Consider the following for Guardian Manufacturing Company:
Change in finished goods inventory $315 increase
Change in work-in-process inventory $145 increase
Total manufacturing costs $630
What are the cost of goods manufactured and cost of goods sold?
Co
B. $485 $170
Cost of goods manufactured = Total manufacturing costs less WIP inventory change
485 = 630-145
Cost of goods sold = Change in finished goods inventory less change in WIP inventory
170 = 315-145
The following information was taken from the accounting records of Elliott Manufacturing Corp. Unfortunately, some of the data were destroyed by a computer malfunction.
Sales Revenue $58,000
Finished Goods Inventory, Beginning 9,000
Finished Goods Invento
11,000
SGA = Gross - Operating Income
11000 = 25,000-14000
COGS = Sales revenue - Gross $33000
COG Manufactured = COGS + Finished Ending - Finished Beginning $30,000
Total Man Cost = Direct material + Direct labor + Overhead $31000
Beg WIP = COG Man + End
Many companies in the consumer products and electronics industries such as Walmart and Texas Instruments compete using a strategy of:
Cost Leadership
A. Which one of the following is the amount of factory overhead applied that exceeds the actual factory overhead cost?
WRONG - Overapplied overhead. Ask professor
The change in total cost associated with each change in the quantity of the cost driver is:
Variable sCost
ABC Company listed the following data for the current year:
Budgeted factory overhead $1,044,000
Budgeted direct labor hours 69,600
Budgeted machine hours 24,000
Actual factory overhead 1,037,400
Actual labor hours 72,600
Actual machine hours 23,600
If ov
51,600 overapplied
Determine overhead rate
Budgeted overhead/Budged labor = 1044000/69600 = 15
Actual overhead/Actual labor = 1037400/72600 = 14.29
Mulitply
Budgeted Rate * Actual Hours - Actual Overhead
15 * 72600 - 1037400 = 51600
If positive, overappli
Departmental overhead rates are preferred over plantwide rates when:
The products use different amounts of different processes in different departments.
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $78
210,700
Get Predetermined Overhead
Pre-determined overhead = 784700/133000 = 5.90
WIP + Job X Materials + (Job X labor
rate)+ (Job X overhead hours
predetermined rate) = COG Manufactured
53400+74000+ (7000
6) + (7000
5.90) = 210700
Greenbelt Hospital has the following activities in its value chain of providing service to each inpatient admission:
1. Schedule patient.
2. Verify insurance.
3. Admit patient.
4. Prepare patient's room.
5. Review doctor's report.
6. Feed patient.
Require
1. Number of appointments scheduled
2. Number of benefits verified
3. Number of patients
4. Number of beds prepared
5. Number of reports reviewed
6. Number of meals prepared
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $78
133450
Get Predetermined Overhead
Pre-determined overhead = 784700/133000 = 5.90
Job Y (still open) + (Job Y labor hours
rate) + (Job Y overhead hours
predetermined rate)
68,000+(5500
6)+(5500
5.9)= 133450
Which of the following journal entries is correct if scrap is being incurred and sold for all jobs in common in the amount of $600?
A) Debit - Cash $600
Credit - Work-in-Process Inventory $200
Credit - Finished Goods Inventory $200
Credit - Factory Overhe
C
Debit - Cash $600
Credit - Factory Overhead $600
The five steps of strategic decision-making include all of the following except:
Select the proper cost management technique.
Based on strategy and analysis, choose and implement the desired alternative.
Determine the strategic issues surrounding the prob
Select the proper cost management technique.
Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 114,000 and estimated factory overhead was $6
152400
Add
WIP (all Job X) = 37400
Materials = 54500'
Labor = 5000* 6.00 = 30000
OH = 695400/114,000 = 6.10 * 5000 = 30500
If the volume of production is increased over the level planned, the cost per unit would be expected to:
Decrease for fixed costs and remain unchanged for variable costs.
L & L, CPAs, employs two full-time professional CPAs and five support employees. Budgeted direct salary costs include $160,000 for each CPA. The support employees are considered as indirect costs, and this cost was budgeted for $200,000 although the actua
$64/40
Direct Budgeted includes both labor and overhead.
Direct budgeted labor rate = 160000/5000 = 32
Direct budgeted overhead rate = 160000/5000 = 32
Total direct = 64
Indirect budgeted rate = 200000/5000 = 40
Direct labor 160000, hours 5000
Overhead =
One of the many changes in the business environment in recent years that has had significant impact on cost management practices is a "focus on the customer". You are part of the management team in a medium-size Internet service company. The company is ju
An insurance subscriber wants understandable benefits, accessible network, quick claim payment and reasonable premium and copays.
Extensive growth pulls the executive focus from one priority to another often leading to a reduction in claim payment time or
The cause and effect relationships among critical success factors are best captured in:
the strategy map
Operation costing is a hybrid costing system for products and services that uses:
Job costing for direct materials costs and process costing for conversion cost.
In the late 1990s, the bicycle maker Cannondale Corp. faced a variety of key strategic issues. One was the firm's continued dependence on Shimano Inc. of Japan to supply many parts for its bikes, particularly the derailleur, brakes, and crankset. A partic
Cannondale's strategy is one of differentiation. They are striving for high quality at a reasonable price. By cutting ties with Shimano, they want to increase both dependability for getting the parts and also reduce the price (but not the quality) of the
Which type of firm is most likely to require a very accurate costing system?
A firm in a competitive environment.
Management accounting information plays a critical role in all except which of the following management functions?
Managerial compensation.
Planning and decision making.
Hiring a new CIO.
Financial reporting to the SEC.
Profit planning.
Hiring a new CIO.
The following information was taken from the accounting records of Elliott Manufacturing Corp. Unfortunately, some of the data were destroyed by a computer malfunction.
Sales Revenue $58,000
Finished Goods Inventory, Beginning 9,000
Finished Goods Invento
4,000
SGA = Gross - Operating Income
11000 = 25,000-14000
COGS = Sales revenue - Gross $33000
COG Manufactured = COGS + Finished Ending - Finished Beginning $30,000
Total Man Cost = Direct material + Direct labor + Overhead $31000
Beg WIP = COG Man + Endi
During the strengths and weaknesses portion of a firm's SWOT analysis, which of the following would not be discovered?
Due to a lack of barriers to entry into the industry, several new competitors were beginning to enter the market.
Which of the following is not a major change in the business environment that has affected the way many companies think about conducting business?
A growing emphasis on globalization; new markets for products and new competitors.
The development of improv
The development of improved cost management methods.
All of the following actions enhance the new focus on making management accounting information more relevant in helping a firm achieve strategic goals, except:
Increasing emphasis on the use of cost information for competitive advantage.
Increasing emphas
Increasing emphasis on external financial reporting.
n SWOT analysis, opportunities and threats are identified by:
Looking outside the firm.
Opportunities & Threats are external
B. Which of the following perspectives of a Balanced Scorecard would most likely be the ultimate goal in a strategy map for a public company?
Financial performance
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year:
Overhead ExpectedCost CostDriver ExpectQuantity
Setup costs -$50,000-Number of setups- 250
Ordering costs-30,000-Number of orders-1,500
Maintenance-100,00
Check when submitting the practice, this is not an option.
Total overhead/labor hours
200000/2000 = cost per direct labor hour
100.00
All of the following are required resources for differentiation except:
Corporate reputation for quality.
Product engineering.
Intense supervision of labor.
Strong marketing capability.
Intense supervision of labor.
Which of the following measures would likely be found on the financial perspective section of a balanced scorecard?
Sales growth.
Which of the following companies uses process costing systems?
Jiffy Lube International.
Coca-Cola.
Accenture consulting firm.
A professional service firm.
All of these answer choices are correct.
Coca-Cola.
A normal costing system uses actual costs for direct materials and direct labor, and:
Estimated costs for factory overhead.
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $78
950 overapplied
Actual overhead
indirect labor 24200
+supervisor salaries 11100
+factory rental 9300
+depreciation 10400
+indirect materials 17800
=72800
Budget Overhead
Find predetermined
784700/133000 = 5.90
total hours * predetermined
(7000+5500)*5.90
The competitive strategy of differentiation is implemented by a firm's targeted, careful attention to a(n):
Specific feature of the product or service.
Which one of the following customer critical success factors is best measured by warranty expense?
Quality.
Assume the following information pertaining to Cub Company:
Prime costs $195,000
Conversion costs 221,000
Direct materials used 85,000
Beginning work in process 98,000
Ending work in process 81,000
Direct labor used is calculated to be:
110,000
Prime Costs aka Materials+ labor 195,000 - Direct Materials 85,000 = Direct Labor 110,000
Levis Strauss and Co, maker of Levi's familiar 501 and Made and Crafted brands of jeans, also makes a brand that was introduced for discount retailers such as Walmart and Kmart. Levi's strategy with the new jeans (the Signature brand) was to sell a compet
The benefits of the new line is that the Signature line is open to a new set of customers. There are seveal risks with the new product. The Levi brand is known for quality and having cheaper fabrics and materials associated with the brand diminishes the b
Which of the following is not an example of a product cost?
Depreciation on company-owned manufacturing plant
Power for equipment
Depreciation on company-owned sales outlets
Salary of manufacturing supervisor
Depreciation on company-owned sales outlets
Billy Baroo Company uses a job order cost system. The following information was found in the Work-in-Process account for the month of July.
Date-Description-Amount [DR. or (CR.)]
July 1- Balance- $12,000
July 31- Direct labor-38,000
July 31-Direct materia
30800 Add all figures except starting balance
total = 52400
subtract job in process at the end of July * 80%
-labor 12000
- overhead (12000 *80%)
=30800
Cost management information typically is the responsibility of the:
Controller
Sustainability is the balancing of short and long term goals in all three dimensions of the company's performance. Those three areas are:
Economic, social, and environmental.
Assume the following information pertaining to Moonbeam Company:
Beginning Ending
Finished goods inventory $130,000/$124,000
Work in process inventory 85,000/104,000
Direct materials 117,000/130,000
Costs incurred during the period are as follows
Total ma
169,000
Direct materials used+ Beg Finished Goods-Beg Direct materials
156,000+130,000-117000
Which of the following is not an environmental performance indicator?
Fresh water usage.
Percentage of employees with flu vaccinations.
Fossil fuel use.
Carbon emissions.
Percentage of employees with flu vaccinations.
The following information was taken from the accounting records of Elliott Manufacturing Corp. Unfortunately, some of the data were destroyed by a computer malfunction.
Sales Revenue $58,000
Finished Goods Inventory, Beginning 9,000
Finished Goods Invento
33,000
SGA = Gross - Operating Income
11000 = 25,000-14000
COGS = Sales revenue - Gross $33000
COG Manufactured = COGS + Finished Ending - Finished Beginning $30,000
Total Man Cost = Direct material + Direct labor + Overhead $31000
Beg WIP = COG Man + End
ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC charges direct materials to WIP, while indirect materials are charged to the Factory Overhead account. During the month of April, the company has the followin
30,000
Problem says that indirect materials are charged to the factory overhead account
Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 114,000 and estimated factory overhead was $6
57,950
Predetermined Rate = OH = 695400/114,000 = 6.10
Total units = 5000+4500 = 9500
Total Units*predetermined = 57950
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $78
73,750
predefined = 784.700/133000 = 5.90
Total units
7000+5500 = 12500
Total Units * predetermined = 73750
The following information was taken from the accounting records of Elliott Manufacturing Corp. Unfortunately, some of the data were destroyed by a computer malfunction.
Sales Revenue $58,000
Finished Goods Inventory, Beginning 9,000
Finished Goods Invento
30,000
SGA = Gross - Operating Income
11000 = 25,000-14000
COGS = Sales revenue - Gross $33000
COG Manufactured = COGS + Finished Ending - Finished Beginning $30,000
Total Man Cost = Direct material + Direct labor + Overhead $31000
Beg WIP = COG Man + End
Volume-based rates are appropriate in situations where the incurrence of factory overhead:
Is related to a single, common cost driver.
Which one of the following is not a type of cost driver?
-Executional cost driver.
-Volume-Based cost driver.
-Activity-Based cost driver.
-Structural cost driver.
Differential cost driver.
Differential cost driver.
In job costing, the job might consist of:
a single product, a batch of products, or a single well-defined project.
The premier auto manufacturer, BMW, introduced a new compact SUV (the X3) in an effort to grab a greater share of the overall luxury car market. Because its own resources were pretty well tapped out by a large number of new vehicles BMW had already introd
Strategy is differentiation with focus on customer satisfaction and luxury features. Product is more expensive for the name.
- Outsourcing may undermine the the BMW quality brand.
Why is BMW willing to get into SUV market apart from the sedan and sports c
Which of the following is not a method the management accountant must address regarding the costing system?
Overhead assignment method.
Cost measurement method.
Labor decision method.
Cost accumulation method.
Labor decision method.