Liberty University ACCT 212 connect exam 1 solutions
answers right
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Craigmont Company's direct materials costs are
$5,000,000, its direct labor costs total $8,800,000, and its factory overhead
costs total $6,800,000. Its prime costs total:
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$13,800,000.
$11,800,000.
$15,600,000.
$7,000,000.
$20,600,000.
Use the following data to
compute total factory overhead costs for the month.
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Sales commissions
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$12,000
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Direct labor
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40,800
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Indirect materials
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16,400
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Factory manager salaries
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8,400
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Factory supplies
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10,200
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Indirect labor
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7,500
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Depreciation—office equipment
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6,200
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Direct materials
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41,700
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Corporate office salaries
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43,700
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Depreciation—factory equipment
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8,700
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$151,900.
$133,700.
$51,200.
$92,000.
$61,900.
Using the information below
for Sundar Company; determine the cost of goods manufactured during the current
year:
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Direct materials used
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$19,300
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Direct labor used
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24,800
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Factory overhead
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53,600
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Beginning work in process
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11,000
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Ending work in process
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11,600
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$97,700.
$44,100.
$97,100.
$43,500.
$77,800.
Using the information below,
compute the raw materials inventory turnover:
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Raw Materials Used
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$121,600
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Beginning Raw Materials Inventory
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$18,000
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Ending Raw Materials Inventory
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$20,200
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6.76.
6.02.
54.0.
60.6.
6.37.
Which of the following
statements is correct concerning the Days' sales in raw materials inventory?
A measure of how long it takes raw materials to be
used in production.
The ratio is not useful for a manufacturer.
Reveals how many times a company turns over its raw
materials inventory in a period.
Most companies generally prefer a higher number of
days' sales in raw materials inventory.
Is calculated by taking the Raw materials used/Average
raw materials inventory.
Managerial accounting
information:
Is used mainly by external users.
Involves gathering information about costs for
planning and control decisions.
Is generally the only accounting information available
to managers.
Can be used for control purposes but not for planning
purposes.
Has little to do with controlling costs.
Managerial accounting
information can be forwarded to the managers of a company quickly since
external auditors do not have to review it, and estimates and projections are
acceptable.
True
False
Straight line depreciation,
rent and manager salaries are examples of variable costs.
True
False
Direct costs are incurred for
the benefit of more than one cost object.
True
False
Raw materials that become part
of a product and are identified with specific units or batches of a product are
called direct materials.
True
False
The cost of partially
completed products is included in the balance of the Work in Process Inventory
account.
True
False
Raw materials purchased plus
beginning raw materials inventory equals the ending balance of raw materials
inventory.
True
False
The balanced scorecard aids in
continuous improvement by augmenting financial measures with information on the
drivers or indicators of future financial performance.
True
False
Which of the following items
is not a management concept that was created to improve
companies' performances?
Just-in-time manufacturing.
GAAP constraints and guidelines.
Total quality management.
Continuous improvement.
Customer orientation.
Which one of the following items
is normally not a manufacturing cost?
Direct materials.
Factory overhead.
General and administrative expenses.
Direct labor.
Conversion cost.
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Copy Center pays an average
wage of $11 per hour to employees for printing and copying jobs, and
allocates $17 of overhead for each employee hour worked. Materials are
assigned to each job according to actual cost. If Job M-47 used $320 of
materials and took 15 hours of labor to complete, what is the total cost that
should be assigned to the job?
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$485.
$420.
$650.
$740.
$575
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Job A3B was ordered by a
customer on September 25. During the month of September, Jaycee Corporation
requisitioned $3,100 of direct materials and used $4,600 of direct labor. The
job was not finished by the end of the month, but needed an additional $3,600
of direct materials and additional direct labor of $7,100 to finish the job
in October. The company applies overhead at the end of each month at a rate
of 150% of the direct labor cost incurred. What is the total cost of the job
when it is completed in October?
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$18,400
$21,350
$35,950
$25,950
$32,650
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The Work in Process
Inventory account for DG Manufacturing follows. Compute the cost of jobs
completed and transferred to Finished Goods Inventory.
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Work in Process Inventory
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|||
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DR
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CR
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Beginning balance
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$6,500
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|
|
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Direct materials
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49,100
|
|
|
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Direct labor
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31,600
|
?
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Finished goods
|
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Applied overhead
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17,800
|
|
|
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Ending balance
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$12,900
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|
|
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The cost of units transferred to finished goods is:
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$92,100.
$98,500.
$117,900.
$103,200.
$105,000.
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A company has an overhead
application rate of 128% of direct labor costs. How much overhead would be
allocated to a job if it required total labor costing $18,000?
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$14,063.
$230,400.
$23,040.
$11,520.
$18,000.
A company that uses a job
order costing system would make the following entry to record the flow of
direct materials into production:
debit Work in Process Inventory, credit Cost of Goods
Sold.
debit Work in Process Inventory, credit Raw Materials
Inventory.
debit Work in Process Inventory, credit Factory
Overhead.
debit Factory Overhead, credit Raw Materials
Inventory.
debit Finished Goods Inventory, credit Raw Materials
Inventory.
Materials requisitions and
time tickets are cost accounting source documents.
True
False
Job order production systems
would be appropriate for companies that produce custom homes, specialized
equipment, and special computer systems.
True
False
A company that uses a cost
accounting system normally has only two inventory accounts: Finished Goods Inventory
and Work in Process Inventory.
True
False
Service firms, unlike
manufacturing firms, should only use actual costs when determining a selling
price for their services.
True
False
Andrew Industries purchased
$165,000 of raw materials on account during the month of March. The beginning
Raw Materials Inventory balance was $22,000, and the materials used to complete
jobs during the month were $141,000 direct materials and $13,000 indirect
materials. What is the ending Raw Materials Inventory balance for March?
$46,000
$11,000
$33,000
$24,000
$9,000
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