Category: Managerial Accounting

“23. Steele Company has the following estimated costs for next year: Direct materials $20,000 Direct labor 60,000 Sales commissions 80,000 Salary of production supervisor 40,000 Indirect materials 8,000 Advertising expense 16,000 Rent on factory equipment 20,000 Steele estimates that 10,000 direct labor hours and 16,000 machine hours will be worked during the year. If overhead is applied on the basis of machine hours, the overhead rate per hour will be: a. $4.25 b. $8.00 c. $9.00 d. $10.25”

Managerial Accounting

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8. The recording of the cost of materials used in a job-order costing system a. makes a distinction between materials traceable directly to the goods being produced and those not directly traceable. b. makes no distinction between materials traceable directly to the goods being produced and those not directly traceable. c. involves the accumulation of costs in a particular operation or department for an entire period and then the division of this total by the number of units produced during the period. d. does not require the use of a materials requisition form.

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.8. The recording of the[…]

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“9. Which of the following entries or sets of entries would record sales for the month of July of goods costing $119,000 for $200,000? a. Accounts Receivable 200,000 Sales 200,000 b. Accounts Receivable 200,000 Sales 200,000 Cost of Goods Sold 119,000 Work in Process 119,000 c. Cost of Goods Sold 119,000 Net Income 81,000 Sales 200,000 d. Accounts Receivable 200,000 Sales 200,000 Cost of Goods Sold 119,000 Finished Goods 119,000”

Managerial Accounting

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“25. The Donaldson Company uses a job-order cost system. The following data were recorded for July: July 1 Added During July Work in Process Direct Direct Job Number Inventory Materials Labor 475 $1,500 $ 500 $ 300 476 $1,000 $ 700 $ 900 477 $ 900 $1,000 $1,500 478 $ 700 $1,200 $2,000 Overhead is charged to production at 80 percent of direct materials cost. Jobs 475, 477, and 478 were completed during July and transferred to finished goods. Jobs 475 and 478 have been delivered to the customer. Donaldson’s Work in Process inventory balance on July 31 was: a. $7,280 b. $2,600 c. $3,160 d. $3,320”,”3Total costs in Work in Process for July =Beginning balance = $4,100Direct material = $2,500Direct labor = $4,700Applied MOH (.8×2500) = $2,000Total cost for the month = $13,300Transferred to Finished Gods during he month:Job 475: 1500+500+300+(.8×500) = $2,700Job 477: 900+100+1500+(.8×100) = $2,580J0b 478: 700+1200+2000+(.8×1200) = $4,860Total finished and transferred = $10,140Total costs in Work in Process = Total cost for the period – Total finished and transferred = $13,300 – $10,140 = $3

Managerial Accounting

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26. The flow of goods through a JIT system is based on: a. a workstation efficiently completing its processing of a batch of units so that the units can proceed forward to the next workstation regardless of whether the next workstation is ready to receive them. b. processing goods in large batch sizes rather than less economical small batches. c. maintaining a stockpile of raw materials in anticipation of errors in production. d. producing to meet customer demand with no buildup of inventory at any point in the production process.

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.26. The flow of goods[…]

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