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
