Answer the following questions using the information below:   Pearl Corp. applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of a necklace. Estimates for this order include: Direct materials of $50,000; 400 direct manufacturing labor-hours at $20 per hour; and a 30% markup rate […]

    51. Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs? A. Advertising costsB. Raw lumber (direct materials)C. Machine operator’s wages (direct labor)D. Sales salaries   52. Which of the following costs incurred by a paper manufacturer would NOT be included in the group of costs referred to as conversion costs? A. Factory supervisor’s salaryB. Machine operator’s wages (direct labor)C. Raw […]

  135.Use the following data to determine the cost of goods manufactured.  Beginning finished goods inventory$10,800 Direct labor30,600 Beginning work in process inventory7,200 General and administrative expenses13,500 Direct materials used40,500 Ending work in process inventory9,000 Indirect labor6,300 Ending finished goods inventory9,500 Indirect materials13,500 Depreciation—factory equipment7,500    A.$102,000. B.$110,100. C.$96,600. D.$113,700. E.$100,200. 136.Use the following data to compute total factory overhead costs for the month.  Sales […]

  15) Factors that are relevant in a JIT system, but not for the EOQ model, include A) quality of materials. B) timeliness of deliveries. C) stockout costs. D) carrying costs. E) quality of materials, timeliness of deliveries, and stockout costs.   16) Primary components that manufacturers would use to evaluate suppliers under a just-in-time system would include all of the following EXCEPT A) on-time […]

  200. On January 1, 2011, Cary Parsons established Cary’s Catering Service.  Listed below are accounts to use for transactions (a) through (d), each identified by a number.  Following this list are the transactions that occurred during the first month of operations.  You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box. […]

  51. Rounding is often necessary to make the Production Report cumulative cost total agree to the total costs accounted for. In the following periods, the amount of the adjustment is either added to or subtracted from the _____________ in work in process.  A. direct materials B. direct labor C. manufacturing overhead D. credit entry 52. A firm had a beginning work in process inventory totaling $4,000 and current period costs […]

  121. All of the following statements regarding accounting for influential securities under U.S. GAAP and IFRS are True except:  A. Under the equity method, the share of investee’s net income is reported in the investor’s income in the same period the investee earns that income. B. Under the consolidation method, investee and investor revenues and expenses are combined. C. Under the equity method, the investment account equals the […]

  118. On January 1 of the current year, Jimmy’s SandwichCompany, Inc.reported  stockholders’ equity totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year the business paid $20,000  tothe stockholders. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in stockholders’ equity […]

  41. If the prepaid expenses are not adjusted, assets on the balance sheet  A. will be overstated. B. will be understated. C. will not be affected. D. may be either overstated or understated. 42. If long-term assets are not adjusted, expenses on the income statement  A. will be overstated. B. will be understated. C. will not be affected. D. may be either overstated or understated. 43. On November 25, 2013, the company paid $24,000 rent […]

    61.To appear in a balance sheet of a business entity, an asset need not:    A. Be an economic resource.   B. Have a ready market value.   C. Be expected to benefit future operations.   D. Be owned by the business.         62.A balance sheet:    A. Provides owners, investors, and other interested parties with all the financial information they need to evaluate the financial strength, […]