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Study Resources (Accounting)

114) Use the correct number to designate each item below. Assume a manufacturer. 1.direct materials 2.selling and general expenses 3. manufacturing overhead 4.direct labor A)____rent expense on factory building B)____sales supplies used C)____factory supplies used D)____indirect materials used E)____wages of assembly line personnel F)____cost of primary material used to make product G)____depreciation expense on office equipment H)____rent expense on office facilities I)____insurance expired.
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91) Nemec Manufacturing uses job costing. In May, material requisitions were $44,000 ($39,000 of these were direct materials), and raw material purchases were $60,000. The end of month balance in raw materials inventory was $24,300. What was the beginning raw materials inventory balance? A) $74,700 B) $45,300 C) $8,300 D) $23,000 92) Ryan's Paints allocates.
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254) An example of a fixed cost for a manufacturer would be which of the following? A) Sales commissions B) Salary of plant manager C) Direct materials D) Delivery costs 255) Which of the following is an example of a fixed cost for a manufacturer? A) Income Taxes B) Machine Repair Expense C) Fire Insurance on buildings D) Delivery.
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199) Porches, Inc., sells lawn furniture. Selected financial information for the most recent year follows. Beginning merchandise inventory on January 1 was $33,000. Ending merchandise inventory on December 31 was $35,000. Purchases during the year were $92,000. Selling and administrative expenses were $75,000. Sales for year were $262,000. What was the value of goods available.
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225) Over the long-term all costs are uncontrollable. 226) Differential cost is the difference in cost between two alternatives. 227) Decision making is guided only by differential costs. 228) Irrelevant factors should not be considered when making decisions. 229) You are trying to decide whether or not to sell back your accounting textbook at.
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139) Pink Ribbon Shoppe, a clothing retailer, had the following total costs as grouped by value chain element: Research and development $ 53,000 Design $ 17,000 Purchases $ 72,000 Marketing $ 42,000 Distribution $ 58,000 Customer service $ 35,000 What were the company's inventoriable costs? A) $142,000 B) $17,000 C) $72,000 D) $89,000 140) Pink Ribbon Shoppe, a clothing retailer, had the.
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30) For a manufacturing system, inventory flows from raw materials inventory to work in process inventory to finished goods inventory. 31) A job cost record is a document that accumulates direct materials costs, direct labor costs and manufacturing overhead costs assigned to each individual job. 32) At a manufacturing company, inventory flows.
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136) Stars and Stripes Corporation uses job costing. The following is selected financial data from the company for the most recent year. Ending raw materials inventory $ 18,500 Ending work in process inventory $ 57,300 Ending finished goods inventory $ 54,000 Amount of underallocated manufacturing overhead $ 3,200 Cost of goods.
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101) Here are selected data for Wilson Company: Estimated manufacturing overhead $ 243,750 Factory utilities $ 30,200 Estimated labor hours 35,000 Indirect labor $ 22,400 Actual direct labor hours 36,000 Sales commissions $ 53,700 Estimated direct labor cost $ 325,000 Factory rent $ 47,700 Actual direct labor cost $ 320,000 Factory property taxes $ 28,100 Factory.
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68) Joe's Bottling Company provided the following expense information for July: Assembly-line workers' wages $ 56,000 Depreciation on factory equipment $ 35,000 Caps for bottles $ 3,000 Plastic bottles $ 52,000 Reconfiguring the assembly line $123,000 Salaries of salespeople $ 63,000 Customer support hotline $ 12,000 Salaries of research scientists $ 65,000 Delivery expenses .
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218) Use the appropriate letter(s) to indicate if the following costs would be found on the income statement of a A.service company B.merchandising company C.manufacturing company You may use more than one letter for each answer. ____Revenue ____Salaries expense ____Customer service expense ____Cost of goods manufactured ____Cost of goods sold 219) Compute the missing amounts. Miami Company Orlando Company Sales $ 300,000 (D) Cost of Goods.
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149) Product costs and period costs receive similar treatment when presented in the financial statements. 150) The income statements of manufacturing companies are more complex than those of service or merchandising companies. 151) The financial statements of a merchandiser are more complex than those of a manufacturer. 152) Service companies have.
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40) The quantities of incoming shipments of raw materials are counted and recorded on a purchase order. 41) Which of these documents authorizes the purchase of specific raw materials from a specific supplier? A) Labor time record B) Materials inventory requisition form C) Job cost record D) Purchase order 42) A ________ is used to accumulate.
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104) Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Depreciation on sales office $     9,000 Depreciation on factory equipment 16,000 Factory supervisor salary 50,500 Sales commissions 23,000 Lubricants used in factory equipment 3,000 Insurance costs for factory 21,000 Wages paid to maintenance workers 115,000 Fabric used to upholster.
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81) Manufacturing overhead is allocated on the basis of A) machine hours. B) direct labor hours. C) direct labor costs. D) any of the listed choices. 82) Allocating manufacturing overhead costs is done A) during the period. B) before the period starts. C) at the end of the period. D) never. 83) When is the predetermined manufacturing overhead rate computed? A).
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223) The following information is available for the Bower Corporation for last year: ?Raw materials inventory decreased $4,000 from the beginning of the year to the end of the year. ?Raw materials inventory on December 31 (end of year) was 50% of raw materials inventory on January 1 (beginning of.
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94) Which of the following would not be considered a direct material for a mattress? A) Fabric B) Lumber C) Glue D) Steel 95) All of the following would be considered a direct material for a kitchen cabinet except A) wood. B) stain. C) sand paper. D) hinges. 96) Prime costs consist of A) direct materials and direct labor. B) direct labor.
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159) The income statement of a retailer would include which of the following? A) Cost of goods sold B) Value of inventory C) Accounts payable D) Accounts receivable 160) The income statements for both a merchandiser and manufacturer would include which of the following? A) Operating expenses B) Direct labor incurred C) Direct materials used D) Cost of goods.
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138) Oakland Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Estimated direct labor cost$560,000 Actual direct labor cost$475,000 Estimated manufacturing overhead costs$420,000 Actual manufacturing overhead costs$353,000 Estimated direct labor hours200,000 Actual direct.
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27) State whether each company below would be more likely to use a job costing system or a process costing system. A)________custom home builder B)________paint manufacturer C)________carpet manufacturer D)________concrete manufacturer E)________jumbo jet manufacturer 28) State whether each company below would be more likely to use a job costing system or a process costing system: A)________soft drink.
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244) Variable costs per unit decrease as production volume increases. 245) Fixed costs vary in total over a wide range of activity levels. 246) All costs contain both a fixed and a variable portion. 247) The total cost of a product equals the total fixed costs plus the total variable costs. 248) A marginal.
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1) A paper mill company like International Paper would most likely use job costing. 2) A food and beverage company like Coca-Cola would most likely use job costing. 3) Process costing is used by companies that produce large numbers of identical units of production in a continuous fashion. 4) Job costing systems accumulate.
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147) ABC Company makes wooden furniture. Identify each of the following as either an inventoriable product cost or a period cost. If it is an inventoriable product cost, classify it as direct materials, direct labor, or manufacturing overhead. A.________Insurance on the plant building B.________Cost of shipping the furniture to the customers C.________Assembly line.
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11) Companies use job costing when their products or services vary in terms of materials needed, time required to complete the product, and/or the complexity of the production process. 12) A receiving report is typically a duplicate of the purchase order but without the prices and quantities pre-listed on the form. 13).
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111) Missy & Daughters allocates manufacturing overhead to jobs based on machine hours. The company has the following estimated costs for the upcoming year: Direct materials used $ 50,000 Direct labor costs $ 70,000 Wages of factory janitors $ 39,000 Sales supervisor salary $ 51,000 Utilities for factory $ 16,000 Rent.
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121) Perry Moldings has the following estimated costs for the upcoming year: Direct labor costs $ 62,000 Direct materials used $ 25,000 Salary of factory supervisor $ 39,000 Sales commissions $ 8,000 Heating and lighting costs for factory $ 22,000 Depreciation on factory equipment $ 5,000 Advertising expense $ 33,000 The company estimates that 1,200 direct labor hours.
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129) Manufacturing overhead costs for a product include A) direct material. B) operating expenses. C) indirect manufacturing costs. D) prime costs. 130) When do inventoriable costs become expenses? A) When direct materials are purchased B) When the manufacturing process begins C) When the manufacturing process is completed D) None of the above 131) Indirect materials and indirect labor are ________.
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119) Indirect materials, indirect labor, and indirect manufacturing costs are what type of manufacturing cost? A) Direct labor B) Direct materials C) Manufacturing overhead D) Prime costs 120) Which of the following would not be considered a product cost for a manufacturer? A) Direct labor B) Direct materials C) Manufacturing overhead D) Freight out 121) Period costs are A) always recorded.
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277) On the line in front of each statement, enter the letter corresponding to the term that best fits that statement. You may use a letter more than once and some letters may not be used at all. a. Direct costs e. Variable costs b. Marginal cost f. Indirect cost c. Average cost g. Sunk cost d. Conversion costs h. Differential cost ___The total cost divided by.
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169) Challenge Tennis & Recreation's operating activities for the year are listed below. Purchases $174,000 Operating expenses 62,000 Beginning inventory 27,000 Ending inventory 37,000 Sales revenue 333,000 What is the cost of goods sold for the year? A) $201,000 B) $164,000 C) $174,000 D) $97,000 170) Challenge Tennis & Recreation's operating activities for the year are listed below. Purchases $174,000 Operating expenses 62,000 Beginning inventory 27,000 Ending.
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172) Spruce Company uses a job costing system. Spruce Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31. Cost of goods manufactured $124,000 Cost of direct materials used 42,000 Cost of direct labor ($32 per hour) 76,000 Work in process inventory, August 1 14,500 Allocated manufacturing overhead costs for August amount.
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209) Selected information regarding a company's most recent quarter follows (all data in thousands). Direct labor $    500 Beginning work in process inventory $    320 Ending work in process inventory $    330 Cost of goods manufactured $ 1,560 Manufacturing overhead $    820 What was direct materials used for the quarter? A) $ 250 B) $ 490 C) $ 1,550 D).
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189) Paper Clip Company sells office supplies. The following information summarizes the company's operating activities for the year: Utilities for the store $   9,500 Sales commissions 10,000 Sales revenue 164,000 Purchases of merchandise 85,000 January 1 inventory 27,000 Rent for store 13,500 December 31 inventory 23,000 What is operating income? A) $154,500 B) $56,000 C) $42,000 D) $46,000 190) Paper Clip Company sells office supplies. The following information.
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241) Label each item below as relevant or irrelevant in making a decision. A.____cost of insurance on a new vehicle when evaluating purchase of new vehicle B.____cost of roof repair made on rental property last year when evaluating sale of rental property C.____original cost of old equipment that is being evaluated for replacement D.____cost.
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57) On the line in front of each statement, enter the letter corresponding to the term that best fits that statement. You may use a letter more than once and some letters may not be used at all. A. bill of materials F. job cost record B. cost driver G. process costing C. materials requisition H. labor time record D. invoice I. receiving report E. purchase order J. job.
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61) Manufacturing overhead may include depreciation on the factory plant and equipment, utilities to run the plant, property taxes and insurance on the plant, and salaries of plant janitors. 62) Generally accepted accounting principles (GAAP) mandate that manufacturing overhead must be treated as an inventoriable product cost for financial reporting purposes. 63).
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140) Calculate the unknowns for the following independent situations. 1) Selected data for Lion Corporation: Actual manufacturing overhead costs $ 35,400 Underallocated manufacturing overhead costs $ 3,000 Allocated manufacturing overhead is based on 50% of direct labor cost. a) Calculate the allocated manufacturing overhead cost. b) Calculate the direct labor cost. 2) Selected data for Tiger Corporation: Actual.
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71) The predetermined manufacturing overhead rate is calculated by multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base. 72) The cost of wages paid to assembly-line workers should be treated as a manufacturing overhead cost. 73) The overhead allocation base should be the cost driver.
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220) Kitch Company sells collectibles. The following information summarizes Dino's operating activities for the most recent year: Merchandise inventory, beginning $ 12,000 Merchandise inventory, ending 6,000 Purchases 97,000 Operating expenses 62,000 Sales revenue 195,000 Required: Prepare an income statement for the most recent year. 221) Eschenbach Company sells office supplies. The following information summarizes Swirzoff's operating activities for the past year: Utilities.
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80) Place the value chain elements in the correct order by numbering them from 1 to 6. ___Design ___Customer Service ___Marketing ___Research and Development ___Distribution ___Production or Purchases 81) Place the letter for the appropriate value chain activity on the line in front of each item. Letters may be used more than once or not at all..
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141) Krepes Manufacturing has two departments that produce small appliances. The Drilling Department allocates manufacturing overhead using machine hours as the allocation base while the Cutting Department allocates manufacturing overhead using direct labor cost as the allocation base. Data for April are shown below:   Drilling Dept.   Cutting Dept. Estimated annual manufacturing overhead costs $150,000 $300,000 Estimated.
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179) Tall Timbers reports the following data for its first year of operation. Work in process inventory, beginning $           0 Work in process inventory, ending 50,000 Manufacturing overhead 25,000 Direct materials used 7,000 Finished goods inventory, beginning 0 Finished goods inventory, ending 20,000 Cost of goods manufactured 85,000 What are the total manufacturing costs? A) $47,000 B) $135,000 C) $85,000 D) $117,000 180) Tall Timbers reports the following.
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162) Sales revenue is $750,000; actual manufacturing overhead is $120,000; allocated manufacturing overhead is $95,000; and cost of goods sold before adjustment is $380,000. What is the actual gross profit? A) $395,000 B) $370,000 C) $345,000 D) $250,000 163) Sales revenue is $725,000; allocated manufacturing overhead is $95,000; actual manufacturing overhead is $120,000; and cost.
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131) Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Actual direct labor hours 232,000 Estimated direct labor hours 250,000 Actual manufacturing overhead costs $350,000 Estimated manufacturing overhead costs $400,000 Actual direct labor.
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