ACCT Exam 1

which one of the following is NOT a direct material? -a tire used for a lawn mower -plastic used in the covered case for a home PC -steel used in the manufacturing of a steel-radial tires -lubricant for a ball-bearing joint for a large crane

-lubricant for a ball-bearing joint for a large crane

In the month of june, a department had 20,000 units in BWIP that were 70% complete. during June, 90,000 units were transferred into production from another department. at the end of june there were 10,000 units in ending work in process that were 40% complete. materials added are at the beginning of the process, while conversion costs are incurred uniformly throughout the process. how many units were transferred out of the process in June? -90,000 -80,000 -100,000 -110,000

100,000 compute!

20,000 units in a process that are 70% complete are referred to as: -20,000 equivalent units of production -6,000 equivalent units of production -14,000 equivalent units of production -6,000 equivalent units of production

14,000 equivalent units of production

Barr Mfg. provided the following information from its accounting records for 2017: Expected production: 60,000 labor hours Actual Production: 56,000 labor hours Budgeted Overhead: $900,000 Actual overhead: $870,000 how much is the overhead application rate if Barr bases the rate on direct labor hours? -16.07 -15.00 -14.50 -15.54

15.00 compute!

at the beginning of the year, Monroe Company estimates annual overhead costs to be 2,400,000 and that 300,000 machine hours will be operated. using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is -2,400,000 -2,285,714 -1,680,000 -2,520,000

2,520,000 compute it!

Minor company had the following department data: WIP, July 1: 30,000 physical units Completed and transferred out: 165,000 physical units WIP, July 31: 45,000 physical units materials are added at the beginning of the process. what is the total number of equivalent units for materials in july? -165,000 -180,000 -240,000 -210,000

210,000 compute!

Gantner Company had the following department information about physical units and percentage of completion: WIP May 1 (60%): 60,000 Comp & Transf out: 180,000 WIP, May 31 (40%): 50,000 if materials are added at the beginning of the production process, what is the total number of equivalent units for materials during may? -240,000 -230,000 -224,000 -200,000

230,000

Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. ***look at screenshot on desktop*** If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is. -$1.20 per direct labor hours -$240 per order -$0.12 per part $6,834 per order

240 compute

Redman Company manufactures customized desks. The following pertains to Job No. 978: DM Used $15,450 DL hr Worked 360 DL rate per hour $15.00 Machine Hrs used 300 Applied Factory overhead rate per machine hour 22.00 what is the total manufacturing cost for Job No. 978? -25,650 -27,450 -28,950 -30,750

27,450 compute it!!!

Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead consists of machining, $3,000,000 and assembling, $150,000. Information on the two products is: **look at screenshot*** Overhead applied to Supreme using activity-based costing is -$1,290,000 -$1,800,000 -$2,700,000 -$3,210,000

3,210,000 compute

Reynoso Coporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead costs consist of assembly costs and inspection costs. The following information is Avalilable: ***look at desktop screenshot*** Using activity based costing, how much inspection cost is assigned to titanium racquets? -30,000 -47,500 -50,000 -70,000

70,000 compute

The following information is available for completed Job No. 402: DM, $120,000; DL, $180,000; manufacturing overhead applied, $90,000; units produced, 5,000 units; units sold, 4,000 units. The cost of the finished goods on hand from this job is: -$60,000 -$390,000 -$78,000 -$312,000

78,000 compute it!!!

a department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. for the month of january, there were not units in the beginning work in process inventory; 90,000 units were started into production in january; and there were 20,000 units that were 40% complete in the ending of work in process inventory at the end of january. what are the equivalent units of production for conversion costs for the month of January? -70,000 -82,000 -78,000 -90,000

78,000 compute!!!

Sportly. Inc completed job no B14 during 2017. The job cost sheet listed the following: DM - $110,000 DL - $60,000 MOVH - $40,000 Units produced - 3000 units Units sold - 1,800 units how much is the cost of finished goods on hand from this job? - 210,000 -126,000 -84,000 -102,000

84,000 compute!!!

Corsi Company had the following department data: BWIP: 0 phys units Comp & Trans Out: 90,000 phys units EWIP: 7,000 phys units materials are added at the beginning of the process. what is the total number of equiv units for materials during the period? -90,000 -9,000 -97,000 -83,000

97,000 compute!

manufacturing costs include -direct materials and direct labor only -direct materials and manufacturing overhead only -direct labor and manufacturing overhead only -direct materials, direct labor, and manufacturing overhead

DM, DL, and MOVH

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is? -Finished goods inventory direct materials direct labor M OVH -WIP inventory DM DL M OVH -Raw Materials Inventory WIP Inventory -Finished Goods Inventory WIP Inventory

Finished Goods Inventory WIP Inventory

The entry to record the acquisition of raw materials on account is -WIP Inventory A/P -M OVH Raw materials inventory accounts payable -Accounts Payable Raw materials inventory -Raw Materials Inventory A/P

Raw Materials Inventory A/P

both direct materials and indirect materials are a) raw materials b)manufacturing c) merchandise inventory d) sold directly to customers by a manufacturing company

a) raw materials

which of the following manufacturing cost elements occurs in a process cost system? -direct materials -direct labor -movh -all of these

all of these

The last step in activity-based costing is to a) assign overhead costs to products, using overhead rates determined for each cost pool b) compute the activity-based overhead rate per cost driver c) identify and classify the activities involved in the manufacture of specific products, and allocate overhead to cost pools d) identify the cost driver that has a strong correlation to the activity cost pool

assign overhead costs to products, using overhead rates determined for each cost pool

a manufacturing company calculates cost goods sold as follows: -beginning FG inventory + COGP - ending FG inventory -ending FG inventory - cost of goods manufactured + beginning FG inventory -beginning FG inventory - cost of goods manufactured-ending FG inventory -beginning FG inventory + cost of goods manufactured-ending FG inventory

beginning FG inventory + COGM - ending FG inventory

which one of the following is NOT a manufacturing cost category? -cost of goods sold -direct materials -direct labor -manufacturing overhead

cost of goods sold

the work of factory employees that can be physically and directly associated with converting raw materials into finished goods is manufacturing overhead indirect materials indirect labor direct labor

direct labor

which of the following would NOT be classified as manufacturing overhead -direct labor -indirect materials -insurance on factory building -indirect materials

direct labor

the wages of a timekeeper in the factory would be classified as -a period cost -direct labor -indirect labor -compliance costs

indirect labor

a manufacturing process requires small amounts of glue. the glue used in the production process is classified as a(n) -period cost -indirect material -direct material -miscellaneous expense

indirect material

Which one of the following best describes a job cost sheet? -it is a form used to record the cost chargeable to a specific job and to determine the total and unit costs of the completed job -it is used to track manufacturing overhead costs to specific jobs -it is used by management to understand how direct costs affect profitability -it is a daily form that management uses for tracking worker productivity on which employe raises are based

it is a form used to record the cost chargeable to a specific job and to determine the total and unit costs of the completed job

as current technology changes manufacturing processes, it is likely that direct -labor will increase -labor will decrease -materials will increase -materials will decrease

labor will decrease

which one of the following is NOT a cost element in a manufacturing product? -manufacturing overhead -direct materials -office salaries -direct labor

office salaries

which one of the following is not considered as material costs? -partially completed motor engines for a motorcycle plant -bolts used in manufacturing the compressor of an engine -rivets for the wings of a new commercial jet aircraft -lumber used to build tables

partially completed motor engines for a motorcycle plant

for the work of factory employees to be considered as direct labor, the work must be conveniently and -materially associated with raw materials conversion -periodically associated with raw materials conversion -physically associated with raw materials conversion -promptly associated with raw materials conversion

physically associated with raw materials conversion

which one of the following is NOT classified as direct labor? -bottlers of beer in a brewery -copy machine operators at a copy shop -wages of supervisors -bakers in a bakery

wages of supervisors