Exam 1 Accounting

If Cloudy Comfort Company's cost of goods manufactured for 2012 amounted to $1,190,000, its cost of goods sold for the year is

$1,150,000

Addison Manufacturing Company manufactures two products, Regular and Supreme. Addison's overhead costs cost of machining, $2,000,000; and assembling, $1,000,000. Information on the two products is:

$1,200,000

Cloudy Comfort's total manufacturing costs incurred in 2012 amounted to

$1,330,000

For Addison Manufacturing...Overhead applied to Supreme using traditional costing using direct labor hours is

$1,800,000

In Crawford Company, the predetermined overhead rate is 80% of direct labor cost. Duringthe month, Crawfor incurs $210,000 of factory labor costs, of which $180,000 is direct labor and $30,000 is indirect labor. Actual overhead incurred was $200,000. The amount of overhead debited to Work in Process Inventory should be:

$144,000

For Sitwell Corporation: using activity-based costing, how much assembly cost is assigned to titanium racquets

$15,000

For Addison Manufacturing Overhead applied to Supreme using activity-based costing is

$2,140,000

For Sitwell Corporation: Using activity based costing, how much inspections cost is assigned to titanium racquets?

$35,000

Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell's total overhead costs consist of assembly costs and inspection costs. The following information is available: Sitwell is considering switching from one overhead rate based on labor hours to activity-based costing. Total overhead costs assigned to titanium racquets, using a single overhead rate, are

$42,000

Grape Industries has the following labor costs:

$444,000

Cloudy Comfort Company's accounting records reflect the following inventories: The total raw materials available for use during 2012 for Cloudy Comfort is

$660,000

Red Vanilla, Inc. reported the following year- end information: beginning work in process inventory, $180,000; cost of goods manufactured, $$716,000; beginning finished goods inventory, $252,000; ending work in process inventory, $222,000; ending finished goods inventory, $264,000. Red Vanilla, Inc.'s cost of goods sold for the year is

$704,000

For Addison Manufacturing Overhead applied to Regular using activity- based costing is

$860,000

Costs of Goods manufactured during a period is obtained by taking the total manufacturing cots incurred during the period and adding and subtracting the following inventories

Adding Beginning work in process inventory and Subtracting Ending work in process inventory (D)

Cost of Goods sold is equal to

Cost of goods manufactured plus beginning finished goods less ending finished goods

What is work in process inventory generally described as?

Costs applicable to units that have been started in production but are only partially completed

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is

Finished Goods Inventory Work in Process Inventory

Which one of the following best describes a job cost sheet

It is a form used to record the cots chargeable to a specific job and to determine the total and unit costs of the completed job

The entry to record the acquisition of raw materials on account is

Raw Materials Inventory Accounts Payable

Which one of the following should be equal to the balance of the Work in Process Inventory account at the end of the period?

The sum of the costs shown on the job cost sheets of unfinished jobs

A materials requisition slip showed that direct materials requested were $58,000 and indirect materials requested are $9,000. The entry to record the transfer of matelas from the storeroom is

Work in Process Inventory Manufacturing Overhead Raw Materials Inventory

The last step in activity-based costing is to

assign overhead costs to products, using overhead rates determined for each cost pool.

An example of a value- added activity in a manufacturing operation is

engineering design

Benefits of activity-based costing include all of the following except

fewer cost pools used to assign overhead costs to products

Machine hours would be an accurate cost driver for

machining costs

At the end of the year, a company has a $1,200 debit balance in Manufacturing Overhead. The company:

makes an adjusting entry by debiting Cost of Goods Sold for $1,200 and crediting Manufacturing Overhead for $1,200

Cost of raw materials is debited to Raw Materials Inventory when the

materials are received

The level of ABC activities performed in support of an entire product line are classified as

product- level activities

All of the following would be entries in assigning accumulated costs to the Work In Process inventory except:

the purchase of raw materials

Inventory accounts for a manufacturer consist of

work in process, direct labor, and manufacturing overhead