Questions -
Q1) Jones Corp. reported current assets of $199,000 and current liabilities of $140,000 on its most recent balance sheet. The working capital is:
Q2) Zhang Company reported Cost of goods sold of $855,000, beginning Inventory of $41,200 and ending Inventory of $48,300. The average Inventory amount is:
Q3) Carducci Corporation reported Net sales of $3.55 million and beginning Total assets of $0.95 million and ending Total assets of $1.35 million. The average Total asset amount is:
4) A corporation reported cash of $15,700 and total assets of $180,000 on its balance sheet. Its common-size percent for cash equals:
- 11.46%.
- 8.72%.
- 20.34%.
- 13.62%.
- 6.72%.
Q5) Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 common size percentages for operating expenses using Net sales as the base.
|
|
2017
|
2016
|
|
Net sales
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$341,800
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$282,600
|
|
Cost of goods sold
|
169,900
|
131,150
|
|
Operating expenses
|
61,840
|
59,600
|
|
Net earnings
|
31,180
|
22,180
|
- 31.6% for 2017 and 25.3% for 2016.
- 18.1% for 2017 and 21.1% for 2016.
- 49.7% for 2017 and 46.4% for 2016.
- 21.9% for 2017 and 16.9% for 2016.
- 121.0% for 2017 and 100.0% for 2016.
Q6) Using the information below for Sundar Company; determine the cost of goods manufactured during the current year:
|
|
|
|
Direct materials used
|
$20,100
|
|
Direct labor used
|
25,600
|
|
Factory overhead
|
49,600
|
|
Beginning work in process
|
11,800
|
|
Ending work in process
|
12,400
|
- $95,300.
- $45,700.
- $94,700.
- $45,100.
- $74,600.
Q7) Using the information below for Laurels Company; determine the manufacturing costs added during the current year:
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|
|
|
Direct materials used
|
$6,400
|
|
Direct Labor
|
8,400
|
|
Total Factory overhead
|
6,500
|
|
Beginning work in process
|
4,400
|
|
Ending work in process
|
6,800
|
- $18,900.
- $17,800.
- $23,700.
- $14,800.
- $21,300.
Q8) Using the information below for Singing Dolls, Inc., determine cost of goods manufactured for the year:
|
|
|
|
Work in Process, January 1
|
$51,400
|
|
Work in Process, December 31
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37,700
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|
Total Factory overhead
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6,200
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|
Direct materials used
|
13,200
|
|
Direct labor used
|
27,200
|
- $60,300.
- $98,000.
- $54,100.
- $46,600.
- $13,700.
Q9) Current information for the Healey Company follows:
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|
|
|
Beginning raw materials inventory
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$15,100
|
|
Raw material purchases
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59,000
|
|
Ending raw materials inventory
|
16,500
|
|
Beginning work in process inventory
|
22,300
|
|
Ending work in process inventory
|
27,900
|
|
Direct labor
|
42,300
|
|
Total factory overhead
|
29,900
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All raw materials used were traceable to specific units of product. Healey Company's total manufacturing costs for the year are:
- $124,200.
- $132,600.
- $129,800.
- $135,400.
- $137,700.
Q10) The following information relates to the manufacturing operations of the Abbra Publishing Company for the year:
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|
Beginning
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Ending
|
|
Raw materials inventory
|
$
|
564,000
|
$
|
627,000
|
The raw materials used in manufacturing during the year totaled $1,103,000. Raw materials purchased during the year amount to:
- $1,040,000.
- $977,000.
- $1,667,000.
- $476,000.
- $1,166,000.
Q11) Using the information below for Singing Dolls, Inc., determine the total manufacturing costs incurred during the year:
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|
|
|
Work in Process, January 1
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$52,600
|
|
Work in Process, December 31
|
38,300
|
|
Direct materials used
|
13,800
|
|
Total Factory overhead
|
6,800
|
|
Direct labor used
|
27,800
|
- $14,300.
- $101,000.
- $62,700.
- $94,200.
- $48,400.
Q12) Using the information below, compute the raw materials inventory turnover:
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|
|
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Raw Materials Used
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$121,600
|
|
Beginning Raw Materials Inventory
|
18,000
|
|
Ending Raw Materials Inventory
|
20,200
|
- 6.76.
- 6.02.
- 54.0.
- 60.6.
- 6.37.
Q13) Newly completed units are combined with beginning finished goods inventory to make up total ending work in process inventory.
True or False
Q14) Using the information below for Sundar Company; determine the total manufacturing costs added during the current year:
|
|
|
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Direct materials used
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$19,000
|
|
Direct labor used
|
24,500
|
|
Factory overhead
|
55,100
|
|
Beginning work in process
|
10,700
|
|
Ending work in process
|
11,300
|
- $98,600.
- $43,500.
- $98,000.
- $42,900.
- $79,000.
15) The management concept of customer orientation motivates a company to spend large amounts on advertising to convince customers to buy the company's standard products.
True or False
16) Calculate the cost of goods sold using the following information:
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Direct materials
|
$298,500
|
|
Direct labor
|
132,000
|
|
Factory overhead costs
|
264,000
|
|
General and administrative expenses
|
85,500
|
|
Selling expenses
|
48,800
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|
Work in Process inventory, January 1
|
118,500
|
|
Work in Process inventory, December 31
|
125,900
|
|
Finished goods inventory, January 1
|
232,100
|
|
Finished goods inventory, December 31
|
238,700
|
- $680,500.
- $701,900.
- $687,100.
- $674,600.
- $772,600.
Q17) A job order production system would be appropriate for a company that produces which one of the following items?
- A landscaping design for a new hospital.
- Seedlings for sale in a nursery.
- Sacks of yard fertilizer.
- Packets of flower seeds.
- Small gardening tools, including rakes, shovels, and hoes.
Q18) If overhead applied is less than actual overhead incurred, it is:
- Fully applied.
- Underapplied.
- Overapplied.
- Expected.
- Normal.
Q19) The amount by which overhead incurred during a period exceeds the overhead applied to jobs is:
- Balanced overhead.
- Predetermined overhead.
- Actual overhead.
- Underapplied overhead.
- Overapplied overhead.
Q20) When Factory Wages Payable costs for labor are allocated in a job cost accounting system:
rev: 11_27_2015_QC_CS-34722
- Factory Wages Payable is debited and Work in Process Inventory is credited.
- Work in Process Inventory and Factory Overhead are debited and Factory Wages Payable is credited.
- Cost of Goods Manufactured is debited and Direct Labor is credited.
- Direct Labor and Indirect Labor are debited and Factory Wages Payable is credited.
- Work in Process Inventory is debited and Factory Overhead is credited.
Q21) Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for each employee hour worked. Materials are assigned to each job according to actual cost. If Job M-47 used $350 of materials and took 20 hours of labor to complete, what is the total cost that should be assigned to the job?
Q22) Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $396,000; materials of $410,000 and direct labor of $220,000. During the year Adams incurred $418,000 in materials costs, $413,200 in overhead costs and $224,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.
Q23) At the current year-end, Simply Company found that its overhead was underapplied by $2,500, and this amount was not considered material. Based on this information, Simply should:
Q24) Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:
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Equivalent units of production-direct materials
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110,000 EUP
|
|
Equivalent units of production-conversion
|
95,000 EUP
|
|
Costs in beginning Work in Process-direct materials
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$49,000
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|
Costs in beginning Work in Process-conversion
|
$36,000
|
|
Costs incurred in February-direct materials
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$414,000
|
|
Costs incurred in February-conversion
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520,000
|
The cost per equivalent unit of production for conversion is:
Q26) A company's beginning Work in Process inventory consisted of 20,000 units that were 80% complete with respect to direct labor. A total of 90,000 were finished during the period and 25,000 remaining in Work in Process inventory were 40% complete with respect to direct labor at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:
Q27) Equivalent units of production are equal to:
Q28) K Company estimates that overhead costs for the next year will be $3,000,000 for indirect labor and $810,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 75,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate?
Q29) Peterson Company estimates that overhead costs for the next year will be $3,600,000 for indirect labor and $880,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 125,000 machine hours are planned for this next year, what is the company's plantwide overhead rate?
Q30) A company estimates that overhead costs for the next year will be $8,440,000 for indirect labor and $161,500 for factory utilities. The company uses machine hours as its overhead allocation base. If 460,000 machine hours are planned for this next year, what is the company's plantwide overhead rate?
Q31) A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:
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Budgeted Activity
|
|
Activity Cost
Pool
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Budgeted
Cost
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Product A1
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Product B2
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|
Activity 1
|
$
|
57,000
|
2,100
|
5,700
|
|
Activity 2
|
$
|
72,000
|
3,140
|
5,660
|
|
Activity 3
|
$
|
98,000
|
8,100
|
1,700
|
Annual production and sales level of Product A1 is 9,380 units, and the annual production and sales level of Product B2 is 23,210 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?
Q32) The first step in using the departmental overhead rate method requires that overhead be traced to each of the company's departments.
True or False
Q33) Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 566,667 units are expected to be produced taking .75 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?
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Estimated:
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Department 1
|
Department 2
|
|
Manufacturing overhead costs
|
$3,107,500
|
$1,520,000
|
|
Direct labor hours
|
150,000 DLH
|
250,000 DLH
|
|
Machine hours
|
250,000 MH
|
175,000 MH
|
Q34) Aztec Industries produces bread which goes through two operations, mixing and baking, before it is ready to be packaged. Next year's expected costs and activities are shown below.
|
|
Mixing
|
Baking
|
|
Direct labor hours
|
400,000 DLH
|
80,000 DLH
|
|
Machine hours
|
800,000 MH
|
800,000 MH
|
|
Overhead costs
|
$600,000
|
$400,000
|
Compute Aztec's departmental overhead rate for the mixing department based on direct labor hours.
- $1.50 per DLH.
- $5.00 per DLH.
- $0.75 per DLH.
- $0.50 per DLH.
- $2.08 per DLH.
Q35)Carver Packing Company reports total contribution margin of $58,560 and pretax net income of $24,400 for the current month. In the next month, the company expects sales volume to increase by 5%. The degree of operating leverage and the expected percent change in income, respectively, are:
Q36) Flannigan Company manufactures and sells a single product that sells for $630 per unit; variable costs are $378. Annual fixed costs are $872,000. Current sales volume is $4,380,000. Flannigan Company management targets an annual pre-tax income of $1,305,000. Compute the dollar sales to earn the target pre-tax net income.
Q37) Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $450 and has a unit contribution margin of $180; the Adult model sells for $1,000 and has a unit contribution margin of $525; and the Recreational model sells for $1,150 and has a unit contribution margin of $575. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,650,000, calculate the firm's selling price per composite unit.
Q38) Mason Company manufactures and sells shoelaces for $3.00 per pair. Its variable cost per unit is $2.50. Mason's total fixed costs are $11,500. How many pairs must Mason Company sell to break even?
Q39) Flannigan Company manufactures and sells a single product that sells for $650 per unit; variable costs are $390. Annual fixed costs are $880,000. Current sales volume is $4,400,000. Compute the break-even point in units.
Q40) Flannigan Company manufactures and sells a single product that sells for $650 per unit; variable costs are $390. Annual fixed costs are $880,000. Current sales volume is $4,400,000. Compute the break-even point in dollars.