Acc 202 Appendix B- Ch 18

Which of the following formulas represent cost of goods sold for a merchandising business

Beginning merchandise inventory+ purchases and freight in-ending merchandise inventory= cost of goods sold

Which of the following is not part of manufacturing overhead for producing a computer

Depreciation on delivery trucks

Which of the following statements is true of the flow of the product and period costs for a manufacturer

The cost of the finished goods that the manufacturer sells becomes its Cost of goods sold on the income statement

Underallocated overhead occurs when

allocated overhead costs are less than actual overhead costs

Which of the following is NOT a way in which managers use the production cost reports to make decisions for their companies

controlling period costs

Every transaction recorded in the cash payments journal includes a

credit to cash

Today's business environment is characterized by

global competition, time-based competition, and a shift towards a service economy

A control account____

has a balance that equals the sum of the balances in a group of related accounts in a subsidiary ledger

Both job order and process costing

have the same type of product costs

A management accountant who avoids conflicts of interest meets the ethical standard of

integrity

In a perpetual inventory system, when the cash sales are recorded,

merchandise inventory decreases and cost of goods sold increases

Which of the following best describes the term equivalent units

partially completed units expressed in terms of fully completed units

in a process costing system

seperate work in process inventory accounts are maintained for each process or department

The assembly department of interface inc, manufacturer of computers, had 4500 units of beginning inventory in September, and 8000 units were transferred to it from the production department. The assembly department completed 4000 units during the month and transferred them to the packaging department. The weighted average method is used. Calculate the total number of units to account for by the assembly department.

12500

Which of the following best describes a job cost record

A document that shows direct materials, direct labor and manufacturing overhead costs for an individual job

What is Total Quality Management (TQM)?

A philosophy of supplying customers with superior products and services

Which of the following statements is true of costing systems

An accounting firm would likely use a job order costing system

Which of the following correctly describes the posting of transactions from the sales journal

At the end of the month, the totals of the columns are posted to the general ledger

Which of the following is a direct cost of manufacturing a sport boat

Cost of boat engine

Duran Manufacturing uses a process costing system and manufactures its in three departments. Which of the following is NOT a way in which Duran can use the cost per unit of each process

Duran can only use the cost per unit of each process if all units are fully completed at the end of the accounting period

Samson inc. reported the following information for the year Service Revenue 60000 Operating Expenses 21000 Net income 39000 Number of services provided 10500 How much was the unit cost per service

Expenses/services= C)$2.00

A manufacturing company completed work on a job. The cost of the job is transferred into _____ with a _____.

Finished goods inventory; debit

Which of the following is true of outputs in an accounting information system

In a manual system, reports and financial statements can be created using Word documents, Excel spreadsheets, or powerpoint

Centex sound systems purchased merchandise inventory costing $8,000 from Flower Co. on account. Where should Centex record this transaction, and what account is credited

Purchases Journal; credit accounts payable

WHich of the following is a benefit of using a computerized accounting information system

The software automatically transfers the amounts from the general ledger to the financial statements

The journal entry to record direct labor costs actually incurred involves a debit to the

Work in progress inventory account

When a manufacturing company uses indirect materials, it accumulates the cost by debiting manufacturing overhead

debiting manufacturing overhead

When using a manual accounting information system, which of the following transactions would be recorded in the general journal

depreciation of office furniture

Which of the following is a prime cost and a conversion cost

direct labor

Mountain Day Spa sold merchandise inventory on credit, terms n/30, to Marvin Smith, $400. Cost of goods sold was $250. When using a manual accounting information system, where should mountain record this transaction, and what is the appropriate column in which to record the $250

sales journal; cost of goods sold Dr, Merchandise Inventory Cr

Equivalent units of production are calculated because

some units in ending work in progress are incomplete at the end of the period

Which of the following is true of source documents in an accounting information system

source documents provide control and reliability in an accounting information system

The predetermined overhead allocation rate is calculated by dividing

the estimated overhead costs by total estimated quantity of the overhead allocation base

A characteristic of products that are produced in a series of steps or processes is that

they are homogeneous and made in large quantities

Quince, Inc. uses a process costing system. It prepares a production cost report for each processing department. How will the managers of Quince use these production cost reports to prepare the balance sheet at the end of an accounting period

to determine the balance of inventory account