1. ABC generally causes the least amount of cost distortionamong products because indirect costs are allocated to the productsbased on
types of activities used by theproduct. the extent to which the activitiesare used. both A and B. none of the above.
2.
Chicago Steel's operating activities for the year are listedbelow:
Beginning inventory $1,000,800
Ending inventory $350,500
Purchases $750,300
Sales revenue $1,500,400
Operating expenses $700,200
What is the cost of goods sold for the year?
$1,751,100 $1,400,600 $750,100 $50,100
3.
The following is selected financial data from Turtle BayManufacturing for the most recent year:
Ending raw materials inventory $21,200
Ending work in process inventory $44,900
Ending finished goods inventory $53,200
Amount of underallocated manufacturing overhead $5,100
Cost of goods sold for year $85,500
Cost of raw materials purchased during year $45,700
Cost of direct materials requisitioned during year $44,300
Cost of indirect materials requisitioned during year $7,200
Cost of goods completed during year $120,200
Manufacturing overhead allocated $60,400
Manufacturing overhead % of direct labor cost 135%
What is the beginning raw materials inventory?
$27,000 $51,500 $19,800 $5,800
4. Which of the following is not an activity inan ABC system that determines the cost of a manufacturedproduct?
Materials handling Inspecting Machining Accounting
5. Which type of company utilizes managerialaccounting?
Manufacturers Service Retailers All of the above
6. On a traditional income statement, all manufacturing-relatedcosts, whether fixed or variable, are listed
above the gross profit line. below the operating incomeline. above the sales line. above the contribution margin line.
7. In a process costing system, direct labor and manufacturingoverhead are normally
incurred evenly throughout theprocess. incurred at the end of theprocess. incurred in full at the beginningof the process. not recorded.
8. Manufacturing overhead costs for a productinclude
operating expenses. indirect manufacturing costs. direct material. prime costs.
9.
Here are selected basic data for Wilson Company:
Estimated manufacturing overhead $243,750
Factory utilities $30,900
Estimated labor hours 35,000
Indirect labor $22,600
Actual direct labor hours 36,000
Sales commissions $54,600
Estimated direct labor cost $325,000
Factory rent $47,800
Actual direct labor cost $320,000
Factory property taxes $28,700
Factory depreciation $65,600
Indirect materials $33,300
If the company allocates overhead based on direct labor cost,what are the total actual manufacturing overhead costs?
$173,000 $283,500 $228,900 $260,900
10. ERP stands for
Enterprise Resource Planning. Enclosed Resource Placement. Edwin R. Perry, the man thatcreated the first system. Entity Replacement Product.
1. ABC generally causes the least amount of cost distortionamong products because indirect costs are allocated to the productsbased on
| types of activities used by theproduct. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| the extent to which the activitiesare used. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| both A and B. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| none of the above. 2. Chicago Steel's operating activities for the year are listedbelow:
What is the cost of goods sold for the year?
|
Related questions
| Data P3-3: | ||||||
| FROYA FABRIKKER A/S | ||||||
| Beginning estimates: | The company uses a job-order costing | |||||
| Manufacturing overhead cost | $360,000 | system and applies overhead cost to | ||||
| Direct labor hours | 900 | jobs on the basis of direct labor-hours. | ||||
| Transactions: | ||||||
| Raw materials purchased | $200,000 | |||||
| Raw materials requisitioned | $185,000 | |||||
| Utility bills | $70,000 | |||||
| For factoryoperations | 90% | |||||
| For sales andadministrative activities | 10% | |||||
| Costs for salaries and wages: | ||||||
| Direct labor (975 hours) | $230,000 | |||||
| Indirect labor | $90,000 | |||||
| Selling and admin salaries | $110,000 | |||||
| Maintenance costs | $54,000 | |||||
| Advertising costs | $136,000 | |||||
| Depreciation | $95,000 | |||||
| For factoryequipment | 80% | |||||
| For sales andadministrative equipment | 20% | |||||
| Rental costs | $120,000 | |||||
| Space for factoryoperations | 85% | |||||
| Space for sales &administration | 15% | |||||
| Manufacturing overhead cost applied | ||||||
| to jobs | ? | |||||
| Cost of goods manufactured | $770,000 | |||||
| Sales on account | $1,200,000 | |||||
| Cost of goods sold | $800,000 | According to job cost sheets. | ||||
| Inventory balances: | ||||||
| Raw materials | $30,000 | |||||
| Work in process | $21,000 | |||||
| Finished goods | $60,000 | |||||
| Job 412: | ||||||
| Direct Materials | $8,000 | |||||
| Direct labor hours | 39 | |||||
| Total direct labor cost | $9,200 | |||||
| Units | 4 | |||||
| % billed above cost | 60% | |||||
| Required: | ||||||
| 1. Prepare journal entries torecord the preceding data (transactions). | ||||||
| 2. Post your entries toT-accounts. Determine the ending balances in the | ||||||
| inventoryaccounts and in the Manufacturing Overhead account. | ||||||
| 3. Prepare a schedule of costof goods manufactured. | ||||||
| 4. Prepare a journal entry toclose any balance in the Manufacturing Overhead | ||||||
| account to cost ofgoods sold. | ||||||
| 5. Prepare an income statementfor the year. | ||||||
| 6. Job 412 was one of the manyjobs started and completed during the year. | ||||||
| The jobrequired $8,000 indirect materials and 39 hours of direct labortime at | ||||||
| a totalcost of $9,200. The job contained only four units. If the companybills at | ||||||
| a price 60%above the unit product cost on the job cost sheet, what price perunit | ||||||
| would havebeen charged to the customer? | ||||||
