Chapter 15 & 16 Test

What is the cost of goods manufactured?

$68,730

Which of the following positions would have a salary or wage that is classified as a factory overhead cost to buy a baking company?

Factory supervisor

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

Factory, overhead, direct, labor, and direct materials

Conversion costs consist of product costs and period costs.

False

Generally excepted accounting principles require companies to use only one factory overhead rate for product costing.

False

Job order costing can be used only for companies that manufacture a product.

False

Which of the following would be determined using managerial accounting reports?

Manufacturing cost of each item produced

The document authorizing the issuance of materials from the store room is a

Materials requisition

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

Paper mill

Which of the following is a product cost that is included in direct materials?

Plastic parts

What is the cost of goods manufactured?

$122,000

When job 117 was completed, direct materials totaled $22,512; direct labor, $31,517; and factory overhead, $21,011. A total of 1876 units were produced at a per-unit cost of

$40

Which of the following is false with regard to direct materials for a bakery? A. Flour and sugar would probably be direct materials. B. Paper cupcake liners, that become part of the product, must be accounted for as direct materials. C. Eggs would probably be a direct material. D. Oil to lubricate factory machines would be an indirect material.

B. Paper cupcake liners, that become part of the product, must be accounted for as direct materials.

A cake factory would classify which of the following as both a prime cost and conversion cost? A. Depreciation on oven B. Wages of the baker C. Sprinkles for the topping (considered an indirect material) D. Frosting

B. Wages of the baker

Which of the following is the correct formula of determining cost of goods manufactured?

Beginning work in process inventory + total manufacturing costs - ending work in process inventory

Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry for the materials purchased on account is

D.

On the income statement of a manufacturing company, which of the following replaces purchases "Cost of good" section of a retail company? A. Finish goods B. Cost of merchandise available C. Work in process D. Cost of goods manufactured

D. Cost of goods manufactured

Which of the following are basic functions on the management process? A. Decision making and supervising B. Supervising and directing C. Organizing and directing D. Strategic planning and control

D. Strategic planning and control

Which of the following would be classified as a factory overhead cost to buy a baking company?

Depreciation of factory equipment

Managerial accounting information uses

historical and estimated data

How much of the U.S. economic activity as measured by gross domestic product is represented by services?

nearly 80%

The materials requisition is used to

release materials from the storeroom to the factory

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

Factory overhead is applied based on direct labor hours, the amount of overhead to be applied is

$172,500

Product costs are:

$35,000

Super sleep hotel is a single hotel with 130 rooms. During the month of September, the hotel had 3510 guests, who each state a single night. What is the occupancy rate for September?

90%

The cost of a manufactured product generally consist of what costs?

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

Another term for factory overhead is

Factory burden

Which of the following would be omitted from the "Current assets" section of the balance sheet?

Factory overhead

Costs other than direct materials, cost indirect labor, cost incurred in the manufacturing process are classified as

Factory overhead cost

The cost of materials used in production is determined using

Materials purchased

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

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

Which of the following is a period cost?

Salary of telephone receptionist in the sales office

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

debit balance and be underapplied

Which of the following statements regarding the differences between managerial accounting applications for manufacturing in service companies is true?

Service companies do not have a work in process inventory or a finished goods inventory.

A report analyzing the dollar savings of purchasing new equipment to speed of the production process is a managerial accounting report.

True

Activity - based costing is a method of accumulating in a locating factory overhead cost for each type of factory overhead activity.

True

Direct labor costs are included in the conversion costs of a product.

True

In a job order costing system for a service business, materials cost per normally included as part of overhead.

True

Indirect labor and indirect materials would be part of factory overhead.

True

Managerial accounting reports are designed to meet the specific needs of a company's management.

True

Super sleep hotel is a single hotel with 170 rooms. During the month of September, the hotel had 4845 guests, who each stayed a single night. What is the occupancy rate for September?

95%

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

A.

Which of the following is a direct cost for Bartel Corporation, a producer of bar stools for restaurants? A. Wages for the bar stool assemblers B. Glue used in the assembly of the bar stools C. Lubricants used on the bar stool manufacturing equipment D. Factory supervisor's salary

A. Wages for the bar stool assemblers

Which of the following is a prime cost? A. Wood used in furniture production B. Property tax on factory building C. Insurance on factory equipment D. Salaries of production supervisors

A. Wood used in furniture production

The costs of materials and labor that do not enter directly into the finished product or classified as cost of goods sold

False

Which of the following would be missing in the accounting system of a service provider?

Finished goods ledger

Manufacturers use machinery in labor to convert direct materials into finished products.

True

Non-manufacturing costs are generally classified into two categories: selling and administrative

True

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

True

The debit to factory overhead, for the cost of indirect materials is obtained from the summary of the materials requisitions.

True

The measure that captures the use of a fixed asset in serving customers, relative to the asset's capacity is known as the _______ rate.

Utilization