Accounting ch. 15 – Flashcards

Which of the following is considered a difference between a job order cost and a process cost system?

In a process cost system, product costs are summarized

In a process cost system, a production cost report is prepared

Total units to be accounted for less units in beginning work in process equals

In computing equivalent units, ___________ is not part of the equivalent units of production formula.

In the Camria Company, materials are entered at the beginning of the process. If there is no beginning work in process, but there is an ending work in process inventory, the number of equivalent units as to materials costs will be

Equivalent units of production are a measure of

In a process cost system, unit costs are determined using a

Which one of the following does not appear on the balance sheet of a manufacturing company?

The major reporting standard for presenting managerial accounting information is

Cost of goods sold

Product cost consist of

Management accountants would not

Because of automation, which component of product cost is declining?

The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the DL+DL+MOH

MANAGERIAL accounting applies to each of the following types of businesses except

A manufacturing company reports cost of goods manufactured as a(n)

Which of the following statements about internal reports is not true?

On the costs of goods manufactured schedule, depreciation on factory equipment

Barnes Company applies overhead on the basis of machine hours. Given the following date, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost $3,000,000 Actual annual overhead cost $2,940,000 Estimated machine hours 300,000 Actual machine hours 290,000

Madison Inc. uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2013 totaled $18,000 of materials, $9,000 of direct labor costs, and $6,000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $15,000, and the ending balance is $9,000. During the year, the company completed 20 machines. How much is the cost per machine?

As of December 31, 2013, Nilsen Industries had $2,000 of raw materials inventory. At the beginning of 2013, there was $1,600 of materials on hand. During the year, the company purchased $324,000 of materials; however it paid for only $314,000. How much inventory was requisitioned for use on jobs during 2013? Paid doesn't matter(?) 2,000-1,600=400 324,000-400=

A company expected its annual overhead costs to be $1,800,000 and direct labor costs to be $1,000,000. Actual overhead was $1,740,000, and actual labor costs totaled $1,100,000. How much is the company's predetermined overhead rate to the nearest cent?

In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 80,000 units were transfered into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. How many units were transferred out of the process in June?

In Moyer Company, the Cutting Department had beginning work in process of 6,000 units, transferred out 16,000 units, and had an ending work in process of 3,000 units. How many units were started by Moyer during the month? Transferred out - EWIP

A process with no beginning work in process, completed and transferred out 28,000 units during a period and had 14,000 units in the ending work in process that were 50% complete. How much is equivalent units of production for the period for conversion costs? 28,000 + 7,000

Physical units accounted for are 160,000. Total conversion costs are $276,500. There are 4,000 units in ending inventory which are 50% complete as to conversion costs. How much is the conversion cost per unit? 4,000 x .5= 2,000 Units accounted for (160,000) - Ending inventory (2,000)= Equivalent units of conversion cost (158,000) Total conversion costs (276,500) / Equivalent units of conversion cost (158,000)

A process with 1,600 units of beginning work in process, completed and transferred out 20,000 units during a period. There were 10,000 units in the ending work in process that were 50% complete as to conversion costs. Materials are added 80% at the beginning of the process and 20% when the units are 90% complete. How much is equivalent units of production for the period for material costs?

In the Shaping Department of Rollins Company the unit materials cost is $5.00 and the unit conversions cost is $3.00. The department transferred out 20,000 units and had 2,500 units in ending work in process 20% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is

Using the following information, compute the cost of direct materials used.

Given the following data for Harder Company, compute cost of goods manufactured Direct materials used $120,000 Beginning work in process $20,000 Direct labor $200,000 Ending work in process $10,000 Manufacturing overhead $150,000 Beginning finished goods $25,000 Operating expenses $175,000 Ending finished goods $15,000 Beg WIP + Total manf costs - ending WIP = COGM ignore 25,000, 175,000, 15,000

Using the following information, compute the direct materials used

Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $440,000, what was the cost of raw materials purchased?

Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2013. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?

The Raw Materials Inventory account is

If manufacturing overhead has been underapplied during the year, the adjusting entry at the end of the year will show a

Manufacturing overhead is applied to each job

Which of the following is not viewed as part of accumulating manufacturing costs in a job order cost system?

The predetermined overhead rate is based on the relationship between

If actual overhead is less than applied manufacturing overhead, then manufacturing overhead is:

Which of the following statements about under- or overapplied manufacturing overhead is correct?

Cost of raw materials is debited to Raw Materials Inventory when the

Process costing is used when