Accounting 202 Final Exam Study Guide – Mize – Flashcards

Which of the following income statement figures would probably be the best indicator of a company's future performance?

Which of the following is the best definition of sustainable income?

Sophie's Dog Supplies has income before taxes of $550,000 and an extraordinary loss of $170,000. If the income tax rate is 30% on all items, the income statement should show income before irregular items and an extraordinary loss, respectively, of

An extraordinary item must meet which of the following two criteria?

The discontinued operations section of the income statement refers to

The Holiday House had severe damage done to its Christmas inventory due to an escaped circus monkey rampaging through the store. The inventory loss was $150,000 before applicable taxes of $30,000. The Holiday House should record the loss as a(n)

Which of the following would not be considered an example of a discontinued operation?

Jack's by the Tracks. has the following partial balance sheet: JACK'S BY THE TRACKS. Balance Sheet (partial) Stockholders' Equity: Common Stock Retained Earnings Total Paid-in capital and retained earnings Add: Unrealized gain on available-for-sale securities Total Stockholders' Equity: $6,000,000 2,000,000 8,000,000 800,000 $8,800,000 What effect will the unrealized gain on available for sales securities have on comprehensive income?

Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time

Ratios are most useful in identifying

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

A distinguishing feature of managerial accounting is

Both direct materials and indirect materials are

Manufacturing costs include

The wages of a timekeeper in the factory would be classified as

As current technology changes manufacturing processes, it is likely that direct

The product cost that is most difficult to associate with a product is

Which of the following are period costs?

Penner Company reported total manufacturing costs of $410,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000. labor cost?

Which one of the following characteristics would likely be associated with a just-in-time inventory method?

The two basic types of cost accounting systems are

A process cost system would most likely be used by a company that makes

The flow of costs in a job order cost system

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is

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

Kline Manufacturing has the following labor costs: Factory—Gross wages Factory—Net wages Employer Payroll Taxes Payable The entry to record the cost of factory labor and the associated payroll tax expense will include a debit to Factory Labor for

Which one of the following best describes a job cost sheet?

Postings to control accounts in a costing system are made

If annual overhead costs are expected to be $800,000 and direct labor costs are expected to be $1,000,000, then if the activity base is direct labor costs:

Simmons Inc. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 250, the only job still in process at the end of August, has been charged with manufacturing overhead of $7,200. What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $30,000?

For Jacobs Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $300,000 of factory labor costs are incurred of which $70,000 is indirect labor. Actual overhead incurred was $160,000. The amount of overhead debited to Work in Process Inventory should be:

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 80,000 units were started into production in January; and there were 20,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for materials for the month of January?

Corsi Company had the following department data: Physical Units Work in process, beginning Completed and transferred out Work in process, ending Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?

Zibba Company enters materials at the beginning of the process. In January, there was no beginning work in process, but there were 200 units in the ending work in process inventory. The number of units completed equals the number of

Which of the following is not a necessary step in preparing a production cost report?

If 120,000 units are started into production there was no beginning work in process, and 40,000 units are in process at the end of the period, how many units were completed and transferred out?

The basic similarities between job order cost and process cost systems include all of the following except the

For the Assembly Department, unit materials cost is $8 and unit conversion cost is $12. If there are 10,000 units in ending work in process 75% complete as to conversion costs, the costs to be assigned to the inventory are

Which of the following is not typical of traditional costing systems?

Direct labor is sometimes the appropriate basis for assigning overhead cost to products. It is appropriate to use direct labor when which of the following is true? (1) Direct labor constitutes a significant part of total product cost. (2) A high correlation exists between direct labor and changes in the amount of overhead costs.

Daffodil Company produces two products, Flower and Planter. Flower is a high-volume item totaling 20,000 units annually. Planter is a low-volume item totaling only 6,000 units per year. Flower requires one hour of direct labor for completion, while each unit of Planter requires 2 hours. Therefore, total annual direct labor hours are 32,000 (20,000 + 12,000). Expected annual manufacturing overhead costs are $800,000. Daffodil uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of

Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell's total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Assembly Inspections Titanium 500 mach. hours 350 2,100 labor hours Aluminum 500 mach. hours 150 1,900 labor hours Total Cost $45,000 $75,000 Sitwell is considering switching from one overhead rate based on labor hours to activity-based costing. Total overhead costs assigned to titanium racquets, using a single overhead rate, are

Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell's total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Assembly Inspections Titanium 500 mach. hours 350 2,100 labor hours Aluminum 500 mach. hours 150 1,900 labor hours Total Cost $45,000 $75,000 Sitwell is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much inspections cost is assigned to titanium racquets?

The last step in activity-based costing is to

For its inspecting cost pool, Davidson, Inc. expected overhead cost of $300,000 and 4,000 inspections. The actual overhead cost for that cost pool was $360,000 for 5,000 inspections. The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is

Addison Company manufactures two products, Regular and Supreme. Addison's overhead costs consist of machining, $2,500,000; and assembling, $1,250,000. Information on the two products is: Regular Supreme Direct labor hours Machine hours Number of parts Overhead applied to Regular using traditional costing using direct labor hours is

Port Accounting performs tax services for Cathy Kane. Direct labor cost is $1,200; 600 CPU minutes were used; and 1 legal hour was used. What is the total cost of the Kane job using activity-based costing?

Under just-in-time processing, all of the following are received or completed "just in time" except

If a firm increases its activity level,

Portman Company's activity for the first three months of 2013 are as follows: Using the high-low method, how much is the cost per machine hour?

Ponszko Nursery used high-low data from June and July to determine its variable cost of $18 per unit. Additional information follows: If Ponszko's produces 2,300 units in August, how much is its total cost expected to be?

If a company had a contribution margin of $750,000 and a contribution margin ratio of 40%, total variable costs must have been

A company has contribution margin per unit of $90 and a contribution margin ratio of 40%. What is the unit selling price?

Weatherspoon Company has a product with a selling price per unit of $200, the unit variable cost is $90, and the total monthly fixed costs are $300,000. How much is Weatherspoon's contribution margin ratio?

The following information is available for Wade Corp.: A CVP income statement would report

O'Malley Company sells 100,000 units for $13 a unit. Fixed costs are $350,000 and net income is $250,000. What should be reported as variable expenses in the CVP income statement?

Boswell company reported the following information for the current year: Sales (50,000 units) $1,000,000, direct materials and direct labor $500,000, other variable costs $50,000, and fixed costs $270,000. What is Boswell's contribution margin ratio?

Montoya Manufacturing has fixed costs of $2,500,000 and variable costs are 40% of sales. What are the required sales if Montoya desires net income of $250,000?

The CVP income statement classifies costs as variable or fixed and computes a contribution margin.

Moonwalker's CVP income statement included sales of 4,000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $88,000. Contribution margin is

Moonwalker's CVP income statement included sales of 4,000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $88,000. Net income is

For Buffalo Co., at a sales level of 5,000 units, sales is $75,000, variable expenses total $50,000, and fixed expenses are $21,000. What is the contribution margin per unit?

If contribution margin is $120,000, sales is $300,000, and net income is $40,000, then variable and fixed expenses are

In a CVP income statement, cost of goods sold is generally

For Wilder Corporation, sales is $1,200,000 (6,000 units), fixed expenses are $360,000, and the contribution margin per unit is $80. What is the margin of safety in dollars?

Margin of safety in dollars is

Ramirez Corporation sells two types of computer chips. The sales mix is 30% (Q-Chip) and 70% (Q-Chip Plus). Q-Chip has variable costs per unit of $60 and a selling price of $100. Q-Chip Plus has variable costs per unit of $70 and a selling price of $130. Ramirez's fixed costs are $540,000. How many units of Q-Chip would be sold at the break-even point?

Swanson Company: the break even point is

Greg's Breads

A major accounting contribution to the managerial decision-making process in evaluating possible courses of action is to

Internal reports that review the actual impact of decisions are prepared by

Which of the following will always be a relevant cost?

Alvarez Company incremental profit

The process of evaluating financial data that change under alternative courses of action is called

Garner Company $12 vc and $5 fc

Baden Company

Mallory Company & Bowden Company

A budget

Lion Industries

Southgate Industry's