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21.The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factoryoverhead cost. a.True b.False 22.The cost of materials entering directly into the manufacturing process is classified as factory overhead cost. a.True b.False 23.The cost of wages paid to employees directly involved in converting materials to finished product is classified asdirect.
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108.Which of the following is nota prime cost? a.plant janitor’s wages b.direct labor wages c.machine operator wages d.assembly line wages 109.The Darwin Company reports the following information: Sales$76,500 Direct materials used7,300 Depreciation on factory equipment4,700 Indirect labor5,900 Direct labor10,500 Factory rent4,200 Factory utilities1,200 Sales salaries expense15,600 Office salaries expense8,900 Indirect materials1,200 Product costs area. $24,500 b. $30,300 c. $29,200 d. $35,000 110.Product costs a.appear only on the balance sheet b.appear only on.
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31.A manufacturing business reports just two types of inventory on its balance sheet: work in process inventory andfinished goods inventory. a.True b.False 32.On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead,which have entered into the manufacturing process but are associated with products that have.
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Match each ratio that follows to its use (items a–h).  Items may be used more than once. assess the profitability of the assets assess the effectiveness in the use of assets indicate the ability to meet currently maturing obligations indicate the margin of safety to creditors indicate instant debt-paying ability assess the profitability of the investment.
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1.Managerial accounting reports must be prepared according to generally accepted accounting principles. a.True b.False 2.Managerial accounting uses only past data in reports to aid management in the decision making process. a.True b.False 3.Managerial accounting information includes both historical and estimated data. a.True b.False 4.Since there are few rules to restrict how an organization chooses to arrange its own internal.
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78.Which of the following are basic phases of the management process? a.supervising and directing b.decision making and supervising c.organizing and directing d.planning and controlling 79.What term is used to describe the process of monitoring operating results and comparing actual results with theexpected results? a.improving b.controlling c.directing d.planning 80.Accounting designed to meet the needs of decision makers inside the business is a.general.
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152.  Magnus Industries has the following data: Beginning raw materials inventory $75,000 Materials purchased 40,000 Ending raw materials inventory 60,000 Calculate the cost of raw materials used. 153.  Watson Company has the following data: Work in process, beginning $18,000 Work in process, ending 25,000 Direct labor costs incurred 5,000 Cost of goods manufactured 9,000 Factory overhead 7,000 Calculate the amount of direct materials used. 154.  Laramie Technologies had the following.
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138.  Zeus Company reports the following for the current year: Income from continuing operations before income tax $500,000 Extraordinary property loss from hurricane $60,000* Loss from discontinued operations $90,000* Weighted average number of common shares outstanding 40,000 Applicable tax rate 40% *Net of any tax effect (a)             Prepare a partial income statement for Zeus Company beginning with income fromcontinuing operations before income.
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Match each definition that follows with the term (a–h) it defines. discontinued operations extraordinary items change from one generally accepted accounting principle to another horizontal analysis vertical analysis common-sized financial statements current position analysis profitability analysis 139.  a percentage analysis of increases and decreases in related items on comparative financial statements 140.  an event or transaction that is both unusual.
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59.Which of the following costs are notincluded in finished goods inventory? a.direct labor b.factory overhead c.chief financial officer's salary d.direct materials 60.Which of the following is the correct flow of manufacturing costs? a.raw materials, work in process, finished goods, cost of goods sold b.raw materials, finished goods, cost of goods sold, work in process c.work in process, finished.
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41.Indirect costs can be specifically traced to a cost object. a.True b.False 42.Period (nonmanufacturing) costs are classified into two categories: selling and administrative. a.True b.False 43.Prime costs are the combination of direct labor costs and factory overhead costs. a.True b.False 44.Prime costs are the combination of direct materials and direct labor costs. a.True b.False 45.Conversion costs are the combination of direct labor,.
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89.Recording jobs shipped and customers billed would include a debit to a.Accounts Payable b.Cash c.Finished Goods d.Cost of Goods Sold 90.Recording jobs shipped and customers billed would include a credit to a.Accounts Payable b.Cash c.Finished Goods d.Cost of Goods Sold 91.The finished goods account is the controlling account for the a.cost ledger b.materials ledger c.work in process ledger d.stock ledger 92.The controlling account for the.
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152.  The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporationfor the current year. Sales $1,980 Selling expenses 280 Manufacturing overhead 460 Direct labor 400 Administrative expenses 300 Purchases of direct materials 240 Finished goods inventory, beginning 240 Finished goods inventory, ending 320 Direct materials inventory, beginning 80 Direct materials inventory, ending 140 Work in process inventory, beginning 140 Work in process inventory, ending 100 Required:  (Present all.
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152.  Keeton Company had the following data: Cost of materials used$60,000 Direct labor costs58,000 Factory overhead33,000 Work in process, beg.29,000 Work in process, end.18,000 Finished goods, beg.32,000 Finished goods, end.18,000 Calculate the cost of goods sold. 153.  Zoe Corporation has the following information for the month of March: Purchases $ 92,000 Materials inventory, March 1 6,000 Materials inventory, March 31 8,000 Direct labor 25,000 Factory overhead 37,000 Work in process,.
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109.For a manufacturing business, products that are in the process of being manufactured are referred to as a.supplies inventory b.work in process inventory c.finished goods inventory d.direct materials inventory 110.The journal entry to record the purchase of $45,000 of raw materials is a. Materials Accounts Receivable45,000 45,000 b. Materials Accounts Payable45,000 45,000 c. Inventory Accounts Receivable45,000 30,000 d. Inventory Cash45,000 45,000 111.The journal entry to record the transfer.
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49.Which of the following are the two main types of cost accounting systems for manufacturing operations? a.process cost and general accounting systems b.job order cost and process cost systems c.job order and general accounting systems d.process cost and replacement cost systems 50.Which of the following would most likely use a job order costing system? a.a paper.
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41.The job order costing system is used by service firms to determine revenues, expenses, and ultimately profit. a.True b.False 42.The job order costing system is not used by service organizations. a.True b.False 43.A law firm would use a job order cost system to accumulate all of the costs associated with a particular clientengagement, such as lawyer.
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138.All of the following would be reported on the balance sheet as a current asset except a.factory overhead b.materials inventory c.finished goods inventory d.work in process inventory 139.Smith Company reports the following information: Cost of goods manufactured$68,250 Direct materials used27,000 Direct labor incurred25,000 Work in process inventory, January 111,000 Factory overhead is 75% of the cost of direct labor.  Work.
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31.Factory overhead cost is sometimes referred to as factory burden. a.True b.False 32.Conversion cost is the combination of direct labor cost and factory overhead cost. a.True b.False 33.Conversion cost is the combination of direct materials cost and factory overhead cost. a.True b.False 34.Factory overhead is an example of a product cost. a.True b.False 35.Direct labor costs are included in the conversion costs.
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79.Each document in the cost ledger is called a a.finished goods sheet b.stock record c.materials requisition d.job cost sheet 80.Selected accounts with amounts omitted are as follows Work in Process Aug.   1  Balance275,000 Aug. 31Goods finished1,030,000          31  Direct materialsX          31  Direct labor 450,000          31  Factory overheadX .
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152.  The Zoe Corporation has the following information for the month March. Determine the (a) cost of goodsmanufactured, and (b) cost of goods sold. Cost of materials placed in production $69,000 Direct labor 27,000 Factory overhead 34,000 Work in process, March 1 15,000 Work in process, March 31 19,500 Finished goods inventory, March 1 25,000 Finished goods inventory, March 31 23,000 153.   Sienna Company has.
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152.  Identify the following costs as (a) prime cost, (b) conversion cost, or (c) both for a cake factory. 1.  Frosting 2.  Wages of the baker 3.  Sprinkles for the topping (considered an indirect material) 4.  Depreciation on oven 153.  Classify the following costs as direct, indirect, or neither: a) labor for machine maintenance b) factory equipment depreciation c) materials not.
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The following are some of the costs incurred by Cupcake Company. Identify them as either: Prime costs Conversion costs Both prime and conversion costs Neither prime or conversion costs 153.  Salesman commissions 154.  Factory rent 155.  Depreciation expense—factory 156.  Frosting 157.  Baker’s wages 158.  Depreciation expense—office 159.  Cupcake mix 160.  Sprinkles for decoration (indirect material) .
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152.  Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the currentyear.  Indirect labor amounted to $2,700 while indirect materials used totaled $1,600.  Other operating costspertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of$7,900, and property taxes.
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Match the items below for a bakery to the type of cost (a-d). a.  Direct materials b.  Direct labor c.  Factory overhead d.  Non-manufacturing cost 152.  Salesman commissions 153.  Factory rent 154.  Depreciation expense—factory 155.  Frosting 156.  Baker’s wages 157.  Depreciation expense—office 158.  Cupcake mix 159.  Sprinkles for decoration (indirect material) .
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119.The following budget data are available for Sharp Company: Estimated direct labor hours12,000 Estimated direct labor dollars$90,000 Estimated factory overhead costs$180,000 Actual direct labor hours11,500 Actual direct labor dollars$92,000 Actual factory overhead costs$181,000 If factory overhead is applied based on direct labor hours, the amount of overhead to be applied is a. $180,000 b. $181,000 c. $172,500 d. $184,000 Adams Company is.
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11.The materials requisition serves as the source document for debiting the accounts in the materials ledger. a.True b.False 12.Materials are transferred from the storeroom to the factory in response to materials requisitions. a.True b.False 13.The document that serves as the basis for recording direct labor on a job cost sheet is the clock card. a.True b.False 14.The document that.
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Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether thecost would typically be considered direct or indirect cost for the cost object given. Direct Indirect 153.  The production labor wages for the bar stool assemblers 154.  The factory supervisor’s salary for the bar stool factory 155.  Lubricants used on the.
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88.Materials must have which two qualities in order to be classified as direct materials? a.They must be classified as both prime costs and conversion costs. b.They must be introduced into the process in both work-in-process inventories and finished goods inventories. c.They must be an integral part of the finished product, but can be.
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118.Jensen Company’s period costs are a. $345,000 b. $250,000 c. $400,000 d. $175,000 119.Which of the following is nota factory overhead cost? a.materials used directly in the manufacturing process of the product b.insurance on factory equipment c.salaries of production supervisors d.property tax on factory building 120.Factory overhead includes a.factory rent and direct labor b.direct materials and direct labor c.indirect materials and direct materials d.indirect.
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152.  The phases of the management process are listed below. Match each phase to the appropriate description.     Planning     Directing    Controlling     Improving     Decision making a)  Used by managers for continuous improvement b)  Managers must decide how to respond to unfavorable performances c) Used by management to develop the organization’s objectives and goals d)  Monitoring the operating results of implemented plans.
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21.In the job order costing system, the finished goods account is the controlling account for the factory overheadledger. a.True b.False 22.The inventory accounts generally maintained by a manufacturing firm are only finished goods and materials. a.True b.False 23.Generally accepted accounting principles require companies to use only one factory overhead rate for productcosting. a.True b.False 24.Activity-based costing is a method.
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152.  The following information is available for Carter Corporation: 1)  Materials inventory decreased $4,000. 2)  Materials inventory on December 31 was 50% of materials inventory on January 1. 3)  Beginning work in process inventory was $145,000. 4)  Ending finished goods inventory was $65,000. 5)  Purchases of direct materials were $154,700. 6)  Direct materials used were 2.5.
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152.  Classify the following costs as either a product cost or a period cost: a) direct materials used b) factory utilities c) salespersons’ commissions d) salary of plant manager e) indirect materials used f) depreciation on store equipment g) indirect labor incurred h) advertising expense i) direct labor incurred j) factory machinery repairs and maintenance k) depreciation on factory machinery l) plant insurance expired 153.  .
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152.  Match each description to the appropriate term (a-d). a)  direct materials b)  selling and administrative expense c)  factory overhead d)  direct labor (1) rent expense on factory building (2) sales supplies used (3) factory supplies used (4) indirect materials used (5) wages of assembly line personnel (6) cost of primary material used to make product (7) depreciation on office equipment (8) rent on office facilities (9) insurance expired on factory.
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51.Operating expenses are product costs and are expensed when the product is sold. a.True b.False 52.Period costs are operating costs that are expensed in the period in which the goods are sold. a.True b.False 53.Factory overhead includes all manufacturing costs except direct materials and direct labor. a.True b.False 54.Labor costs that are directly traceable to the product are part.
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128.The following information is taken from the financial records of Gunner Manufacturing: Cost of materials used$45,000 Direct labor costs48,000 Factory overhead39,000 Work in process, beg.18,000 Work in process, end.28,000 What is cost of goods manufactured?a. $178,000 b. $132,000 c. $122,000 d. $142,000 129.Which of the following are reported on the income statement as part of cost of goods? a.administrative expenses b.period costs c.cost.
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152.  Davis Manufacturing Company had the following data: January 1 December 31 Accounts receivable $27,000 $33,000 Materials inventory 22,500 6,000 Work in process inventory 70,200 48,000 Finished goods inventory 3,000 15,000 Collections on account were $625,000. Cost of goods sold was 68% of sales. Direct materials purchased amounted to $90,000.Factory overhead was 300% of the cost of direct labor. Compute: a)  Sales revenue (all sales were on account) b)  Cost.
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61.On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overheadare categorized as either materials inventory, work in process inventory, or finished goods inventory. a.True b.False 62.The statement of cost of goods manufactured is an extension of the income statement for a manufacturingcompany. a.True b.False 63.Managers use managerial information.
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138.        From the following data for Norton Company for the year ended December 31, prepare a multiple-step incomestatement. Show earnings per share for the following: income from continuing operations, loss on discontinuedoperations (less applicable income tax), income before extraordinary item, extraordinary item (less applicableincome tax), and net income. Common stock, $50.
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98.Which of the following costs are conversion costs? a.direct labor cost and factory overhead cost b.direct materials cost and direct labor cost c.factory overhead cost d.direct materials cost and factory overhead cost 99.Goods that are partially completed by a manufacturer are a.merchandise inventory b.work in process inventory c.finished goods inventory d.materials inventory 100.What term refers to the cost of changing.
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69.In a job order cost accounting system, the entry to record the flow of direct materials into production is a.to debit Work in Process, and credit Materials b.to debit Materials, and credit Work in Process c.to debit Factory Overhead, and credit Materials d.to debit Work in Process, and credit Supplies 70.A summary of the materials.
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68.In order to be useful to managers, managerial accounting reports should possess all of the following characteristicsexcept a.provide objective measures of past operations and subjective estimates about future decisions b.be prepared in accordance with generally accepted accounting principles c.be provided at any time management needs information d.be prepared to report information for any unit.
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99.Materials purchased on account during the month amounted to $190,000. Materials requisitioned and placed inproduction totaled $156,000. The entry to record the transaction for materials requisitioned by the productiondepartment is a. Materials Work in Process156,000 156,000 b. Work in ProcessMaterials190,000 190,000 c. Work in ProcessMaterials156,000 156,000 d. Work in Process Cash156,000 156,000 100.During the period, labor costs incurred on account amounted.
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152.  The Putney Company reports the following information: Sales $76,500 Direct materials used 7,300 Depreciation on factory equipment 4,700 Indirect labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales salaries expense 15,600 Office salaries expense 8,900 Indirect materials 1,200 Compute: a)  product costs b)  period costs 153.  Identify the following costs as a (a) product cost or (b) period cost for a cake factory. 1.    Frosting 2. _____ Baker’s wages 3.  Advertising fees 4.  Transportation out 154. .
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1.Cost accounting systems measure, record, and report product costs. a.True b.False 2.A manufacturer may employ a job order cost system for some of its products and a process cost system for others. a.True b.False 3.A job order cost accounting system provides for a separate record of the cost of each particular quantity of productthat passes through.
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11.The controller's staff consists of management accountants responsible for systems and procedures, generalaccounting, budgets, taxes, and cost accounting. a.True b.False 12.Managerial accounting reports must be useful to the user of the information. a.True b.False 13.Planning is the process of monitoring operating results and comparing actual results with the expected results. a.True b.False 14.Planning is the process of developing the.
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