Accounting 2 final exam (Bowlin)

MC 17.105 Predetermined Factory Overhead Rate = Estimated Total Factory Overhead Costs ÷ Estimated Activity Base = $198,000 ÷ 15,000 labor hours = $13.20 per labor hour

$13.20

EX 17.150 a. $660,000 ÷ 100,000 direct labor hours = $6.60 per direct labor hour b. Job 345: 560 hrs. × $6.60 = $3,696 Job 777: 800 hrs. × $6.60 = $5,280 C. Work In Process D$8,976 Factory overhead C $8,976

A. $6.60 B. Job 345 $3,696 Job 777 $5,280 C.Work In Process D$8,976 Factory overhead C $8,976

EX16.191 a. Line Item Description Amount Amount Beginning work in process inventory $15,000 Direct materials $69,000 Direct labor 27,000 Factory overhead 34,000 Total manufacturing costs incurred 130,000 Total manufacturing costs $145,000 Ending work in process inventory (19,500) Cost of goods manufactured $125,500 b. Line Item Description Amount Finished goods inventory, March 1 $25,000 Cost of goods manufactured 125,500 Cost of finished goods available for sale $150,500 Finished good inventory, March 31 (23,000) Cost of goods sold $127,500

A. Determine the cost of goods manufactured $125,500 B. Determine the cost of goods sold $127,500

20.87 Understanding how costs behave is useful to management for

Analyzing the effects of changes made to the cost structure, predicting profits as sales and production volumes change, and estimating cost

20.95 The systematic examination of the relationships among selling prices, volume of sales and production, costs, and profits is termed _____ analysis.

Cost Volume Profit

16.97 Which of the following is an example of direct labor cost for a cell phone manufacturer?

Cost of assembly worker wages

16.102 Which of the following costs are conversion cost

Direct labor cost and factory overhead cost

16.80 Which of the following terms is used to describe the process by which managers monitor operations and compare actual and expected results?

Evaluation

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

Factory heating and lighting cost

17.76 Journalizing the entry for the indirect labor costs incurred for general factory use would include a debit to

Factory overhead

20.62 Costs that remain constant in total dollar amount as the level of activity changes are called ________ costs.

Fixed

16.107 Which of the following would most likely be considered an indirect material by a manufacturer?

Glue

16.85 Which of the following is a characteristic of useful managerial accounting reports

Historical and estimated data , prepared as needed , and accurate

16.94 A plant manager's salary is a(n)

Indirect cost

17.55 Which of the following is the correct flow of manufacturing costs

Raw materials,work in process, finished goods,cost of goods sold

17.66 In job order costing when goods that have been ordered are received the receiving department personnel count the goods inspect the goods and complete a

Receiving reports

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

Time record

17.56 In job order costing on which of the following would labor cost be initially recorded

Time records

17.79 Journalizing the entry for a job completed would include a credit to

Work in Process

EX 17.148 Work in Process (560 hours × $20) + (800 hours × $21) = $28,000

Work in process D $28,000 Wages payable C $28,000

16.93 Which of the following is an example of direct materials cost for an automobile manufacturer?

cost of interior upholstery

16.105 Which of the following is part of factory overhead cost?

depreciation of factory equipment and machines

16.96 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

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

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

16.108 Prime costs are

direct materials and direct labor

16.95 If the cost of a direct material is a small portion of total production cost, it may be classified as part of

factory overhead cost

20.61 The three most common cost behavior classifications are

fixed costs, variable costs, and mixed costs

17.48 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 costing

17.85 A widely used activity base for developing factory overhead rates in highly automated settings is

machine hours

16.81 Accounting designed to meet the needs of decision makers inside the business is

managerial accounting

20.77 A cost that has characteristics of both a variable cost and a fixed cost is called a

mixed cost

20.97 Contribution margin is

the excess of sales revenue over variable cost

16.124 Factory overhead includes

Indirect labor and indirect materials

16.77Managerial accounting reports are

prepared according to management needs

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

prepared in accordance with GAAP

17.64 In job order costing the journal entry for the flow of direct materials into production consists of

Debit to work in process and a credit to materials

17.54 Which of the following costs is included in finished goods inventory

Factory overhead , direct materials,and direct labor

16.110 Conversion costs are

Factory overhead and direct labor

16.98 Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as

Factory overhead cost

MC 17.84 Predetermined Factory Overhead Rate = Estimated Total Factory Overhead Costs ÷ Estimated Activity Base = $95,000 ÷ 9,500 labor hours = $10 per labor hour Amount Credited to Factory Overhead = Predetermined Factory Overhead Rate × Direct Labor Hours = $10 × 2,300 labor hours = $23,000

$23,000

MC 17.86 Total Cost = Direct Materials + Direct Labor + Factory Overhead = $4,400 + $5,600 + $2,400 = $12,400 Per-Unit Cost = $12,400 ÷ 1,000 units = $12.40

$12.40

EX 17.160 Direct materials (8 tons × $600) $4,800 Direct labor (80 hours × $21) 1,680 Manufacturing overhead (80 hours × $9) 720 Total cost of J904 $7,200

$7200

MC 20.113 Sales (units) = (Fixed Costs + Target Profit) ÷ Unit Contribution Margin = ($1,200,000 + $200,000) ÷ ($240 - $110) = 10,769 units

10,769 units

MC 20.132 Break-Even Sales (units) = Fixed Costs ÷ Contribution Margin = $256,000 ÷ ($36 - $20) = 16,000 units

16,000 units

16.92 Which of the following must be true in order for materials to be classified as direct materials

They must be an integral part of the finished product and be a significant portion of the total product cost.

20.96 In cost-volume-profit analysis, all costs are classified into which of the following two categories?

Variable costs and fixed costs

MC 20.118 Break-Even Sales (units) = Fixed Costs ÷ Unit Contribution Margin = $400,000 ÷ $20 = 20,000 units

20,000 units

MC 20.137 Break-Even Sales (units) = Fixed Costs ÷ Contribution Margin = $120,000 ÷ $30 = 4,000 units

4,000 units

MC 20.111 Break-Even Sales (units) = Fixed Costs ÷ Unit Contribution Margin = $250,000 ÷ ($125 - $73) = 4,808 units

4,808 units

MC 20.105 Contribution Margin Ratio = (Sales - Variable Costs) ÷ Sales = ($914,000 - $498,130) ÷ $914,000 = 45.5%

45.5%

16.78 Which of the following individuals are charged with the responsibility of directing the day-to-day operations of a business?

Managers

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

Materials requisition

17.63 The source document for the data for debiting work in process for direct materials is a

Materials requisition

16.82 Which of the following terms is used to describe the process of developing the organization's long-term objectives?

Strategic planning

16.79 Which of the following are basic functions of the management process

Strategic planning and control

16.103 Which of the following terms refers to the cost of changing direct materials into a finished manufactured product?

conversion cost

17.78 Journalizing the entry for a job completed would include a debit to

Finished goods

17.81 Journalizing the entries for jobs shipped and customers billed would include a credit to

Finished goods