ALL ANSWER IN A,B,C,D,E FORMAT EXCEPT TRUE AND FALSE

QUESTION 1 A company allocates overhead to production on the basis of direct labor cost. If the company's total estimated overhead is $1,095,000 and estimated direct labor cost is $1,760,000, determine the amount of overhead to be allocated to finished goods inventory. There is $903,500 of total direct labor cost in the jobs in the finished goods inventory. (Round the Overhead percentage rate to 2 decimal places.)

A $1,452,200.9

B $562,157.7

C $2,133,038.2

D $2,014,358.6

E $90,350.0

QUESTION 2 A department had 1,200 units which were 40% complete in beginning Goods in Process Inventory. During the current period, 13,000 units were transferred out. Ending Goods in Process Inventory was 1,520 units which were 40% complete. Using the weighted-average method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process?

A 13,128

B 12,520

C 13,608

D 14,352

E 14,520

QUESTION 3 A department had 145 units which were 20% complete in beginning Goods in Process Inventory. During the current period, 157 units were transferred out. Ending Goods in Process Inventory was 190 units which were 20% complete. Using the weighted-average method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process?

A 195

B 166

C 186

D 157

E 347

QUESTION 4 A manufacturing company has a beginning finished goods inventory of $16,600, raw material purchases of $21,000, cost of goods manufactured of $39,500, and an ending finished goods inventory of $21,800. The cost of goods sold for this company is:

A $26,200

B $34,300

C $39,500

D $56,100

E $38,700

QUESTION 5 At the beginning of the recent period, there were 2,220 units of product in a department, one-third completed. These units were finished and an additional 10,500 units were started and completed during the period. 1,240 units were still in process at the end of the period, one-fourth completed. Using the weighted-average valuation method, the equivalent units produced by the department were:

A 13,960 units.

B 12,480 units.

C 12,290 units.

D 13,030 units.

E 15,750 units.

QUESTION 6 Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $3,000,000 (300,000 hours at $10/hour) and that factory overhead would be $2,100,000 for the current period. At the end of the period, the records show that there had been 200,000 hours of direct labor and $1,680,000 of actual overhead costs. Using direct labor hours as the allocation base, calculate the under- or overapplied overhead for the period. (Round Overhead rate to 2 decimal places.)

$280,000 underapplied.

$700,000 underapplied.

$1,400,000 underapplied.

$1,400,000 overapplied.

$300,000 underapplied.

QUESTION 7 Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $9,500,000 (950,000 hours at $10/hour) and that factory overhead would be $6,000,000 for the current period. At the end of the period, the records show that there had been 330,000 hours of direct labor and $5,700,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead allocation rate?

$6.00 per direct labor hour.

$6.32 per direct labor hour.

$6.67 per direct labor hour.

$18.20 per direct labor hour.

$17.95 per direct labor hour.

QUESTION 8 Deltan Corp. allocates overhead to production on the basis of direct labor costs. If Deltan's total estimated overhead is $510,000 and estimated direct labor cost is $210,000, determine the amount of overhead to be allocated to finished goods inventory. There is $60,000 of total direct labor cost in the jobs in the finished goods inventory. (Round the Overhead rate to the nearest whole percent.)

$24,000

$60,000

$205,800

$145,800

$265,800

QUESTION 9 The R&R Company's manufacturing costs for August are: direct labor, $26,500; indirect labor, $11,000; direct materials, $30,300; taxes on raw materials and work in process, $1,700; heat, lights, and power, $1,900; and insurance on plant and equipment, $650. R&R Company's factory overhead incurred for August is:

$3,800

$11,450

$15,250

$41,750

$71,600

QUESTION 10 The following costs are included in a recent summary of data for a company: advertising expense, $95,500; depreciation expense - factory building, $143,500; direct labor, $260,500; direct material used, $310,500; factory utilities, $115,500; and sales salaries expense, $160,500. Determine the dollar amount of overhead costs.

$1,086,000

$571,000

$519,500

$256,000

$259,000

QUESTION 11 The beginning and ending finished goods inventories of the Prize Ring manufacturing company were $78,000 and $75,250 respectively. If cost of goods sold equaled $67,800, what is the amount of cost of goods manufactured for this period?

$2,750

$65,050

$70,550

$85,450

$221,050

QUESTION 12 "Equivalent units of production" is an engineering term used to describe the process by which one company attempts to manufacture units of a product that are equivalent to the product manufactured by a competitor.

True OR False

QUESTION 13 A company has an overhead application rate of 120% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $110,000?

$22,000

$91,667

$132,000

$687,500

$1,320,000

QUESTION 14 Both financial and managerial accounting report monetary information; managerial accounting also reports considerable nonmonetary information.

True OR False

QUESTION 15 Canoe Company's manufacturing accounting system uses direct labor costs to apply overhead to goods in process and finished goods inventories. Canoe Company's manufacturing costs for the year were: direct labor, $27,000; direct materials,$54,000; and factory overhead applied, $2,700. The overhead application rate was:

100.0%

5.0%

10.0%

1,000.0%

45.0%

QUESTION 16 Juliet Corporation has accumulated the following accounting data for the year: Finished goods inventory, January 1 $ 10,400 Finished goods inventory, December 31 12,100 Total cost of goods sold 13,200 The cost of goods manufactured for the year is:

$1,100

$2,800

$14,900

$20,800

$25,300

QUESTION 17 Managerial accounting is an activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

True OR False

QUESTION 18 Manufacturers usually have three inventories: raw materials, goods in process, and finished goods.

True OR False

QUESTION 19 Much of managerial accounting is directed at gathering useful information about costs for planning and control decisions.

True OR False

QUESTION 20 Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

True OR False

QUESTION 21 The following information is available for the year ended December 31: Beginning raw materials inventory $ 3,500 Raw materials purchases 6,000 Ending raw materials inventory 4,500 Office supplies expense 1,500 The amount of raw materials used in production for the year is:

$6,000

$9,000

$5,000

$9,500

$6,000

QUESTION 22 The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year: Beginning Ending Raw materials inventory $ 69,000 $ 72,000 Finished goods 80,000 72,000 The raw materials used in manufacturing during the year totaled $154,000. Raw materials purchased during the year amount to:

$72,000

$151,000

$154,000

$157,000

$162,000

QUESTION 23 The managers of process manufacturing systems focus on the series of processes needed to complete the production of products.

True OR False

QUESTION 24 Use the following information from Hardy Co. for the current year: Direct materials used $ 7,500 Direct Labor 10,500 Total Factory overhead 7,850 Beginning goods in process 4,500 Ending goods in process 6,000 Hardy Co.'s cost of goods manufactured for the current year is:

$18,000

$24,350

$25,850

$27,350

$22,850

QUESTION 25 Use the following information from Hardy Co. for the current year: Direct materials used $ 12,500 Direct Labor 17,500 Total Factory overhead 13,350 Beginning goods in process 7,500 Ending goods in process 10,000 The total of Hardy Co.'s manufacturing costs added during the current year is:

A)$30,000

B)$40,850

C)$43,350

D)$45,850

E)$38,350