ACCT 212 Week 1

A company began the year with $500 in raw materials and purchased $10,250 more during the year. If the company has $725 in raw materials at the end of the year, then they would report direct materials used of $ on the schedule of cost of goods manufactured.

10025

Sparks Fireworks manufactures and sells fireworks. Their raw materials used is $71,500. Their beginning raw materials inventory was $5,000 and their ending raw materials inventory was $6,000. Sparks' raw materials inventory turnover is :

13.00

A company uses direct labor costs as its allocation base. Management estimates the company will incur $150,000 of direct labor cost during the year and total overhead costs of $200,000. What is their predetermined overhead rate?

133%

A company incurred the following costs: $6,000 for indirect labor; $26,000 for direct labor; $2,500 for utilities for the factory building; $10,300 for factory equipment depreciation; $8,700 for office equipment depreciation. The total overhead costs reported on the schedule of cost of goods manufactured is $

18800

A manufacturing company reports the following items: Finished goods inventory, beginning balance: $1,000 Finish goods inventory, ending balance: $1,200 Cost of goods manufactured, $5,000 The cost of goods sold is $

4800

A manufacturing company reports the following items: Finished goods inventory, beginning balance: $1,000 Finish goods inventory, ending balance: $1,200 Cost of goods manufactured, $5,000 The cost of goods sold is $.

4800

financial statements express each item as a percent of a base amount. The base amount is assigned a value of 100%.

Common-Size

The journal entry to record the allocation of factory overhead is:

Debit Work in Process Inventory and credit Factory Overhead

Consider a service company that provides carpet cleaning. Classify the cost of the hourly workers who clean carpets for customers.

Direct

A schedule of cost of goods manufactured has the following main sections: (Check all that apply.)

Direct labor Overhead Direct materials Cost of goods manufactured

Which of the following are product costs for a manufacturer? (Check all that apply.)

Direct materials Depreciation on the factory equipment

Which of the following are indirect costs for the finishing department of a furniture manufacturer? (Check all that apply.)

Electricity cost for the plant Plant manager's salary Rent on the manufacturing facility

Managerial accounting has the following characteristics? (Check all that apply.)

Emphasis is on projects, processes, and divisions Focus is on internal users Includes mostly monetary and some nonmonetary information

users of accounting information rely on financial statement analysis to make more informed decisions when pursuing their goals.

External

True or false: The main purpose of managerial accounting is to provide general-purpose financial statements.

False

Most users rely on financial statements, which include the (1) income statement, (2) balance sheet, (3) statement of stockholders' equity, (4) statement of cash flows, and (5) notes to these statements.

General Purpose

Consider a company that manufactures picture frames. Which of the following costs would be considered direct costs? (Check all that apply.)

Glass used in the frame Oak wood used for frame Wages of assembly line worker

Most users rely on general-purpose financial statements, which include which of the following? (Check all that apply.)

Income statement Statement of cash flows Notes to financial statements Balance sheet Statement of stockholders' equity

Consider a service company that provides carpet cleaning and uses straight-line depreciation. Classify the cost of the depreciation on the carpet cleaning machines.

Indirect

What types of information does managerial accounting provide? (Check all that apply.)

Information for managers Non-financial Financial

A cost accounting system includes which of the following?

It accumulates production costs and assigns them to products and services.

All of the following are manufacturing costs except:

Office salaries

An employee that is having trouble paying his personal bills might exhibit the following fraud factor:

Pressure

A measurement of key relations between financial statement items is called _______ analysis.

Ratio

Which of the following areas are not considered to be one of the building blocks of financial statement analysis?

Ratio analysis

The cost of materials a company purchases to use in making products are

Raw materials

When analyzing income statement accounts, the base is usually _____

Revenue

Vertical analysis is a tool to evaluate individual financial statement items or a group of items. When analyzing income statement accounts, the base is usually (revenue/expenses/net income) and for balance sheet accounts, the base is usually total (assets/liabilities/equity) .

Revenue Assets

Which of the following are period costs for a manufacturer? (Check all that apply.)

Sales commissions Salary for administrative staff Rent on the office building

Which of the following are direct costs for a shoe manufacturer? (Check all that apply.)

Shoe laborers who make the shoes Leather used in the shoes

Comparative financial statements show financial information in _____ columns.

Side-by-side

Identify which of the following specific areas are considered the building blocks of financial statement analysis. (Check all that apply.)

Solvency Liquidity and efficiency Market prospects Profitability

Managers use a predetermined overhead rate for which of the following reasons? (Check all that apply.)

To estimate total job costs before the job is completed To assist in setting prices for jobs

________ analysis is a form of horizontal analysis that can reveal patterns in data across periods by comparing period amounts by base period amounts. Multiple choice question.

Trend

True or false: The principle of customization is applicable to both service and manufacturing companies.

True

Consider a company that manufactures automobiles. Which of the following costs would be considered a direct cost?

Wages of assembly line workers

If the factory overhead is underapplied, then: (Check all that apply.)

actual overhead cost > applied overhead costs. the Factory Overhead account has a debit balance.

A company incurs factory overhead costs of $1,200 and applied $1,500. If the difference is considered immaterial, then the: (Check all that apply.)

adjusting entry will require a credit to Cost of Goods Sold. Factory Overhead account has a credit balance of $300 before adjusting.

Manufacturing costs include direct materials, direct labor, and

applied overhead costs.

The predetermined overhead rate is calculated:

at the start of the accounting period

______ financial statements show financial amounts in side-by-side columns on a single statement.

comparative

A Schedule of Cost of Goods Manufactured includes all of the following costs except:

cost of goods sold

The Factory Overhead account is (debited/credited) for applied overhead costs.

credited

Job order production is most likely used by companies that produce:

customized wedding cakes

The journal entry to record indirect materials in production is to:

debit Factory Overhead and credit Raw Materials Inventory

The journal entry to record the use of indirect materials in production is to:

debit Factory Overhead and credit Raw Materials Inventory.

Prime costs consists of:

direct labor and direct materials

Costs which are crucial parts of the finished product are called .

direct materials

Which of the following are included in Raw materials inventory? (Check all that apply).

direct materials

Trend percent is computed by taking the (analysis period amount ________) x 100.

divided by the base period

Conversion costs consist of:

factory overhead and direct labor

A comparison of a company's financial condition and performance across time is called _______ analysis.

horizontal

Digital manufacturing combines _____ to manufacture products. (Check all that apply.)

human control machines computers

All of the following are inventory accounts for a manufacturer except:

indirect materials inventory

All of the following are standards used in financial statement analysis for comparisons:

industry competitor intracompany

Data visualizations reveal: (Check all that apply).

insights not easily seen by looking at numbers trends not easily seen by looking at numbers

The purpose of financial statement analysis for (internal/external) users is to provide information to improve efficiency and effectiveness.

internal

A cost accounting system: (Check all that apply.)

is used to control costs of manufacturing activities. helps managers' determine selling prices.

Companies use job cost sheets to track the costs of:

materials, labor, and overhead costs of a job

The three types of manufacturing costs in a job order costing system include: Multiple select question.

overhead direct labor direct materials

According to the fraud triangle, the three factors that must exist for a person to commit fraud include __, __, and __. (Check all that apply).

pressure or incentive rationalization opportunity

Manufacturing of products in a repetitive manner is referred to as (process/job order) operations while manufacturing custom products is referred to as (process/job order) operations.

process job order

Job cost sheets can be used to: (Check all that apply.)

provide a record for the Cost of Goods Sold account. monitor costs incurred and to predict costs for each job. provide a subsidiary ledger for the Finished Goods Inventory account.

Direct materials costs for an automobile manufacturer would include all of the following:

tires bumpers steering wheels

When analyzing balance sheet accounts, the base is usually _____

total Assets

A Schedule of Cost of Goods Manufactured includes all of the following costs:

work in process inventory factory overhead applied direct materials used direct labor used

The correct order of cost flows in a job order costing system is:

work in process; finished goods, cost of goods sold