Accounting II Final

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

Finished goods

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

Finished goods

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

Glue

A plant manager's salary is a(n)

Indirect cost

Factory overhead includes

Indirect labor and indirect materials

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

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

Machine hours

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

Managerial accounting

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

Managers

Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777. Journalizing the entry for the flow of labor costs into production.

Work in Process 28,000 Wages Payable 28,000

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

Work in process

Which of the following is part of factory overhead cost?

depreciation of factory equipment and machines

Which of the following costs are conversion costs?

direct labor cost and factory overhead cost

Prime costs are

direct materials and direct labor

Conversion costs are

factory overhead and direct labor

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

fixed

The three most common cost behavior classifications are

fixed costs, variable costs, and mixed costs

Contribution margin is

the excess of sales revenue over variable cost

Cavy Company estimates that total factory overhead costs will be $660,000 for the year. The company has decided that the basis for applying factory overhead should be direct labor hours, which are estimated to be 100,000 hours. A. Compute the predetermined factory overhead rate B. Determine the amount of factory overhead applied the Job 345 if the amount of direct labor hours is 560 and to Job 777 if the amount of direct labor hours is 800.

A. $6.60 B. Job 345: $3,696 and Job 777: $5,280

Understanding how costs behave is useful to management for

All of the choices

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

All of the choices

Cavy Company estimates that total factory overhead costs will be $660,000 for the year. The company has decided that the basis for applying factory overhead should be direct labor hours, which are estimated to be 100,000 hours. C. Journalize the entry for the factory overhead applied if Jobs 345 and 777 are the only jobs for the period.

C. Work in Process $8,976 Factory Overhead $8,976

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

Conversion cost

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

Cost Volume Profit

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

Cost of assembly worker wages

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

Cost of interior upholstery

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

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

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

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

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

Direct materials, direct labor, and factory overhead

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

Evaluation

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

Factory heating and lighting cost

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

Factory overhead

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

Factory overhead cost

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

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. A total of 1,000 units were produced at a per-unit cost of

$12.40

Jase Company allocates factory overhead based on a predetermined overhead rate of $9 per direct labor hour. Job 1904 required 8 tons of direct materials at a cost of $600 per ton and took employees who earn $21 per hour a total of 80 hours to complete. What is the total cost of Job J904?

$7,200

If fixed costs are $1,200,000, the unit selling price is $240, and the unit variable costs are $110, the amount of sales in units (rounded to the nearest whole unit) required to realize an operating income of $200,000 is

10,769 units

O'Boyle Co.'s fixed costs are $256,000, the unit selling price is $36, and the unit variable costs are $20, the break-even sales (units) is

16,000 units

If fixed costs are $400,000 and the unit contribution margin is $20, the amount of units that must be sold in order to have a zero profit is

20,000 units

When Isaiah Company has fixed costs of $120,000 and the contribution margin is $30, the break-even point is

4,000 units

If fixed costs are $250,000, the unit selling price is $125, and the unit variable costs are $73, the break-even sales units is

4,808 units

Bryce Co. sales are $914,000, variable costs are $498,130, and operating income is $196,000. What is the contribution margin ratio?

45.5%

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

Materials requisition

The source document for the data for debiting Work in Process for direct materials is a

Materials requisition

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

Mixed cost

Managerial accounting reports are

Prepared according to management needs

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

Prepared in accordance with GAAP

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

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

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

Receiving report

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

Strategic planning

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

Strategic planning and control

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 a significant portion of the total product cost

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

Time record

In job order costing, on which of the following would labor costs be initially recorded?

Time records

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

Variable costs and fixed costs