Test 1 multiple choice

job-order costing traces costs to jobs while process costing traces costs to departments and averages the costs among the units worked on during the period

which of the following describes the difference between job-order and process costing?

sales commissions

which of the following is not a commonly used measure of activity for allocating overhead?

raw materials inventory, work in process inventory, finished goods inventory, cost of goods sold

which of the following lists presents the accounts in the order in which product costs flow

the preferred alternative will have profits that are greater than the profits of the other alternatives

which of the following statements regarding incremental analysis is true? assume that there are no opportunity costs and that the capacity exists to complete any of the alternatives

the number of equivalent units for transferred in costs in ending work in process inventory is the same as the number of physical units transferred in present in the ending work in process inventory.

which of the following statements regarding transferred in costs is true?

the actual amount of overhead is not determined until yearend and the company desires timely cost information

why is overhead applied using a predetermined overhead rate?

provides a reconciliation of units and a reconciliation of costs as well as the details of the cost per equivalent unit calculation

a production cost report

incurred in the past that is not relevant for future decisions

a sunk cost is a cost that

indirect labor is traced to jobs using time tickets

which of the following about job-order costing is not true?

health insurance for sales staff

which of the following costs is not part of manufacturing overhead

Planning, control and decision making

The goal of managerial accounting is to provide information that managers need for

Managerial accounting uses monetary and nonmonetary information whereas financial accounting reports monetary information

Which of the following is a difference between financial accounting and managerial accounting?

are often assumed to be added evenly throughout the process within a department

conversion costs

$3250 underapplied

during 2017, anhover wedding planners applied overhead using a job-order costing system at a rate of $3.25 per direct labor hour. estimated direct labor hours totaled 220000 and estimated overhead was $715000 for the year. actual direct labor hours for 2017 totaled 215000 and actual overhead was $702000. what is the amount of under or overapplied overhead as of the end of 2017?

$20000 profit

hanover binding plans to produce 40000 books next year at a total cost of $1640000 with a selling price per book of $66. the fixed costs total $280000. management is considering lowering the price to $60 per book and feels that this action will cause sales to climb to 50000 books. what is the amount of incremental profit if 50000 books are sold?

$376000

hanover fence produces custom wrought iron fencing. at the end of 2017, the account balances indicted the following. hanover considers the balance of manufacturing overhead to be immaterial. how much will hanover fence report as cost of goods sold on its income statement for the year ending December 31, 2017?

$18

hanover glassware produces crystal serve ware and uses process costing. at the start of May 2300 units were in process. during May 11000 units were completed and 2000 units were in process at the end of May. the units in process at the end of May were 80% complete with respect to material and 30% complete with respect to conversion costs. Other information is as follows. how much is the cost per equivalent unit for direct materials during May?

$150775

heinz bottling company produces various glass and plastic containers and uses a process costing system. the following information relates to production in the formulating department during January for the company's 2 quart size glass jars. direct materials are added at the beginning of the formulating process and conversion costs are incurred uniformly throughout production. how much is the total cost accounted for during January for the forming department?

$0.10

hurricane wings has budgeted the following costs for a month in which 24000 wings will be cooked and sold. Each wing sells for $0.80 each. what is the budgeted fixed cost per unit?

noncontrollable costs

on which of the following costs should managers not be evaluated?

$135000

ink technology's work in process inventory account has a beginning balance of $50000 and an ending balance of $40000. direct materials used are $70000 and direct labor incurred totals $35000. cost of goods sold totals $135000. manufacturing overhead applied is $20000. how much is cost of goods manufactured?

$179950

savannah factory applies manufacturing overhead based on direct labor cost. information concerning manufacturing overhead and labor for August follows. how much overhead should be applied in total for August?

$252000

the manufacturing operations of Saltic enterprises had the following balances for the month of March: if Saltic calculated cost of goods sold to be $249000 in March, how much did it transfer out of work in process as completed goods?

equivalent units

when partially completed units are converted to a comparable number of completed units, they are referred to as

process costing unit costs should not be considered as they comprise of both product costs and period costs

when performing incremental analysis