🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
HomeStudy Guides420,000US230,000

ACC 132 Study Guide - Quiz Guide: Management Accounting, Direct Labor Cost, Financial Statement

43 views4 pages
violettiger345
17 Oct 2018
School
ISU
Department
Accounting
Course
ACC 132
Professor
Thomas Charles

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

A variable cost is a cost that remains constant in total throughout wide ranges of activity. Although financial and managerial accounting differs in many ways, they are similar in that they both rely on the same underlying financial data. Committed fixed costs cannot be reduced to zero without seriously impairing the company"s long term goals. Depreciation on equipment a company uses in its selling and administrative activities would be classified as a product cost. Depreciation on office equipment would not be included in the cost of goods manufactured. Estimated total units in base / estimated total manufacturing costs false. Gaap is mandatory for financial accounting, but not be included in the cost of goods manufactured. If a company closes and under- or over-applied overhead to the cost of goods sold account, the cost of goods. Sold will be credited if manufacturing overhead is over-applied for the period.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers

Related Documents

ACC 132
Final Exam
Study Guide
ACC 132 Study Guide - Quiz Guide: Sunk Costs, Gross Margin, Income Statement
violettiger345
ACC 132
Final Exam
Study Guide
ACC 132 Study Guide - Midterm Guide: Budget, Standard Cost Accounting, Kilogram
violettiger345
ACCT 2101
Final Exam
Study Guide
ACCT 2101 : ACCT 2101 Test 1 Study Guide
azuremammoth471

Related Questions

1.) When products held in inventory are sold:

A.)Cost of Goods Sold is credited.

B.)Work in Process Inventory is credited.

C.)Finished Goods Inventory is credited.

D.)Finished Goods Inventory is debited.

2.)Since manufacturing costs (direct materials, direct labor,and overhead) are incurred in the process of manufacturing units ofproduct, these costs are credited t

A.) The Direct Materials Inventory, Direct Labor, and ManufacturingOverhead accounts respectively.
B.) Liability accounts.
C.) The Work in Process Inventory account.
D.) The Cost of Goods Sold account.

3.)Management accounting systems are designed to assistorganizations in the performance of all of the following functionsexcept:

A.) The assignment of decision-making authority over companyassets.
B.) Planning and decision-making.
C.) Monitoring, evaluating, and rewarding performance.
D.) The preparation of income tax returns.

4.)In a schedule of cost of finished goods manufactured, thefigure for total manufacturing costs:

A.) May be less than the cost of direct materials used.
B.) May be less than the direct labor costs assigned toproduction.
C.) May be less than the manufacturing overhead applied toproduction.
D.) May be less than the cost of finished goodsmanufactured.

5.) When a manufacturing company purchases raw materials orcomponent parts to be used in manufacturing finished goods, thesecosts are initially debited to:

A.) Expense accounts.
B.) Raw Materials Inventory.
C.) Finished Goods Inventory.
D.) Manufacturing Overhead.

6.) The wages paid to employees working directly on a company'sproducts would be shown as a:

A.) Credit to Direct Labor.
B.) Debit to Direct Labor.
C.) Credit to Work in Process.
D.) Debit to Manufacturing Overhead.

7.) Amounts credited to the Work in Process inventory accountmay best be described as:

A.) The cost of finished goods manufactured.
B.) Total manufacturing costs charged to production.
C.) The cost of goods sold.
D.) Direct materials purchased, direct labor costs paid, andpayments for items classified as manufacturing overhead.

The Pacific Manufacturing Company operates a job-ordercosting system and applies overhead cost to jobs on the basis ofdirect labor cost. Its predetermined overhead rate was based on acost formula that estimated $113,100 of manufacturing overhead foran estimated allocation base of $87,000 direct labor dollars. Thecompany has provided the following data:

Inventories Beginning Ending

Raw materials $ 27,000 $ 10,000

Work in process $ 49,000 $ 36,000

Finished goods $ 74,000 $ 55,000

The following actual costs were incurred during theyear:

Purchase of raw materials (all direct) $ 131,000

Direct labor cost $ 83,000

Actual manufacturing overhead costs:

Insurance, factory $ 8,700

Depreciation of equipment $ 18,000

Indirect labor $ 27,200

Property taxes $ 8,700

Maintenance $ 15,000

Rent, building $ 34,000

________________________________________

Compute the predetermined overhead rate for theyear.

Predetermined overhead rate %

Compute the amount of underapplied or overapplied overheadfor the year. (Input the amount as a positive value.)

overhead $

Prepare a schedule of cost of goods manufactured for theyear. Assume all raw materials are used in production as directmaterials. (Input all amounts as positive values.)

Pacific Manufacturing Company

Schedule of Cost of Goods Manufactured

Direct materials:

$

Total raw materials available

Raw materials used in production $

Total manufacturing cost

Cost of goods manufactured $

Compute the unadjusted cost of goods sold for the year. (Donot include any underapplied or overapplied overhead in your costof goods sold figure.

Unadjusted cost of goods sold $

Job 137 was started and completed during the year. What pricewould have been charged to the customer if the job required $3,600in materials and $4,000 in direct labor cost, and the companypriced its jobs at 50% above the job%u2019s cost according to theaccounting system?

Price to customer $


Direct labor made up $8,500 of the $36,000 ending Work inProcess inventory balance. Supply the information missingbelow:

Direct materials $

Direct labor 8,500

Manufacturing overhead

Work in process inventory $ 36,000


**how to compute price to customer?

Weatherguard manufactures mailboxes. The following datarepresent transactions and balances for December 2016, thecompany's first month of operations.

Purchased direct material on account $248,000

Issued direct material to production 186,000

Accrued direct labor to payroll 134,000

Paid factory rent 3,600

Accrued factory utilities 16,200

Recorded factory equipment depreciation 15,800

Paid supervisor salary 6,400

Ending work in process inventory (6,000 units) 35,000

Ending finished goods inventory (3,000 units) ?

Sales on account ($24 per unit) 648,000

Requirements:

a. How many units were sold in December? How many units werecompleted in December?

b. What was the total cost of goods manufactured inDecember?

c. What was the per-unit cost of goods manufactured inDecember?

d. Prepare the journal entries to record the flow of costs forDecember. Weatherguard uses a perpetual inventory system and asingle Manufacturing Overhead Control account. Assume that actualoverhead is included in WIP inventory.