Exam #1 CH 1-3

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of over- or underapplied factory overhead at the end of the year?

$54,800 overapplied

Which of the following statements is false regarding the similarities between process costing and job order costing?

...

Glue used to bind the magazines

conversion

Which of the following is an example of a factory overhead cost?

factory heating and lighting cost

Glue used to bind the magazines

factory overhead

Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290.

$384,200

Given the following data: Beginning raw materials inventory $30,000 Materials purchased $65,000 Ending raw materials inventory $40,000 What is the amount of raw materials used?

$55,000

Thomlin Company forecasts that total factory overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual factory overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined factory overhead rate based on machine hours is

$62 per machine hour

The following budget data are available for Sharp Company: Estimated direct labor hours 12,000 Estimated direct labor dollars $90,000 Estimated factory overhead costs $179,000 Actual direct labor hours 11,500 Actual direct labor dollars $92,000 Actual factory overhead costs $180,000 If factory overhead is to be applied based on direct labor dollars, the predetermined factory overhead rate is

199%

Department M had 600 units 60% completed in process at the beginning of June, 6,000 units completed during June, and 700 units 30% completed at the end of June. Using the first-in, first-out method of inventory costing, the number of equivalent units of production for conversion costs for the period is

5,850 units

Which of the following is uncharacteristic of process costing?

costs are accumulated by job

Which of the following is part of factory overhead cost?

depreciation of factory equipment and machines

Wages of printing machine employees

direct labor

The cost of a manufactured product generally consists of which of the following costs?

direct labor cost, direct materials cost, and factory overhead cost

Maintenance on printing machines

factory overhead

Which of the following are the two main types of costing systems for manufacturing operations?

job order costing and process costing

Which of the following would most likely use process costing?

lawn fertilizer manufactuerer

Which of the following is the primary criterion for the preparation of managerial accounting reports?

manager needs

Which of the following is most associated with managerial accounting?

may rely on estimates and forecasts

When applied factory overhead is more than actual factory overhead, the result is called

overapplied factory overhead

Sales salaries

period cost

In process costing, the costs of direct materials and direct labor are charged directly to

processing departments

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as

direct labor cost

Paper used in the magazines

direct materials

The document authorizing the issuance of materials from the storeroom is a

materials requisition

Depreciation expense—corporate headquarters

period cost

Which of the following is most associated with financial accounting reports?

prepared in accordance with GAAP

Wages of printing machine employees

prime & conversion cost

Paper used in the magazines

prime cost

Maintenance on printing machines

product cost

Paper used in the magazines

product cost

Which of the following is a period cost?

sales salaries expense

For which of the following businesses would process costing be appropriate?

shampoo manufacturer

Which of the following would most likely use job order costing?

swimming pool installer

In job order costing, on which of the following would labor costs be initially recorded?

time tickets

In job order costing, the amount of time spent by an employee on an individual job is recorded on a(n)

time tickets

Aspen Technologies has the following budget data: Estimated direct labor hours 15,000 Estimated direct labor dollars $90,000 Estimated factory overhead costs $198,000 If factory overhead is to be applied based on direct labor hours, the predetermined factory overhead rate is

$

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. A total of 1,000 units were produced at a per-unit cost of

$12.40

Managers use managerial accounting information for which of the following purposes?

????

Maintenance on printing machines

conversion

The following information is taken from the financial records of Gunner Manufacturing: Cost of materials used $45,000 Direct labor costs $48,000 Factory overhead $39,000 Work in process, beginning $18,000 Work in process, ending $28,000 What is the cost of goods manufactured?

$122,000

Department G had 3,600 units 25% completed at the beginning of the period, 11,000 units were completed during the period; 3,000 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $40,000 Costs added during period: Direct materials (10,400 units at $8) 83,200 Direct labor63,000 Factory overhead 25,000 All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. The total cost of the units started and completed during the period (round unit cost calculations to four decimal places) is

$120,060

Given the following data: Cost of materials used $45,000 Direct labor costs $48,000 Factory overhead $39,000 Work in process, beginning $28,000 Work in process, ending $18,000 Finished goods, beginning $28,000 Finished goods, ending $18,000 What is cost of goods sold?

$152,000

Darwin 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 Period costs are?

$24,500

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is

$270,000

Work in process inventory on December 31 of the current year is $44,000. Work in process inventory increased by 60% during the year. Cost of goods manufactured amounts to $275,000. The total manufacturing costs incurred in the current year are

$291,500

Darwin 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 Product cost are?

$35,000

Thomlin Company forecasts that total factory overhead for the current year will be $15,000,000 with 300,000 total machine hours. Year to date, the actual factory overhead is $16,000,000 and the actual machine hours are 330,000 hours. If Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is

$500,000 overapplied

Department A had 5,000 units in work in process that were 60% completed as to labor and overhead at the beginning of the period, 34,000 units of direct materials were added during the period, 31,000 units were completed during the period, and 2,000 units were 80% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for material costs for the period was

...

Department M had 2,000 units 40% completed in process at the beginning of June, 12,000 units completed during June, and 1,200 units 25% completed at the end of June. The number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories is

11,500 units

Department K had 3,000 units 45% completed in process at the beginning of the period, 17,000 units completed during the period, and 1,200 units 40% completed at the end of the period. What was the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories? Assume the completion percentage applies to both direct materials and conversion cost.

16,130

Department R had 5,000 units in work in process that were 75% completed as to labor and overhead at the beginning of the period; 30,000 units of direct materials were added during the period; 32,000 units were completed during the period; and 3,000 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was

29,450

The following production data were taken from the records of the Finishing Department for June: Inventory in process, June 1, 25% completed 51,500 unitsTransferred to finished goods during June 5,000 unitsEquivalent units of production during June 5,200 units Determine the number of equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories. The completion percentage of 25% applies to both direct materials and conversion costs.

575 units