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Study Resources (Accounting)

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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116) Peterson Company gathered the following information for the year ended December 31: Direct labor cost incurred for the year$180,000 Estimated manufacturing overhead costs$260,000 Estimated direct labor cost $200,000 Work in process inventory, Dec, 31$51,000 Finished goods inventory, Dec. 31$68,800 Cost of goods sold$141,000 Estimated direct labor hours 260,000 What would the predetermined manufacturing overhead rate for the.
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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 89,000 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) $38,000 D) $46,000 190) Paper Clip Company sells office supplies. The following information.
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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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58) For a manufacturer that uses job costing, show the order of the cost flow through the following accounts by numbering them from 1 to 4. ________finished goods inventory ________raw materials inventory ________cost of goods sold ________work in process inventory 59) For each of the following items, determine whether it would be more appropriate to.
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248) The following information was gathered for the Falsetto Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours. Estimated direct labor hours 75,000 Actual direct labor hours 82,000 Estimated manufacturing overhead costs $1,275,000 Actual manufacturing overhead costs $1,335,000 Compute: a) Predetermined manufacturing overhead rate b) Manufacturing overhead allocated for the year c) Amount.
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218) Manufacturing overhead is underallocated if the amount A) estimated for the period is greater than the actual amount incurred. B) estimated for the period is less than the actual amount incurred. C) allocated during the period is less than the actual amount incurred. D) allocated during the period is greater than the actual.
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76) A(n) ________ is an estimated manufacturing overhead rate computed during the year. A) cost allocation B) cost driver C) predetermined manufacturing overhead rate D) actual manufacturing overhead rate 77) Assigning manufacturing overhead costs and other indirect costs is called A) cost driver. B) cost allocation. C) materials requisition. D) predetermined manufacturing overhead rate. 78) Manufacturers follow four steps to.
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106) Here are selected data for Stehli Company: Estimated manufacturing overhead $253,500Factory utilities $30,200 Estimated labor hours 35,000Indirect labor $22,400 Actual direct labor hours 36,000Sales commissions $53,700 Estimated direct labor cost $325,000Factory rent $47,700 Actual direct labor cost $320,000Factory property taxes $28,100 Factory depreciation $66,000Indirect materials $33,000 If the company allocates.
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51) In the basic flow of inventory through a manufacturing system, which of the following occurs third in the job costing system? A) Finished goods inventory B) Cost of goods sold C) Raw materials inventory D) Work in process inventory 52) In the basic flow of inventory through a manufacturing system, which of the following.
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208) An underallocation of manufacturing overhead is typically corrected by decreasing Cost of Goods Sold on the income statement. 209) If jobs have been undercosted due to underallocation of manufacturing overhead, then Cost of Goods Sold (COGS) is too low and which of the following corrections must be made? A) Decrease COGS.
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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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247) The following account balances at the beginning of January were selected from the general ledger ofBluestone Industries: Work in process inventory$0 Raw materials inventory$30,900 Finished goods inventory$54,800 Additional data: 1.  Actual manufacturing overhead for January amounted to $80,500. 2.  Total direct labor cost for January was $70,000; actual direct labor hours for January were 4,200. 3. .
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182) Twinkle Ornaments Company uses job costing. Twinkle Ornaments Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information isavailable: Estimated amountsTrimming DeptFinishing Dept Direct labor cost $320,000 $400,000.
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198) If a manufacturer finds that the amount of manufacturing overhead allocated to a job is less than the actual amount of manufacturing overhead incurred, then the jobs are overcosted. 199) Overallocated manufacturing overhead costs occur when the manufacturing overhead costs allocated are greater than the amount actually incurred. 200) If manufacturing.
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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 the costs of a job. A) labor time record B) materials inventory requisition form C) bill of materials D) job.
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86) A typical manufacturing overhead cost would be A) direct labor. B) depreciation on the plant. C) net income. D) direct materials. 87) Manufacturing overhead would include A) all manufacturing costs except direct materials and direct labor. B) indirect labor costs only. C) all manufacturing costs. D) indirect materials only. 88) Here are selected data for Campbell Company: Cost of goods.
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Cost of materials purchases on account$68,000 Cost of materials requisitioned (includes $4,500 of indirect)51,000 Direct labor costs incurred77,000 Manufacturing overhead costs incurred, including indirect materials97,500 Cost of goods manufactured223,000 Cost of goods sold151,000 Beginning raw materials inventory 14,500 Beginning work in process inventory29,700 Beginning finished goods inventory32,800 Predetermined manufacturing overhead rate (as % of direct labor cost)130% What is the.
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238) The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company: Work in process inventory$0 Raw materials inventory$28,000 Finished goods inventory$40,000 Additional data: 1.  Actual manufacturing overhead for January amounted to $62,000. 2.  Total direct labor cost for January was $63,000. 3.  The predetermined manufacturing overhead rate.
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219) Compute the missing amounts. Miami Company Orlando Company Sales $300,000 (D) Cost of Goods Sold    Beginning Inventory (A) 65,000    Purchases and Freight-In 119,000 (E)    Cost of goods available for sale (B) 192,000    Ending inventory 5,000 3,000    Cost of goods sold 115,000 (F) Gross Margin 185,000 124,000 Selling and Administrative Expenses (C) 90,000 Operating Income 32,000 (G) 220) Kitch Company sells collectibles. The following information summarizes Kitch Company's operating activities for the most recent year: Merchandise inventory,.
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146) Winner's Sporting Equipment manufactures sporting goods. Selected costs from the past year include: Plastics used to make products $ 151,000 Heating and lighting costs for factory $65,000 Factory janitor wages $67,000 Costs of shipping to customers $11,000 Lubricants used in factory equipment $2,000 Lighting costs for sales office $20,000 Depreciation on factory equipment $23,000 Office supplies for.
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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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255) 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 256) 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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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 the cost of direct materials used for the quarter? A) $250 B) $490 C) $1,550 D) $820 210) Selected information regarding.
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221) Swirzoff Company sells office supplies. The following information summarizes Swirzoff's operating activities for the past year: Utilities for store 7,000 Rent for store 6,500 Sales commissions 2,500 Purchases of merchandise 65,000 Inventory, ending 21,500 Inventory, beginning 28,000 Sales revenue 120,000 Required: Prepare an income statement for Swirzoff Company, a merchandiser, for the year endedDecember 31. 222) North Pacific Company used $65,000 of direct materials and.
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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 from work in process inventory, to raw materials inventory, to finished goods inventory. 33) When raw materials are transferred out.
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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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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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223) 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 $52,000 Depreciation – plant & equipment $28,000 Raw materials inventory – end of year   46,000 Repairs.
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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 hours  200,000 Actual.
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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 to account for? A) $47,000 B) $32,000 C) $85,000 D) $117,000 180) Tall Timbers.
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126) Federer 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$500,000 Actual direct labor cost$465,000 Estimated manufacturing overhead costs$425,000 Actual manufacturing overhead costs$350,000 Estimated direct labor hours250,000 Actual direct.
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66) An equal amount of manufacturing overhead should be allocated to each job. 67) Manufacturers follow four steps to implement a manufacturing overhead allocation system. In the first step, the company estimates its total manufacturing overhead costs for the coming year. 68) Manufacturers follow four steps to implement a manufacturing overhead allocation.
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192) London Ceramics makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 2,500 tiles; each tile sells for $12.00. The company's records show the following direct materials were requisitioned for Job #266. Basic terra cotta tiles:  2,500 units at $4.00 per unit Specialty paint: .
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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 manufacturing overhead.
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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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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 sold for year $75,100.
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245) Variable costs per unit decrease as production volume increases. 246) Fixed costs vary in total over a wide range of activity levels. 247) All costs contain both a fixed and a variable portion. 248) The total cost of a product equals the total fixed costs plus the total variable costs. 249) A marginal.
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228) Before the year began, Plastics Manufacturing estimated that manufacturing overhead for the year would be $150,000 and that 25,000 direct labor hours would be worked. Actual results for the year included the following: Actual direct labor hours$20,000 Actual manufacturing overhead cost 182,000 If the company allocates manufacturing overhead based on direct labor.
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199) Porches, Inc. sells lawn furniture to consumers in the marketplace. The managerial accountant reported the following financial information that reflects the 20XX data: Beginning merchandise inventory on January 1: $233,000 Ending merchandise inventory on December 31: $135,000 Purchases:$952,000 Selling and administrative expenses:$175,000 Sales revenue for the year:$2,262,000 Cost of goods sold:$1,050,000 Salary and wage expenses:$250,000 Rent and.
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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 331. Cost of goods manufactured$124,000 Cost of direct materials used42,000 Cost of direct labor ($32 per hour)76,000 Work in process inventory, August 114,500 Allocated manufacturing overhead costs for August amount.
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