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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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1) Traditional normal and standard costing systems use: A) backflush costing B) delayed costing C) post-deduct costing D) sequential tracking 2) A costing system that omits recording some or all of the journal entries relating to the cycle from purchase of direct materials to the sale of finished goods is.
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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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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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1) Which of the following industries would have the highest cost of goods sold percentage relative to sales? A) computer manufacturers B) retail organizations C) drug manufacturers D) The percentage will usually depend on the success of a particular company. 2) The costs of goods acquired from suppliers including incoming.
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20) Tornado Electronics manufactures stereos. All processing is initiated when an order is received. For April there were no beginning inventories. Conversion Costs and Direct Materials are the only manufacturing cost accounts. Direct Materials are purchased under a just-in-time system. Backflush costing is used with a finished goods trigger point..
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Answer the following questions using the information below: Captain Carl's Seascapes produces sea pictures for sale through catalogs. The company has two workstations, photo production and framing. The photo production station is limited by the speed of operating the photo development machine. Framing is limited by the speed of the employees..
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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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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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11) Inventory management is the planning, organizing, and controlling activities that focus on the flow of materials into, through, and from the organization. 12) Purchasing costs arise in preparing and issuing purchase orders, receiving and inspecting the items included in the orders, and matching invoices received, purchase orders, and delivery.
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20) The executive vice president of Robotics, Inc., is concerned because the cost of materials has not been in line with the budget for several periods, even after implementing an EOQ model. The company has the normal direct material variance computations of price and efficiency at the end of each.
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45) Discounted cash flow methods focus on operating income. 46) The three common discounted cash flow methods are net present value, internal rate of return, and payback. 47) The net present value (NPV) method calculates the expected monetary gain or loss from a project by discounting all expected future cash.
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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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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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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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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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5) The stage of the capital-budgeting process in which projects get underway and performance is monitored is the: A) implement the decision, evaluate performance, and learn stage B) make predictions stage C) identify projects stage D) management-control stage 6) The two factors capital budgeting emphasizes are: A) qualitative and nonfinancial B) quantitative and nonfinancial.
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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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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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10) The manufacturing manager of New Technology Company is concerned about the company's newest plant. When the plant began operations three years ago, it had the best of everything. It had modern equipment, well-trained employees, engineered work and assembly stations, and a controlled environment. During the first two years, the.
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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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1) Which of the following involves significant financial investments in projects to develop new products, expand production capacity, or remodel current production facilities? A) capital budgeting B) working capital C) master budgeting D) project-cost budgeting 2) The accounting system that corresponds to the project dimension in capital budgeting is the:.
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4) All of the following are potential financial benefits of just-in-time EXCEPT: A) lower investments in inventories B) lower investments in plant space for inventories C) reducing the risk of obsolescence D) reducing manufacturing lead time 5) A system that comprises a single database that collects data and feeds it.
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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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35) Soda Manufacturing Company provides vending machines for soft-drink manufacturers. The company has been investigating a new piece of machinery for its production department. The old equipment has a remaining life of three years and the new equipment has a value of $52,650 with a three-year life. The expected additional.
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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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9) Kretzinger Company makes extensive use of financial performance reports for each of its departments. Although most departments have been reporting favorable cost variances with the company's current inventory system, management is concerned about the overall performance of the purchasing department. For example, the following information is for the purchasing.
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12) Party Animals sells stuffed tigers. Products, Inc., manufactures many different stuffed animals. Party Animals orders 10,400 tigers per year, 200 per week, at $10 per tiger. The manufacturer covers all shipping costs. Party Animals earns 12% on its cash investments. The purchase-order lead time is 3 weeks. Party Animals.
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11) Explain why a corporation's customer base is considered an intangible asset. 12) Explain capital budgeting and then briefly discuss each of the five stages of a capital budgeting project? 13) Cast Iron Stove Company wants to buy a molding machine that can be integrated into its computerized manufacturing process..
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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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17) Aunt Lydia's Cookies, Inc., prepares frozen gourmet cookies for shipment to upscale grocery stores as well as mailing to web and catalog customers.  The company has two workstations, cooking and distribution. The cooking station is limited by the cooking time of the food. Distribution is limited by the speed.
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54) EIF Manufacturing Company needs to overhaul its drill press or buy a new one. The facts have been gathered, and they are as follows: Current Machine New Machine Purchase Price, New $80,000 $100,000 Current book value 30,000 Overhaul needed now 40,000 Annual cash operating costs 70,000 40,000 Current salvage value 20,000 Salvage value in five years 5,000 20,000 Required: Which alternative is the most desirable with.
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