Which of the following items represents a differencebetween financial and managerial accounting?A. Users of informationB. Flexibility of practiceC. Timeliness and time dimension of information reportedD. Nature of informationE. All of these


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Costs that are incurred as part of the manufacturing processbut are not clearly associated with specific units of productor batches of production, including all manufacturing costsother than direct material and direct labor costs, arecalled:A. Administrative expensesB. Nonmanufacturing costsC. Sunk costsD. Factory overheadE. Preproduction costs
A fixed costA. Requires the future outlay of cash and is relevant forfuture decision making.B. Does not change with changes in the volume of activitywithin the relevant range.C. Is directly traceable to a cost object.D. Changes with changes in the volume of activity within therelevant range.E. Has already been incurred and cannot be avoided so it isirrelevant for decision making.
The three major cost components of a manufactured productareA. Marketing, selling and administrative costs.B. Indirect labor, indirect materials, and miscellaneousfactory expenses.C. Direct materials, direct labor, and factory overhead.D. Differential costs, opportunity costs, and sunk costs.E. General, selling and administrative costs.
Period costs for a manufacturing company would flowdirectly to:A. The current income statementB. Factory overheadC. The current balance sheetD. Job cost sheetE. The current manufacturing statement
A job order cost accounting system would best fit the needsof a company that makes:A. Shoes and apparelB. PaintC. CementD. Custom machineryE. Pencils and erasers
Canoe Company"s manufacturing accounting system usesdirect labor hours to apply overhead to goods in process andfinished goods inventories. Canoe Company"s manufacturingcosts for the year were: direct labor, $300,000; directmaterials, $50,000; and factory overhead applied, $60,000.They incurred 30,000 direct labor hours and 10,000 indirectlabor hours during the year. The overhead application ratewas:A. $5.00B. $1.50C. $2.00D. $500.00E. $16.70MOHA = OH Rate * Actual Activity$60,000 = OH Rate * 30,000 DLHOH Rate = $60,000 / 30,000 DLHOH Rate = $2 per DLH
If overhead applied is less than actual overhead, it is:A. Fully appliedB. UnderappliedC. OverappliedD. ExpectedE. Normal
The overhead cost applied to a job during a period isrecorded with a credit to Factory Overhead and a debit to:A. Job Overhead ExpenseB. Cost of Goods SoldC. Finished Goods InventoryD. Indirect LaborE. Work in Process Inventory
The Work in Process Inventory for AB Corp follows:debits creditsBeginning Balance 4,500Direct Materials 47,100Direct Labor 29,600 To finished goods:Manf Overhead applied 15,800 ???Ending balance 8,900The cost of units transferred to Finished Goods isA. $97,000B. $105,900C. $88,100D. $95,200E. $92,5004500+47100+29600+15800-8900 = 88100
The following data have been recorded for recentlycompleted Job 674 on its job cost sheet. Direct Materialscost was $2,039. A total of 32 DLHs and 175 MHs wereworked on the job. The direct labor wage rate is $14 perlabor hour. The company applied overhead on the basis ofmachine hours. The predetermined overhead rate is $15 permachine hour. The total cost of the job on its job cost sheetisA. $2,967B. $2,487C. $2,068D. $5,112Total Job Cost = DM + DL + MOH=$2039 + (32 DLH $14 per DLH) + ($15 per MH
175 MHs)=$5112
For which situation(s) below would an organization be morelikely to use a process costing system of rather than a joborder costing system?A. A plant that produces the "radials" in radial tires.B. A shop that restores old cars to showroom quality.C. A framing shop that takes custom orders.D. A design company that designs custom outdoor kitchens
The Milling Department started the month with 35,000 units inits beginning work in process inventory. An additional 472,000units were transferred in from the prior department during themonth to begin processing in the Milling Department. Therewere 34,000 units in the ending work in process inventory of theMilling Department. How many units were transferred to thenext processing department during the month?A. 507,000B. 473,000C. 471,000D. 541,000Units C&T/O = Units in Beg WIP + Units Started -Units in End WIPUnits C&T/O = 35,000 + 472,000 - 34,000 =473,000
For the current period, PencilCo started 15,000 units andcompleted 10,000 units, leaving 5,000 units in process 30percent complete. How many equivalent units ofproduction did PencilCo have for the period?A. 10,000B. 11,500C. 1,500D. 15,00010,000 units + (5,000 units × .30)= 11,500 equivalent units
Dean Corp uses the weighted-average method in its process costing system.Department 1, the first process, started the month with 19,000 units in itsbeginning work in process inventory that were 30% complete with respect toconversion costs. The conversion cost in this beginning work in process inventorywas $44,890. An additional 89,000 units were started into production during themonth and 84,000 units were completed in Department 1 and transferred toDepartment 2. There were 24,000 units in the ending work in process inventoryof Department 1 that were 15% complete with respect to conversion costs. Atotal of $678,800 in conversion costs were incurred in the department during themonth.What is the cost per equivalent unit for conversion costs for the month?A. $8.261B. $6.257C. $8.449D. $7.627Step 2:Total EUs: End WIP (2400015%) + C&T/O (84000
100%)= 3600 EU + 84000 EU = 87,600 Total EusStep 3:Total CC Costs = $44,890 Beg WIP + $678,800 Added = $723,690Cost per EU = $723,690 Total Costs / 87,600 Total EusCost per EU -= $8.261 per EU
Trapp Corporation uses the weighted-average method in its process costingsystem. The beginning work in process inventory in its Painting Departmentconsisted of 3,500 units that were 70% complete with respect to materials and60% complete with respect to conversion costs. The cost of the beginning workin process inventory in the department was recorded as $20,000. During theperiod, 11,500 units were completed and transferred on to the nextdepartment. The costs per equivalent unit for the period were $3.3 for materialand $4.1 for conversion costs. The cost of units transferred out during themonth was:A. $73,715B. $66,240C. $86,400D. $85,10011,500 EU C&T/O * $3.30 / EU = $37,950 DM C&T/O+11,500 EU C&T/O * $4.10 / EU = $47,150 CC C&T/OTotal Cost C&T/O = $37,950+$47,150 = $85,100
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Fundamentals of Corporate Finance11th EditionBradford D. Jordan, Randolph W. Westerfield, Stephen A. Ross
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Managerial Accounting Midterm 1
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