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1) Activity-based management is not suitable for service companies as it deals with the proper allocation of manufacturing overhead. 2) While using an activity-based costing in service companies, the allocation of indirect costs to the cost object is the last step of the process. 3) Activity-based costing can be used in determining.
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30) Alfeo Corp. has adopted a JIT management system and has the following transactions in March: Mar 5Incurred labor and overhead costs, $95,000 Mar 31Completed 650 units with standard costs of $94 for direct materials and $128 for conversion costs Open a T-account for Conversion Costs. Post appropriate entries to determine the amount.
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18) Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of twenty separate parts. The direct material cost is $95 and each ceiling fan requires 2.5 hours of machine time to manufacture. Additional information is as follows: Activity Allocation Base Cost Allocation Rate $ Materials handling Number of parts 0.08 Machining Machine.
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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 rateA).
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9) Appraisal costs are costs incurred ________. A) to avoid poor-quality goods or services B) to detect poor-quality materials, goods, or services C) when the company detects and corrects poor-quality goods or services before delivery to customers D) after the company delivers poor-quality goods or services to customers and then has to make things.
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21) The Assembly Department of Smart Inc., manufacturer of computers, incurred $250,000 in direct materials and $75,000 in conversion costs. The equivalent units of production for direct materials and conversion costs are 1,000 and 800, respectively. The cost per equivalent unit of production (EUP) for conversion costs is ________. A) $93.75.
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1) Production cost reports prepared using the first-in-first-out (FIFO) method, determines the cost of equivalent units of production by accounting for beginning inventory costs separately from current period costs. 2) Production cost reports prepared using first-in-first-out (FIFO) method assumes that the first units started in the production process are the last.
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25) The ________ account is credited to adjust for overallocated overhead costs. A) Cost of Goods Sold B) Sales Revenue C) Manufacturing Overhead D) Finished Goods Inventory 26) The ________ account is credited to adjust for underallocated overhead costs. A) Cost of Goods Sold B) Sales Revenue C) Manufacturing Overhead D) Finished Goods Inventory 27) Productions costs are transferred from.
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21) The Assembling Department of Mat Liners Inc. had 10,000 units in process in December beginning and received 30,000 units from the Sewing Department. During the month, it completed 20,000 units and transferred them to the Packaging Department. Calculate the number of units accounted for by the Assembling Department for.
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17) Jupiter Manufacturing began business on January 1, 2015. During its first year of operation, Jupiter worked on five industrial jobs, and reported the following information at  year-end: Job 1 Job 2 Job 3 Job 4 Job 5 Direct Materials 1,000 7,500 4,000 3,500 1,500 Direct Labor 12,000 20,000 13,000 12,000 800 Allocated Mfg. Overhead 1,500 6,000 2,500 7,500 200 Job completed: Jun 30 Sep 1 Oct 15 Nov 1 Not completed Job sold: Jul 10 Sep 12 Not sold Not sold N/A Revenues: 25,000 39,000 N/A N/A N/A What was the.
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16) The ________ system attracts materials, labor, and overhead into production under a just-in-time management system. A) purchase-push B) demand-push C) purchase-pull D) demand-pull 17) Which of the following is a disadvantage of just-in-time management system? A) It results in a decrease in production space. B) It increases the inventory cost. C) The risk of the inventory becoming.
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26) Musings Inc. completed the production of 500 units with standard costs of $520 for direct materials and $75 for conversion costs. During the current year, it incurred $260,000 for direct materials and $31,000 for conversion costs. Record the adjusting entry for the amount of underallocated or overallocated overhead. 27) Musings.
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32) Morewell Inc. has two processes—Coloring Department and Mixing Department. Michael sold 350 gallons on account at $110 per gallon. The total cost of processing was $385,000 for 5,500 gallons of paint. Throughout the year, the company used a predetermined overhead allocation rate to allocate $75,000 and $65,000 of indirect.
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1) Direct material costs and direct labor costs cannot be easily traced to products. Therefore, they are allocated to products. 2) Manufacturing overhead costs, which are also known as indirect costs, cannot be cost-effectively traced to products. 3) Predetermined overhead allocation rate is an estimated overhead cost per unit of the allocation.
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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 What was the balance in the Manufacturing Overhead account following this transaction? A) $43,600 B) $43,400 C) $41,200 D).
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11) The high-low method requires the identification of the lowest and highest levels of total costs, not activity, over a period of time. 12) Which of the following is a variable cost? A) property taxes B) salary of plant manager C) direct materials cost D) straight-line depreciation expense 13) A 15% increase in production volume will.
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31) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 gallons of partially processed product in production. During January, 32,000 gallons were transferred in from the Mixing Department and 29,000 gallons were.
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8) Activity-based costing uses a common allocation base for all activities. 9) Indirect costs allocated to products using activity-based costing are more accurate than traditional allocation systems. 10) Companies with diverse products can obtain better costing information by using a single plantwide rate. 11) An activity-based costing system is developed in four steps. a..
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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.
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17) A company is considering spending the following on a new quality improvement program: Inspect raw materials$123,000 Reengineer to improve product quality760,000 Inspect finished goods150,000 Preventive maintenance of equipment140,000 The company expects this quality program to reduce costs by the following amounts: Avoid lost profits due to unhappy customers$910,000 Fewer sales returns65,000 Decrease the cost of rework155,000 Lower warranty.
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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 arrive at.
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1) Dezire Travel Services provided the following information: Cost allocation rate for direct labor: $80 per hour Cost allocation rate for indirect costs: $15 per direct labor hour If Dezire receives $1,600 for a job requiring 8 hours of direct labor, then Dezire will make a profit of $440. 2) Dezire Travel Services provided.
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1) Manufacturing overhead costs allocated to a job amounted to $492,000. The actual manufacturing costs incurred during the year was $500,000. Overhead costs have been underallocated. 2) During 2015, a company incurred $500,000 of manufacturing overhead costs and allocated $506,000 of manufacturing overhead costs. At the year-end, the adjustment entry needed.
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11) Which of the following statements is true of costing systems? A) Many traditional costing systems can distort product costs and profitability. B) Traditional costing systems tend to be more costly than activity-based costing systems. C) Activity-based costing systems tend to combine various costs into a single cost pool. D) Activity-based costing systems tend.
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11) Neptune Accounting Services expects its accountants to work for 24,000 direct labor hours per year. The company's estimated total indirect costs are $240,000. The direct labor rate is $75 per hour. The company uses direct labor hours as the allocation base for indirect costs. If Neptune performs a job.
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11) Lakeside Inc. estimated manufacturing overhead costs for 2014 at $378,000, based on 180,000 estimated direct labor hours. Actual direct labor hours for 2014 totaled 195,000. The manufacturing overhead account contains debit entries totaling $391,500. The manufacturing overhead for 2014 was ________. (Round your intermediate calculations to one decimal place) A) $31,500.
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11) Florian Plant Services completed a special landscaping job for Pierre Designs Company. Florian uses ABC and has the following predetermined overhead allocation rates: Predetermined Overhead ActivityAllocation Base      Allocation Rate DesigningNumber of designs$275per design PlantingNumber of plants$15per plant The Pierre Designs project required $1,200 in landscape materials; $700 in direct labor; one design; and 35.
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1) Fixed costs per unit is inversely proportional to the volume of units produced. 2) Total variable costs change in direct proportion to changes in the volume of production. 3) Variable cost per unit is constant throughout various relevant ranges. 4) Fixed costs per unit decrease as production levels decrease. 5) If the volume.
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21) On January 1, 2015, Frederic Manufacturing had a beginning balance in Work-in-Process Inventory of $160,000 and a beginning balance in Finished Goods Inventory of $20,000. During the year, Frederic incurred manufacturing costs of $200,000. During the year, the following transactions occurred: Job C-62 was completed for a total cost of $140,000.
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11) A process costing system is generally used by companies that produce homogeneous products. 12) Under a process costing system, product costs are accumulated with respect to jobs completed. 13) Under a process costing system, costs of completed products are transferred to the Finished Goods Inventory at the end of the accounting.
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11) Which of the following is used to calculate the number of units accounted for under first-in-first-out (FIFO) method of inventory valuation of process costing? A) Accounted for = Beginning balance + Started and completed + In process B) Accounted for = Beginning balance + Started and completed C) Accounted for = Beginning.
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5) Direct labor costs are accumulated in the Manufacturing Overhead account. 6) The journal entry to record indirect labor costs incurred includes a debit to Manufacturing Overhead and credit to Wages Payable. 7) Under a process costing system, direct labor costs are assigned to the Work-in-Process account of the department for which.
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7) Caltran Inc. completed manufacturing Job 445. It included $320 of direct materials cost, $1,240 of direct labor cost, and $560 of allocated overhead. Which of the following is the correct journal entry needed to record the completed job? A) Work-in-Process Inventory 2,120       Finished Goods Inventory       2,120 B) Finished Goods Inventory 2,120       Materials Inventory      .
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11) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, 2014, the first department—Mixing—had no beginning inventory. During January, 40,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed and 8,000 fl..
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28) Pitt Jones Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) $60,000 2,000 hours Account billing (lines) $30,000 20,000 lines Account verification (accounts) $15,000 20,000 accounts Correspondence (letters) $10,000 1,000 letters The above activities are carried out at two of its regional offices.   Northeast Office Midwest Office Account inquiry (hours) 100 hours 200 hours Account billing (lines) 10,000.
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45) Melinda Inc. estimates manufacturing overhead costs for the coming year at $225,000 which will be allocated based on direct labor hours. Melinda estimates 9,000 direct labor hours for the coming year. In January, Job A33 was completed which required 8 direct labor hours and 34 machine hours. Provide the.
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28) The Assembling Department of Mat Liners Inc. had 10,000 units in process on December 1 and received 30,000 units from the Sewing Department. During the month, it completed 20,000 units and transferred them to the Packaging Department. Calculate the number of units accounted for by the Assembling Department for.
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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, it 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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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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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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6) Under just-in-time costing, the purchase of raw materials is recorded by debiting the Raw Materials Inventory account. 7) A just-in-time costing system does not use the Finished Goods Inventory account; instead, it combines the Finished Goods Inventory account with the Work-in-Process Inventory account. 8) Under the just-in-time costing system, underallocated and.
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