Filters
Question type
Study Flashcards

Partridge, Inc. incurred the following costs during March: Manufacturing overhead is applied on the basis of $8.50 per direct labor hour. Assume that overapplied or underapplied overhead is transferred to cost of goods sold only at the end of the year. During the month, 3,500 units of product were manufactured and 3,400 units of product were sold. On March 1 and March 31, Partridge carried the following inventory balances: Partridge, Inc. incurred the following costs during March: Manufacturing overhead is applied on the basis of $8.50 per direct labor hour. Assume that overapplied or underapplied overhead is transferred to cost of goods sold only at the end of the year. During the month, 3,500 units of product were manufactured and 3,400 units of product were sold. On March 1 and March 31, Partridge carried the following inventory balances: (a.) Prepare a Statement of Cost of Goods Manufactured for the month of March, and calculate the average cost per unit produced.(b.) Calculate the cost of goods sold during March.(c.) Where in the financial statements will the difference between cost of goods manufactured and cost of goods sold be classified? (a.) Prepare a Statement of Cost of Goods Manufactured for the month of March, and calculate the average cost per unit produced.(b.) Calculate the cost of goods sold during March.(c.) Where in the financial statements will the difference between cost of goods manufactured and cost of goods sold be classified? Partridge, Inc. incurred the following costs during March: Manufacturing overhead is applied on the basis of $8.50 per direct labor hour. Assume that overapplied or underapplied overhead is transferred to cost of goods sold only at the end of the year. During the month, 3,500 units of product were manufactured and 3,400 units of product were sold. On March 1 and March 31, Partridge carried the following inventory balances: (a.) Prepare a Statement of Cost of Goods Manufactured for the month of March, and calculate the average cost per unit produced.(b.) Calculate the cost of goods sold during March.(c.) Where in the financial statements will the difference between cost of goods manufactured and cost of goods sold be classified?

Correct Answer

verifed

verified

, the finished goods account w...

View Answer

The shift in the amount of manufacturing overhead costs applied to the mix of products produced that occurs when using a single cost driver rate as compared to using activity-based costing rates is known as:


A) underapplied overhead.
B) overapplied overhead.
C) cost absorption.
D) cost distortion.

E) B) and C)
F) A) and C)

Correct Answer

verifed

verified

Which of the following items would not be reported on the statement of cost of goods manufactured?


A) beginning work in process inventory.
B) purchases of raw materials.
C) total manufacturing costs.
D) contribution margin.

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

Which of the following is a true statement regarding absorption and/or direct costing?


A) A firm can choose to use either absorption or direct costing for income tax purposes.
B) A firm can choose to use either absorption or direct costing for financial reporting purposes.
C) Direct costing assigns only direct materials and direct labor to products.
D) Absorption costing includes fixed overhead in product costs whereas direct costing does not.

E) C) and D)
F) B) and C)

Correct Answer

verifed

verified

An example of a cost likely to have an indirect relationship with products being manufactured is:


A) production labor costs.
B) raw material costs.
C) electricity costs for packaging equipment.
D) none of the above.

E) All of the above
F) B) and D)

Correct Answer

verifed

verified

Direct costs pertain to costs that:


A) are traceable to a cost object.
B) are not traceable to a cost object.
C) are commonly incurred.
D) are variable costs.

E) C) and D)
F) All of the above

Correct Answer

verifed

verified

Indirect costs pertain to costs that:


A) are traceable to a cost object.
B) are not traceable to a cost object.
C) are commonly incurred.
D) are variable costs.

E) B) and C)
F) All of the above

Correct Answer

verifed

verified

The three components of product costs are:


A) direct material, supervisor salaries, selling expenses.
B) direct labor, manufacturing overhead, indirect material.
C) direct material, direct labor, manufacturing overhead.
D) manufacturing overhead, indirect material, indirect labor.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Cost accounting is a subset of:


A) financial accounting.
B) process cost accounting.
C) job order cost accounting.
D) managerial accounting.

E) C) and D)
F) B) and C)

Correct Answer

verifed

verified

Baja Industries has recently switched its method of applying manufacturing overhead from a single predetermined overhead rate based on direct labor hours to activity-based costing (ABC). Assume that the direct labor rate is $18.00 per hour and that there were no beginning inventories. The following cost drivers and rates have been developed for allocating manufacturing overhead costs: The following production, costs, and activities occurred during the month of August: Baja Industries has recently switched its method of applying manufacturing overhead from a single predetermined overhead rate based on direct labor hours to activity-based costing (ABC). Assume that the direct labor rate is $18.00 per hour and that there were no beginning inventories. The following cost drivers and rates have been developed for allocating manufacturing overhead costs: The following production, costs, and activities occurred during the month of August: (a.) Calculate the total manufacturing cost and the cost per unit for the month of August.(b.) Assume instead that Baja Industries applies manufacturing overhead on the basis of $40.00 per direct labor hours (rather than the ABC method). Calculate the total manufacturing overhead cost applied for the month of August.(c.) Which method of applying overhead do you think provides better information for manufacturing managers? (a.) Calculate the total manufacturing cost and the cost per unit for the month of August.(b.) Assume instead that Baja Industries applies manufacturing overhead on the basis of $40.00 per direct labor hours (rather than the ABC method). Calculate the total manufacturing overhead cost applied for the month of August.(c.) Which method of applying overhead do you think provides better information for manufacturing managers? Baja Industries has recently switched its method of applying manufacturing overhead from a single predetermined overhead rate based on direct labor hours to activity-based costing (ABC). Assume that the direct labor rate is $18.00 per hour and that there were no beginning inventories. The following cost drivers and rates have been developed for allocating manufacturing overhead costs: The following production, costs, and activities occurred during the month of August: (a.) Calculate the total manufacturing cost and the cost per unit for the month of August.(b.) Assume instead that Baja Industries applies manufacturing overhead on the basis of $40.00 per direct labor hours (rather than the ABC method). Calculate the total manufacturing overhead cost applied for the month of August.(c.) Which method of applying overhead do you think provides better information for manufacturing managers?

Correct Answer

verifed

verified

For the partial value chain functions given below, which sequence is correct?


A) design, production, marketing.
B) marketing, production, distribution.
C) research and development, production, distribution.
D) customer service, marketing, distribution.

E) A) and C)
F) B) and C)

Correct Answer

verifed

verified

Total manufacturing costs for the month on the statement of costs of goods manufactured equals:


A) variable costs + fixed costs + mixed costs.
B) work in process inventory - finished goods inventory.
C) cost of goods sold - cost of goods manufactured.
D) cost of raw material used + direct labor cost incurred + manufacturing overhead applied.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

The following are beginning and ending inventories of ABC Company for the month of May: Raw materials purchased during the month of May totaled $185,900. Direct labor costs incurred totaled $468,300 for the month. Actual and applied manufacturing overhead costs for May totaled $282,600 and $288,400, respectively. Over/underapplied overhead is written off to cost of goods sold at the end of the year in December.(a) Calculate the cost of goods manufactured for May.(b) Calculate the cost of goods sold for May. The following are beginning and ending inventories of ABC Company for the month of May: Raw materials purchased during the month of May totaled $185,900. Direct labor costs incurred totaled $468,300 for the month. Actual and applied manufacturing overhead costs for May totaled $282,600 and $288,400, respectively. Over/underapplied overhead is written off to cost of goods sold at the end of the year in December.(a) Calculate the cost of goods manufactured for May.(b) Calculate the cost of goods sold for May.

Correct Answer

verifed

verified

In the T-account cost flow diagram of balance sheet inventory accounts and the income statement cost of goods sold account:


A) raw materials purchases are debited to work in process.
B) direct labor costs are credited to work in process.
C) cost of goods manufactured is debited to finished goods inventory.
D) cost of goods sold is debited to finished goods inventory.

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

Envision Company uses activity-based costing (ABC) for allocating manufacturing overhead costs to jobs and it has established the following cost drivers and rates: During July, Job #2005 produced 1,500 units and required the following activity: 1,800 parts, 2 production runs, and 325 direct labor hours.(a.) Calculate the amount of manufacturing overhead applied to Job #2005.(b.) Explain the advantage of using the ABC approach. Envision Company uses activity-based costing (ABC) for allocating manufacturing overhead costs to jobs and it has established the following cost drivers and rates: During July, Job #2005 produced 1,500 units and required the following activity: 1,800 parts, 2 production runs, and 325 direct labor hours.(a.) Calculate the amount of manufacturing overhead applied to Job #2005.(b.) Explain the advantage of using the ABC approach.

Correct Answer

verifed

verified

In order to achieve higher quality cost information from the assignment of overhead costs to products manufactured, the use of a predetermined overhead rate is being replaced by:


A) absorption costing.
B) job order costing.
C) activity-based costing.
D) process costing.

E) All of the above
F) B) and C)

Correct Answer

verifed

verified

An organization's value chain refers to:


A) the process of using cost information to manage the activities of the organization.
B) the sequence of functions and related activities that add value for the customer.
C) the process of collecting and recording valuable information in the accounting information system.
D) None of the above.

E) All of the above
F) A) and D)

Correct Answer

verifed

verified

Webster World Products uses the following account titles: A. Accounts payable F. Depreciation expense B. Raw materials inventory G. Accumulated depreciation C. Work in process inventory H. Wages and salaries payable D.Manufacturing overhead E. Cost of goods sold J. Finished goods inventory For each transaction described below, indicate which accounts would be debited and credited under a job order cost system: Webster World Products uses the following account titles: A. Accounts payable F. Depreciation expense B. Raw materials inventory G. Accumulated depreciation C. Work in process inventory H. Wages and salaries payable D.Manufacturing overhead E. Cost of goods sold J. Finished goods inventory For each transaction described below, indicate which accounts would be debited and credited under a job order cost system:

Correct Answer

verifed

verified

Which of the following is NOT an account that over/under applied overhead is transferred to at the end of an accounting period?


A) Cost of Goods Sold.
B) Work-in-Process.
C) Raw Materials.
D) Finished Goods.

E) All of the above
F) C) and D)

Correct Answer

verifed

verified

The term "cost" means:


A) the price paid for a raw material.
B) the wage paid to a worker.
C) the price charged by an entity for its services.
D) all of the above.

E) None of the above
F) C) and D)

Correct Answer

verifed

verified

Showing 21 - 40 of 62

Related Exams

Exam 1

Accounting-Present and Past

21 Questions

Exam 2

Financial Statements and Accounting Conceptsprinciples

52 Questions

Exam 3

Fundamental Interpretations Made From Financial Statement Data

24 Questions

Exam 4

The Bookkeeping Process and Transaction Analysis

33 Questions

Exam 5

Accounting for and Presentation of Current Assets

54 Questions

Exam 6

Accounting for and Presentation of Property, Plant, and Equipment, and Other Noncurrent Assets

39 Questions

Exam 7

Accounting for and Presentation of Liabilities

51 Questions

Exam 8

Accounting for and Presentation of Stockholders Equity

41 Questions

Exam 9

The Income Statement and the Statement of Cash Flows

32 Questions

Exam 10

Corporate Governance, Notes to the Financial Statements, and Other Disclosures

25 Questions

Exam 11

Financial Statement Analysis

29 Questions

Exam 12

Managerial Accounting and Cost-Volume-Profit Relationships

73 Questions

Exam 14

Cost Planning

66 Questions

Exam 15

Cost Control

59 Questions

Exam 16

Costs for Decision Making

77 Questions

Show Answer