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Study Resources (Accounting)

1) Generally accepted accounting principles (GAAP) mandate that manufacturing overhead MUST be treated as an inventoriable product cost for financial reporting purposes. 2) Manufacturing overhead costs can be traced to jobs. 3) The key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base. 4) Allocating manufacturing overhead to.
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52) The following amounts were taken from the general ledger of the Excellent Manufacturing Company. Compute the cost of goods manufactured and the cost of goods sold for the company for the year. Raw materials inventory - beg. of year $50,000 Depreciation - plant & equipment $26,000 Raw materials inventory - end of year 56,000 Repairs.
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50) South State Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during 2009. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100; maintenance of $4,500; supplies of $1,800; depreciation expense of $7,900;.
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54) Buildit a start up manufacturing company's bookkeeper left suddenly leaving rather incomplete accounting records for the last month of his employment. You have been hired to sort out the puzzle. Assume Buildeit's raw materials inventory contains only direct materials. You have the following information available: Work in process inventory, April 30 $4,200 Finished.
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36) Backyards, Inc., sells lawn furniture. Selected financial information for the most recent year follows. Beginning merchandise inventory on January 1 was $32,000. Ending merchandise inventory on December 31 was $37,000. Purchases during the year were $101,000. Selling and administrative expenses were $75,000. Sales for year were $257,000. What was the value of goods available for.
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30) Bombadeer, an auto manufacturer, incurred the following costs last month (in thousands of dollars). Interior assemblies $540 Depreciation on administrative offices 280 Assembly workers' wages      1,340 Plant utilities 290 Production supervisors' salaries        150 Engine and body parts and assemblies      2,500 Machine lubricants      75 Property tax on corporate offices        40 Cost of warranty repairs      450 Factory janitors' wages     90 Cost of designing.
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21) Which comes third in the flow of costs? A) Cost of goods sold B) Finished goods inventory C) Raw materials inventory D) Work in process inventory 22) Which comes last in the flow of costs? A) Cost of goods sold B) Finished goods inventory C) Raw materials inventory D) Work in process inventory 23) What is the document which.
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1) Differential cost is the difference in cost between two alternatives. 2) Decision making is guided only by differential costs. 3) Irrelevant factors should be considered when making decisions. 4) You are trying to decide whether or not to sell back your accounting textbook at the end of the class. The cost you.
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56) Redat a start up manufacturing company's bookkeeper left suddenly leaving rather incomplete accounting records for the last month of his employment. You have been hired to sort out the puzzle. Assume Redat's raw materials inventory contains only direct materials. You have the following information available: Work in process inventory, June 30 $6,400 Finished.
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26) Readers Unlimited sells books. The following information summarizes the company's operating expenses for the year: Purchases $90,000 Operating expenses $53,000 Beginning merchandise inventory $12,000 Ending merchandise inventory $15,000 Sales revenue $172,000 What is cost of goods available for sale? A) $105,000 B) $82,000 C) $87,000 D) $102,000 27) Readers Unlimited sells books. The following information summarizes the company's operating expenses for the year: Purchases $90,000 Operating expenses $53,000 Beginning merchandise.
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24) State whether each company below would be more likely to use a job costing system or a process  costing system: A) _____ Soft drink bottler B) _____ Yacht builder C) _____ Hospital D) _____ Printing firm E)  _____ Flour mill 25) Briefly explain the difference between job order and process costing and give examples of.
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21) Computing the predetermined manufacturing overhead rate is done: A) before the period starts. B) during the period. C) at the end of the period. D) at any time. 22) How do you calculate the predetermined manufacturing overhead rate used to allocate manufacturing overhead costs? A) By dividing the total estimated manufacturing overhead costs by the total.
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31) Before the year began, Johnson Manufacturing estimated that manufacturing overhead for the year would be $160,000 and that 12,000 direct labor hours would be worked. Actual results for the year included the following: Actual manufacturing overhead cost $175,000 Actual direct labor hours          15,000 The predetermined manufacturing overhead rate per direct labor hour is.
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55) Homeco a start up manufacturing company's bookkeeper left suddenly leaving rather incomplete accounting records for the last month of his employment. You have been hired to sort out the puzzle. Assume Homeco's raw materials inventory contains only direct materials. You have the following information available: Work in process inventory, May 30 $9,300 Finished.
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47) Compute the missing amounts. Miami Company Orlando Company Sales $200,000 (D) Cost of Goods Sold    Beginning Inventory (A) 60,000    Purchases and Freight-In 118,000 (E)    Cost of goods available for sale (B) 180,000    Ending Inventory 4,000 4,000    Cost of goods sold 120,000 (F) Gross Margin 80,000 224,000 Selling and Administrative Expenses (C) 170,000 Operating Income 24,000 (G) .
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11) The cost of wages paid to assembly-line workers should be treated as a manufacturing overhead cost. 12) The overhead allocation base should be the cost driver of manufacturing overhead costs. 13) The primary factor causing a "cost" is called a: A) cost allocation. B) cost driver. C) materials requisition. D) predetermined manufacturing overhead rate. 14) An.
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29) Indicate whether each of the following costs is a product cost or a period cost. Assume a manufacturer. A) ________ Direct materials used in factory B) ________ Factory utilities C) ________ Salespersons' commissions D) ________ Salary of plant manager E) ________ Indirect materials used in factory F) ________ Depreciation expense on store equipment G) ________ Indirect.
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51) The following information is available for the Petree 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 year). ? Beginning.
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21) The system for assigning costs to unique cost objects is called: A) time costing. B) process costing. C) service costing. D) job costing. 22) A type of costing used for many similar products is called: A) batch costing. B) process costing. C) service costing. D) job costing. 23) State whether each company below would be more likely to use.
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46) 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 .
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25) 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.
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6) Which of the following is calculated before operating income can be determined for a manufacturer? A) Cost of goods available for sale B) Cost of goods manufactured C) Cost of goods sold D) All of the above 7) The only difference in the balance sheets of various types of businesses (for example, manufacturing vs..
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11) A receiving report is typically a duplicate of the purchase order, but without the quantity pre-listed on the form. 12) Which of these documents are used to accumulate the costs of a job? A) Labor time record B) Materials inventory requisition form C) Job cost record D) Bill of materials 13) Which of these documents.
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16) Towpath Tennis & Recreation's operating activities for the year are listed below. Purchases $150,000 Operating expenses 62,000 Beginning Inventory 27,000 Ending inventory 32,000 Sales revenue 302,000 What is the cost of goods sold for the year? A) $177,000 B) $150,000 C) $145,000 D) $90,000 17) Towpath Tennis & Recreation's operating activities for the year are listed below. Purchases $150,000 Operating expenses 62,000 Beginning Inventory 27,000 Ending inventory 32,000 Sales revenue 302,000 What is the gross profit.
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11) What types of businesses can use a job costing system? A) Manufacturing and merchandising businesses B) Service and manufacturing businesses C) Service and merchandising businesses D) Service, manufacturing, and merchandising businesses 12) Which product costing system would better account for a unique product? A) Job costing system B) Overhead costing system C) Process costing system D) Product costing.
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15) Differentiate between relevant and irrelevant costs and give an example using both. 16) On the line in front of each statement, enter the letter corresponding to the term that best may not be used at all. A. Direct costs F. Variable costs B. Marginal cost G. Indirect cost C. Average cost H. Sunk cost D. Conversion costs I. Differential cost E. Prime costs   _____ The combination of direct materials and.
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48) Dino Company sells collectibles. The following information summarizes Dino's operating activities for the most recent year: Merchandise inventory, beginning $10,000 Merchandise inventory, ending 7,000 Purchases 95,000 Operating expenses 65,000 Sales revenue 180,000 Required:  Prepare an income statement for the most recent year. .
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11) A company is deciding whether to purchase production equipment which can produce units more quickly than the current equipment. Which of the following costs would be relevant to its decision? A) The cost of the new equipment B) The salary of the factory manager C) The cost of raw materials D) The original.
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53) Makeit a start up manufacturing company's bookkeeper left suddenly leaving rather incomplete accounting records for the last month of his employment. You have been hired to sort out the puzzle. Assume Makeit's raw materials inventory contains only direct materials. You have the following information available: Work in process inventory, April 30 $3,000 Finished.
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1) A job cost record is a document that accumulates direct materials costs, direct labor costs and manufacturing overhead costs assigned to batches of jobs. 2) At a manufacturing company, inventory flows from work in process inventory, to raw materials inventory, to finished goods inventory. 3) When raw materials are transferred out.
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49) Swirzoff Company sells office supplies. The following information summarizes Swirzoff's operating activities for the past year: Utilities for store 6,000 Rent for store 8,000 Sales commissions 4,500 Purchases of merchandise 54,000 Inventory, ending 20,500 Inventory, beginning 30,000 Sales revenue 108,000 Required:  Prepare an income statement for Swirzoff Company, a merchandiser, for the year ended December 31. .
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27) 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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