BKAL1013 A141

TUTORIAL # 6

DUE DATE: 8th Dec. 2014

1. A cost unit is
A
B
C
D

the cost per hour of operating a machine

the cost per unit of electricity consumed
a unit of product or service in relation to which costs are ascertained
a measure of work output in a standard hour

2. Prime cost is
A
B
C
D

all costs incurred in manufacturing a product

the total of direct costs
the material cost of a product
the cost of operating a department

3. Which of the following costs are part of the prime cost for a manufacturing company?
A
B
C
D

Cost of transporting raw materials from the supplier's premises

Wages of factory workers engaged in machine maintenance
Depreciation of lorries used for deliveries to customers
Cost of indirect production materials

4. Which of the following are direct expenses?

(i) The cost of special designs, drawing or layouts
(ii) The hire of tools or equipment for a particular job
(iii) Salesman's wages
(iv) Rent, rates and insurance of a factory
A
B
C
D

(i) and (ii)

(i) and (iii)
(i) and (iv)
(iii) and (iv

5. Which of the following are indirect costs?

(i) The depreciation of maintenance equipment
(ii) The overtime premium incurred at the specific request of a customer
(iii) The hire of a tool for a specific job
A
B
C
D

Item (i) only

Items (i) and (ii) only
Items (ii) and (iii) only
All of them

6. A company employs three drivers to deliver goods to its customers. The salaries paid
to these drivers are:

BKAL1013 A141

A
B
C
D

a part of prime cost

a direct production expense
a production overhead
a selling and distribution overhead

7. Which of the following would be classed as indirect labour?

A
B
C
D

A trainers driver in a transport company

Machine operators in a milk bottling plant
A maintenance assistant in a factory maintenance department
A committee in a firm of management consultants

8. Manufacturing costs typically consist of

A
B
C
D

direct materials, direct labor, and manufacturing overhead

direct materials, direct labor, and administrative costs
direct materials, direct labor, marketing and administrative costs
None of these

9. The salary of the vice president of finance would be considered a(n):

A
B
C
D

manufacturing cost
product cost
administrative cost
selling expense

10. Which of the following would most likely be included as part of manufacturing
overhead in the production of a wooden table?
A
B
C
D

The amount paid to the individual who stains the table

The commission paid to the salesperson who sold the table
The cost of the glue used in the table
The cost of the wood used in the table

11. In a manufacturing company, direct labor costs combined with direct materials costs
are known as:
A
B
C
D

period costs
conversion costs
prime costs
opportunity costs

12. Which of the following combinations of costs make up conversion cost?

A
B
C

Direct materials cost and manufacturing overhead cost

Direct labor cost and manufacturing overhead cost
Marketing cost and administrative costs

BKAL1013 A141

Direct materials cost and direct labor cost

13. A manufacturing company reports cost of goods manufactured as a(n):

A. component of the raw materials inventory on the Statement of Financial
Position.
B. non- current asset on the Statement of Financial Position.
C. Selling expense on the Statement of Profit or Loss and Other Comprehensive
Income.
D. component in the calculation of cost of goods sold the Statement of Profit or
Loss and Other Comprehensive Income.
14. Which of the following would NOT classified as manufacturing overhead?
A. Factory utility expense
B. Indirect labour
C.
Direct materials
D.
Insurance on factory machine
15. A manufacturing process requires a small amount of paint. The paint used in the
production process is classified as:
A.
B.
C.
D.

a prime cost.
miscellaneous expense.
an indirect material.
a direct material.

Use the following information for Questions 16 to 17:

Raw materials inventory, 1 January
Raw materials inventory, 31 December
Work in process, 1 January
Work in process, 31 December
Finished goods, 1 January
Finished goods, 31 December
Raw materials purchases
Direct labour
Factory insurance
Indirect labour
Factory machine depreciation
Selling and administrative expenses
16. Direct materials used are:
A.
B.
C.
D.

RM980,000
RM1,011,000
RM1,034,000
RM957,000

RM
31,000
54,000
18,000
12,000
40,000
32,000
980,000
360,000
128,000
47,000
260,000
285,000

BKAL1013 A141

17. Manufacturing overhead is:

A.
B.
C.
D.

RM435,000
RM720,000
RM795,000
RM535,000

Use the following information for Questions 18 to 19:

Given below is some financial data for Syarikat MajuJaya:
Direct materials used
Direct labor
Manufacturing overhead
Operating expenses

RM
310,000
175,000
400,000
520,000

Beginning work in process

Ending work in process
Beginning finished goods
Ending finished goods

RM
68,000
44,000
62,000
57,000

18. Compute the total manufacturing costs:

A.
B.
C.
D.

RM1,405,000
RM1,005,000
RM885,000
RM909,000

19. Compute the conversion cost:

A.
B.
C.
D.

RM1,095,000
RM710,000
RM485,000
RM575,000

20. Which one of the following items does NOT appear on the Statement of Financial
Position of a manufacturing company?
A.
B.
C.
D.

Finished goods inventory

Cost of goods manufactured
Work in process inventory
Factory building

21. Which of the following would NOT require the use of cost behavior analysis?
A.
B.
C.
D.

Transferring production costs from one department to another.

Projecting anticipated costs of a new project.
Buying an existing business.
Changing an existing product or service.

22. BIBI Inc. is a merchandising company. Last month the companys merchandise
purchases totaled RM70,000. The companys beginning merchandise inventory was

BKAL1013 A141

RM15,000 and its ending merchandise inventory was RM22,000. What was the
companys cost of goods sold for the month?
A
B
C
D

RM63,000
RM77,000
RM107,000
RM70,000

23. Using the following data for April, calculate the cost of goods manufactured:
Direct materials ........................................................................................
Direct labor ..............................................................................................
Manufacturing overhead...........................................................................
Beginning work in process inventory.......................................................
Ending work in process inventory ...........................................................

RM
23,00
21,000
37,000
13,000
18,000

The cost of goods manufactured was:

A
B
C
D

RM81,000
RM76,000
RM94,000
RM86,000

Use the following to answer questions 24-26.

Haman Corp. reported the following data for the last year:
Work in process inventory, beginning ..............................
Work in process inventory, ending....................................
Finished goods inventory, beginning ................................
Finished goods inventory, ending......................................
Direct labor cost.................................................................
Direct material cost............................................................
Manufacturing overhead cost.............................................
24. The prime cost is:
A
B
C
D

RM800
RM900
RM500
RM400

25. The conversion cost is:

RM
100
80
150
200
400
500
300

BKAL1013 A141

A
B
C
D

RM700
RM800
RM900
RM500

26. The cost of goods manufactured is:

A
B
C
D

RM1,180
RM1,120
RM1,200
RM1,220

BKAL1013 A141

DUE DATE: 8th December 2014

TUTORIAL # 6

MATRIC NO: _____________

NAME:

GROUP: _____

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POSITION NO: ______