Question : PART I — MULTIPLE CHOICE (30 points) Instructions:  Designate the best : 1311521

PART I — MULTIPLE CHOICE (30 points)

 

Instructions:  Designate the best answer for each of the following questions.

 

1.              A debit balance in the Manufacturing Overhead account at the end of an interim month means that

a.              the balance should be reported as an asset in the monthly balance sheet.

b.              corrective action by management is necessary.

c.              overhead has been underapplied.

d.              cost of goods sold should be credited on the monthly income statement.

 

2.              In a job order cost system, which of the following accounts is not a control account?

a.              Raw Materials Inventory

b.              Factory Labor

c.              Finished Goods Inventory

d.              Manufacturing Overhead

 

3.              In the current assets section of the balance sheet, in which order are manufacturing inventories listed?

a.              Raw materials, work in process, finished goods

b.              Finished goods, work in process, raw materials

c.              Work in process, finished goods, raw materials

d.              Finished goods, raw materials, work in process

 

4.              Which one of the following costs is a component of both manufacturing overhead and total manufacturing costs?

a.              Direct labor

b.              Direct materials

c.              Selling and administrative costs

d.              Factory utilities

 

5.              Manufacturing costs are typically classified as

a.              product costs or period costs.

b.              direct materials or direct labor.

c.              direct materials, direct labor, or manufacturing overhead.

d.              direct materials, direct labor, or selling and administrative.

 

The following data should be used for questions 6–9:

Raw materials inventory, January 1$  12,000

Raw materials inventory, December 3116,000

Work in process, January 15,000

Work in process, December 318,000

Finished goods, January 117,000

Finished goods, December 3112,000

Raw materials purchases118,000

Direct labor165,000

Factory utilities64,000

Indirect labor12,000

Factory depreciation18,000

Selling and administrative expenses220,000

 

6.              How much is the cost of the direct materials used?

a.              $118,000

b.              $114,000

c.              $122,000

d.              $130,000

 

7.              Assume your answer to question 6 above is $130,000. How much are total manufacturing costs?

a.              $389,000

b.              $393,000

c.              $295,000

d.              $609,000

 

8.              Assume your answer to question 7 above is $400,000. How much is cost of goods manufactured?

a.              $400,000

b.              $389,000

c.              $397,000

d.              $403,000

 

9.              Assume your answer to question 8 above is $420,000. How much is cost of goods sold?

a.              $420,000

b.              $408,000

c.              $295,000

d.              $425,000

 

10.              The formula for computing a predetermined overhead rate is

a.              estimated annual overhead costs ÷ estimated annual operating activity.

b.              estimated annual overhead costs ÷ actual annual operating activity.

c.              actual annual overhead costs ÷ actual annual operating activity.

d.              actual annual overhead costs ÷ estimated annual operating activity.

 

11.              Which one of the following is an example of a period cost?

a.              Maintenance on factory machines

b.              Wages of factory workers

c.              Salesmen’s commissions

d.              Depreciation on the factory building

 

12.              When production costs are debited to Work in Process Inventory, which accounts will be credited?

a.              Raw Materials Inventory, Factory Labor, and Finished Goods Inventory

b.              Manufacturing Overhead, Factory Labor, and Cost of Goods Sold

c.              Raw Materials Inventory, Factory Labor, and Manufacturing Overhead

b.              Accounts Payable, Factory Wages Payable, and Accumulated Depreciation

 

13.              What are the functions of management in an organization?

a.              Planning, controlling, and decision making

b.              Planning, directing, and controlling

c.              Directing, controlling, and decision making

d.              Directing, planning, and decision making

 

14.              Which one of the following is not one of the major activities of managerial accounting?

a.              Providing a basis for controlling costs by comparing actual results with planned objectives

b.              Preparing financial statements designed primarily for stockholders and creditors

c.              Preparing internal reports for management

d.              Determining the behavior of costs as activity levels change

 

15.              Which of the following would most likely use a job order cost system?

a.              Cement manufacturer

b.              Cat food manufacturer

c.              Specialty printing company

d.              Automobile manufacturer

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more