Question 1 (3 points) The _______________________ summarizes the production and

Question

Question 1 (3 points)

The _______________________ summarizes the production and cost data for a department.

Question 1 options:

Inventory Report

Receiving Report

Cost of production report

None of the Above

Save

Question 2 (4 points)

Based on the predetermined factory overhead rate for Company Z, the company applied Factory Overhead totaling $4,569. Upon the completion of Job 569, it was determined that total factory overhead was $5,126. During the closeout process, Company Z should __________________________.

Question 2 options:

Debit FOH $557; Credit Cost of Goods Sold $557

Debit Cost of Goods Sold $557; Credit FOH $557

Debit FOH $5,126; Credit Cost of Goods Sold $5,126

None of the above

Save

Question 3 (3 points)

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Question 3 options:

Save

Question 4 (3 points)

The Davidson Company plans to increase its profits by expanding its company into 5 different states within the next 7 years. This is an example of ______________________.

Question 4 options:

Operational planning

Directing

Strategic Planning

None of the above

Save

Question 5 (3 points)

In the process cost system, direct labor costs are incurred by employees in each department who run the equipment and load and unload the product(s).

Question 5 options:

Save

Question 6 (3 points)

On the Balance Sheet, raw materials inventory is listed before finished goods inventory and work in process inventory because it is more liquid than the others.

Question 6 options:

Save

Question 7 (3 points)

In the process costing system, work in process inventory is transferred from Department E to Department F. The company should debit Work in Process - Department F and credit Work in Process - Department E.

Question 7 options:

Save

Question 8 (3 points)

When using the process costing system, the company uses one work in process account for each department.

Question 8 options:

Save

Question 9 (3 points)

Company A purchased $5,000 of raw materials on account for an upcoming job. The company should debit the Work in Process account and credit Accounts Payable.

Question 9 options:

Save

Question 10 (2 points)

Managerial accounting information includes both historical and estimated data.

Question 10 options:

Save

Question 11 (3 points)

Company Z reported Sales totaling $58,965 and a Gross Profit of $10,596. The Cost of Goods Sold for the company is ____________________.

Question 11 options:

$69,561

$48,369

$117,930

None of the above

Save

Question 12 (3 points)

Maintenance and repairs to equipment are considered service activities during the manufacturing process.

Question 12 options:

Save

Question 13 (3 points)

A manufacturing business reports  three types of inventory on its balance sheet: raw materials inventory, work in process inventory, and finished goods inventory

Question 13 options:

Save

Question 14 (3 points)

The company controller for a manufacturing company is an example of ___________________.

Question 14 options:

a staff position

a line position

management by exception

none of the above

Save

Question 15 (3 points)

In the process costing system, accumulated depreciation is credited and charged to one particular department.

Question 15 options:

Save

Question 16 (5 points)

The fiscal year for Company T begins in January and ends in December. The Financial Statements for Company T for 2011 reported the totals below:

     $7,000

The Cost of Merchandise Sold for Company T for 2011 is _________________________.

Question 16 options:

$15,000

$7,000

$8,000

None of the above

Save

Question 17 (3 points)

Property taxes on land is an example of __________________.

Question 17 options:

direct cost

factory overhead

prime cost

none of the above

Save

Question 18 (3 points)

A ______________________________ is prepared when materials that have been ordered are received and inspected.

Question 18 options:

Purchase requisition

Materials Requisition

Receiving Report

None of the Above

Save

Question 19 (4 points)

Based on the predetermined factory overhead rate for Company Z, the company applied Factory Overhead totaling $4,569. Upon the completion of Job 569, it was determined that total factory overhead was $5,126. Factory overhead was ___________________.

Question 19 options:

Underapplied by $527

Overapplied by $557

Underapplied by $569

None of the above

Save

Question 20 (3 points)

Company Z reported Sales totaling $58,965 and a Gross Profit of $10,596. The Cost of Goods Sold for the company was $69,561.

Question 20 options:

Save

Question 21 (4 points)

Company X estimates that it will use 7,000 direct labor hours, and it will incur total Factory Overhead costs of $21,000.  Upon completion of the job, it was determined that the company actually used 6,239 direct labor hours. Using the predetermined factory overhead rate, the company prepare the journal entry below: ________________.

Question 21 options:

Debit Work in Process $21,000; Credit FOH $21,000

Debit Work in Process $18,717; Credit FOH $18,717

Debit FOH $18,717; Credit Work in Process $18,717

None of the above

Save

Question 22 (4 points)

Company H produced 8,125 units at a total cost of $40,625 and transferred them to finished goods inventory. On January 3, 2013, Company H sold 40,000 units to a vendor on account for $400,000. The company should record the entry below: _______________________.

Question 22 options:

Debit Accounts Receivable $400,000; Credit Sales $400,000; Debit Cost of Goods Sold $200,000; Credit Finished Goods $200,000

Debit Accounts Receivable $400,000; Credit Sales $400,000; Debit Cost of Goods Sold $400,000; Credit Finished Goods $400,000

Debit Accounts Payable $400,000; Credit Sales $400,000; Debit Cost of Goods Sold $200,000; Credit Finished Goods $200,000

None of the above

Save

Question 23 (5 points)

As of December 31, 2011, Company G reported Sales totaling $30,000. Merchandise Available for Sale totaling $10,000. Cost of Merchandise Sold was $4,000. Ending inventory for Company G was _______________________.

Question 23 options:

$6,000

$14,000

$20,000

None of the above

Save

Question 24 (3 points)

________________________ develops short-term actions for managing the day-to-day operations of the company.

Question 24 options:

Operational Planning

Strategic Planning

Strategies

None of the above

Save

Question 25 (3 points)

The Job Order and Process Cost Systems both use the periodic inventory systems for materials, work in process, and finished goods.

Question 25 options:

Save

Question 26 (3 points)

The primary objective of lean manufacturing is to increase the speed and quality, while reducing the cost of operations.

Question 26 options:

Save

Question 27 (3 points)

Steel totaling $7,089 was requisitioned from the storeroom for the Cutting Department using the process cost system. The company should ________________.

Question 27 options:

Debit Work in Process - Cutting Department $7,089; Credit Raw Materials $7,089

Debit Raw Materials $7,089; Credit Cash $7,089

Debit Raw Materials $7,089; Credit Work in Process - Cutting Department $7,089

None of the above

Save

Question 28 (3 points)

Working in Process totaling $6,234 was transferred from Department M to Department N. The company should _______________________.

Question 28 options:

Debit Work in Process - Department M $6,234; Credit Work in Process - Department N $6,234

Debit Work in Process - Department N $6,234; Credit Raw Materials $6,234

Debit Work in Process - Department N $6,234; Credit Work in Process - Department M $6,234

None of the above

Save

Question 29 (5 points)

The fiscal year for Company T begins in January and ends in December. The Financial Statements for Company T for 2011 reported the totals below:

     $7,000

The Gross Profit for Company T for 2011 is _________________________.

Question 29 options:

$15,000

$7,000

$8,000

None of the above

Save

Question 30 (4 points)

Company X estimates that it will use 7,000 direct labor hours, and it will incur total Factory Overhead costs of $21,000. The company will sell the finished goods for $5.00 per unit. The predetermined factory overhead rate is ________________.

Question 30 options:

$3.00

$5.00

$0.33

None of the above

A)

Inventory Report

B)

Receiving Report

C)

Cost of production report

D)

None of the Above

Explanation / Answer

Since, there multiple questions, the first four have been answered.

__________

Question 1:

Cost of production report (which is Option C)

__________

Explanation:

The cost of production report provides information on the total number of units for which a particular department is accountable. It also contains details on the total number of completed and partially completed units and how the costs incurred (with respect to the product) is allocated between such units.

__________

Question 2:

Debit Cost of Goods Sold $557; Credit FOH $557 (which is Option B)

__________

Explanation:

In the given case, the overhead was underapplied to the extent of $557 (5,126-4,569). This value of underapplied overhead will be transferred to the cost of goods sold account with the use of following journal entry:

Ths situation of underapplied overhead occurs when the actual overhead incurred is more than the applied overhead.

__________

Question 3:

The statement is "False".

__________

Explanation:

The cost of materials entering directly into the manufacturing process is classified as "direct material cost". Direct materials used in production form part of cost of goods manufactured along with direct labor and factory overheads. Factory overhead costs include the cost of indirect materials and not direct materials.

__________

Question 4:

Strategic Planning (which is Option C)

__________

Explanation:

Strategic planning focuses on the long term objectives of the company including plans for expansion and growth. Such plans are formulated by top management. In case of operational planning, the focus is on the achievement of immediate and short term objectives. The operational plans are developed at the level of middle management and have a very limited scope which is mainly concerned with the performance of day to day business activities. Directing is primarily focussed on the performance of actual tasks by instructing and motivating employees in order to achieve organizational goals and objectives (which can be short term or long term). It involves supervision of the work (performed by employees), delegation of key tasks, etc.

Account Titles Debit Credit Cost of Goods Sold $557 FOH $557

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.