prov #1

Question 1

Only one of the following statements is true, which one?

Which of financial accounting and managerial accounting is less flexible?

Answer 1

b. Financial accounting is less flexible than managerial accounting

Question 2

You are now considering your housing options for next semester. If the cost of a dorm room and the cost of an apartment are exactly the same, housing costs are:

Answer 2

c. not relevant

Question 3

Companies that operate in a lean production and just-in-time manufacturing environment are more experience which of the following?

Answer 3

d. increased product quality

Question 4

Which of the following types of employees would most likely have their wage be classified as direct labor?

Answer 4

d. assembly-line factory worker

Question 5

Manufactoring overhead includes:

Answer 5

b. indirect materials

Question 6

Michael’s Manufactoring , Inc. has the following info provided for the moth of July. Direct materials used for July is, what?

Answer 6

a. $128,000

Question 7

Companies that produce a homogeneous product where all the units are the same would most likely use which type of costing?

Answer 7

a. process costing

Question 8

Which of the following types of costs would be specifically tracked or traced and assigned to a specific job in a job order costing system?

Answer 8

b. direct labor

Question 9

Which of the following types of organizations is most likely to have a raw materials inventory account?

Answer 9

b. a manufacturer

Question 10

George Wilson is an assembly-line worker for Gantt Manufacturing in 45 hours.

He was the only worker working direct on his job, how much direct labor cost should he assigned to the job?

Answer 10

c. $830

Question 11

Maria’s Custom Tailoring is very labor intensive. How much is the combined amount of overhead allocated to these two jobs is:

Answer 11

a. $124.00

Question 12

Why is a predetermined overhead rate used instead of an actual overhead rate during the year?

Answer 12

c. Because actual overhead amounts are often not known in a timely enough manner to make decisions.

Question 13

Aronson & Associates LLP, an accounting firm, assigns overhead to clients, based on direct labor hours.
Refer to the Aronson & Associates LLP information above. The predetermined overhead rate for the month of March is:

Answer 13

a. $2 per direct labor hour

Question 14

Refer to the Aronson & Associates LLP information above. The amount of applied overhead for March will be:

Answer 14

b. $16,200 (8,100 h x $2.00 per direct labor hour)

Question 15

Allocation:

Answer 15

b. is most often used for manufacturing overhead costs

Question 16

The key to allocating overhead costs is the determination of the?

Answer 16

b. cost driver

Question 17

Clyde Retailers is a local merchandiser which buys vintage clothing and sells it to loval college students. Clyde began the user with inventory costing $60,000. During the year inventory costing $300,000 was purchased. At the end of the year, inventory costing $45,000 still remained. What was Clyde’s cost of goods sold for the year?

Answer 17

d. $315,000

Question 18

Jesper Corporation:
Total product or manufacturing costs are:

Add:

Factory insurance $10,000
Factory supervisor salary $30,000
Factory machine operator $22,000
Direct material used $30,000
Factory maintenance $25,000
Factory machine depreciation $5,500

• Salesperson’s salaries $32,000

Answer 18

c. $122,500

Question 19

Nate’s Novelities, Inc. What is his cost of goods sold for July?

Answer 19

d. $109,000

Question 20

Describe the role of the managerial accountant within an organization:

Answer 20

Managerial Accounting provides the managers with information about financial information and non financial information.

Question 21

Manufacturing cost or Non manufacturing cost
–> (DM) , (DL) or (OH)

Indirect labor
Factory supplies 
Material easily traced to product 
Administrative salaries
Factory rent
Indirect materials
Shipping costs on sales
Administrative building utilities
Factory equipment depreciation 
Machine operator

Answer 21

OH = Indirect labor
OH = Factory supplies 
DM = Material easily traced to product 
Non man. = Administrative salaries
OH = Factory rent
OH = Indirect materials
Non man. = Shipping costs on sales
Non man. = Administrative building utilities
OH = Factory equipment depreciation 
DL = Machine operator