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Study Resources (Accounting)

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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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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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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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 record. 4) Manufacturing.
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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 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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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) 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) 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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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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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, Gardener completed Job A33, which used 60 machine hours and 15 direct.
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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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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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31) Venus Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of the year, they fixed the manufacturing overhead rate at 20% times the direct labor cost. In the month of June, Venus completed Job 13C the costs of which are as.
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Learning Objective 19-1 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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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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Learning Objective 18-3 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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21) In a manufacturing firm, advertising and marketing costs are included in manufacturing overhead. 22) In a manufacturing firm, accounting, legal, and administrative costs are typical examples of product costs. 23) In a manufacturing firm, administrative costs are included in period costs. 24) Repair and maintenance costs for factory equipment are product costs. 25).
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11) Star Health Inc. is a fitness center in Oklahoma City. In October, the company earned $550,000 in revenues and incurred the following operating costs from 340 customers: Manager's salary $50,000 Gym Rent 60,000 Depreciation Expense—Equipment 25,000 Office Supplies 30,000 Utilities Expense 89,700 Trainer's Salary 25,000 How much is the unit cost per customer service? A) $795.00 B) $749.12 C) $1,617.65 D) $822.65 12) Kentucky purchases and sells widgets..
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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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31) Best Company, 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 Company for the year ended December 31, 2015, using the.
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Learning Objective 19-3 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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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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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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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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11) Direct costs and indirect costs can be easily traced directly to a cost object. 12) In a manufacturing firm, 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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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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51) For a manufacturing business, which of the following would be considered a product cost? A) Research and development B) Property taxes on the factory C) Advertising D) Delivery costs 52) For a manufacturing business, which of the following would be considered a product cost? A) Salary of the sales manager B) Salary of the CEO C) Salaries.
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31) In a manufacturing firm, which of the following is an example of a period cost? 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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31) Evanston Manufacturing Company 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 Company used $71,000 of direct materials and incurred $37,000 of direct labor.
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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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41) Davie Company 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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29) Excellent Company 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 Company's income statement for the year ended December 31, 2015. 30) Simons Company sells plastic ware. The following information summarizes Simons' operating.
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Learning Objective 18-5 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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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) 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 account. 13).
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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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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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Learning Objective 18-4 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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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 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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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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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) 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: A) used to assign direct material costs to jobs. B) used to allocate.
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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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