Reference no: EM132458669

Accounting Questions -

Q1. Would a chemical company use job costing or process costing? What about a building contractor?

A. Chemical company-process costing; building contractor-process costing

B. Chemical company-job order costing; building contractor-job order costing

C. Chemical company-process costing; building contractor-job order costing

D. Chemical company-job order costing; building contractor-process costing

Q2. When a manufacturing company uses direct labor, it assigns the cost by crediting

A. Raw Materials Inventory.

B. Wages Payable.

C. Work-in-Process Inventory.

D. Manufacturing Overhead.

Q3. When a manufacturing company uses indirect labor, it assigns the cost by debiting

A. Work-in-Process Inventory.

B. Indirect Materials.

C. Raw Materials Inventory.

D. Manufacturing Overhead.

Q4. After a manufacturing company completes a job the sells the product to a customer, it accounts for the cost of the job by crediting

A. Work-in-Process Inventory.

B. Manufacturing Overhead.

C. Direct Labor.

D. Finished Goods Inventory.

Q5. When a manufacturing company under-allocates manufacturing overhead, it adjusts the account balances by

A. debiting Manufacturing Overhead.

B. debiting Work-in-Process Inventory.

C. crediting Manufacturing Overhead.

D. crediting Cost Of Goods Sold.

Q6. At the beginning of the year, Vuncor, Inc., determined that estimated overhead costs would be $600,000, while actual overhead cost for the year totaled $650,000. Furthermore, it was determined that the estimated allocation basis would be 60,000 direct labor hours, while direct laborers actually worked 62,000 hours. What was the dollar amount of under-allocated or over-allocated manufacturing overhead?

A. $50,000 under-allocated

B. $30,000 under-allocated

C. $30,000 over-allocated

D. $20,000 over-allocated

Q7. Which of the following is NOT a step for tracking product costs?

A. Amortize

B. Assign

C. Adjust

D. Accumulate

Q8. FooRah Company is a consulting firm that uses a job order costing system. The firm expects to have $120,000 in indirect costs and $80,000 in direct labor costs. The cost of direct labor is $40 per hour. What is the predetermined overhead allocation rate for FooRah?

A. $30 per direct labor hour

B. $40 per direct labor hour

C. $60 per direct labor hour

D. $100 per direct labor hour

Q9. Xell Corp is a sign company that uses a job order costing system. The firm expects to have $48,000 in indirect costs and $72,000 in direct labor costs. The cost of direct labor is $60 per hour. At the end of the period, overhead was over-allocated by $35,000. What was Xell's actual manufacturing overhead cost if work completed during the period required 3,800 direct labor hours?

A. $117,000

B. $187,000

C. $345,000

D. $415,000

Q10. BoSun Manufacturing uses a job order costing system. During last period, direct labor costs totaled $150,000, based on $50 per hour, and actual overhead costs for the period totaled $212,000. The inventory value of completed product transferred out of Finished Goods Inventory was $432,000. If the predetermined overhead allocation rate for last period was $44 per direct labor hour and all Finished Goods Inventory was sold, what was the amount of Cost of Goods Sold reported on the income statement for last period?

A. $794,000

B. $644,000

C. $512,000

D. $424,000

Q11. Which type of company is most likely to use a process costing system?

A. Construction company

B. Accounting firm

C. Chemical producer

D. Automobile repair

Q12. The Assembly Department completed work on 8,000 units, at a cost of $20 per unit, and 7,000 of these units were sold for $50 each. What is the journal entry to record the transfer of production from the Assembly Department?

Date	Accounts and Explanations	Debit	Credit
A.	Finished Product	160,000
	Assembly Department		160,000
B.	Assembly Department	160,000
	Finished Product		160,000
C.	Cost of Goods Sold	140,000
	Assembly Department		140,000
D.	Assembly Department	140,000
	Cost of Goods Sold		140,000

Q13. "Units to account for" includes

A. units completed and transferred out.

B. units started in production.

C. units in ending work-in-process.

D. All of the above are included in "units to account for."

Q14. The manager of Gilbert Company used the production cost report to help identify production tasks that might be done with more skilled, and therefore more efficient, workers. This is an example of using the reports to

A. prepare financial statements.

B. control costs.

C. identify profitable products.

D. evaluate performance.

Q15. Morto Company uses the weighted-average method in its process costing system, in which all materials are added at the beginning of the process, and conversion costs are incurred uniformly. The Finishing Department started the month with 250 units in process that were 30% complete, received 3,700 units from the Assembly Department, and had 400 units in process at the end of the period, 80% complete with respect to conversion costs. How many units were completed and transferred out?

A. 3,455 units

B. 3,775 units

C. 3,550 units

D. 3,900 units

Q16. BoChem Company uses the weighted-average method in its process costing system, in which all materials are added at the beginning of the process, and conversion costs are incurred uniformly. The Assembly Department started the month with 500 units in process that were 70% complete, transferred 2,500 units to Finished Goods Inventory, and had 150 units in process at the end of the period, 40% complete. For conversion costs, the total equivalent units of production are

A. 2,150 units

B. 2,560 units

C. 2,650 units

D. 2,850 units

Q17. To compute equivalent units of production, one must be able to reasonably estimate

A. physical units started.

B. physical units started and completed.

C. equivalent cost of production.

D. the percentage of completion.

Q18. PC Company uses the weighted-average method in its process costing system, in which all materials are added at the beginning of the process, and conversion costs are incurred uniformly. The Painting Department started the month with 800 units in process that were 40% complete, transferred 2,500 units to Finished Goods Inventory, and had 500 units in process at the end of the period, 70% complete. The amount of direct materials cost in beginning inventory was $16,320, and the amount of direct materials cost added this period totaled $121,440. What is the direct material cost per equivalent unit? (Round to the nearest cent.)

A. $45.92 per equivalent unit

B. $48.00 per equivalent unit

C. $48.34 per equivalent unit

D. $55.20 per equivalent unit

Q19. Pokmun Company uses the weighted-average method in its process costing system, in which all materials are added at the beginning of the process, and conversion costs are incurred uniformly. The Molding Department started the month with 1,000 units in process that were 70% complete, started 6,600 new units during the period, and had 600 units in process at the end of the period that were 20% complete. It was determined that beginning inventory cost per equivalent unit (EU) was $50/EU and that ending inventory cost per equivalent unit was $48/EU. What is the total dollar value of goods transferred out of the Molding Department?

A. $316,800

B. $336,000

C. $343,000

D. $350,000

Q20. The Blue Corporation started and completed 4,800 units during February. Blue began the month with 700 units in process (40% complete); these units were also completed during February. The company ended the month with 400 units in process (80% complete); these units were started but not completed during the month. How many units were transferred to Finished Goods Inventory during February?

A. 4,760

B. 5,100

C. 5,460

D. 5,500

Q21. Computing product costs in traditional and activity-based costing systems - Erickson Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2016:

Activity	Allocation Base	Predetermined Overhead Allocation Rate
Materials handling	Number of parts	$3.00 per part
Machine setup	Number of setups	600.00 per setup
Insertion of parts	Number of parts	27.00 per part
Finishing	Number of finishing hours	80.00 per hour

Erickson produces two wheel rim models: standard and deluxe. Expected data for 2016 are as follows:

	Standard	Deluxe
Parts per rim	2.0	9.0
Setups per 500 rims	14.0	14.0
Finishing hours per rim	2.0	2.5
Total direct hours per rim	3.0	5.0

The company expects to produce 500 units of each model during the year.

Required -

1. Compute the total estimated indirect manufacturing cost for 2016.

2. Compute the estimated ABC indirect manufacturing cost per unit of each model. Carry each cost to the nearest cent.

3. Prior to 2016, Erickson used a direct labor hour single plant-wide overhead allocation rate system. Compute the predetermined overhead allocation rate based on direct labor hours for 2016. Use this rate to determine the estimated indirect manufacturing cost per wheel rim for each model, to the nearest cent.