prov #1 Flashcards
Only one of the following statements is true, which one?
Which of financial accounting and managerial accounting is less flexible?
b. Financial accounting is less flexible than managerial accounting
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:
c. not relevant
Companies that operate in a lean production and just-in-time manufacturing environment are more experience which of the following?
d. increased product quality
Which of the following types of employees would most likely have their wage be classified as direct labor?
d. assembly-line factory worker
Manufactoring overhead includes:
b. indirect materials
Michael’s Manufactoring , Inc. has the following info provided for the moth of July. Direct materials used for July is, what?
a. $128,000
Companies that produce a homogeneous product where all the units are the same would most likely use which type of costing?
a. process costing
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?
b. direct labor
Which of the following types of organizations is most likely to have a raw materials inventory account?
b. a manufacturer
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?
c. $830
Maria’s Custom Tailoring is very labor intensive. How much is the combined amount of overhead allocated to these two jobs is:
a. $124.00
Why is a predetermined overhead rate used instead of an actual overhead rate during the year?
c. Because actual overhead amounts are often not known in a timely enough manner to make decisions.
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:
a. $2 per direct labor hour
Refer to the Aronson & Associates LLP information above. The amount of applied overhead for March will be:
b. $16,200 (8,100 h x $2.00 per direct labor hour)
Allocation:
b. is most often used for manufacturing overhead costs
The key to allocating overhead costs is the determination of the?
b. cost driver
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?
d. $315,000
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
c. $122,500
Nate’s Novelities, Inc. What is his cost of goods sold for July?
d. $109,000
Describe the role of the managerial accountant within an organization:
Managerial Accounting provides the managers with information about financial information and non financial information.
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
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
