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3) In nonprofit organizations, the challenge is to apply the costs from various departments to different ________. A) service organizations B) nonprofit revenue accounts C) nonprofit expense accounts D) programs 4) When public accounting firms apply indirect costs to audit engagements, they use ________ or ________ as the cost driver. A) direct labor cost; equipment usage B).
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23) Burtard Chemical makes a variety of chemicals. The company uses process costing. Materials are added at the end of the process. Conversion costs are added evenly throughout the process. The company has no beginning work-in-process inventory. The Mixing Department had the following data: Units started and completed8,000 Units started and 30%.
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11) The activity of Vegas Company for the month of April is given below: Cash purchases of inventory$45,000 Credit purchases of inventory$50,000 Cash payment for credit purchases of inventory$12,000 Cash dividend paid$7,000 Wages earned and paid$12,000 Wages earned and unpaid$2,000 Rent paid for April, May and June$9,000 Using the cash basis of accounting, the total expenses for Vegas.
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9) Zeman Company has the following information available for the month of March: UnitsTransferred-Direct Conversion in Costs  MaterialsCosts Work-in-process inventory, March 1240$33,6000$18,000 *Percent complete100%0%62.5% Transferred-in during March400 Completed in March440 Work-in-process inventory, March 31200 *Percent complete100%0%80% Costs added in March$52,000$13,200$48,600 The company uses the weighted average cost method. What is the cost per equivalent unit for March for conversion.
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17) Diulio Company produces a product in a process-costing system involving several departments. The company uses the weighted-average method of process costing. The first department's data for the month of April follow: Units in beginning work-in-process inventory15,000 Units started during April140,000 Units completed during April120,000 Units in ending work-in-process inventory35,000 Direct materials added in current.
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4) The preferred cost allocation base that can be used to allocate central corporate support costs to products is ________. A) sales B) cost of goods sold C) total assets D) a measure of usage 5) An example of central corporate support costs includes ________. A) tax planning department B) human resources department C) maintenance department D) company cafeteria 6).
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4) Wininger Incorporated reported the following information about the production and sale of its only product during the first month of operations: Selling price per unit$300 Sales$480,000 Direct materials used$220,000 Direct labor$200,000 Variable factory overhead$60,000 Fixed factory overhead$80,000 Variable selling and administrative expenses$20,000 Fixed selling and administrative expenses$10,000 Ending inventory, Direct Materials0 Ending inventory, Work-in-process0 Ending inventory, Finished Goods400 units Under variable.
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11) Process costing averages costs over large numbers of nearly identical products. 12) Two extremes of product-costing are job-order costing and normal-order costing. 13) Companies that use job-order costing normally have uniform production steps. 14) Job-order costing only applies to specific jobs with a single physical unit. 15) Source documents used in job-order costing.
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5) The following information was compiled by Gorgeous Incorporated: Expected volume of production50,000 units Actual volume of production47,500 units Budgeted fixed overhead costs(for 50,000 budgeted units)$400,000 Actual fixed overhead costs$415,000 Actual variable overhead costs$790,000 Budgeted variable overhead costs(for 50,000 budgeted units)$855,000 Assume the cost-allocation base for overhead costs is units of production. What is the production volume.
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11) Barenz Builders had the following information available for the past twelve months: Budgeted factory overhead costs$80,000 Actual factory overhead costs$82,000 Budgeted machine hours40,000 Actual machine hours39,500 Assume the cost driver for factory overhead costs is machine hours and a job uses 10,000 machine hours. The job was budgeted to use 11,000 machine hours. What.
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  14.1   Questions 1) Product costing is an averaging process. This statement pertains to ________. A) job order costing only B) process costing only C) activity-based costing only D) all of the above 2) Nicholson Company uses job order costing. Supporting documents for the Work-In-Process Inventory account do NOT include ________. A) labor time tickets B) time cards C) materials.
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    15.1   Questions 1) Which financial statement summarizes the operating performance of a company over a period of time? A) statement of cash flows B) statement of stockholders' equity C) balance sheet D) income statement 2) I want to know where a company stands financially at December 31, 2014. Which financial statement should I use? A) statement of.
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21) Smith Company gathered the following information for the year ended April 30, 2015: Units produced11,200 Units expected to be produced11,200 Units sold8,400 Direct labor$99,600 Direct materials used$155,000 Fixed selling and administrative expenses$64,800 Fixed manufacturing overhead$52,640 Variable manufacturing overhead$70,200 Direct materials inventory, April 30, 20150 Direct materials inventory, April 30, 20140 Work-in-process inventory, April 30, 20150 Work-in-process inventory, April 30, 20140 Finished goods.
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8) There is no difference between variable-costing operating income and absorption-costing operating income if there is no ________. A) beginning inventory of finished goods B) ending inventory of finished goods C) variable overhead costs D) change in finished goods inventory during the period 9) Why do companies use variable costing for internal financial statements? A) Production.
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11) Bernard Bassuluchi Company uses a job-order costing system and has the following data available: Beginning Direct Materials Inventory$26,000 Beginning Work-In-Process Inventory$64,000 Beginning Finished Goods Inventory$58,000 Direct materials purchased on account$148,000 Direct materials requisitioned$82,000 Direct labor cost incurred$130,000 Factory overhead incurred$146,000 Cost of goods completed$292,000 Cost of Goods Sold$256,000 Overhead application rate (based on direct labor cost)125% The journal entry to.
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11) The main sections of the balance sheet include ________. A) revenues, assets and liabilities B) assets, liabilities and expenses C) expenses, revenues and stockholders' equity D) assets, liabilities and stockholders' equity 12) Which of the following statements is FALSE? A) Assets are economic resources that are expected to provide future benefits. B) Liabilities are economic obligations.
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19) Christina Company has two service departments, Maintenance and Human Resources. Christina Company also has two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while Human Resources costs are allocated based on number of employees. The following information has been gathered for the current year: Human Maintenance    Resources      Mixing     Finishing Direct.
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29) Evermore Company has two service departments, Maintenance and Cafeteria, as well as two production departments, Mixing and Finishing. Maintenance Department costs are allocated based on direct labor hours and Cafeteria Department costs are allocated based on number of employees. The following data are available: Maintenance     Cafeteria      Mixing    Finishing Direct costs$7,000$2,800$1,200$400 Direct labor hours180502010 Number of employees3612054060 Assume.
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7) Simeranio Company manufactures generic notebooks. Material is introduced at the beginning of the process in the Printing Department. Conversion costs are applied uniformly throughout the process. The weighted-average method of process costing is used. Data for the Printing Department for the month of June follow: Work-In-Process Inventory, June 1: Units15,000 Direct materials.
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3) Williams Company manufactures tape dispensers. The Assembly Department reported the follow data for the past month: Units started and completed70,000 Units started and not complete10,000 Units in beginning inventory0 Direct materials costs$480,000 Conversion costs$240,000 The partially complete units at the end of the month were 100 percent complete with respect to materials and 40 percent.
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15) An unfavorable production volume variance decreases the manufacturing costs shown on the income statement. 16) Most companies consider production volume variances to be beyond a manager's immediate control. 17) Variable overhead costs may have a production volume variance. 13.9   Questions 1) The difference in variable costing operating income and absorption costing operating income.
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26) Johannes Corporation uses a budgeted factory overhead rate to apply overhead to production. Direct labor costs are the cost driver for overhead costs. The following data are available for the year ending December 31, 2015: Budgeted factory overhead costs$675,000 Actual factory overhead costs$1,200,000 Budgeted direct labor costs$250,000 Actual direct labor costs$482,000 Cost of goods.
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12) Process-costing systems apply costs to like products that are usually mass-produced in continuous fashion through a series of production processes. 13) Assume a company uses process costing. When factory overhead is applied to the units in production, Finished Goods Inventory is the Debit part of the journal entry. 14) Unlike job-order.
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2) In a process costing system, which of the following entries is prepared to transfer a finished food product from the cooking process to the packaging process? A) Debit Work-In-Process Inventory—Cooking, Credit Work-In-Process Inventory—Packaging B) Debit Finished Goods Inventory—Credit Work-In-Process Inventory—Packaging C) Debit Work-In-Process Inventory—Packaging, Credit Work-In-Process Inventory—Cooking D) Debit Work-In-Process Inventory—Packaging, Credit Finished.
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12.7   Questions 1) To determine the cost of a main product with by-products, we take the cost of the main product and ________. A) add separable costs of the by-products and add revenues from the by-products B) add separable costs of the by-products and subtract revenues from the by-products C) subtract separable costs of.
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7) The traditional approach to cost allocation focuses on accumulating and reporting costs by ________. The activity-based approach to cost allocation focuses on accumulating and reporting costs by ________. A) cost behavior; resources used B) departments; activities C) fixed costs; variable costs D) product; customer 8) Timothy Company manufactures two models of pens, a standard.
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13.6   Questions 1) A direct-costing income statement has a subtotal for ________ whereas an absorption-costing income statement has a subtotal for ________. A) gross profit; contribution margin B) contribution margin; gross profit C) cost of goods sold; variable cost of goods sold D) cost of goods manufactured; variable cost of goods manufactured 2) Product costs for.
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  13.1   Questions 1) Assume machine hours are the cost-allocation base for the budgeted rate for fixed overhead costs. The total fixed overhead cost applied to a product is the result of multiplying the ________ by the ________ for the product. A) budgeted fixed overhead costs; percent of completion B) actual fixed overhead rate;.
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8) Orlando Company manufactures phones in a two-department process that includes Assembly and Finishing. Information about the Assembly Department follows: Direct materials added$310,000 Direct labor460,000 Factory overhead230,000 Total costs to account for$1,000,000 There was no beginning inventory and 80,000 units were started in the Assembly Department. By the end of the month, 67,200 units were.
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5) Assume the cost object is customers. Why should indirect costs associated with customers be allocated to customers instead of producing departments? A) The allocation to customers would be based on production-related output measures that are related to the cause of customer-service costs. B) The allocation to customers would be based on.
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9) Jerome Company has two service departments, Maintenance and Human Resources. Jerome Company also has two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while Human Resource costs are allocated based on number of employees. The following information has been gathered for the current year: Human Maintenance    Resources      Mixing    Finishing Direct.
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14) Marian Industries Inc. reported the following information about the production and sale of its only product during the first month of operations: Selling price per unit$100.00 Sales$100,000 Direct materials used$37,500 Direct labor$36,000 Variable factory overhead$25,500 Fixed factory overhead$20,000 Variable selling and administrative expenses$2,000 Fixed selling and administrative expenses$7,500 Ending inventory, Direct Materials0 Ending inventory, Work-in-process0 Ending inventory, Finished Goods1,200 units Under.
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28) Michael Company uses job-order costing. The company has gathered the following data: Direct materials purchased for cash$60,000 Direct materials requisitioned$50,000 Direct labor costs incurred$90,000 Factory overhead costs incurred$60,000 Cost of goods completed$180,000 Cost of goods sold$170,000 Sales for cash$300,000 Factory overhead applied? Factory overhead costs are applied at 90% of direct labor costs. Required: A) Prepare the required journal entries.
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15.3   Questions 1) Under accrual basis accounting, we record revenue when ________. A) cash is received from customers B) cash is received for any reason C) it meets the criteria for revenue recognition D) a company receives cash from a customer on account 2) Under accrual basis accounting, we record expenses when ________. A) a company pays.
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14.2   Questions 1) In a job-order system, the actual factory overhead costs incurred are $150,000. Applied factory overhead costs are $160,000. What entry is needed to dispose of the overhead variance? Use the immediate write-off method. A) Debit Factory Department Overhead Control, Credit Factory Department Overhead Applied B) Debit Factory Department Overhead Applied,.
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13) Keller Company manufactures plastic cups in one department. The following information is available: Work-In-Process Inventory, beginning0 Units started60,000 Units completed and transferred48,000 Work-In-Process Inventory, end12,000 Direct materials added$240,000 Direct labor$164,780 Factory overhead$82,000 The units in the ending Work-In-Process Inventory are 50 percent complete with respect to direct materials and 50 percent complete with respect to conversion costs..
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24) Johnson Company's power plant provides electricity to two producing departments. The annual budget for the power plant shows the following: Budgeted fixed costs$500,000 Budgeted variable costs per kilowatt hour$1 Actual annual costs incurred by the power plant were: Actual fixed costs$215,000 Actual variable costs$350,000 Additional annual data follows: Producing Department 1      Producing Department 2 Capacity available250,000 kilowatt hours150,000.
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14) A reason for using capacity available instead of capacity used when allocating budgeted fixed costs from service departments to user departments is ________. A) actual usage by user departments does not affect short run allocations to other user departments B) actual usage by user departments does not affect long run allocations.
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4) The allocation of fixed costs in service departments to user departments is based on ________. A) actual capacity used in last period B) budgeted capacity available to user C) actual usage by user department D) actual usage by service department 5) Variable costs of service departments are allocated to user departments using ________ cost.
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6) The cost driver chosen for applying factory overhead costs should be the cost driver that ________. A) is easiest to understand B) incurs the least administrative costs C) is easiest to calculate D) causes most of the overhead costs 7) There should be a strong cause-and-effect relationship between factory overhead costs incurred and the.
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21) Owners' equity represents the excess cash a company has made. 22) Liabilities are the entity's economic obligations to owners. 23) For a corporation, assets must equal liabilities plus paid-in capital. 24) Stockholders' equity is composed of paid-in capital and retained earnings. 15.2   Questions 1) Amounts owed to vendors for purchases on credit are called.
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11) Medved Company reported the following information about the production and sale of its only product during the first month of operations: Selling price per unit$225.00 Sales$315,000 Direct materials used$160,000 Direct labor$100,000 Variable factory overhead$60,000 Fixed factory overhead$80,000 Variable selling and administrative expenses$20,000 Fixed selling and administrative expenses$30,000 Production volume variance0 Ending inventory, Direct Materials0 Ending inventory, Work-in-process0 Ending inventory, Finished Goods600.
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7) The acquisition of inventory for cash will ________. A) increase liabilities and decrease stockholders' equity B) decrease assets and decrease liabilities C) increase assets and decrease liabilities D) increase assets and decrease assets 8) The acquisition of inventory on account will ________. A) increase assets and decrease stockholders' equity B) decrease assets and decrease liabilities C) increase.
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7) Variable costing considers fixed manufacturing overhead costs as a(n) ________. A) inventoriable cost B) product cost C) future cost D) immediate expense 8) The only difference between the net income between variable costing and absorption costing is the treatment of ________. A) variable selling costs B) variable administrative costs C) fixed selling costs D) fixed manufacturing overhead costs 9).
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7) The most important contributor to the variance between actual and applied overhead costs is ________. A) poor forecasting B) inefficient use of overhead items C) price changes in overhead items D) operating at a different level of volume than the level used as a denominator in calculating the budgeted overhead rate 8) The excess.
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11) Kemp Company manufactures three products from a joint process. Joint costs for the year amounted to $250,000. The following data was available: Product      Units Produced       Sales Value at Split-off X5,000$70,000 Y3,000$30,000 Z2,000$100,000 Assume the relative-sales-value method of allocating joint costs is used. What amount of joint costs is allocated to Product Y? A) $30,000 B) $37,500 C) $75,000 D) $250,000 12).
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17) The following information was extracted from the accounting records of Yamaguchi Company: Paid-in Capital, December 31, 2014$87,000 Retained Earnings, December 31, 2014$211,000 Total Assets, December 31, 2014$455,000 Revenues for year ended December 31, 2015$200,000 Expenses for year ended December 31, 2015$165,000 Total Assets, December 31, 2015$605,000 Additional investments by owners in 2015$10,000 At December 31, 2014, what.
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3) If the actual volume of production differs from the expected volume of production, the fixed overhead costs used for budgeting and product costing are ________. A) the same B) different C) indeterminate D) changing over the accounting period 4) The absorption costing approach applies fixed overhead costs to products as though they have a.
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17) The proration method of disposing of overhead variances assigns the variance in proportion to the sizes of the ending account balances of ________. A) work-in-process inventory, finished goods inventory and direct materials inventory B) work-in-process inventory, direct materials inventory and cost of goods sold C) work-in-process inventory and direct materials inventory D) work-in-process.
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