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Study Resources (Accounting)

Answer the following questions using the information below: Triboro Computer Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the production process. During January, the accounting department noted that there was no beginning inventory. Direct materials purchases totaled $200,000 during the month. Work-in-process records revealed.
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11) Estimating the degree of completion for the calculation of equivalent units is usually easier for conversion costs than it is for direct materials. 12) Job-order costing would be most likely used by a firm that produces homogeneous products. 13) When identical or similar units of products or services are mass.
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31) What is the amount of direct materials cost assigned to ending work-in-process inventory at the end of October? A) $22,000 B) $44,000 C) $39,200 D) $ 33,000 32) What is the cost of the goods transferred out during October? A) $363,000 B) $330,000 C) $340,000 D) $375,000 33) A reason(s) why "pure" FIFO is rarely encountered in.
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54) Oregon Lumber processes timber into four products. During January, the joint costs of processing were $280,000. There was no inventory at the beginning of the month. Production and sales value information for the month is as follows: Sales Value at Product Board feet Splitoff Point Ending Inventory 2 x 4's 6,000,000 $0.30 per board foot 500,000 bdft. 2.
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11) Distinguish between the two principal methods of accounting for byproducts, the production byproduct method and the sale byproduct method. Briefly discuss the relative merits (or lack thereof) of each. 12) What are the two methods to account for byproducts. Which is the more appropriate method to use and why? 1).
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1) The weighted-average process-costing method calculates the equivalent units by: A) considering only the work done during the current period B) the units started during the current period minus the units in ending inventory C) the units started during the current period plus the units in ending inventory D) the.
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10) The Laramie Factory produces expensive boots. It has two departments that process all the items. During January, the beginning work in process in the tanning department was 40% complete as to conversion and 100% complete as to direct materials. The beginning inventory included $6,000 for materials and $18,000 for.
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11) Rework is an example of: A) prevention costs B) appraisal costs C) internal failure costs D) external failure costs Answer the following questions using the information below: Monticello Furniture manufactures expensive tables. Its varnishing department is fully automated and requires substantial inspection to keep the machines operating properly. An improperly.
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47) Weather Instruments assembles products from component parts. It has two departments that process all products. During January, the beginning work in process in the assembly department was half complete as to conversion and complete as to direct materials. The beginning inventory included $12,000 for materials and $4,000 for conversion.
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31) The two basic aspects of quality are quality of design and conformance quality. Define and give an example of each. 32) The Door Company manufactures doors. Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs. a.Retesting of reworked products b.Downtime.
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19) Design Products is committed to its quality program. It works with all areas of the company to establish sound quality programs within reasonable budget guidelines. For 2011, it has budgeted $1,000,000 for prevention costs and $700,000 for appraisal costs. Internal failure has a budget of $100 per failed item,.
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Answer the following questions using the information below: Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are.
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45) Silver Spoon Incorporated is a manufacturer of kitchen utensils. It produces all of its products in one department. The information for the current month is as follows: Beginning work in process37,500 units Units started55,000 units Units completed75,000 units Ending work in process14,500 units Spoilage3,000 units Beginning work-in-process direct materials$25,000 Beginning work-in-process conversion$ 10,000 Direct materials added.
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1) Costing systems that are used for the costing of like or similar units of products in mass production are called: A) inventory-costing systems B) job-costing systems C) process-costing systems D) weighted-average costing systems 2) Which of the following manufactured products would NOT use process costing? A) 747 jet aircraft.
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52) The weighted average method of process costing assigns the cost of equivalent units worked on during the current period first to complete beginning inventory, next to start and complete new units, and finally to units in ending work-in-process inventory. 53) A major advantage of the weighted-average process costing is that.
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1) An example of a nonfinancial measure for customer satisfaction is: A) delivery delay B) employee turnover C) number of defects on the production line D) process yield 2) An example of a nonfinancial measure for customer satisfaction is: A) Average manufacturing time for for key products B) Contribution margin C) Percentage.
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Answer the following questions using the information below: Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place.
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11) Scrap is residual material that results from manufacturing a product. and can have either a high or low sales value relative to the product with which it is associated. 12) Scrap and rework are considered to be the same thing by managerial accountants. 13) Distinguish among spoilage, reworked units,.
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15) Spoilage can be considered either normal or abnormal. 16) Normal spoilage is spoilage that is NOT considered to be inherent in a production process. 17) Under efficient operating conditions, all spoilage is considered to be abnormal spoilage. 18) Normal spoilage rates are computed by dividing units of normal spoilage.
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14) Process-costing journal entries and job-costing journal entries are similar with respect to direct materials and conversion costs. 15) The accounting entry to record the transfer of rolls from the assembly department to the finishing department is: 16) The Zygon Corporation was recently formed to produce a semiconductor chip that.
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Answer the following questions using the information below: Lehman Pottery Company manufactures clay molded pottery on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning.
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Answer the following questions using the information below: The Daltry Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at.
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1) Quality management provides an important competitive edge because it: A) reduces costs B) increases customer satisfaction C) often results in substantial savings and higher revenues in the short run D) All of these answers are correct. 2) Quality of design measures how closely the characteristics of products or services.
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20) Jordana Woolens is a manufacturer of wool cloth. The information for March is as follows: Beginning work in process 10,000 units Units started 20,000 units Units completed 25,000 units Beginning work-in-process direct materials $ 6,000 Beginning work-in-process conversion $ 2,600 Direct materials added during month $30,000 Direct manufacturing labor during month $12,000 Factory overhead $ 5,000 Beginning work in process was half converted as to.
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  57) Pilgrim Corporation processes frozen turkeys. The company has not been pleased with its profit margin per product because it appears that the high value items have too few costs assigned to them, while the low value items have too many costs assigned to them. The processing results in several.
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1) Regarding the means by which relevant costs and benefits are evaluated when evaluating quality improvement, the key question is: A) which alternative solution will make the customer happiest B) how total costs and total revenues will change under each alternative solution C) will the employees of the company be able to.
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21) Weighty Steel processes a single type of steel. For the current period the following information is given: Units Material Costs Conversion Costs Beginning Inventory 3,000 $4,500 $5,400 Started During the Current Period 20,000 32,000 78,200 Ending Inventory 2,500 All materials are added at the beginning of the production process. The beginning inventory was 40% complete as to conversion, while the ending inventory.
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7) All accounting systems must assume that the inspection point occurs when a process is 100% complete. 1) The Harleysville Manufacturing Shop produces motorcycle parts. Typically, 10 pieces out of a job lot of 1,000 parts are spoiled. Costs are assigned at the inspection point, $50.00 per unit. Spoiled pieces.
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11) A control chart identifies potential causes of failures or defects. 12) When using a control chart, the observations outside the upper and lower product specification limits are ordinarily regarded as non random and worth investigating. 13) A cause-and-effect diagram is used to help identify potential causes of defects. 14) A.
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1) Managers often cite reductions in the costs of spoilage as a(n): A) major justification for implementing a just-in-time production system B) measurement of improved output quality C) immaterial item that is not to be tracked D) indication of improvement in the accounting system 2) Unacceptable units of production that.
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12) When there are multiple support departments within an organization, it is common to use journal entries to  transfer-in costs from one department to another. What are some of the points to remember about these costs? 1) An operation costing system would be applicable to: A) batches of similar products where.
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43) Endicott Shoes manufactures shoes. All direct materials are included at the inception of the production process. For March, there were 1,400 units in beginning inventory with a direct material cost of $700. Direct materials totaled $15,000 for the month. Work-in-process records revealed that 35,000 units were started in March.
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18) Cedar Rapids Chemical placed 220,000 liters of direct materials into the mixing process. At the end of the month, 10,000 liters were still in process, 30% converted as to labor and factory overhead. All direct materials are placed in mixing at the beginning of the process and conversion costs.
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42) In the weighted-average costing method, the costs of direct materials in beginning inventory are NOT included in the cost per unit calculation since direct materials are almost always added at the start of the production process. 43) To calculate weighted-average conversion cost per equivalent unit, you multiply total conversion.
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56) Surf Products Company uses an automated process to clean and polish its souvenir items. For March, the company had the following activities: Beginning work in process inventory 3,000 items, 1/3 complete Units placed in production 12,000 units Units completed 9,000 units Ending work in process inventory 6,000 items, 1/2 complete Cost of beginning work in process $2,500 Direct material.
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11) What are the amounts of direct materials and conversion costs assigned to ending work in process using the weighted-average process-costing method? Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the frozen fish fillets for distribution to its retail sales department. Direct materials.
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1) Which method of accounting recognizes byproducts in the financial statements at the time their production is completed? A) production allocation method B) sale method C) production method D) None of these answers is correct. Answer the following questions using the information below: Athens Company processes 15,000 gallons of direct materials.
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1) The standard-costing method: A) adds a layer of complexity to the calculation of equivalent-unit costs in a process-costing environment B) makes calculating equivalent-unit costs unnecessary C) requires an analysis of the spoilage costs in beginning inventory D) requires an analysis of the spoilage costs in ending inventory 2) Under.
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