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Study Resources (Accounting)

16) Zephyros Corporation had estimated manufacturing overhead costs for the coming year to be $316,000. The total estimated direct labor hours and machine hours for the coming year are 6,000 and 10,000, respectively. Manufacturing overhead costs are allocated based on direct labor hours. What is the predetermined overhead allocation rate? A).
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16) Prepare a vertical analysis report of the income statement shown below. Round off the percentages to two decimal places.   2015 Net Sales$7,000 Cost of Goods Sold3,800 Gross Profit$3,200 Operating Expenses: Selling Expenses$950 Administrative expenses670 Total Expenses$1,620 Operating Income$1,580 Other Revenues and (Expenses): Interest Revenue0 Interest Expense(750) Total Revenues and (Expenses)($750) Income Before Taxes$830 Income Tax Expense150 Net Income$680 17) Prepare the vertical analysis report of the.
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4) Overallocated manufacturing overhead occurs when the manufacturing overhead allocated to Work-in-Process Inventory is less than the amount actually incurred. 5) Overallocated manufacturing overhead is adjusted by debiting the Cost of Goods Sold account. 6) If the debit side of the Manufacturing Overhead account totals more than the credit side of the.
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20) Data for Nobell Inc. follow: 20152014 Net Sales$850,000$798,000 Cost of Goods Sold635,000580,000 Selling and Administrative Expenses50,00035,000 Other Expenses20,00015,000 Income Tax40,00055,000 Prepare a horizontal analysis of the comparative income statement of Nobell Inc. Round percentage changes to one decimal place. Please use a multiple step income statement. 21) Atlantis Inc. provides the following historical data: 201620152014201320122011 Net sales$4,970$4,500$3,980$3,270$4,750$4,400 Prepare the trend.
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27) Repair and maintenance costs of vehicles used to deliver products to the customers are included in manufacturing overhead. 28) Direct materials and direct labor are prime costs. 29) In manufacturing, the cost objects are often units of product. A) current assets and liabilities reported on the balance sheet. B) costs that are incurred.
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18) Which of the following would appear as a line item on the income statements of both, a merchandiser and a manufacturer? A) Direct Labor B) Cost of Goods Manufactured C) Direct Materials D) Cost of Goods Sold 19) Damsel Inc. is a large manufacturer of auto tires. Damsel has provided the following information: Sales Revenue $45,500 Beginning.
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14) Jasper Corporation reports the following cost information for March: Cost of Goods Manufactured $75,000 Direct Materials Used 16,850 Finished Goods Inventory, March 1 4,500 Finished Goods Inventory, March 31 2,650 Work-in-Process Inventory, March 1 9,670 Work-in-Process Inventory, March 31 1,250 Direct Labor 36,300 What is the amount of manufacturing overhead incurred by Jasper in March? A) $20,000 B) $30,270 C) $13,430 D) $136,570 15) A company used $35,000 of.
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Learning Objective 18-5 1) Managerial accounting is used in manufacturing and merchandising companies, but not in service companies. 2) Service companies do not have product costs so they often consider all operating expenses as part of their cost of service. 3) Managerial accounting can be used to calculate costs for service and merchandising.
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11) Star Health Inc. is a fitness center in Oklahoma City. In October, the company earned $550,000 in revenues and incurred the following operating costs from 340 customers: Manager's salary $50,000 Gym Rent 60,000 Depreciation Expense—Equipment 25,000 Office Supplies 30,000 Utilities Expense 89,700 Trainer's Salary 25,000 How much is the unit cost per customer service? A) $795.00 B) $749.12 C) $1,617.65 D) $822.65 12) Kentucky purchases and sells widgets..
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7) Benchmarking is often done by comparing a company against either a key competitor or against the industry average. 8) Which of the following is the base amount when performing vertical analysis of an income statement? A) total expenses B) net sales C) sales revenue D) gross profit 9) A common-size statement reports only percentages that.
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11) Which of the following is an objective of management accounting? A) to generate financial statements of a company for tax reporting B) to provide information to business managers to assist them in controlling their business C) to provide information to shareholders to assist them with their investment decisions D) to ensure that the.
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7) Wages and benefits of assembly line workers are included in manufacturing overhead. 8) Wages and benefits of factory managers are considered as product costs. 9) The three categories of period costs are direct materials, direct labor, and manufacturing overhead. 10) Salary of a factory manager will be included in manufacturing overhead. 11) Direct.
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1) A corporation's income statement includes some unique items that do not often apply to smaller businesses. 2) Income from continuing operations helps investors to make predictions about past performance of the company. 3) The disposal of a financial segment would be reported as discontinued operations. 4) Gains and losses on the sale.
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9) Baskins Corporation's accounting records include the following items, listed in no particular order, for the year ending December 31, 2015: Other Revenues and (Expenses)Gain on Discontinued Operations$75,000 Gain on sale of Equipment$12,000Extraordinary Loss15,000 Loss on disposal of Equipment5,000Cost of Goods Sold285,000 Net Sales650,000Operating Expenses120,000 The income tax rate for the company is 45%. The.
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8) For external reporting purposes, GAAP requires companies to treat period costs as assets. 9) The primary activity of manufacturing businesses is to purchase goods from a wholesaler and resell them. 10) Service companies include companies that provide health care, communication, banking, and other important benefits to society. 11) The income statement of.
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  Learning Objective 18-1 1) Managerial accounting focuses on providing information for internal planning and control. 2) Financial accounting prepares reports for internal purposes, whereas managerial accounting provides information to external stakeholders. 3) The IMA standards of ethical practice require managerial accountants to maintain their professional competence. 4) The accountant for Myra Lido deliberately deferred.
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6) The merchandise inventory turnover ratio measures how profitably a company sells its average level of merchandise inventory during a year. 7) To calculate the acid-test ratio, merchandise inventory and prepaid expenses are ignored. 8) The current ratio is a key indicator of a company's ability to pay current liabilities. 9) Days' sales.
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28) Amber Corporation has provided the following information of its operating activities for 2015: Merchandise Inventory, January 1, 2015 $150,000 Merchandise Inventory, December 31, 2015 75,000 Purchases 854,000 Selling and Administrative Expenses 65,000 Sales Revenue 1,000,000 Required: Prepare Amber's income statement for the year ended December 31, 2015. Use the format provided below: Sales Revenue Cost of Goods Sold     Beginning Inventory     Purchases     Cost.
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14) Bilkins Financial Advisors provides accounting and finance assistance to customers in the retail business. Bilkins has 4 professionals on staff, plus an office with 6 clerical staff. Total compensation, including benefits, for the professional staff runs about $576,000 per year, and they normally have about 8,000 billable hours per.
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23) Donald Corp. reported the following revenues and net income amounts. (In millions)             2017     2016     2015     2014    2013 Revenue$728$675$500$485$452 Cost of goods sold650602456403398 Calculate Donald's trend analysis for revenues and cost of goods sold. Use 2013 as the base year, and round to the nearest percent. 1) An analysis of a financial statement that reveals the relationship of each statement.
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21) Which of the following is the primary objective of managerial accounting? A) providing information that managers need to make operational decisions B) providing historical data to investors and creditors C) providing summarized results of operations D) providing information to comply with laws and regulations of government bodies 22) Which of the following is the.
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  Learning Objective 20-1 1) A process costing system is most suitable for businesses that manufacture batches of unique products or provide specialized services. 2) In a process costing system, each process or department has its own Work-in-Process Inventory account. 3) A textile manufacturing company is most likely to use job order costing to.
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24) Barricades Corporation provided the following information for the year 2015: Beginning Balance—Work-in-Process Inventory $24,000 Ending Balance—Work-in-Process Inventory 56,000 Beginning Balance—Raw Materials Inventory 84,000 Ending Balance—Raw Materials Inventory 60,000 Purchases—Raw Materials 360,000 Direct Labor 470,000 Indirect Materials 47,000 Indirect Labor 19,000 Depreciation on Factory Plant & Equipment 24,000 Plant Utilities & Insurance 270,00 What was the amount of the cost of goods manufactured for the year 2015? A) $1,414,000 B) $1,214,000 C) $1,182,000 D) $1,246,000 25).
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4) Job order costing is well suited for the service industry. 5) When job order costing is used in the service industry, the allocation of indirect costs is normally based on machine hours. 6) For a service company, such as an accounting firm, each client is considered a job. 7) Unlike manufacturing companies,.
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26) Arabica Manufacturing uses a predetermined overhead allocation rate based on the number of machine hours. At the beginning of 2015, they estimated total manufacturing overhead costs to be $1,050,000, total number of direct labor hours to be 5,000, and total number of machine hours to be 25,000 hours. What.
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  Learning Objective 19-1 1) Accounting firms, building contractors, and healthcare providers use process costing. 2) A job order costing system is used by companies that manufacture batches of unique products or provide specialized services. 3) A process costing system is used when a company produces identical units through a series of production steps. 4).
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36) Peartree Inc. provides the following data: Cash $40,000 $25,000 Accounts Receivable, Net 98,000 62,000 Merchandise Inventory 70,000 50,000 Property, Plant, and Equipment, Net 180,000 120,000 Total assets $388,000 $257,000 Additional information: Net sales $500,000 Cost of Goods Sold 150,000 Interest expense 20,000 Net income 180,000 Calculate the return on total assets for the year 2015. A) 67.25% B) 62.02% C) 72.36% D) 65.00% 37) Peartree Inc. provides the following income statement for the year 2015: 2015 Net Sales $240,000 Cost of Goods Sold 110,000 Gross.
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34) Opal Company used $213,000 of direct materials and incurred $111,000 of direct labor costs during 2015. Indirect labor amounted to $8,100 while indirect materials used totaled $4,800. Other operating costs pertaining to the factory included utilities of $9,300; maintenance of $13,500; repairs of $5,400; depreciation of $23,700; and property.
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17) Factory rent, taxes, and insurance are included in manufacturing overhead. 18) Transportation costs paid to ship raw materials to a company warehouse are considered product costs. 19) Sales commissions are included in manufacturing overhead. 20) In a manufacturing firm, advertising and marketing costs are examples of period costs. 21) In a manufacturing firm,.
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36) The Quadrangle Fabrication Plant suffered a fire incident at the beginning of the year which resulted in loss of property including the accounting records. Some data for the year were retrieved and extracts from it are shown below: Total manufacturing overhead estimated at the beginning of the year $105,840 Total direct labor.
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18) Atlantis Inc. has the following data: Atlantis Inc. Comparative Balance Sheet December 31, 2016 and 2015 20162015        Assets Total Current Assets$200,000$100,000 Property, Plant, and Equipment, Net550,000500,000 Other Assets50,00050,000 Total Assets$800,000$650,000        Liabilities Total Current Liabilities$150,000$100,000 Long-term Debt350,000250,000 Total Liabilities500,000350,000        Stockholders' Equity Total Stockholders' Equity300,000300,000 Total Liabilities and Stockholders' Equity$800,000$650,000 Perform a vertical analysis of Atlantis's balance sheet for each year. Round your percentage answers.
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47) The following information relates to Webster Inc.: Advertising Costs $10,270 Sales Salary 4,500 Sales Revenue 450,000 President's Salary 40,300 Office Rent 61,100 Manufacturing Equipment Depreciation 2,080 Indirect Materials 9,360 Indirect Labor 11,700 Factory Repair and Maintenance 910 Direct Materials 28,080 Direct Labor 35,100 Delivery Vehicle Depreciation 1,027 Administrative Salaries 24,700 How much were Webster's product costs? A) $141,897 B) $697,127 C) $229,127 D) $87,230 48) The following information relates to Webster Inc.: Advertising Costs $10,270 Sales Salary 4,500 Sales Revenue 450,000 President's Salary 40,300 Office Rent 61,100 Manufacturing Equipment Depreciation 2,080 Indirect Materials 9,360 Indirect Labor 11,700 Factory.
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31) Best Company, a merchandiser, sells office supplies. The following information summarizes Best's operating activities during 2015: Utilities Expense $6,000 Rent for Store Expense 8,000 Sales Commissions Expense 4,500 Purchases of Merchandise 54,000 Inventory on January 1, 2015 30,000 Inventory on December 31, 2015 20,500 Sales Revenue 108,000 Required: Prepare an income statement for Best Company for the year ended December 31, 2015, using the.
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46) Iva Machine Shop uses a predetermined overhead allocation rate of $75 per direct labor hour. In January, Iva completed Job B23 which utilized 20 direct labor hours. Provide the journal entry to allocate overhead to the job. Learning Objective 19-4 1) The cost of goods manufactured is recorded with a debit.
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11) Which of the following is the correct order of the four steps of tracking product costs? A) Assign → Accumulate → Allocate → Adjust B) Accumulate → Assign → Allocate → Adjust C) Adjust → Allocate → Accumulate → Assign D) Allocate → Adjust → Accumulate → Assign Learning Objective 19-2 1) When raw materials.
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37) Manufacturing overhead is also referred to as: A) indirect manufacturing costs. B) direct costs. C) prime costs. D) period costs. 38) Anything for which managers want a separate measurement of cost is called: A) a responsibility center. B) a cost object. C) a profit object. D) a conversion cost. 39) Kyanite Corporation, a manufacturer reports costs for 2015 as.
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6) Manufacturing overhead is allocated by debiting the Work-in-Process Inventory account and crediting the Manufacturing Overhead account. 7) The total amount of manufacturing overhead costs incurred and paid during the period is recorded on the credit side of the Manufacturing Overhead account. 8) Which of the following describes the allocation base for.
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10) The journal entry to record indirect labor costs incurred involves a debit to the: A) Manufacturing Overhead account. B) Wages Payable account. C) Finished Goods Inventory account. D) Work-in-Process Inventory account. 11) Manufacturing Overhead is a temporary account used to ________ indirect production costs during the accounting period. A) allocate B) assign C) accumulate D) approximate 12) The journal.
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20) On June 1, 2014, Dalton Productions had beginning balances as shown in the T-accounts below. During June, the following transactions took place: June 2: Issued $2,400 of direct materials and $200 of indirect materials to production Following this transaction, what was the balance in the Manufacturing Overhead account? A) $43,600 B) $43,400 C) $41,200 D) $41,000 21).
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20) Data for Martin Corp and Tortoize Inc. as follows: Martin Tortoize Net Sales $25,000 $32,500 Cost of Goods Sold 18,500 22,360 Other Expenses 2,150 5,000 Net Income $4,350 $5,140 Prepare a comparative common-size income statement for Martin Corp and Tortoize Inc. for the year ending December 31, 2016. Round off the percentages to two decimal places. Use a multiple step format for the income.
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57) For a manufacturing business, which of the following would be included as manufacturing overhead? A) Direct materials cost B) Indirect materials cost C) Direct labor D) Advertising 58) For a manufacturing business, which of the following would be considered a period cost? A) Indirect materials B) Factory utilities C) Direct labor D) Sales salaries 59) Which of the following.
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