ACC 202 Exam 1

If one unit of Product Z2 used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?

$1.60

The following information related to the manufacturing operations of the Abbra Publishing Company for the year: Raw Material Inventory, Jan 1: $547,000 Raw Material Inventory, Dec 32: $610,000 The raw material used in manufacturing during the year totaled $1,018,000. Raw material purchased during the year amount to:

1,081,000

Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. Its prime costs total:

10,000,000

Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Calculate the equivalent units of conversion

130,250

Romeo Corporation has accumulated the following accounting data for the year: Finished Goods Inventory Jan 1: $3200 Finished Goods Inventory Dec 31: $4000 Total Cost of Goods Sold: $14200 The cost of goods manufactured for the year is:

15,000

Kayak Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Kayak Company's production costs for the year were: direct labor, $30,000; direct materials, $50,000; and factory overhead applied $6,000. The overhead application rate was:

20%

Richards Corporation uses the weighted average method of process costing. The following information is available for October in its Fabricating Department: Calculate the cost per equivalent unit of conversion

3.00

Metaline Corp uses the weighed average method for inventory costs and had the following information available for the year. The number of units transferred to finished goods during the year is

3000

Metaline Corp uses the weighed average method for inventory costs and had the following information available for the year. Calculate the equivalent units of production for the year:

3320

Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Calculate the cost per equivalent units of conversion

4.60

Use the following data to compute total factory overhead costs for the month: Corporate office salaries: $42,500 Depreciation - factory equipment: $7,500 Depreciation - office equipment: $5,000 Direct labor: $39,600 Direct materials: $40,500 Factory manager salaries: $7,200 Factory supplies: $9,000 Indirect labor: $6,300 Indirect materials: $15,200 Sales commissions: $10,800

45,200

Using the information below for Singing Dolls, Inc., determine the cost of goods manufactured for the year: Work In Process, Jan 1: $50,000 Work In Process, Dec 31: $37,000 Total Factory Overhead: $5,500 Direct Materials Used: $12,500 Direct Labor Used: $26,500

57,500

A company's overhead rate is 200% of direct labor costs. Determine the cost of direct materials used.

65,000

systems and processes used to reduce risk to an organization

Enterprise Risk Management

Marshall Enterprises charged the following amounts of overhead to jobs during the year: $20,000 to jobs still in process, $60,000 to jobs completed but not sold, and $120,000 to jobs finished and sold. At year-end, Marshall Enterprise's factory overhead account has a credit balance of $5,000, which is not a material amount. What entry should Marshall make at year-end?

Factory overhead $5000 Cost of Goods Sold $5000

Juarez Builders incurred $285,000 of labor costs for construction jobs completed during the month of August, of which $212,000 was direct and $73,000 was indirect supervisory costs. The correct journal entry to record the direct labor for the month is:

Factory overhead $73,000 Factory wages payable $73,000

account that acts a subsidiary ledger in which the costs of finished goods that are ready for sale are recorded

Finished Goods Inventory

International standards for quality management and quality assurance

ISO 900 Standards

account that records the cost of partially completed services

Services in Process Inventory

account that records the overhead cost of providing services

Services overhead

nonprofit entity which creates sustainability accounting standards for use by companies

Sustainability Accounting Standards Board

account in which costs are accumulated for goods that are in the middle of being produced but are not yet complete

Work in Process Inventory

explicit consideration of the demand of stakeholders other than shareholders and creditors in the company decisions

corporate social responsibility

deals with manufacturing activities using the perpetual inventory system

cost accounting system

cost that does not change with changes in the volume of activity

fixed cost

production of a customized product or service

job

separate record for each job

job cost sheet

production of more than one unit of a customized product or service

job lot

accounting system used to determine the cost of producing each job or job lot

job order costing system

production of special-order products, aka customized production

job order production

practice of eliminating waste while meeting customer needs and yielding positive company returns

lean business model

source document that managers use to order materials for production, used to assign material costs to specific jobs or overhead

material requisition

A perpetual record updated each time materials are purchased or issued for production use

materials ledger card

predetermined overhead rate exceeds the actual overhead incurred in the period

overapplied overhead

rate established prior to the beginning of the period that relates estimated overhead to another variable, usually direct labor, and is used to assign overhead cost to production

predetermined overhead rate

tied to a finished product and includes direct material and direct labor costsd

prime costs

Report of costs charged to a department, its equivalent units of production achieved and the costs assigned to its output

process cost summary

processing of products in a continuous flow of steps

process operations

costs that are capitalized as inventory because they are provide expected benefits, includes direct materials, direct labor, and overhead

product costs

form used to show that ordered goods have arrived and to describe their quantity and condition

receiving report

report that summarizes the types and amounts of costs incurred in a company's production process for a period

schedule of cost of goods manufactured

maximum allowable cost for a product or service, selling price - desired profit

target cost

reports the time an employee spends working on a job or on overhead activities, which determines how much to charge to direct labor or overhead

time ticket

concept calling at all stages of operations to strive toward higher standards and reduce the number of defects

total quality management

reporting on an organization's performance on social, environmental, and financial factors

triple bottom line

amount by which the overhead incurred in a period exceeds the amount applied using the predetermined overhead rate

underapplied overhead

sequential activities that increase the worth of a product or service: design, marketing, distribution, etc.

value chain

cost that changes in proportion to activity output volume

variable cost