91. Products that are in the process of being manufactured but are not yet complete are called:
A. Raw materials inventory.
B. Conversion costs.
C. Cost of goods sold.
D. Goods in process inventory.
E. Finished goods inventory.
92. Another title for goods in process inventory is:
A. Indirect materials inventory.
B. Work in process inventory.
C. Conversion costs.
D. Direct materials inventory.
E. Raw materials inventory.
93. Days’ sales in raw materials inventory is a measure of:
A. How much raw materials are needed for the company to earn a profit.
B. How long it takes the company to pay for raw materials..
C. How many times a company turns over its raw materials during a period.
D. How long it takes raw materials to be used in production.
E. The product costs a company has incurred during a period.
94. Assuming production needs can be met, companies usually prefer:
A. A lower number of days’ sales in raw materials inventory.
B. A higher number of days’ sales in raw materials inventory.
C. That days’ sales in inventory be higher than the days in the accounting period.
D. That days’ sales in inventory be greater than the operating cycle
E. That days’ sales in inventory be equal to the days in the accounting period
95. A company reports raw materials used of $42,750 for a year, with beginning raw materials inventory of $4,000 and an ending raw materials inventory of $4,500. Compute days’ sales in raw materials inventory based on this data.
A. 10.52 days.
B. 34.15 days
C. 10.06 days
D. 38.42 days
E. 9.35 days
96. Companies A, B, C, and D are competitors in the same industry. Assume that all have adequate quantities of raw materials to meet production needs.
|
Company AA
|
Company BB
|
Company CC
|
Company DD
|
Company EE
|
Raw materials used in a year
|
$10,000
|
$20,000
|
$30,000
|
$30,000
|
$40,000
|
Beginning raw materials inventory
|
$700
|
$600
|
$500
|
$400
|
$800
|
Ending raw materials inventory
|
$1,100
|
$1,000
|
$900
|
$800
|
$1,000
|
Which company has the best raw materials inventory turnover?
A. Company A
B. Company B
C. Company C
D. Company D
E. Company E
97. The cost of labor that is not clearly associated with specific units or batches of product is called:
A. Unspecified labor
B. Direct labor
C. Indirect labor
D. Basic labor
E. Joint labor
98. Factory overhead costs normally include all of the following except:
A. Indirect labor costs
B. Indirect material costs
C. Selling costs
D. Factory machinery oil
E. Factory rent
99. The following costs are included in a recent summary of data for a company: advertising expense, $85,000; depreciation expense – factory building, $133,000; direct labor, $250,000; direct material used, $300,000; factory utilities, $105,000; and sales salaries expense, $150,000. Determine the dollar amount of overhead costs.
A. $1,023,000
B. $550,000
C. $488,000
D. $235,000
E. $238,000
100. Which of the following items appears only in a manufacturing company's financial statements?
A. Cost of goods sold.
B. Cost of goods manufactured.
C. Goods available for sale.
D. Gross profit.
E. Net income.