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Study Resources (Accounting)

11) Lakeside Inc. 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.
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31) Which of the following accurately describes working capital? A) Current assets minus merchandise inventory B) Current assets minus current liabilities C) Total debt minus stockholders' equity D) Cost of goods sold divided by average merchandise inventory 32) Nobell Inc. provides the following data: 2015 2014 Cash $21,000 $18,000 Accounts Receivable, Net 31,000 35,000 Merchandise Inventory 53,000 25,000 Property, Plant, and Equipment, Net 120,000 90,000 Total assets $225,000 $168,000 Net credit sales $240,000 Cost of.
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11) Which of the following will be debited to the Manufacturing Overhead account of a watch manufacturer? A) office telephone expenses B) salaries paid to accountants C) factory electricity expense D) cost of printing brochures 12) The predetermined overhead allocation rate is the rate used to ________. A) assign direct material costs to jobs B) allocate actual.
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31) Which of the following is an example of a period cost for a manufacturing company? A) advertising expense B) depreciation on factory equipment C) indirect materials D) property taxes for the factory 32) Which of the following is a part of manufacturing overhead? A) cost of raw materials B) wages of assembly line workers C) factory insurance D).
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21) Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. The manufacturing overhead costs will be allocated based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. In January, Gardner completed Job A33, which used 60 machine hours and 15 direct.
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Learning Objective 16-5 1) Managerial accounting is used in manufacturing and merchandising companies, but not in service companies. 2) Service companies do not have product costs so they often consider all operating expenses as part of their cost of service. 3) Managerial accounting can be used to calculate costs for service and merchandising.
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Learning Objective 17-5 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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Learning Objective 18-1 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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18) Atlantis Inc. has the following data: Atlantis Inc. Comparative Balance Sheet December 31, 2016 and 2015 20162015 Assets Total Current Assets$200,000$100,000 Property, Plant, and Equipment, Net550,000500,000 Other Assets50,00050,000 Total Assets$800,000$650,000 Liabilities Total Current Liabilities$150,000$100,000 Long-term Debt350,000250,000 Total Liabilities500,000350,000 Stockholders' Equity Total Stockholders' Equity300,000300,000 Total Liabilities and Stockholders' Equity$800,000$650,000 Perform a vertical analysis of Atlantis's balance sheet for each year. (Round your percentage answers to one decimal.
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Learning Objective 17-2 1) When raw materials are requisitioned for a job, the Raw Materials Inventory account is debited. 2) Work-in-Process Inventory is debited when indirect labor costs are incurred in a job order costing system. 3) When direct materials are received on the production floor, they are recorded on the job cost.
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28) Amber Corporation has provided the following information of its operating activities for 2015: Merchandise Inventory, January 1, 2015 $150,000 Merchandise Inventory, December 31, 2015 75,000 Purchases 854,000 Selling and Administrative Expenses 65,000 Sales Revenue 1,000,000 Required: Prepare Amber's income statement for the year ended December 31, 2015. Use the format provided below: Sales Revenue Cost of Goods Sold     Beginning Inventory     Purchases     Cost.
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Learning Objective 16-2 1) Product costs, such as direct materials, are expensed in the period they were paid. 2) Unlike merchandising companies, income statements of service companies include cost of goods sold as a line item. 3) Manufacturing businesses have inventory accounts, but merchandising businesses do not. 4) Manufacturing businesses produce their own products,.
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Learning Objective 15-3 1) An analysis of a financial statement that reveals the relationship of each statement item to its base amount, which is the 100% figure, is known as vertical analysis. 2) In a vertical analysis of the income statement, each line item is shown as a percentage of net sales. 3).
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21) Barricades Corporation provided the following information for the year 2015: Beginning Balance—Work-in-Process Inventory $24,000 Ending Balance—Work-in-Process Inventory 56,000 Beginning Balance—Raw Materials Inventory 84,000 Ending Balance—Raw Materials Inventory 60,000 Purchases—Raw Materials 360,000 Direct Labor 470,000 Indirect Materials 47,000 Indirect Labor 19,000 Depreciation on Factory Plant & Equipment 24,000 Plant Utilities & Insurance 270,000 What was the amount of direct materials used in production during 2015? A) $360,000 B) $504,000 C) $384,000 D) $328,000 22) Barricades Corporation.
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31) Venus Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of the year, it fixed the manufacturing overhead rate at 20% times the direct labor cost. In the month of June, Venus completed Job 13C and its details are as follows: Direct.
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11) Jasper Inc. reports the following cost information for March: Cost of Goods Manufactured $75,000 Manufacturing Overhead 18,250 Finished Goods Inventory, March 1 4,500 Finished Goods Inventory, March 31 2,650 Work-in-Process Inventory, March 1 9,670 Work-in-Process Inventory, March 31 1,250 Direct Materials Used 25,300 What is the cost of goods sold for March? A) $83,420 B) $73,150 C) $76,850 D) $82,150 12) Jasper Inc. reports the following cost information for.
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11) Which of the following is an objective of management accounting? A) to generate financial statements of a company for tax reporting B) to provide information to business managers to assist them in controlling their business C) to provide information to shareholders to assist them with their investment decisions D) to ensure that the.
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41) Davie Inc. used estimated direct labor hours of 250,000 and estimated manufacturing overhead costs of $1,000,000 in establishing its 2015 predetermined overhead allocation rate. Actual results showed: Actual manufacturing overhead $900,000 Allocated manufacturing overhead $875,000 What was the number of direct labor hours worked during 2015? A) 225,000 hours B) 243,056 hours C) 250,000 hours D) 218,750 hours 42).
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21) Atlantis Inc. provides the following historical data: 201620152014201320122011 Net sales$4,970$4,500$3,980$3,270$4,750$4,400 Prepare the trend analysis report Use 2011 as the base year, and round answers to the nearest percent. 22) Donald Corp. reported the following on its comparative income statement: (In millions)201720162015 Revenue$728$675$500 Cost of goods sold312258220 Prepare a horizontal analysis of revenues and cost of goods sold,.
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41) Partridge Inc. provides the following information for the year 2014: Net income $31,200 Market price per share of common stock $12.00/share Dividends paid $0.80/share Common stock outstanding at Jan 1, 2015 110,000 shares Common stock outstanding at Dec 31, 2016 150,000 shares The company has no preferred stock outstanding. Calculate the dividend yield for common stock. A) 6.67% B) 1.67% C) 3.67% D) 4.67% 42).
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Learning Objective 16-4 1) The cost of goods manufactured includes selling expenses, administrative expenses, and manufacturing overhead. 2) Merchandiser's inventory consists of raw materials inventory, work-in-process inventory, and finished goods inventory. 3) Total manufacturing costs to account for during the year minus the ending work-in-process inventory equals the cost of goods manufactured. 4) Which.
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31) Evanston Manufacturing Inc. reported the following information for the year 2015: Number of Units Produced 4,800 Number of Units Sold 5,250 Cost of Goods Manufactured $460,800 Cost of Goods Sold $488,250 Sales Revenue $1,260,000 Gross Profit $771,750 Operating Expense $724,900 What was the unit product cost? A) $87.77 B) $262.50 C) $93.00 D) $96.00 32) South State Inc. used $71,000 of direct materials and incurred $37,000 of direct labor.
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Learning Objective 16-3 1) Product costs, such as factory overhead, should be treated as an asset until the product is sold. 2) Manufacturing overhead includes all manufacturing costs, such as direct labor and direct materials. 3) Manufacturing overhead includes indirect manufacturing costs, such as insurance and depreciation on the factory building. 4) All costs.
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11) Neptune Accounting Services expects its accountants to work for 24,000 direct labor hours per year. The company's estimated total indirect costs are $240,000. The direct labor rate is $75 per hour. The company uses direct labor hours as the allocation base for indirect costs. If Neptune performs a job.
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Learning Objective 17-6 1) Dezire 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 Dezire receives $1,600 for a job requiring 8 hours of direct labor, then Dezire will make a profit of $440. 2) Dezire.
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41) Which of the following is a product cost? A) sales commissions B) CEO's salary C) delivery van depreciation D) depreciation on production equipment 42) Which of the following correctly describes the accounting for indirect labor costs? A) Indirect labor costs are product costs and are expensed as incurred. B) Indirect labor costs are period costs and.
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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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17) Prepare the vertical analysis report of the balance sheet data given below. (Round off the percentages to two decimal places.)   Balance Sheet December 31, 2015 2015 Assets Current Assets: Cash and Cash Equivalents$10,000 Accounts Receivable, Net15,600 Merchandise Inventory38,000 Total Current Assets$63,600 Long-term Investments$15,000 Property, Plant, and Equipment, Net195,000 Total Assets$273,600 Liabilities Current Liabilities: Accounts Payable$8,500 Notes Payable1,400 Total Current Liabilities$9,900 Long-term Liabilities$54,000 Total Liabilities$63,900 Stockholders' Equity Common Stock$161,000 Retained Earnings48,700 Total Stockholders'.
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19) Prepare a comparative common-size income statement for Nobell Inc. using the 2015 and 2014 data. (Round off the percentages to one decimal place.) Nobell Inc. Comparative Income Statement Years Ended December 31, 2015 and 2014 20152014 Net Sales$ 6,355$ 4,920 Cost of Goods Sold3,3702,200 Gross Profit2,9852,720 Operating Expenses: Selling Expenses675580 Administrative expenses410425 Total Expenses1,0851,005 Operating Income1,9001,715 Other Revenues and (Expenses): Interest Revenue00 Interest Expense(400)(695) Total.
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11) The income statement of a service company will most likely include ________. A) salary expense B) factory overhead C) cost of goods sold D) direct materials 12) Which of the following is true of service companies? A) All costs of service companies are product costs. B) Service companies modify and resell products they buy from manufacturers. C).
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11) Direct costs and indirect costs can be easily traced directly to a cost object. 12) In a manufacturing company, the salary of sales staff is an example of period cost. 13) Wages of factory janitors is considered non-manufacturing overhead as these are not directly related to the manufacturing process. 14) Indirect materials.
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31) Best Inc., a merchandiser, sells office supplies. The following information summarizes Best's operating activities during 2015: Utilities Expense $6,000 Rent for Store Expense 8,000 Sales Commissions Expense 4,500 Purchases of Merchandise 54,000 Inventory on January 1, 2015 30,000 Inventory on December 31, 2015 20,500 Sales Revenue 108,000 Required: Prepare an income statement for Best Inc. for the year ended December 31, 2015, using the.
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Learning Objective 17-1 1) Accounting firms, building contractors, and healthcare providers use process costing. 2) A job order costing system is used by companies that manufacture batches of unique products or provide specialized services. 3) A process costing system is used when a company produces identical units through a series of production steps. 4).
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29) Excellent Inc. sells accounting textbooks. The following information summarizes Excellent's operating activities for 2015: Merchandise Inventory, January 1, 2015 $10,000 Merchandise Inventory, December 31, 2015 7,000 Purchases 95,000 Selling and Administrative Expenses 65,000 Sales Revenue 180,000 Required: Prepare Excellent Inc. income statement for the year ended December 31, 2015. 30) Simons Inc. sells plasticware. The following information summarizes Simons' operating activities.
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21) As per FASB guidelines, earnings per share should appear on the face of the income statement. 22) The price/earnings ratio shows the market price of $1 of earnings. 23) The dividend payout ratio indicates the amount of the dividend as a proportion of a share's market price. 24) The price/earnings ratio indicates.
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11) Manufacturing Overhead is a temporary account used to ________ indirect production costs during the accounting period. A) allocate B) assign C) accumulate D) approximate 12) The journal entry to issue indirect materials to production should include a debit to the ________. A) Finished Goods Inventory account B) Raw Materials Inventory account C) Manufacturing Overhead account D) Work-in-Process Inventory.
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51) Which of the following would be considered a product cost for a manufacturing business? A) research and development B) property taxes on the factory C) advertising D) delivery costs 52) Which of the following would be considered a product cost for a manufacturing business? A) salary of the sales manager B) salary of the CEO C) salaries.
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8) Barkin Corporation's accounting records include the following items, listed in no particular order, for the year ending December 31, 2015: Other Revenues and (Expenses)Gain on Discontinued Operations$75,000 Gain on sale of Equipment$12,000Extraordinary Loss15,000 Loss on disposal of Equipment5,000Cost of Goods Sold285,000 Net Sales650,000Operating Expenses120,000 The income tax rate for the company is 45%. Prepare.
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Learning Objective 15-4 1) Working capital measures the ability to meet long-term obligations with current assets. 2) The current ratio is calculated as the total current assets divided by the total current liabilities. 3) A high current ratio indicates that current liabilities are more than current assets. 4) The cash ratio helps to determine.
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Learning Objective 15-5 1) A corporation's income statement includes some unique items that do not often apply to smaller businesses. 2) The income from continuing operations helps investors make predictions about the company's past performance. 3) The disposal of a financial segment would be reported as discontinued operations. 4) Gains and losses on the.
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Learning Objective 16-1 1) Managerial accounting focuses on providing information for internal planning and control. 2) Financial accounting prepares reports for internal purposes, whereas managerial accounting provides information to external stakeholders. 3) The IMA standards of ethical practice require managerial accountants to maintain their professional competence. 4) The accountant for Myra Lido deliberately deferred.
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Learning Objective 17-3 1) Actual manufacturing overhead costs are credited to the Manufacturing Overhead account. 2) In a manufacturing operation, depreciation of plant equipment should be debited to the Depreciation Expense account. 3) Manufacturing overhead costs are allocated to the Work-in-Process Inventory account by a debit to the Manufacturing Overhead account. 4) The amount.
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21) In a manufacturing company, advertising and marketing costs are included in manufacturing overhead. 22) In a manufacturing company, accounting, legal, and administrative costs are typical examples of product costs. 23) In a manufacturing company, administrative costs are included in period costs. 24) Repair and maintenance costs for factory equipment are product costs. 25).
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Learning Objective 17-4 1) The cost of goods manufactured is recorded with a debit to the Work-in-Process Inventory account and a credit to the Cost of Goods Manufactured account. 2) The cost of goods manufactured is recorded with a debit to the Finished Goods Inventory account and a credit to the Work-in-Process.
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11) At the beginning of 2015, Conway Manufacturing had the following account balances: Following additional details are provided for the year: Direct materials placed in production $80,000 Direct labor incurred 190,000 Manufacturing overhead incurred 300,000 Manufacturing overhead allocated to production 295,000 Cost of jobs completed and transferred 500,000 The ending balance in the Work-in-Process Inventory account is a ________. A) credit of.
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21) Which of the following is the primary objective of managerial accounting? A) providing information that managers need to make operational decisions B) providing historical data to investors and creditors C) providing summarized results of operations D) providing information to comply with laws and regulations of government bodies 22) Which of the following is the.
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21) Partial income statements of Company A and Company B are provided below: Which of the following statements is true? A) Company A is a merchandising company. B) Company B is a manufacturing company. C) Company A is a manufacturing company. D) Company A is a service company. 22) Product costs are expensed ________. A) when.
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11) Which of the following types of financial statement analysis would be used to see how a company's operating expenses as a percentage of net sales have changed from one year to the next? A) vertical analysis B) horizontal analysis C) ratio analysis D) analysis of internal control system 12) The vertical analysis statement of.
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