ACC 526 Mid Term Exam

ACCT526-820_ Question 1 Correct Marked out of 3 Flag question e. annual balance sheet prepared in accordance with US GAAP d. budget versus actual reports c. None of these b. monthly analysis of product profitability Question text All of the following are examples of managerial accounting information except: Select one: a. monthly income statement for each store Question 3 Incorrect Marked out of 3 Flag question d. period costs c. expensed in the period in which they are incurred b. expensed when the products are sold Question text Direct labor costs related to production are: Select one: a. included in manufacturing overhead Flag question Question 4 Correct Marked out of 3 Flag question e. salaries of human resource department personnel d. None of these c. salaries of production supervisors b. salaries of sales personnel Question text Which of the following is classified as a general and administrative expense? Select one: a. utility costs for the production facility Question 5 Correct Marked out of 3 Flag question b. cost of goods sold Question text Costs of completed but unsold products would be found in which account? Select one: a. work in process inventory e. None of these Question 6 Incorrect Marked out of 3 Flag question e. cost of good sold d. work in process inventory c. raw materials b. None of these a. cost of goods manufactured Question text All of the following are included in Balance Sheet accounts containing product costs except: Select one: Question 7 Correct Marked out of 3 Flag question Question text All of the following are examples of firms who would use job costing except: e. finished goods inventory d. None of these c. raw materials inventory Question 8 Incorrect Marked out of 3 Flag question e. managers use the information to record product costs as period costs d. managers want to know if individual jobs are profitable c. managers access the accuracy of original cost estimates unexpected changes as early as possible b. None of these Question text All of the following are reasons that managers track revenues and costs using a job costing system except: Select one: a. managers compare actual costs with estimated costs throughout the project to identify Question 9 Incorrect Marked out of 3 e. a custom sailboat builder d. an automobile repair business c. an interior designing firm b. a sport drink manufacturing company Select one: a. None of these department e. only direct materials and manufacturing overhead are assigned to products under process costing d. product costs are tracked by department and assigned to products passing through each c. there cannot be any beginning or ending work in process inventory with process costing b. units produced in a process costing system are unique and are produced individually Question text Process costing is best described by which statement? Select one: a. None of these Question 10 Correct Marked out of 3 Flag question d. wages payable c. work in process inventory b. wages expense Question text To record wages owed to the production supervisor, the following account should be debited (increased): Select one: a. None of these Flag question Question 11 Incorrect Marked out of 3 Flag question Question text The law firm, Keen and Sholer, assigns overhead to clients based on direct labor hours using normal costing. During June, they compiled the following information regarding hours worked and costs: Question 12 Incorrect Marked out of 3 Actual direct labor hours 500 hours Actual overhead costs $7,200 Estimated direct labor hours 1,000 hours Estimated overhead costs $9,000 e. $7,200 d. $8,100 c. $6,480 b. None of these Select one: a. $9,000 The amount of applied overhead for June is: e. manufacturing overhead e. has been closed d. is overapplied c. is underapplied b. has been applied incorrectly Question text If the manufacturing overhead account has a credit balance after overhead has been applied to products, manufacturing overhead: Select one: a. None of these Question 13 Correct Marked out of 3 Flag question b. applied overhead was lower than actual overhead Question text Kaplan, Inc applies overhead on the basis of direct labor hours. During 2016, the predetermined overhead rate used was $9.00. If overhead was underapplied by $16,500 during 2016, which of the following would not be a reason for the underapplied overhead? Select one: a. None of these Flag question Question 14 Incorrect Marked out of 3 Flag question d. begins as soon as a sale occurs c. parallels the physical flow of materials as they are converted into finished goods b. is necessary to prepare the cost of goods manufactured schedule a. begins with work in process inventory and ends with finished goods inventory Question text The flow of costs in job order costing: Select one: Question 15 Incorrect Marked out of 3 Flag question Question text Archer Company uses a job order cost system. During the month of September, the company worked on Job B. The information contained on the cost sheet is as follows: e. estimated overhead costs differed from actual overhead costs d. estimated direct labor hours differed from actual direct labor hours c. applied overhead was higher than actual overhead Question 16 Correct Marked out of 3 Flag question e. None of these d. indirect materials used in production c. rent on the factory bulding b. property taxes on the factory building Question text Which of the following costs is typically not a fixed overhead cost for a factory? Select one: a. salaries of factory supervisors Job B Beg Balance $1,500 Direct Material 800 Direct Labor 2,300 j d. $640 c. $7,360 b. $2,940 a. $3,400 Select one: The company applies overhead at 120% of direct labor cost. During September Job B was completed and sold in October. If Job B sold for $8,000, what was the amount of gross profit for this ob? (Ignore any consideration of over/under applied overhead) Question text You are using the following information to estimate costs: Question 18 Incorrect Marked out of 3 Flag question