Accounting – Flashcards

Managerial accounting information for a company is primarily used by

Which of the following is the primary objective of managerial accounting

Which of the following is the primary focus of financial accounting

Product costs are expensed

Which of the following is true of product costs

What is the operating income for the year?

Which of the following would appear as a line item on the income statements of both a merchandiser and a manufacturer?

The Work-in-Process Inventory account includes the

Lakeside Manufacturing provided the following information for the month ended March 31: Sales Revenue $23,000 Beginning Finished Goods Inventory 7,000 Ending Finished Goods Inventory 9,500 Cost of Goods Manufactured 13,600 Compute cost of goods available for sale

Period costs are the ________.

Which of the following is an example of a period cost for a manufacturing company?

Which of the following is a part of manufacturing overhead?

Which of the following is a product cost for a manufacturing company?

Which of the following is a period cost for a manufacturing company?

Which of the following is an example of direct labor cost in a factory?

Which of the following will be included in manufacturing overhead costs?

Manufacturing overhead is also referred to as ________.

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

Which of the following correctly describes the accounting for advertising costs?

Which of the following would be considered a product cost for a manufacturing company?

Which of the following would be considered a product cost for a manufacturing company?

Which of the following would be considered a direct labor cost for a manufacturing company?

Which of the following would be included as indirect manufacturing costs for a manufacturing company?

Which of the following would be included as manufacturing overhead for a manufacturing company?

Which of the following would be considered a period cost for a manufacturing company?

For decision-making purposes, ________ costs are often divided into prime costs and conversion costs

Which of the following is a prime cost and a conversion cost?

Which of the following represents the combined sum of direct materials and direct labor?

Which of the following will be classified as a conversion cost?

Which of the following would be classified as a prime cost?

Which of the following statements is true of the flow of product and period costs for a manufacturer?

Nurix, Inc. is a business consulting firm. During the month of February, Nurix earned $55,600 of revenues by providing services to 46 clients. Operating expenses for February were $9,000 and non-operating expenses were $4,000. What is the unit cost per service?

The journal entry to issue indirect materials to production should include a debit to the

The journal entry to issue $500 of direct materials and $40 of indirect materials to production involves debit(s) to the ________.

Adelphia Manufacturing issued $75,000 of direct materials and $8,000 of indirect materials for production. Which of the following journal entries would correctly record the transaction?

The following transactions took place during the month: December 2: Issued direct materials $23,000 and indirect materials $6,000 to production. December 15: Incurred $6,000 and $4,000 toward factory's direct labor cost and indirect labor cost, respectively. What should be the balance in the Work-in-Process Inventory following these transactions?

Altec Designs makes fashion clothing and reports the following data for the month of September: Salaries paid to seamstresses $130,000 Wages paid to fabric cutters 30,000 Indirect wages 7,000 What is the journal entry to record the total labor charges incurred during September?

Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $780,000 and $510,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 19,000 hours and 7,000 hours, respectively. What is the predetermined overhead allocation rate?

Zephyros Corporation had estimated manufacturing overhead costs for the coming year to be $312,000. The total estimated direct labor hours and machine hours for the coming year are 6,000 and 11,000, respectively. Manufacturing overhead costs are allocated based on direct labor hours. What is the predetermined overhead allocation rate?

Sybil, Inc. uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs. The company recently completed Job 300X. This job used 10 machine hours and 3 direct labor hours. The predetermined overhead allocation rate is calculated to be $45 per machine hour. What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation base?

Venus Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost. At the beginning of the year, it estimated the manufacturing overhead rate to be 20% of the direct labor cost. In the month of June, Venus completed Job 13C and its details are as follows:

The records at Smith and Jones, Inc. show that Job 110 is charged with $12,000 of direct materials and $11,000 of direct labor. Smith and Jones, Inc. allocate manufacturing overhead at 85% of direct labor cost. What is the total cost of Job No. 110?

When goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account

On June 30, Caroline, Inc. finished Job 750 with total job costs of $4,300 and transferred the costs to Finished Goods Inventory. On July 6, Caroline completed the sale of the goods from Job 750 to a customer for $5,700 cash. Which of the following is the correct entry needed to record the revenue earned?

The journal entry for adjustment of overallocated manufacturing overhead includes a

The journal entry for adjustment of underallocated manufacturing overhead includes a

Under process costing, the costs incurred by each department are reported in ________.

Both job order costing and process costing ________.

Gizmo Manufacturer, a widgets manufacturing company, divides its production operations into three processes—Department 1, Department 2, and Department 3. The company uses a process costing system. Gizmo incurred the following costs during the year to produce 4,600 units: Department 1 $17,500 Department 2 6,000 Department 3 10,000 If Gizmo could sell only 3,600 units in during the year, what will be the cost per unit of widget produced? (Round your answer to the nearest cent.)

If Peterson can only sell 5,800 picture frames during the year, what will be the cost per unit of the picture frames produced?

Young Manufacturing uses a process costing system and manufactures its product in three departments. Which of the following is not a way in which Young can use the cost per unit of each process?

LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, the first department— Mixing—had no beginning inventory. During January, 42,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed and 10,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly through the process. At the end of the month, LDR calculated equivalent units. The ending inventory in the Mixing Department was 65% complete with respect to conversion costs. With respect to direct materials, what is the number of equivalent units in the ending inventory?

The Assembly Department of Smart, Inc., a manufacturer of computers, had a beginning inventory of 5,000 units. During November, it assembled 4,000 units and transferred them to the Packaging Department. It incurred $250,000 in direct materials and $75,000 in conversion costs. The ending inventory in November was 3,000 units, which were 100% and 50% complete with respect to materials and conversion costs, respectively. Calculate the total equivalent units of production for conversion costs for November.

In a production cost report, ________ includes the number of units completed and transferred out of a process and the number of units remaining in ending WIP. The weighted-average method is used.

The Assembly Department of Fallon, Inc., manufacturer of computers, had 2,000 units of beginning inventory in September, and 3,000 units were transferred to it from the Production Department. The Assembly Department completed 1,500 units during the month and transferred them to the Packaging Department. Calculate the total number of units to account for by the Assembly Department.

Jetwell, Inc. incurred $2,000 for indirect labor in Department III. The journal entry to record indirect labor utilized is ________.

Morewell, Inc. used a predetermined overhead allocation rate to allocate $85,000 and $65,000 of indirect costs to Coloring Department and Mixing Department, respectively. The journal entry to record the allocation of overhead costs to the Coloring Department is ________.

Winnie, Inc. has two processes—Coloring Department and Mixing Department. The company assigned $300,000 to the 3,500 gallons of paint transferred from Mixing Department to Finished Goods Inventory. The journal entry to record completion of processing is ________.

Productions costs are transferred from one Work-in-Process Inventory account to the next and eventually to ________.

During the month, New Products Manufacturing incurred $47,000 in direct labor costs in Department 1, $24,000 direct labor costs in Department 2, and $3,500 of indirect labor costs. The summary journal entry to record these transactions includes a ________.

During the month, Diamond Manufacturing incurred $47,000 in direct labor costs in Department 1, $23,000 direct labor costs in Department 2, and $3,500 of indirect labor cost s. Which of the following is not part of the summary journal entry to record these transactions?

The Refining Department of Ingber Sugar, Inc. had 55,000 tons of sugar to account for in December. Of the 55,000 tons, 45,000 tons were completed and transferred to the Boiling Department, and the remaining 10,000 tons were 60% complete. The materials required for production are added at the beginning of the process. Conversion cost s are added equally throughout the refining process. Calculate the total equivalent units of production for conversion costs.

The direct labor costs and manufacturing overhead costs required to produce finished goods from raw materials are called ________.

A report prepared by a processing department for equivalent units of production, production costs, and the assignment of those costs to the completed and in-process units is called a(n) ________.

The fixed costs per unit will ________.

Assume that Anna's cellphone service provider charges $6 per month and $0.4 per minute per call. If Anna's current bill is $80, how many calling minutes did Anna use?

Miranda was reviewing the water bill for her dog day care and spa and determined that her highest bill, $5,000, occurred in July when she washed 500 dogs and her lowest bill, $3,600, occurred in February when she washed 325 dogs. What was the variable cost per dog associated with Miranda's water bill?

Miranda was reviewing the water bill for her dog day care and spa and determined that her highest bill, $4,600, occurred in July when she washed 500 dogs and her lowest bill, $3,200, occurred in February when she washed 175 dogs. What was the fixed cost associated with Miranda's water bill?

Dayton Company has fixed costs of $350,000. Total costs, both fixed and variable, are $450,000 when 40,000 units are produced. Calculate the total costs if the volume increases to 65,000 units. Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.

) Mendoza Company's highest point of total cost was $85,000 in June. Their point of lowest cost was $60,000 in January. The company makes a single product. Production volume in June was 14,000 units; production volume in January was 8,000 units. What is the variable cost per unit?

The relevant range of Zhang Company is between 110,000 units and 190,000 units per month. If the company produces beyond 190,000 units per month ________.

) The phone bill for Ace Accounting consists of both fixed and variable costs. Refer to the four month data below and apply the high-low method to answer the question. (Round your intermediate calculations to two decimal places.

Which of the following costs remains the same irrespective of the changes in production?

The dollar amount that provides for covering fixed costs and then provides for operating income is called ________.

Contribution margin ratio is the ratio of contribution margin to ________.

Which of the following is a period cost?

A(n) ________ groups cost by behavior; that is, costs are classified as either variable costs or fixed costs