ACCTG 231 Exam #4

Mixed Quiz Question: Production Runs - Estimated: 1515 - Actual: Manufacturing Overhead Costs - Estimated: $477,225 - Actual: $346,370 The amount of over/under applied manufacturing overhead is:

$121,405 over applied

Mixed Quiz Question: If a company uses the perpetual and net price inventory methods and it purchases inventory on account worth $6,000 with terms 1/10 n/30 what will be the cost of the inventory when the inventory is purchased?

$5,940

Mixed Quiz Question: Filipi Inc. reported wages expense of $617,000, wages payable of $132,000 at the beginning of the year, and wages payable of $91,700 at the end of the year. Cash payments for wages during the year were:

$657,300

Mixed Quiz Question: Scout & Sons Manufacturing manufactures camping gear. Selected data regarding standard costs and actual results for the month of February are shown below. Units Produced: 2,750 Machine Hours Used: 10,100 Direct Materials Purchased: 12,000 lbs at a total cost of $76,400 Direct Materials Used: 9,300 lbs Direct Labor Used: 11,000 hrs at a total of $168,300 Standard Materials per Unit: 3 lbs for $7.00 per lb The direct materials usage variance is:

$7,350 U

Mixed Quiz Question: Old Navy reported cost of goods sold of $1,065,000, beginning and ending inventory of $288,700 and $130,400, respectively, and beginning and ending accounts payable of $148,200 and $71,600, respectively. Cash payments for merchandise inventory during the year were:

$983,300

What are the activities of the expenditure process?

- Determine the need for goods and/or services - Select suppliers and order goods and/or services - Receive goods and/or services - Pay suppliers of goods and/or/services

What are the withholdings from employees' earnings?

- FICA - Federal & state income - Local income and voluntary

Mixed Quiz Question: A cost pool is a group of overhead costs that respond to changes in:

A Cost Driver

Define Purchase Discount.

A temporary account to record the purchase discounts taken (gross price method).

Mixed Quiz Question: Which of the following entries would not be associated with the use of a perpetual inventory system? A) Purchases ____________________ X ______Accounts Payable __________X B) Inventory ____________________ X ______Accounts Payable __________X C) Cost of Goods Sold__________ X ______Inventory _________________________X D) Accounts Payable__________ X ______Inventory _______________________X

A) Purchases ____________________ X ______Accounts Payable __________X

What is the net price method?

All discounts should be taken; companies that believe discounts should be taken and record any discounts lost

Mixed Quiz Question: Which of the following is not one of the activities of the conversion process? A) Requisition raw materials B) Buy raw material C) Use labor and other manufacturing resources to create finished goods. D) Store the finished product until sold.

B) Buy raw material

Mixed Quiz Question: In a sales journal only one amount is recorded but that amount is posted by A) Debiting cost of goods sold and crediting inventory B) Debiting accounts receivable and crediting sales C) Debiting cash and crediting sales D) Debiting accounts receivable and crediting cash

B) Debiting accounts receivable and crediting sales

Mixed Quiz Question: The total of the accounts payable subsidiary ledger is equal to the balance in the accounts payable account in the general ledger: A) At all times. B) Only at the end of specified time periods. C) Never D) At random times during the year.

B) Only at the end of specified time periods.

Mixed Quiz Question: An accounts receivable subsidiary ledger would be associated with which of the following journals? A) Depreciation journal B) Sales journal C) Cash receipts journal D) Purchases journal

B) Sales journal

Mixed Quiz Question: The activity "handling materials" is part of the activity level:

Batch Related

Define Freight-In.

Buyer; FOB shipping point

Mixed Quiz Question: To identify the individuals and the amount they owe the company is the purpose of which of the following? A) Sales Journal B) Purchases Journal C) Accounts Receivable Subsidiary Ledger D) Accounts Payable Subsidiary Ledger

C) Accounts Receivable Subsidiary Ledger

Mixed Quiz Question: Which of the following entries reflects the use of a perpetual inventory system? A) Purchases ____________________ X ______Accounts Payable __________X B) Cost of Goods Purchased____ X ______Inventory ___________________________X C) Cost of Goods Sold __________ X ______Inventory ___________________________X D) Accounts Payable__________ X ______Inventory _______________________X

C) Cost of Goods Sold __________ X ______Inventory ___________________________X

Mixed Quiz Question: Peeves Party Supply purchased $4,000 of merchandise on account, terms 2/15, n/30. Assuming Peeves uses the net price method to account for purchase discounts, the journal entry to record the purchase would include a:

Credit to Accounts Payable for $3,920

Mixed Quiz Question: Markson & Pettyjohn (M&P) purchased $8,000 of merchandise on account for resale purposes. M&P plans to sell the merchandise for $14,000. If M&P returned $3,000 of merchandise for credit, the journal entry to record the return using the perpetual inventory system and the gross price method would include a:

Credit to Inventory for $3,000

Mixed Quiz Question: Which of the following entries is made when a discount is taken and the perpetual system uses the net method. A) Accounts Payable ______ Cash ______ Inventory B) Cost of Goods Sold ______ Purchase Discount C) Purchase Discount ______ Inventory D) Accounts Payable ______ Cash

D) Accounts Payable ______ Cash

Mixed Quiz Question: Which of the following is true about the purchase discount lost account? A) It is used with the gross method and the periodic system and the terms of the discount are not met. B) It is used when the net method is used with the perpetual system and the terms of the discount are met. C) It is used when the gross method is used with the periodic system and the terms of the discount are not met. D) It is used when the net method is applied to either the periodic or perpetual systems and the terms of the discount are not met.

D) It is used when the net method is applied to either the periodic or perpetual systems and the terms of the discount are not met.

Mixed Quiz Questions: Which of the following is not deducted from gross pay to determine net pay? A) FICA B) Federal Income Taxes C) Charitable Contributions D) Unemployment Taxes

D) Unemployment Taxes

Mixed Quiz Question: The journal entry to record the payment of the assembly line supervisor would include a:

Debit to Manufacturing Overhead

Mixed Quiz Question: The journal entry to record the purchase of indirect materials on account would include a:

Debit to Raw Materials Inventory

Mixed Quiz Question: The journal entry to record the requisition of raw materials for production would include a:

Debit to Work-in-Process Inventory

Mixed Quiz Question: The journal entry to record the application of manufacturing overhead to work-in- process inventory is:

Debit to Work-in-Process and Credit to Manufacturing Overhead

Define Periodic System.

Determines the balance in inventory and the cost of goods sold only at specific points in time, such as the end of the accounting cycle. It is used by companies that need to determine the balance in inventory and COGS only at a specific points in time

Mixed Quiz Question: Price Purification Systems gathered the following direct labor cost information for the month of April: Actual Direct Labor Hours: 67,300 Standard Direct Labor Hours Allowed for Actual Production: 65,500 Actual Direct Labor Rate per Hour: $11.05 Standard Direct Labor Rate per Hour: $11.75 The direct labor price variance is? The direct labor usage is?

Direct Labor Price Variance: $47,110 F Direct Labor Usage: $21,150 F

What is included in employer payroll taxes?

FICA, SUTA, FUTA

Mixed Quiz Question: When the amount of over-under applied manufacturing overhead is large, the Manufacturing Overhead account is generally closed out to:

Finished Goods Inventory, Work-in-Process Inventory, and Cost of Goods Sold

Mixed Quiz Question: The cost of the wages of assembly line supervisor is:

Indirect Labor

Why is the net method used more than the gross method?

It is more correct.

Mixed Quiz Question: The activity "testing products" is part of the activity level:

Product Sustaining

Define Perpetual System.

Records all inventory events in the inventory account. It is used by companies that want to keep a running balance of the cost of inventory available for sale and COGS (Cost of Goods Sold) during the period

Define Freight-Expense.

Seller; FOB destination

Describe Purchases of Inventory Using the Net Price Method.

The purchase of inventory is recorded at its discounted or net price under the net price method. The assumption is that all discounts should be taken and the cost of inventory is the minimum amount due to the supplier. This method highlights purchase discounts not taken.

Describe Purchases of Inventory Using the Gross Price Method.

The purchase of inventory is recorded at its full or gross price under the gross price method. The assumption is that discounts, when received, are reductions in the purchase price of the inventory.

When is expenses recognized?

The time cash is paid, before cash is paid, or after cash is paid.

What is the gross price method?

When discounts are received there are reductions in the purchase price of inventory; companies that assume discounts are a price reduction

Mixed Quiz Question: The gross method records the purchase discount when........

When it is taken