ACC 2020 EXAM
$180,936
At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: 1. Beginning WIP direct materials $42,000 2. Beginning WIP conversion costs $28,250 3. Costs of materials added $391,100 4. Costs of conversion added $279,125 5. WIP beginning (50% for conversion) 19,200 units 6. Units started 129,500 units 7. Units completed and transferred out 106,700 units 8. WIP ending (60% for conversion) 42,000 units What is the total cost of units remaining in ending WIP?
$3,982
Calico Corporation produced 2,500 units in Job 903. The following data is provided for Job 903 for the year: 1. Direct materials used $3,200 2. Direct labor costs $782 3. Actual manufacturing overhead rate per direct labor hour $17.15 4. Predetermined manufacturing overhead rate per direct labor hour $19.20 5. Direct labor hours used in Job 903 34 6. Direct labor rate per hour $23 What is the total cost of Job 903?
Credibility
Communicating information fairly and objectively is an example of which ethical standard?
True
Controlling costs across the whole value chain often requires a trademinus−off between the individual elements of the value chain.
True
Cost distortion occurs when some products are overcosted while other products are undercosted by the cost allocation system.
Costs outweigh benefits by $3100.
Country Western Clothing Outfitters is considering investing in an inventory tracking system. It will have $10,500 in software costs and $8800 in employee training costs. Computer hardware also needs to be upgraded for the system; the hardware upgrades are expected to be $12,600. The expected benefits from the inventory tracking system should be $28,800. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much?
False
A lean company typically strives to lengthen the manufacturing cycle time.
tires used in production of cars.
All of the following are considered fixed costs except
A.distribution. B.design. C.marketing. D.administration.
All of the following are part of a company's value chain except
ABC systems may only be used by service companies.
All of the following describe an ABC system except
True
Appraisal costs are incurred to detect poor−quality goods or services.
$135,100
At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: 1. Beginning WIP direct materials $32,000 2. Beginning WIP conversion costs $20,250 3. Costs of materials added $384,100 4. Costs of conversion added $271,125 5. WIP beginning (50% for conversion) 26,200 units 6. Units started 124,500 units 7. Units completed and transferred out 111,700 units 8. WIP ending (60% for conversion) 39,000 units What are the total equivalent units for conversion costs?
$2.82
At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: 1. Beginning WIP direct materials $37,000 2. Beginning WIP conversion costs $20,250 3. Costs of materials added $388,100 4. Costs of conversion added $271,125 5. WIP beginning (50% for conversion) 23,200 units 6. Units started 127,500 units 7. Units completed and transferred out 112,700 units 8. WIP ending (60% for conversion) 38,000 units What is the cost per equivalent unit for direct materials?
False
External failure costs occur when the company detects and corrects poor−quality goods or services before delivery to customers
True
For a manufacturing system, inventory flows from raw materials inventory to work in process inventory to finished goods inventory.
A. help make product mix decisions. B. get a more accurate price of products. C. cut costs. D. all of the above are correct.
Most companies adopt ABC in order to
True
One condition that favors using a departmental overhead rate, rather than plantwide overhead rates, is that different departments incur different amounts and types of manufacturing overhead.
Directing
Overseeing the dayminus−tominus−day operations of a company is an example of which of the following management functions?
$1350
Perfect Pigments has 2,700 gallons of paint in WIP Inventory, with 71% of materials already added. The paint is 50% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?
$240
Plowin' Supply plans to make 19,000 tractors at its plant. Fixed costs are $570,000 and variable costs are $210 per tractor. What is the average cost per tractor?
total est man overhead costs/ total est amt of teh allocation base.
Predetermined MOH Rate=
Raw Materials Inventory 90,000 Accounts Payable 90,000 (To record purchase of raw materials)
Purchase of Raw Materials Assume that Life Fitness ordered and received $90,000 of raw materials during December.
product−level
Research and development would most likely be classified as a ________ cost.
$35,420
Squire Corporation charged Job 110 with $14,000 of direct materials and $12,600 of direct labor. Allocation for manufacturing overhead is 70% of direct labor costs. What is the total cost of Job 110?
$2720
Start the Day Right has 3,400 gallons of orange juice in WIP Inventory, with 80% of materials already added. What are equivalent units in ending WIP Inventory for materials if the orange juice is 5959% through the process?
DOWNTIME defects, overproduction, waiting, not using people, transportation, inventory, movement, excess processing.
The Eight Wastes of Traditional Operations
Design
The costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered which element of the value chain?
True
The end goal of process costing and job costing at a manufacturing company is the same: to find the cost of producing one unit of product.
identify the primary activities and estimate a total cost pool for each.
The first step in developing an ABC system is
True
The main driver of indirect costs for service firms is usually labor hours.
Planning
The management accountant at Technology Innovators determined $500,000 is the organization's earning goal to accommodate the organizational plan during the first quarter during a new year. The accountant realizes that to achieve the new earning goal, the operations manager needs to increase the price of technology parts charged to a consumer to $250.00 per unit. The manager is scheduling a new staff meeting to determine if they need to increase the marketing efforts at the firm, or if they need to design a new part that uses materials that are less expensive to produce.
True
The overhead allocation base should be the cost driver of manufacturing overhead costs.
False
The total cost of a cost object can only include the direct costs that are directly traced to that cost object.
False
There will be little benefit to using an activityminus−based costing system when products are vastly different from each other and consume different amounts of resources.
Profit, people, planet
The "triple bottom line" focuses on what three factors that influence a firm's ability to survive and thrive in the long run?
follow their company's established policies for reporting unethical behavior.
To resolve ethical dilemmas, the IMA suggests that management accountants should first
Department Overhead Rate
Total alloc department overhead cost / Cost est amt of depart allocation base (estimated)
True
Two main benefits of ABC are (1) more accurate product cost information and (2) more detailed information on the costs of activities and the drivers of those costs.
Work in Process Inventory 112,000 Raw Materials Inventory 112,000 (To record the use of direct materials on jobs)
Use of Direct Materials Assume that Life Fitness used $112,000 of direct raw materials during December.
Manufacturing Overhead 2,000 Raw Materials Inventory 2,000 (To record the use of indirect materials in the factory)
Use of Indirect Materials Assume that Life Fitness used $2,000 of indirect raw materials during December.
(allocate can't trace directly in)
We can trace our direct material and direct labor cost to the job
Confidentiality
What ethical standard is being violated when you tell a friend that the company you work for is going to report lower than expected earnings next week?
Controlling
When management uses feedback to take corrective action on the budgets, which of the following management responsibilities are being fulfilled?
CMA
Which of the following certifications is issued by the IMA?
Warranty claims
Which of the following is an example of a cost item that should be classified as an external failure cost?
Pepsi
Which of the following is an example of an industry that would use a process costing—rather than a job costing—system?
Wages of a machine operator
Which of the following is an example of direct labor?
Wages of factory maintenance personnel
Which of the following is an example of manufacturing overhead expense in a factory?
Determining the balance in raw materials inventory
Which of the following is not a way in which management can use job cost information?
Cost of the automobile engines
Which of the following is not an example of an indirect cost incurred in manufacturing automobiles?
Customer orders drive the production process.
Which of the following is true about lean thinking?
Current shareholders
Which of the following persons or groups would be least likely to receive detailed managerial accounting reports?
Financial accounting provides sufficient information for managers to effectively plan and control operations.
Which of the following statements is false about financial accounting?
Managerial accounting information emphasizes relevance.
Which of the following statements is true regarding managerial accounting information?
A. Storing inventory is very expensive. B. Inventory could spoil, get broken or stolen, or become obsolete. C. It ties up cash that could be used for other, more useful purposes. D. All of the above are reasons large amounts of inventory are considered wasteful.
Why are large amounts of inventory considered wasteful?
True
With increased competition, managers need more accurate estimates of product costs in order to set prices and to identify the most profitable products.
Overallocation
actual MOH < allocated MOH
Underallocation
actual MOH > allocated MOH
enterprise resource planning (ERP)
Integrate all of a company's worldwide functions, departments, and data
batchminus−level
Machine set−up would most likely be classified as a ________ cost.
A.analyzing data. B.communicating results. C.providing decision support. D.All of the above.
Managerial accountants may be responsible for
$148,700
At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: 1. WIP beginning (50% for conversion) 19,200 units 2. Units started 129,500 units 3. Units completed and transferred out 115,700 units 4. WIP ending (60% for conversion) 33,000 units 5. Beginning WIP direct materials $32,000 6. Beginning WIP conversion costs $20,250 7. Costs of materials added $384,100 8. Costs of conversion added $271,125 What are the total equivalent units for direct materials?
$544,355
At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: Beginning WIP direct materials $ 37 comma 000$37,000 Beginning WIP conversion costs $ 24 comma 250$24,250 Costs of materials added $ 389 comma 100$389,100 Costs of conversion added $ 279 comma 125$279,125 WIP beginning (50% for conversion) 27 comma 20027,200 units Units started 122 comma 500122,500 units Units completed and transferred out 105 comma 700105,700 units WIP ending (60% for conversion) 44 comma 00044,000 units What is the total cost of units completed and transferred out?
$3.27
At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: Beginning WIP direct materials $32,000 Beginning WIP conversion costs $ 40 comma 000$40,000 Costs of materials added $384,100 Costs of conversion added $ 389 comma 100$389,100 WIP beginning (50% for conversion) 24 comma 20024,200 units Units started 122 comma 500122,500 units Units completed and transferred out 107 comma 700107,700 units WIP ending (60% for conversion) 39 comma 00039,000 units What is the cost per equivalent unit for conversion costs?
job cost record
A ________ is used to accumulate the costs of a job.
$224,000.
Harper Inc. has fixed costs of $780,000 when it produces 350,000 units. Its total variable costs are $140,000. When Harper Inc. produces 560,000 units, its total variable costs will be
They increase as production decreases.
How do fixed costs per unit behave?
They remain the same throughout production levels within the relevant range.
How do variable costs per unit behave?
increase.
If a company were to decrease its prevention costs by eliminating employee training, the company's external failure costs would most likely
decrease
If a company were to increase its appraisal costs by inspecting more units as the units are completed, the company's external failure costs would most likely
1. indirect 2. direct 3. indirect
If the Ford Focus is the cost object, classify each of the following costs as indirect or direct, respectively: 1. property taxes for the manufacturing plant 2. engines for the cars 3. janitor wages for the factory.
sustainability.
In recent years, there has been an increasing awareness and growing interest in ________ and social responsibility by both consumers and corporations.
Work in process inventory
In the basic flow of inventory through a manufacturing system, which of the following occurs second in the job costing system?
Integrity
Inflating your expenses for a companyminus−sponsored conference that discredits the profession is a violation of what ethical standard?
False
Inspection of incoming raw materials and production loss caused by downtime are examples of prevention costs.
$235,300
George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. 1. Estimated manufacturing overhead cost $235,300 2. Actual manufacturing overhead cost $244,200 3. Estimated machine hours 20,700 4. Actual machine hours 23,100 The estimates were made as of the beginning of the year, while the actual results were for the entire year. The amount of manufacturing overhead allocated for the year based on machine hours would have been _____
$11.78
George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. 1. Estimated manufacturing overhead cost $235,500 2. Actual manufacturing overhead cost $244,400 3. Estimated machine hours 20,000 4. Actual machine hours 23,500 The estimates were made as of the beginning of the year, while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to