19-37 Flashcards
1
Q
- During the month of March 20x0, Gabo Co, used $300,000 of direct material. At March 31, 20x0, Gabo’s direct materials inventory was $50,000 more than it was at March 1, 20x9. Direct material purchases during the month of March $250,000 $300,000 $0 $350,000
A
350000
2
Q
- The fixed portion of the semivariable cost of electricity for a manufacturing plant is a Period cost Product cost a. Yes No b. Yes Yes c. No Yes d. No No
A
No period cost
Yes product cost
3
Q
- Mikay Co. develops computer programs to meet customers’ special requirements. How should Mikay categorize payments to employees who develop these programs? Direct costs Value- added costs Yes Yes Yes No No No No Yes
A
Yes, yes
4
Q
- In a job-costing system, issuing indirect materials to production increases which account? Materials control. Work in process control. Manufacturing overhead control. Manufacturing overhead allocated.
A
Manufacturing overhead control
5
Q
- In developing a predetermined variable factory overhead application rate for use in a process costing system, which of the following could be used in the numerator and denominator? Actual variable factory overhead/Actual machine hours Actual variable factory overhead/Estimated machine hours Estimated variable factory overhead/Actual machine hours Estimated variable factory overhead/Estimated machine hours
A
Estimated variable factory overhead/estimated machine hours
6
Q
- Inits April 2009 production, Her Corp., which does not use a standard cost system, incurred total production costs of - $900,000, of which Hern attributed $60,000 to normal spoilage and $30,000 to abnormal spoilage. Hern should account for this spoilage as Period cost of $90,000. Inventoriable cost of $90,000. Period cost of $60,000 and inventoriable cost of $30,000. Inventoriable cost of $60,000 and period cost of $30,000.
A
Inventoriable cost of $60,000 and period cost of $30,000.
7
Q
- Worley Company has underapplied variable overhead of $45,000 for the year ended December 31, 2009. Before disposition of the underapplied overhead, selected December 31, 2009 balances from Worley’s accounting records are as follows: Sales $1,200,000 Cost of goods sold 720,000 Inventories: Direct materials 36,000 Work in process 54,000 Finished goods 90,000 Under Worley’s cost accounting system, over- or underap plied variable overhead is allocated to appropriate invento ries and cost of goods sold based on year-end balances. There are no amounts of under or overapplied fixed over head: In its 2009 income statement, Worley should report cost of goods sold of $682,500 $684,000 $756,000 $757,500
A
757500
8
Q
- In a process cost system, the application of factory overhead usually would be recorded as an increase in Finished goods inventory control. Factory overhead control. Cost of goods sold. Work in process inventory control.
A
Work in process inventory control.
9
Q
- Nile Co’s cost allocation and product costing procedures follow activity-based costing principles. Activities have been identified and classified as being either value adding or non-value-adding as to each product. Which of the following activities, used in Nile’s production process, is non-value-adding? Design engineering activity. Heat treatment activity. Drill press activity. Raw materials storage activity.
A
Raw materials storage activity
10
Q
- The Incognito Electric Machines established a branch in Calamba last year. It shipped merchandise and billed the branch for $300,000. For the current year, it made additional shipment at billed price of $120,000. The same year, the branch shipped back 87,500 as retums and acknowledged by home office. Year end ending inventory of $185,00, consisting of purchases from third parties of $20,000, and the balance came from home office at billed price. The home office billed the branch 25% above cost, total purchases of the branch from outside suppliers amounted to $72,500. The cost of sales of the branch at cost is: $416,250 $250,500 $300,000 $435,250
A
250500
11
Q
- How much is the total cost of sales at billed price? $250,500 $300,000 $435,250 $416,250
A
416250
12
Q
- How much is tie mark-up on the cost of sales of the branch? $49,500 $75,000 $46,250 $61,875
A
49500
13
Q
- How much is the mark-up to be recognized in the books of Pasado Kaya. $58,000 $46,000 $50,000 $12,000
A
46000
14
Q
- The combined net income of Pasado Kaya is: $500,000 $496,000 $326,000 $280,000
A
326000
15
Q
- The Overvaluation allowance for the shipment of $200,000 is $58,000 $50,000 $33,333 $8,000 AlaJawo company put up an agency in Santo Tomas and the following transactions happened for the month of January 2024. Transferred merchandise to Santo Tomas as samples for $13,000 and $10,000 as working fund. Received sales orders from the agency - $130,000; collections of agency accounts by home office - $91,000; paid $11,700 for agency expenses; replenished the agency working fund for expenses vouchers P6,850; cost of goods sold attributed to agency is $93,000. At month end, the estimated value of the samples is $8,000. The net income of the Santo Tomas agency is: a.$10,450 b.$5,450. c.$18,450 d.$13,450
A
d.$13,450
16
Q
- The allowance for inventory valuation is a. $5,000 b. $37,000 c. $0 d. $8,000
A
17
Q
- The cost of goods sold is a. $93,000 b. $111,550 c. $98,000 d. $0
A
93000
