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Study Resources (Accounting)

Learning Objective 19-5 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.
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5) On January 1, 2014, Matthew Company's Work-in-Process Inventory account had a balance of $30,000. During 2014, $58,000 of direct materials was placed into production. Manufacturing wages incurred amounted to $84,000, of which $66,000 were for direct labor. Manufacturing overhead is allocated on the basis of 120% of direct labor.
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20) A3+ has prepared its 3rd quarter budget and provided the following data: Jul Aug Sep Cash collections $50,000 $40,000 $48,000 Cash payments: Purchases of inventory 31,000 22,000 18,000 Operating expenses 12,000 9,000 11,600 Capital expenditures 13,000 25,000 0 The cash balance on June 30 is projected to be $4,000. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each.
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22) A3+ has prepared its 3rd quarter budget and provided the following data: Jul Aug Sep Cash collections $50,000 $40,000 $48,000 Cash payments: Purchases of inventory 31,000 22,000 18,000 Operating expenses 12,000 9,000 11,600 Capital expenditures 13,000 25,000 0 The cash balance on June 30 is projected to be $4,000. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each.
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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.
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5) The budgeted production of Gunix Inc. is 8,000 units. Each unit requires 40 minutes of direct labor work to complete. The direct labor rate is $100 per hour. Calculate the budgeted cost of direct labor for the month. A) $533,333.33 B) $500,000.00 C) $566,666.66 D) $633,333.33 6) Caplico Company has prepared the following sales.
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11) One of the assumptions of cost-volume-profit (CVP) analysis is that there are no changes in the: A) accounts payable. B) cash balance. C) inventory levels. D) accounts receivables. 12) Margaret sells hand-knit scarves at a flea market. Each scarf sells for $25. Margaret pays $30 to rent a vending space for one day. The.
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Learning Objective 20-4 1) When raw materials are purchased on account, the Accounts Payable account is credited. 2) The Raw Materials Inventory account is debited when direct materials are issued for production. 3) When indirect materials are issued to production, the Manufacturing Overhead account is credited. 4) When indirect materials are issued to production,.
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Learning Objective 22-1 1) A budget is a financial plan that managers use to coordinate a business's activities. 2) Budgeting requires managers to decide upon the course of action and then to plan for the same. 3) Budgets provide a benchmark that motivates employees and helps managers evaluate performance. 4) A goal of the.
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21) The Assembling Department of Mat Liners 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 December. A).
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11) The high-low method requires the identification of 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 result.
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21) Divine Foods produces a gourmet condiment which sells for $16.00 per unit. Variable costs are $6 per unit, and fixed costs are $5,000 per month. If Divine expects to sell 1,500 units, compute the margin of safety in dollars. A) $16,000 B) $15,000 C) $10,000 D) $6,000 22) Antique Works is owned and operated.
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21) The Assembly Department of Smart 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 per EUP. B) $75.00 per.
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Learning Objective 20-1 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.
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11) A predetermined overhead allocation rate is used to allocate direct materials cost to various processes or departments. 12) The adjusting entry for overallocated or underallocated manufacturing overhead is usually prepared at the beginning of the accounting period. 13) In a process costing system, which of the following are the four-steps of.
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11) Lakeside Company 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 underallocated. B).
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Learning Objective 21-7 1) When a company produces more units than it sells, income under absorption costing will exceed income under variable costing. 2) In absorption costing, all fixed manufacturing costs are expensed in the period incurred. 3) The unit product cost under absorption costing is higher than the unit product cost under.
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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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Learning Objective 21-1 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.
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Learning Objective 21-3 1) The sales level at which operating income is zero is called breakeven point. 2) The breakeven point represents the sales volume at which the company's net income is zero. 3) If all other factors remain constant, an increase in fixed costs will increase the breakeven point. 4) Fixed costs divided.
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11) Which of the following budgets focuses on the income statement and its supporting schedules? A) The operating budget B) The cash budget C) The capital expenditures budget D) The sales budget 12) The starting point in the budgeting process is the preparation of the: A) cash budget. B) production budget. C) sales budget. D) budgeted income statement. 13) The.
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Learning Objective 22-4 1) The capital expenditures budget is prepared before the preparation of the cash budget. 2) For any organization, the primary source of cash is from its customers. 3) The cash budget is the prerequisite for the master budget. 4) The output of a cash budget is input for an operating budget. 5).
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25) 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.
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21) Colin was a professional classical guitar player until his motorcycle accident that left him disabled. After long months of therapy, he hired an experienced luthier (maker of stringed instruments) and started a small shop to make and sell Spanish guitars. The guitars sell for $700 and the fixed monthly.
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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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11) Diemans Corp. has provided a part of its budget for the 2nd quarter: Apr May June Cash collections $40,000 $45,000 $52,000 Cash payments: Purchases of inventory 4,500 7,200 4,500 Operating expenses 7,900 5,600 9,000 Capital expenditures 0 20,000 4,600 The cash balance on April 1 is $12,000. Assume that there will be no financing transactions or costs during the quarter. Calculate the cash balance at the end of April. A) $50,000 B).
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29) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero beginning balance. During January, 40,000 gallons of chemicals were started into production. During the month, 32,000 gallons were completed, and.
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Learning Objective 21-6 1) The purpose of managerial accounting is to provide managers with information that is useful for internal decision making. 2) The type of information provided by managerial accounting differs from the information provided by financial accounting. 3) Under variable costing, fixed manufacturing overhead costs are treated as a product cost. 4).
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1) A strategic budget is a long-term financial plan used to coordinate the activities needed to achieve the long-term goals of the company. 2) An operating budget is a short-term financial plan that coordinates activities to achieve short-term goals. 3) A strategic budget will be as detailed as an operating budget. 4) A.
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24) A3+ has prepared its 3rd quarter budget and provided the following data: Jul Aug Sep Cash collections $50,000 $40,000 $48,000 Cash payments: Purchases of inventory 31,000 22,000 18,000 Operating expenses 12,000 9,000 11,600 Capital expenditures 13,000 25,000 0 The cash balance on June 30 is projected to be $4,000. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each.
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31) The phone bill for an accounting firm consists of both fixed and variable costs. Refer to the 4-month data below and apply the high-low method to answer the question. Minutes Total Bill January 460 $3,000 February 200 $2,675 March 160 $2,625 April 300 $2,800 What is the variable cost per minute? A) $1.25 B) $0.67 C) $1.08 D) $0.58 32) The phone bill for an accounting firm consists of.
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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.
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15) At January 1, 2015, Feldstein Manufacturing had a beginning balance in Work-in-Process Inventory of $80,000 and a beginning balance in Finished Goods Inventory of $20,000. During the year, Feldstein incurred manufacturing costs of $350,000. During the year, the following transactions occurred: Job A-12 was completed for a total cost of $120,000.
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21) The cost of units sold is recorded by debiting Cost of Goods Sold and crediting: A) Finished Goods Inventory. B) Sales Revenue. C) Work-in-Process Inventory. D) Wages Payable. 22) Jacob Company incurred $7,000 for indirect labor in Department III. The journal entry to record indirect labor utilized is: A) debit Manufacturing Overhead, $7,000; credit Accounts.
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Learning Objective 19-6 1) Dora 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 Dora receives $1,600 for a job requiring 8 hours of direct labor, then Dora will make a profit of $440. 2) Dora Travel.
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5) When the variable cost per unit increases, the total number of units required to breakeven also increases. 6) Higher fixed costs decrease the total contribution margin required to break even. 7) Higher fixed costs increase the total number of units required to break even. 8) When the variable cost per unit increases,.
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Learning Objective 21-2 1) If the selling price of Product X is $15.50 per unit and unit fixed cost is $5.50, its contribution margin per unit is $10.00. 2) Contribution margin is the difference between net sales revenue and variable costs. 3) Contribution margin is the amount that contributes to covering variable costs. 4).
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25) June sales were $40,000 while projected sales for July and August were $50,000 and $60,000, respectively. Sales are 40% cash and 60% credit. All credit sales are collected in the month following the sale. Calculate expected collections for July. A) $36,000 B) $44,000 C) $50,000 D) $54,000 26) Purchases for May were $100,000, while.
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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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21) Which of the following costs does not change in total despite changes in volume? A) Fixed cost B) Variable cost C) Mixed cost D) Total production cost 22) Costs that have both variable and fixed components are called: A) fixed cost. B) variable cost. C) mixed cost. D) contribution cost. 23) Which of the following costs changes in total.
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15) When the total fixed costs increases, the breakeven point: A) increases. B) decreases. C) decreases proportionately. D) remains the same. 16) When the total fixed costs decreases, the contribution margin per unit: A) increases. B) decreases. C) remains the same. D) decreases proportionately. 17) When the total fixed costs decreases, the breakeven point: A) increases. B) decreases. C) remains the same. D) increases.
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Learning Objective 20-3 1) In a production cost report, the number of units to account for must always be greater than the number of units accounted for. 2) A production cost report shows only the calculations for the physical flow of products. 3) The task of summarizing the flow of physical units is.
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11) A(n) ________ groups cost by behavior; that is, costs are classified as either variable costs or fixed costs. A) balance sheet B) contribution margin income statement C) traditional income statement D) absorption costing income statement 12) Contribution margin ratio is equal to: A) fixed costs divided by contribution margin per unit. B) net sales revenue per.
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