ACC222 Final

During July, at Loeb Corporation, $83,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. The journal entry to record the requisition from the storeroom would include a: A) debit to Work in Process of $79,000 B) debit to Work in Process of $83,000 C) credit to Manufacturing Overhead of $4,000 D) debit to Raw Materials of $83,000

A

Gusler Corporation makes one product and has provided the following information: Budgeted sales, May 9,500 units Raw materials requirement per unit of output 2 pounds Raw materials cost $2 Direct labor requirement per unit of output 2.7 hours Direct labor wage rate $20.00 per hour Predetermined overhead rate (all variable) $10.00 per hour The estimated cost of goods sold for May is closest to: A) $807,500 B) $256,500 C) $646,000 D) $551,000

A

Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials $6,000 Direct labor $20,000 Rent on factory building $15,000 Sales salaries $25,000 Depreciation on factory equipment $8,000 Indirect labor $12,000 Production supervisor's salary $15,000 Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be: A) $2.50 per direct labor-hour B) $2.79 per direct labor-hour C) $3.00 per direct labor-hour D) $4.00 per direct labor-hour

A

Which of the following would be considered a cash inflow in the financing activities section of the statement of cash flows? A) Issuing bonds payable. B) Receiving cash from customers. C) Sale of equipment. D) Collection of a loan made to another company.

A

A company's current ratio is greater than 1. Purchasing raw materials on credit would: A) increase the current ratio. B) decrease the current ratio. C) increase working capital. D) decrease working capital.

B

A factory supervisor's wages are classified as: Indirect Labor Fixed Manufacturing Overhead A) No; No B) Yes; Yes C) Yes; No D) No; Yes

B

Accepting a special order will improve overall net operating income if the revenue from the special order exceeds: A) the contribution margin on the order. B) the incremental costs associated with the order. C) the variable costs associated with the order. D) the sunk costs associated with the order.

B

Depreciation on a personal computer used in the marketing department of a manufacturing company would be classified as: A) a product cost that is fixed with respect to the company's output B) a period cost that is fixed with respect to the company's output C) a product cost that is variable with respect to the company's output D) a period cost that is variable with respect to the company's output

B

Navern Corporation manufactures and sells custom home elevators. From the time an order is placed until the time the elevator is installed in the customer's home averages 90 days. This 90 days is spent as follows: Wait time 40 days Inspection time 2 days Process time 18 days Move time 20 days Queue time 10 days What is Navern's manufacturing cycle efficiency (MCE) for its elevators? A) 20.0% B) 36.0% C) 45.0% D) 64.0%

B

Norred Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $7.50 Direct labor $3.70 Variable manufacturing overhead $1.60 Fixed manufacturing overhead $121,500 Sales commissions $1.50 Variable administrative expense. $0.45 Fixed selling and administrative expense. $44,550 If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to: A) $120,800 B) $134,300 C) $12,800 D) $121,500

B

Petrus Framing's cost formula for its supplies cost is $2,300 per month plus $6 per frame. For the month of March, the company planned for activity of 861 frames, but the actual level of activity was 856 frames. The actual supplies cost for the month was $7,790. The activity variance for supplies cost in March would be closest to: A) $324 U B) $30 F C) $324 F D) $30 U

B

Which of the following approaches to preparing an income statement includes a calculation of the gross margin? Traditional Approach Contribution Format A) Yes; Yes B) Yes; No C) No; Yes D) No; No

B

Which of the following costs are always irrelevant in decision making? A) avoidable costs B) sunk costs C) opportunity costs D) fixed costs

B

Which one of the following items is not a management accounting function? A) Financial Management B) Marketing C) Cost Accounting D) Auditing

B

27. If a company increases its selling price by $2 per unit due to an increase in its variable labor cost of $2 per unit, the break-even point in units will: A) decrease. B) increase. C) not change. D) change but direction cannot be determined.

C

A cost incurred in the past that is not relevant to any current decision is classified as a(n): A) period cost. B) opportunity cost. C) sunk cost. D) differential cost.

C

Costs that can be eliminated in whole or in part if a particular business segment is discontinued are called: A) sunk costs. B) opportunity costs. C) avoidable costs. D) irrelevant costs.

C

Direct costs: A) are incurred to benefit a particular accounting period B) are incurred due to a specific decision C) Can be easily traced to a particular cost object D) Are the variable costs of producing a product

C

Management accountant would not be concerned with: A) Preparing plans and forecasts for the future activities of the business B) Focus on the segments of organization C) Must to follow IFRS reporting formats and principles D) Prepare the reports for the internal users (internal stakeholders of the organization)

C

Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Hours Wait time 28.0 Process time 1.0 Inspection time 0.4 Move time 3.2 Queue time 5.1 The delivery cycle time was: A) 8.3 hours B) 3.2 hours C) 37.7 hours D) 36.3 hours

C

A joint product is: A) any product which consists of several parts. B) any product produced by a company with more than one product line. C) any product involved in a make or buy decision. D) one of several products produced from a common input.

D

Corvi Corporation produces and sells one product. The budgeted selling price per unit is $126. Budgeted unit sales are shown below: July August September October Budgeted unit sales 7,300 11,500 14,200 12,100 All sales are on credit with 40% collected in the month of the sale and 60% in the following month. The expected cash collections for August is closest to: A) $551,880 B) $579,600 C) $919,800 D) $1,131,480

D

J Corporation has two divisions. Division A has a contribution margin of $79,300 and Division B has a contribution margin of $126,200. If total traceable fixed expenses are $72,400 and total common fixed expenses are $34,900, what is J Corporation's net operating income?A) $168,000 B) $170,600 C) $133,100 D) $98,200

D

Mullee Corporation produces a single product and has the following cost structure: Number of units produced each year 7,000 Variable costs per unit: Direct materials $51 Direct labor $12 Variable manufacturing overhead $2 Variable selling and administrative expense $5 Fixed costs per year: Fixed manufacturing overhead. $441,000 Fixed selling and administrative expense $112,000 The absorption costing unit product cost is: A) $149 per unit B) $65 per unit C) $63 per unit D) $128 per unit

D

Weyant Corporation has provided the following data concerning last month's operations. Direct materials $18,000 Direct labor $58,000 Manufacturing overhead applied to Work in Process $75,000 Overapplied overhead $6,000 Beginning Ending Raw materials inventory $13,000. $19,000 Work in process inventory. $64,000. $74,000 Finished goods inventory. $32,000. $40,000 The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold? A. $141,000 B. $133,000 C. $173,000 D. $127,000

D

Which one may not be considered as the type of managerial accounting report? A) Budget and Performance Reports B) Cost Reports C) Inventory and Manufacturing Reports D) Cash Flow Statement

D