Accounting Exam 4

Smith Company reports the following information: Cost of goods manufactured $68,250 Direct materials used 27,000 Direct labor incurred 25,000 Work in process inventory, January 1 11,000 Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31 is

$13,500

Selected accounts with some amounts omitted are as follows: If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

$135,000

Cost of goods manufactured during the year is $240,000, and work in process inventory on December 31 is $50,000. Work in process inventory during the year decreased by 60%. Total manufacturing costs incurred are

$165,000 (Found by Cost of Goods Manufactured-Beginning WIP Inventory+Ending WIP Inventory)

During the period, labor costs incurred amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. Factory overhead applied to production was $23,000. The journal entry for the factory overhead applied to production is

Work in Process 23,000 Factory Overhead 23,000

What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

planning

In a job order cost system, when goods that have been ordered are received, the quantity received and the condition of the goods are entered on a

receiving report

The finished goods account is the controlling account for the

stock ledger

Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?

job order cost system

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

managers

All of the following would be reported on the balance sheet as a current asset except

factory overhead

Which of the following products would be manufactured using a job order cost system?

graduation invitation

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If Job 117 incurs 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

$23,000

Selected accounts with a credit amount omitted are as follows: What was the balance of Work in Process as of April 30?

$29,900

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 (Found by adding direct labor and factory overhead)

An example of a period cost is

advertising expense

Cost of goods sold for a manufacturer equals cost of goods manufactured plus

beginning finished goods inventory less ending finished goods inventory

If the amount of factory overhead cost incurred exceeds the amount applied, the factory overhead account will have

debit balance and be underapplied

Which of the following costs are conversion costs?

direct labor cost and factory overhead cost

Which of the following is a product cost?

drill bits for a drill press used in the plant assembly area

Another term for factory overhead is

factory burden