Archives: Quiz
Accounting Chapter 23 The direct labor rate variance for the month was $200 favorable
152 Answer: Variable overhead: Actual variable overhead $220,000 AH * SR (63,000 hrs. * $3/hr) 189,000 Variable overhead spending variance $ 31,000 U AH * SR (63,000 hrs. * $3/hr) $189,000 SH * SR (64,000* hrs. * $3/hr) 192,000 Variable […]
Accounting Chapter 23 Maxwell Co. collected the following information about
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 188) Maxwell Co. collected the following information about its production activities for the current year. a. Compute the direct materials price and […]
Accounting Chapter 23 Briefly describe the procedure of management by
121 Answer: The four steps are: (1) develop the budget from planned objectives, (2) compare actual results to budgeted amounts and analyze any differences, (3) take corrective and strategic actions, and (4) establish new planned objectives and prepare a new […]
Accounting Chapter 23 Computing Materials And Labor Variances learning Objective 23p2
101 Answer: C Explanation: A) Standard direct labor cost + unfavorable rate variance – favorable efficiency variance = actual direct labor cost. $400,000 + $10,000 – $4,000 = $406,000 B) Standard direct labor cost + unfavorable rate variance – favorable […]
Accounting Chapter 23 When there is a difference between the actual volume
81 Answer: E Explanation: A) Actual total overhead incurred $ 122,800 Flexible budget overhead Variable ($1.50/unit* * 40,000 units) $ 60,000 Fixed (given) 64,000 Total flexible budget overhead 124,000 Total controllable cost variance $ 1,200 F *$72,000/48,000 units = $1.50/unit […]
Accounting Chapter 23 A job was budgeted to require 3 hours of labor per unit
61 5,200 pounds * $2/pound $ 10,400 (5 pounds/unit * 1000 units) * $2/pound 10,000 Direct materials quantity variance $ 400 U Answer: B Explanation: A) AQ × SP 5,200 pounds * $2/pound $ 10,400 SQ × SP (5 pounds/unit […]
Accounting Chapter 23 Hassock produced 10,000 units and used 21,040 hours
41 Answer: E Explanation: A) Unit contribution margin = $105,000/30,000 = $3.50. Budgeted operating income @ 28,000 units = ($3.50 × 28,000) – $40,000 = $58,000 B) Unit contribution margin = $105,000/30,000 = $3.50. Budgeted operating income @ 28,000 units […]
Accounting Chapter 23 Preparation Flexible Budgets learning Objective 23p1 Prepare Flexible
21 Answer: E Explanation: A) B) C) D) E) Diff: 1 Topic: Preparation of Flexible Budgets Learning Objective: 23–P1 Prepare a flexible budget and interpret a flexible budget performance report. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Measurement […]
Accounting Chapter 23 Standard costs can be used by management to assess
1 Answer: A Explanation: Diff: 1 Topic: Standard Costs Learning Objective: 23–C1 Define standard costs and explain how standard cost information is useful for management by exception. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill […]
Accounting Chapter 22 Stanley Company is preparing a cash budget for February.
139 Total Paid $32,380 $30,032 $28,320 Preliminary Cash Balance $ 10,820 $18,768 $17,668 Loan 1,180 0 0 Loan Payment 0 (3,180) 0 End Cash Balance $12,000 $15,588 $17,668 Loan Balance: Beginning $ 2,000 $ 3,180 0 New Borrowing 1,180 0 […]
Accounting Chapter 22 Questions179 What Sales Budget How The Sales
121 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B) Budgeted production units July 7,900 August 8,100 Labor requirement per unit (hours) 0.50 0.50 Total labor hours needed 3,950 4,050 […]
Accounting Chapter 22 Explanation June Cash Sales 25 950000 237500
101 Diff: 3 Topic: Cash Budget Learning Objective: 22–P2 Prepare a cash budget. Bloom’s: Apply AACSB: Analytical Thinking AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of […]
Accounting Chapter 22 June for Sales for Ending Inventory 40 240 less Beginning
81 Answer: C Explanation: A) B) C) D) E) Diff: 1 Topic: Operating Budgets Learning Objective: 22–P1 Prepare the operating budget components of a master budget-for a manufacturing company. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Measurement Copyright […]
Accounting Chapter 22 August Sales 150000 purchases Were 100000 August And
61 Answer: B Explanation: A) Beginning cash balance $ 17,000 Add cash receipts 120,800 Less cash disbursements (134,500 ) Cash balance before financing $ 3,300 Desired cash balance 10,000 Amount to borrow $ 6,700 B) Beginning cash balance $ 17,000 […]
Accounting Chapter 22 Materials Needed Ending Inventory Requirements materials Purchased
41 Answer: E Explanation: A) Cost of Goods Sold = Beginning inventory + purchases – ending inventory $2,000 + $8,000 – $3,000 = $7,000 B) Cost of Goods Sold = Beginning inventory + purchases – ending inventory $2,000 + $8,000 […]
Accounting Chapter 22 Finished Goods Inventory June 1250 Units The
21 Answer: B Explanation: A) B) C) D) E) Diff: 1 Topic: Budget Process and Administration Learning Objective: 22–C1 Describe the benefits of budgeting. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. […]
Accounting Chapter 22 The Selling Expenses Budget Normally Prepared Before
1 Answer: A Explanation: Diff: 1 Topic: Budget Process and Administration Learning Objective: 22–C1 Describe the benefits of budgeting. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without […]
Accounting Chapter 21 Company Should Definitely With Alternative Breakeven Lowered
176 Answer: (a) Contribution margin ratio = ($80-$32)/80 = 60% (b) Break-even point in dollars = $630,000/.6 = $1,050,000 (c) Pretax income of $120,000 = ($630,000 + $120,000)/.6 = $1,250,000 Diff: 3 Topic: Contribution Margin; Applications of Cost-Volume-Profit Analysis; Computing […]
Accounting Chapter 21 The following data relate to a product sold by Hallstone
161 Answer: Target increase in pretax income = $80,000 Additional units = $80,000/$32 = 2,500 units Diff: 2 Topic: Applying Cost-Volume-Profit Analysis Learning Objective: 21–C2 Bloom’s: Apply AACSB: Analytic AICPA: BB: Resource Management; FN: Measurement Copyright © McGraw-Hill Education.All rights […]
Accounting Chapter 21 A company’s normal operating range of production volume
141 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C) Product cost – Variable Costing Direct Materials $ 10 Direct Labor 6 Variable overhead ($70,000/10,000 units) 7 Fixed overhead (excluded) […]
Accounting Chapter 21 Flannigan Company manufactures and sells a single product
121 Answer: E Explanation: A) Contribution Margin: Product A ($75 – $35) = $40 × 5 $ 200 Product Z ($95 – $40) = $55 × 2 $ 110 Per Composite Unit $200 + $110 $ 310 Break-even point in […]
Accounting Chapter 21 Margin Ratio Per Composite Unit 7575 15150 contribution
101 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B) Contribution Margin per Composite Unit: Youth model at $105 × sales mix of 5 $ 525 Adult model at $450 […]
Accounting Chapter 21 Unit Price And cost Data Are m 73unit Sales
81 Answer: E Explanation: A) 3 units of A at [$20 – $12] contribution margin per unit $ 24 2 units of B at [$30 – $18] contribution margin per unit 24 1 unit of C at [$40 – $24] […]
Accounting Chapter 21 A product sells for $200 per unit, and its variable costs
61 Answer: B Explanation: A) Contribution margin ratio = ($200 – $130)/$200 = 35% Break-even point in sales dollars = $420,000/0.35 = $1,200,000 B) Contribution margin ratio = ($200 – $130)/$200 = 35% Break-even point in sales dollars = $420,000/0.35 […]
Accounting Chapter 21 In cost-volume-profit analysis, the unit contribution margin
41 Answer: A Explanation: A) Contribution margin ratio = ($500,000 – $187,500)/$500,000 = 62.5% Break-even sales = $204,000/0.625 = $326,400 B) Contribution margin ratio = ($500,000 – $187,500)/$500,000 = 62.5% Break- even sales = $204,000/0.625 = $326,400 C) Contribution margin […]
Accounting Chapter 21 A cost with a flat cost line within a relevant range
21 Answer: B Explanation: A) B) C) D) E) Diff: 1 Topic: Measuring Cost Behavior Learning Objective: 21–C1 Describe different types of cost behavior in relation to production and sales volume. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN […]
Accounting Chapter 21 Total variable costs change in proportion to changes
1 Answer: B Explanation: Diff: 1 Topic: Measuring Cost Behavior Learning Objective: 21–C1 Describe different types of cost behavior in relation to production and sales volume. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill Education.All […]
Accounting Chapter 20 Giga Company uses a weighted average process cost system
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Equivalent Units Cost per Unit Total Cost Beginning Work in Process: Costs from prior month $7,000 Materials costs added 300 $10.00 3,000 […]
Accounting Chapter 20 June Davidson Factory Uses The Weight edaverage Method
220 Answer: Percent of work Equivalent Units performed Units Units completed and transferred out 80,000 100% 80,000 Ending Work in Process 20,000 30% 6,000 Total 86,000 Diff: 2 Topic: Equivalent Units of Production Learning Objective: 20–C2 Bloom’s: Apply AACSB: Analytic […]
Accounting Chapter 20 Williams Company computed its cost per equivalent unit for direct
200 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Answer: A Explanation: A) 50,000 units transferred out * $2.71 per EUP = $135,500 B) 50,000 units transferred out * $2.71 […]
Accounting Chapter 20 Explanation EUP And Cost Per EUP Completed
180 Explanation: A) EUP and cost per EUP DM Completed and transferred 135,000 * 100 % 135,00 0 Ending Work in Process Direct materials 30,000 * 100 % 30,000 Equivalent units 165,00 0 Costs of beginning inventory $ 93,500 Costs […]
Accounting Chapter 20 June The Journal Entry Record June Production
160 Answer: B Explanation: A) B) C) D) E) Diff: 2 Topic: Accounting for Labor Costs Learning Objective: 20–P2 Record the flow of labor costs in process costing. Bloom’s: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Measurement Copyright © […]
Accounting Chapter 20 Richards Corporation uses the FIFO method of process costing
140 Answer: D Explanation: A) Beginning inventory EUP Conversion Conversion (80,000 × 80%) 64,000 Started and Complete 250,000 Ending WIP Conversion (30,000 × 10%) 3,000 Equivalent units of production 317,000 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution […]
Accounting Chapter 20 Sparky Corporation uses the FIFO method of process costing
120 Answer: C Explanation: A) Beginning inventory Equivalent units of production: Materials Conversion Direct materials (10,000 × 70%) 7,000 Conversion (10,000 × 90%) 9,000 Start and Complete 52,00 0 52,00 0 Ending WIP Direct materials (8,000 × 80%) 6,400 Conversion […]
Accounting Chapter 20 the Forming Department of Martin Manufacturing had
100 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E) EUP Materials Completed and Transferred Out 330,000 Ending WIP Direct materials (30,000 × 40%) 12,000 Equivalent units of production 342,000 […]
Accounting Chapter 20 Sparky Corporation uses the weighted-average method
81 Answer: A Explanation: A) EUP Conversion Completed and Transferred Out 135,000 Ending WIP Conversion (30,000 × 30%) 9,000 Equivalent units of production 144,000 B) EUP Conversion Completed and Transferred Out 135,000 Ending WIP Conversion (30,000 × 30%) 9,000 Equivalent […]
Accounting Chapter 20 Its Welding Department completed and transferred
61 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C) Beginning WIP 200 Started 3,20 0 EWIP (400 ) Transferred 3,00 0 Ending WIP (400 * 80%) 320 Total EUP […]
Accounting Chapter 20 The following refers to units processed by a breakfast cereal
41 Answer: E Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D) Units completed and transferred to next stage 10,00 units 0 Units in ending Work in Process inventory (10,000 […]
Accounting Chapter 20 Finished Goods Inventory And Cost Goods Sold blooms
21 Answer: B Explanation: Diff: 2 Topic: Accounting for Labor Costs Learning Objective: 20–P2 Record the flow of labor costs in process costing. Bloom’s: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No […]
Accounting Chapter 20 The managers of process operations focus on the series of repetitive
1 Answer: B Explanation: Diff: 1 Topic: Comparing Process and Job Order Costing Systems Learning Objective: 20–A1 Compare process costing and job order costing. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No […]
Accounting Chapter 19 What The Cost The Raw Materials Requisitioned
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 196) Nutley Company uses a job order cost system and last period incurred $70,000 of overhead and $100,000 of direct labor. Nutley […]
Accounting Chapter 19 KL Company uses a job order costing system
121 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 180) KL Company uses a job order costing system. During the month of July, the following events occurred: (a) Purchased raw […]
Accounting Chapter 19 Labor Cost Flows And Documents Underapplied Or over applied
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 153) Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated […]
Accounting Chapter 19 The Correct journal Entry Record The Direct Labor
81 Answer: D Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. D) Predetermined overhead rate = $400,000 estimated overhead cost / $2,000,000 estimated direct labor cost = 20% Overhead applied […]
Accounting Chapter 19 Kayak Company uses a job order costing system and allocates
61 Answer: C Explanation: A) B) C) D) E) Diff: 2 Topic: Overhead Cost Flows and Documents Learning Objective: 19–P3 Describe and record the flow of overhead costs in job order costing. Bloom’s: Understand AACSB: Analytical Thinking AICPA: BB Industry; […]
Accounting Chapter 19 The Work in Process Inventory account of a manufacturing company
41 Answer: E Explanation: A) WIP = DM + DL + OH $3,200 = $1,400 + $800 + OH OH = $3,200 – $1,400 – $800 = $1,000 B) WIP = DM + DL + OH $3,200 = $1,400 + […]
Accounting Chapter 19 Boeing Company Normally Use a Mixed Costing b Simple
21 Answer: B Explanation: Diff: 2 Topic: Underapplied or Overapplied Overhead Learning Objective: 19–P4 Determine adjustments for overapplied and underapplied factory overhead. Bloom’s: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction […]
Accounting Chapter 19 Cost accounting systems accumulate manufacturing costs
1 Answer: B Explanation: Diff: 2 Topic: Job Order Costing Learning Objective: 19–C1 Describe important features of job order production. Bloom’s: Understand AACSB: Communication AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without […]
Accounting Chapter 18 Compute the ending work in process inventory for a manufacturer
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 220) Compute the ending work in process inventory for a manufacturer with the following information. Raw materials purchased 131,700 Raw materials used […]
Accounting Chapter 18 What are the components of the schedule of cost
161 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 202) What are the components of the schedule of cost of goods manufactured? Describe each component. Answer: The components of the […]