Chapter 4,5,6,7

tiger wood golf ball company's manufacturing costs for December are? if it manufactured 50,000 golf balls during the month of December, what is the cost (rounded) per golf ball?

$0.82

smart corporation is a manufacturer of smartphones. assume smart allocates manufacturing overhead based on machine hours. budgeted 5 million machines and $million of manufacturing overhead costs. actual machine hours of 6 million. actual total manufacturing overhead costs of $48 million. what it smart's predetermined manufacturing overhead rate?

$10.00/machine hour

assume 100 units were completed and transferred out during the period. the 40 units left in ending WIP are 20% complete with respect to the conversions costs. the total equivalent units for conversions cost would be

108 ; 40x20%=8+100 =108

what are the ending inventory equivalent units for material if 15,500 units are completed and transferred out and 4,200 remain in ending WIP at 35% complete?

1470 : 4200x35%

a company sells each unit of its product for $90. the final department showed the following costs per equivalent unit: $40 transferred in-, $21 direct materials, $13 conversions. What is the gross profit on each unit sold by the company?

16

there are 10,000 units in work in process inventory for the mixing department at the end of the month. the units were %60 complete for conversion costs. what are the equivalent units for conversion costs using the weighted average method?

6,000

Tiger Paw Energy Company is considering opening a plant in Clemson. It will cost $3,500,000 to set up the plant and $750,000 to train employees. An additional $100,000 will be spent to build relaitonships with the local suppliers. the company anticipates gross profit of $4,400,000 from this new plant. Do the befnits outweigh the costs or do the costs outweigh the benefits, and by how much?

benefits outweigh costs by $50,000

which of the following documents specifies the materials needed to produce a job?

bill of materials

period cost are often referred to as

both selling, general and administrative expenses and operating expenses

when selecting a manufacturing overhead allocation base, manager should select the:

cost driver of those manufacturing overhead costs

which of the following is the entry to record the sale of a job costing $5,000 to produce?

cost of good sold 5,000 work in process inventory 5,000

which of the following is the journal entry to record the closing of manufacturing overhead given the following facts?

cost of goods sold 200 manufacturing overhead 200

which of the following is included in the costs transferred out of the second process of a three-step production process?

costs of the previous process combined with the costs of the current process

which of the following would use process costing?

crayon manufacturer

which of the following is NOT a component of manufacturing overhead production of wine for a winery?

crushing labor

which of the following is integrated throughout a manager's primary responisbilty?

decision making

a cost that be traced to a cost object is known as a

direct cost

conversion costs consists of

direct labor + manufacturing overhead

prime costs consist of

direct material and direct labor

equivalent units are usually determined for

direct materials and conversions costs

the amount of manufacturing overhead recorded on a job cost record for a particular job is found by

either tracing or allocating manufacturing overhead costs (managements choice)

managerial accounting differs from financial accounting in that managerial accounting

emphasizes data relevance over objectivity

when a job is completed, the total cost of manufacturing the job should be moved to which of the following general ledger accounts?

finished goods inventory

which of the following companies would use a job costing system?

health care provider

the two basic types of product costing systems are

job and process

a manufactorer of luxury yachts would use which type of costing system?

job costing

the two basic types of costing systems are

job costing and process costing

Skills required of management accountants?

knowldge of both financial and managerial accoutning, knowldge of how business functions, oral and written communication skills

which of the following statements is true?

managerial accounting information is relevant

who are the company's decision makers?

managers

which of the following types of companies would carry raw material, work in process and finished good inventory?

manufactoring

when accounting for materials and labor, indirect labor is recorded in:

manufacturing overhead

Which of the following management responsibilites often involves the use of budget?

planning

which of the following are a managers three primary responsibilities?

planning, directing, controlling

a manafuctorer of plywood would use what type of product costing system?

process costing

the schedule used to summarize the entire five step process costing procedure is called a?

production cost report

The triple bottom line focuses on

profit, planet and people

in a ____ company, salaries and benefits make up over 70% of the total costs.

service

which type of company makes up the largest sector of the united states economy?

service companies

the value chain is used by

service, manufacturing, and merchandising business

who are the owners of the company?

shareholders

which of the following is not a variable cost for an apple plant in china that manufactures ipod?

straight line depreciation of warehouse building

the first step in completing the five step process costing procedures

summarize the flow's physical unit

principle not identified in the IMA's statement of ethical

teamwork

which of the following statements is true?

the board of directors is elected by stock holders

when accounting for raw materials and labor, materials used are recorded in:

work in process inventory

Which of the following professional standars requires management accountants to communicate information fairly and objectively?

Integrity

given the following July financial information for Klassic tool manufacturing company, what amount of cost of goods sold would be reported by klassic tool for the month of june?

$23,000

what were the conversions costs for the month?

$237,000 ; direct labor + manufacturing overhead

a marketing consultant uses the job costing system and has a pre-determined overhead rate of $15 per direct labor hour. this amount is based on an estimated overhead of $30,000 and an average time of 5.0 hours per job. Job #521 incurred direct material costs of $50 and 6 direct labor hours costing of 75$ per hour. the total cost of the job is

$590

using the same information as in question 10, assume that the beginning work in process inventory for the mixing department has $12,000 in conversion costs; and that $30,000 in conversions costs were added during the month, what is the cost per equivalent unit for conversion costs?

$7.00

the individual responsible for managing all of the financials aspects of the organization is

CFO

the Sarbanes-Oxley Act allows for a maximum of ___ years of imprisonment for knowingly destroying or creating documents to obstruct any federal investigation

20

Santiago cosmetics has 175 full time workers who work 8 hours per day. they have 130 part time workers who work 4 hours per day. what is the number of full time equivalent employees?

240 ; 130x4=520/8 = 65+175

blue bell ice cream has 3,200 quarts of ice cream in WIP inventory, with all materials already added. the ice cream is 75% through the process. assuming all conversions costs are added evenly throughout the process, what the equivalent units for conversions costs?

2400

which of the following is a direct cost in the production of wine for a winery?

Grapes

the number of equivalent units is compared as

the number of physical units x percentage of completion

which of the following corporate positions is responsible for raising capital and investing funds?

treasurer