NAME DATE

COURSE / SECTION SCORE

Midterm EXAMINATION
MGT 303 COST ACCOUNTING
2
nd
Semester SY 2012 2013
THEORY: Encrc!e t"e !etter #$ %#&r 'est c"#ce( N# er)s&res(
1. An effective cost control system should include:
a. An established plan of objectives and goals to be achieved.
b. Regular reports showing the difference between goals and actual performance.
c. Specific assignment of duties and responsibilities.
d. All of these are correct.
2. The personnel involved in the physical control of materials includes all of the following except
the:
a. urchasing agent.
b. Receiving cler!.
c. "ost accountant.
d. roduction department supervisor.
#. The form prepared by the purchasing agent and sent to the vendor to obtain materials is !nown as
a:
a. $aterials re%uisition.
b. urchase re%uisition.
c. urchase order.
d. &endor's invoice.
(. The form that serves as authori)ation to withdraw materials from the storeroom is !nown as the:
a. Stores re%uisition.
b. urchase order.
c. urchase re%uisition.
d. Returned materials report.
*. To effectively control materials+ a business must maintain:
a. ,imited access.
b. "ombination of duties.
c. Safety stoc!.
d. -one of these are correct.
.. /f the amount of materials on hand at the end of the period is less than the control
account balance+ the control account balance should be decreased by the following
entry:
a. 0ebit 1 2or! in rocess
"redit 1 $aterials
b. 0ebit 1 $aterials
"redit 1 3actory 4verhead
c. 0ebit 1 $aterials
"redit 1 2or! in rocess
d. 0ebit 1 3actory 4verhead
"redit 1 $aterials
5. Assuming that demand is determinable+ what is the objective of the economic order %uantity
67489 model for inventory:
a. To minimi)e order costs or carrying costs+ whichever are higher
b. To minimi)e order costs or carrying costs and ma;imi)e the rate of inventory turnover
c. To minimi)e the total order costs and carrying costs over a period of time
d. To order sufficient %uantity to economically meet the ne;t period's demand
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<. ,isted below are steps of purchasing and receiving materials:
1. The receiving cler! prepares a receiving report.
2. urchase re%uisitions are prepared to notify the purchasing agent that additional
materials are needed.
#. The purchase of merchandise is recorded by the accounting department.
(. The purchasing agent completes a purchase order.
/n which order would these events typically happen:
a. (+ 2+ #+ 1
b. 2+ (+ #+ 1
c. 2+ (+ 1+ #
d. (+ 2+ 1+ #
=. The duties of the purchasing agent would include all of the following except:
a. lacing purchase orders.
b. "ounting and identifying materials received.
c. "ompiling information that identifies vendors and prices.
d. &erifying invoices and approving them for payment.
1>. The employee who is responsible for preparing purchase re%uisitions is most
li!ely the:
a. Storeroom !eeper.
b. urchasing agent.
c. roduction supervisor.
d. Receiving cler!.
11. All of the following are characteristics of hourly wage plans except:
a. They provide no e;tra recognition for doing more than the minimum re%uired.
b. They are easy to apply.
c. They establish a definite rate per hour for each employee.
d. They encourage employees to sacrifice %uality in order to ma;imi)e earnings.
12. A wage plan based solely on an employee's %uantity of production is !nown as
a6n9:
a. $odified wage plan.
b. ?ourly1rate plan.
c. /ncentive wage plan.
d. iece1rate plan.
1#. The departmental responsibilities of the payroll department are carried out by
completing and maintaining all of the following forms and records except:
a. roduction reports.
b. ayroll reports.
c. 7mployee earnings records.
d. ayroll summaries.
1(. An analysis of total labor costs into wor! in process and factory overhead
components is recorded on a6n9:
a. ,abor cost summary.
b. ayroll record.
c. /ndividual production report.
d. 7mployee earnings record.
1*. An accrued e;pense such as accrued wages can best be described as an amount:
a. aid and not currently matched with earnings.
b. -ot paid and not currently matched with earnings.
c. -ot paid and currently matched with earnings.
d. aid and currently matched with earnings.
1.. The file for each factory employee that shows the time the employee spent on
each job+ as well as time spent as indirect labor is the:
a. labor time record.
b. payroll record.
c. employee@s earnings record.
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d. labor cost summary.
15. The file that serves as a basis for reporting payroll information to governmental
agencies and preparing 3orm 212 is the:
a. labor time record.
b. payroll record.
c. employee@s earnings record.
d. labor cost summary.
1<. 2hich of the following items relating to direct labor employees might be charged
to specific jobs in wor! in process rather than factory overhead:
a. $a!e1up guarantee
b. /dle time
c. Shift premiums
d. ?oliday pay
1=. A4-BS
2>. A4-BS
Test //: R4A,7$ S4,&/-C
I. C)m0&s C)rrers C#( m)n&$)ct&res )nd se!!s ')c10)c1s t# c#!!e+e
st&dents( C)m0&s C)rrers #0er)tes ) $)ct#r% n Sm)!! T#2n )nd
t2# st#res n C#!!e+e T#2n )nd Un3erst% Ct%( C!)ss$% t"e
$#!!#2n+ c#sts nc&rred '% C)m0&s C)rrers )s Drect M)ter)!s4
Drect 5)'#r4 6)ct#r% O3er"e)d #r Se!!n+ )nd Admnstr)t3e
E*0ense(
)( Rent 0)d t# !e)se t"e st#re n C#!!e+e T#2n(
'( C)n3)s $)'rc(
c( 7)+es 0)d t# st&dents dstr'&tn+ )d3ertsn+ 8ers n Un3erst%
Ct%(
d( Se2n+ m)c"ne #0er)t#r9s 2)+es(
e( :&!dn+ de0rec)t#n #n t"e $)ct#r% '&!dn+(
$( T"re)d(
+( T"e c#st #$ tr)ns0#rtn+ t"e ')c10)c1s $r#m t"e $)ct#r% n Sm)!!
T#2n t# t"e Un3erst% Ct% st#re(
"( De0rec)t#n #$ t"e r)c1s )nd s"e!3es )t t"e C#!!e+e T#2n St#re(
( 6)ct#r% m)n)+er9s s)!)r%(
-( Sec&rt% +&)rd )t t"e $)ct#r%(
1( St#re m)n)+er9s s)!)r%(
!( E!ectrct% t# 0#2er se2n+ m)c"nes(
m( E!ectrct% t# !+"t t"e C#!!e+e T#2n st#re(
I( II( T"e $#!!#2n+ d)t) 2ere t)1en $r#m Mdde!t#2n Merc")ndsers #n ;&!%
314 $#r t"e <rst m#nt" #$ ts <sc)! %e)r:
Merc")ndse In3ent#r%4 ;&!% 31 = 2>4000
/&rc")ses ?3>4000
C#st #$ G##ds S#!d ?>04000
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C#n0&te t"e n3ent#r% )t ;&!% 1(
II( III( T"e $#!!#2n+ d)t) 2)s t)1en $r#m t"e +ener)! !ed+er )nd #t"er
rec#rds #$ M)rtne. M)n&$)ct&rn+ C#( )t ;&!% 314 t"e end #$ t"e <rst
m#nt" #$ #0er)t#ns n t"e c&rrent <sc)! %e)r:
S)!es
$50,000
M)ter)!s n3ent#r% @;&!% 1A
15,000
7#r1 n 0r#cess n3ent#r% @;&!% 1A
20,000
6ns"ed +##ds n3ent#r% @;&!% 1A
28,000
M)ter)!s 0&rc")sed
21,000
Drect !)'#r c#st
12,500
6)ct#r% #3er"e)d @nc!&dn+ =>4000 #$ ndrect m)ter)!s
&sed )nd =24>00 #$ ndrect !)'#r c#stA
11,500
Se!!n+ )nd )dmnstr)t3e e*0ense
8,000
In3ent#res )t ;&!% 31:
M)ter)!s
16,000
7#r1 n 0r#cess
18,000
6ns"ed +##ds
30,000
)( /re0)re ) st)tement #$ c#st #$ +##ds m)n&$)ct&red
'( Determne t"e c#st #$ +##ds s#!d $#r t"e m#nt"(
III(IB( 6#!!#2n+ s ) !st #$ c#sts nc&rred '% t"e St1) /r#d&cts C#( d&rn+
t"e m#nt" #$ ;&ne:
Drect m)ter)!s &sed
$12,000
E*0red ns&r)nce
$3,000
Indrect m)ter)!s
&sed
3,000
Ut!tes
800
Drect !)'#r em0!#%ed
20,000
Re0)rs
700
Indrect !)'#r
em0!#%ed
4,500
De0rec)t#n e*0ense
Se!!n+ e*0enses
6,000
,,M)c"ner% )nd
eC&0ment
1,200
/re0)re t"e -#&rn)! entres necess)r% t# rec#rd t"e ss&)nce #$
m)ter)!s4 t"e dstr'&t#n #$ !)'#r c#st4 t"e rec#rdn+ #$ $)ct#r%
#3er"e)d4 )nd t"e entr% tr)ns$errn+ 6)ct#r% O3er"e)d t# 7#r1 n
/r#cess(
GOOD5UCD
/re0)red :%: MA( ;ASMINE ;( DE GUEMAN
Instr&ct#r I
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