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ACCT 221 Q3

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Please answer all 18 multiple choice questions and 4 problems.;1. Because of automation, which component of product cost is declining?;a. Direct labor;b. Direct materials;c. Manufacturing overhead;d. Advertising;2. The management function that requires managers to look ahead and establish objectives is;a. controlling.;b. planning.;c. directing.;d. constraining.;3. A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n);a. period cost.;b. indirect material;c. direct material.;d. miscellaneous expense;4. All of the following would be entries in assigning accumulated costs to the Work In Process Inventory except;a. the purchase of raw materials.;b. raw materials are used.;c. overhead is applied.;d. factory labor is used.;5. Which one of the following is a source document that impacts the job cost sheet?;a. Raw materials receiving slips.;b. Materials purchase orders.;c Labor time tickets;d. Finished goods shipping documents.;6. Process costing is not used when;a. similar goods are being produced.;b. jobs have distinguishing characteristics;c. large volumes are produced.;d. a series of connected manufacturing processes is necessary.;7. When determining costs of jobs, how does a company account for indirect materials?;a. It is added to work in process as used.;b. It is transferred out of raw materials into manufacturing overhead when used;c. It remains part of raw materials inventory..;d. It is transferred out of raw materials into work in process as used.;8. A process cost system would be used for all of the following products except;a. chemicals.;b. computer chips.;c. motion pictures.;d. soft drinks.;9. The predetermined overhead rate is based on the relationship between;a. actual monthly costs and actual annual activity.;b. estimated annual costs and expected annual activity.;c. estimated monthly costs and actual monthly activity.;d. estimated annual costs and actual activity;10. When manufacturing overhead costs are assigned to production in a process cost system, they are debited to;a. the Work in Process account.;b. the Finished Goods Inventory account.;c. Cost of Goods Sold.;d. a Manufacturing Overhead account.;11. A process with no beginning work in process, completed and transferred out 65,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete. The equivalent units of production for the period were;a. 75,000 equivalent units.;b. 125,000 equivalent units.;c. 37,500 equivalent units;d. 80,000 equivalent units;12. Which of the following is not viewed as part of accumulating manufacturing costs in a job order cost system?;a. Raw materials are purchased;b. Cost of goods sold is recognized;c. Factory labor is incurred;d. Manufacturing overhead is incurred;13. Cinder Company had the following department information for the month;Total materials costs $ 80,000;Equivalent units of materials 8,000;Total conversion costs $120,000;Equivalent units of conversion costs 16,000;How much is the total manufacturing cost per unit?;a. $8.33.;b. $7.50;c. $17.50;d. $10.00.;14. A cost which remains constant per unit at various levels of activity is a;a. fixed cost.;b. mixed cost.;c. variable cost.;d. manufacturing cost.;15. Sales are $500,000 and variable costs are $400,000. What is the contribution margin ratio?;a. 43%;b. 20%;c. 70%;d. Cannot be determined because amounts are not expressed per unit.;16. Which of the following is not a necessary step in preparing a production cost report?;a. Compute the equivalent units of production.;b. Prepare the job order cost sheet;c. Compute the physical unit flow.;d. Prepare a cost reconciliation schedule.;17. Fixed costs normally will not include;a. property taxes;b. supervisory salaries;c. direct labor;d. depreciation on buildings and equipment.;18. In applying the high-low method, which months are relevant?;Month Miles Total Cost;January 80,000 $ 96,000;February 50,000 80,000;March 70,000 94,000;April 90,000 130,000;a. January and February;b. January and April;c. February and April;d. February and March;PROBLEM 1;Jones Corporation has the following cost records for May 2013;;;Indirect factory labor;$ 7,000;Advertising Expense;$ 8,000;Direct materials used;12,000;Depreciation, factory equipment;3,200;Work in process, 5/1/13;6,000;Direct labor;13,000;Work in process, 5/31/13;7,800;Maintenance, factory equipment;1,000;Factory supervisor?s salary;4,500;Indirect materials;1,200;Sales Commission;10,000;Office Manager Salary;4,000;;;Instructions ;(a);Prepare a cost of goods manufactured schedule for May 2013;JONES CORPORATION;Cost of Goods Manufactured;Schedule For the Year Ended May 31, 2013

 

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