS
- 28. Open EndedWhich of the following would not be considered part of the cost of inventory? a. WIP b. all MOH c. cost of warehousing inventory d. indirect materials that are too small to teach to each individual product
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