CMA I Mid Exam for Extension ‘B’
Rift Valley University
Cost and Management Accounting I
Mid Exam – 30%
Time Allowed: - 1:00
Name ____________________________________
Id No_____________________________________
Part I: Write “True” if the statement is correct and “False” if it is incorrect (1.5 pt. each)
________1. Management accounting is an integral part of management concerned with identifying,
presenting and interpreting information.
________2. Expenses are incurred exchange for other asset and reported as inventory in income
statement.
________3. Material cost is rated as the first element of cost.
________4. Mixed cost is a cost that remains constant regardless of changes.
________5. Rent is an Example of Fixed cost.
________6. Costing is the process of classifying, recording and appropriate allocation of expenditure for
the determination of the costs of products.
Part II: Choose the correct answer among the following alternatives (1.5 pt. each).
________1. Which one of the following is not true about cost
A. It is an expenditure incurred in a given thing C. It is the purchasing price of an object
B. It is process of ascertaining costs D. All of the above
________2. _____ are costs related to a cost object and cannot be economically traced to that cost object
A. Direct costs C. Indirect costs
B. Manufacturing costs D. All of the above
________3. Beginning work in process inventory was $11,000. During the month, $73,000 of total
manufacturing costs was used. There $8,000 work in process inventory are becomes the
beginning inventory for the next month. What is the CoGM during the month?
A. $76,000 B. $84,000 C. $62,000 D. $73,000
________4. If your inventory balance at the beginning of the month was $1,000, you bought $100 during
the month, and sold $300 during the month, what would be the balance at the end of the month?
A. $1,400 B. $ 800 C. $1,200 D. $200
________5. Salary of the operating personnel is an example of
A. Direct labor cost B. Direct material cost C. Factory overhead cost D. All of the above
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CMA I Mid Exam for Extension ‘B’
________6. Which of the following one is FALSE about the type of non- manufacturing cost
A. Administrative expenses C. Selling expenses
B. Distribution expenses D. Cost of raw materials
Part III: - Matching (1 pt. each)
A B
________1. Costs A. Exchanged nothing in return
________2. Expenses B. Heating and Lighting costs
________3. Losses C. Exchanged for other asset
________4. Manufacturing costs D. Sales commission
________5. Non-Manufacturing costs E. Exchanged for revenue
Part-IV- Short Answer Questions (7 pts)
List the types of manufacturing costs? (1pts)
______________________________________________________________________________
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______________________________________________________________________________
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Assume DADA Corporation provides the following information for 2021.
Materials inventory, January 1,2021……………………… $65,000
Materials inventory, Dec 31,2021………………………… $35,000
Materials purchased during the year ……………………… $35,000
Direct labour ………………………………………………$150,000
Factory overhead ……………………………………….…$100,000
Beginning work-in-process inventory, January 1, 2021 ……. 16,000
Ending work-in-process inventory, December 31, 2021 ……. 25,000
Beginning inventory of finished goods, January 1, 2021…….. 23,000
Ending inventory of finished goods, December 31, 2021…….. 36,000
Calculate:-
a. Total manufacturing cost (1 pts)
b. Cost of goods manufactured in 2021 (1 pts)
c. Cost of goods sold in 2021(2 pts)
d. The Gross margin if the sales revenue in 2021 $400,000 (2 pts)
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