Acounting

In the income statement of a manufacturing company, what replaces purchases in the cost of goods section of a retail company?

Cost of goods manufactured

What is the purpose of the Statement of Cost of Goods Manufactured?

to determine the ending materials inventory to determine the ending work in process inventory
to determine the amounts transferred to finished goods
all of the answers are true

Compute conversion costs given the following data: Direct Materials, $352,700; Direct Labor, $196,300; Factory Overhead, $177,600.

$549,000

A widely used activity base for developing factory overhead rates in highly automated settings is:

Machine hours

One of the following will not be found on the balance sheet of a manufacturing company.

cost of goods sold

Which of the following would be most likely to use process costing?

lawn fertilizer manufacturer.

Each account in the cost ledger is called a:

job cost sheet

In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:

be prepared in accordance with generally accepted accounting principles

Which of the following are the basic functions of management?

Planning and controlling

Which of the following would most likely be a period cost?

Salary of telephone receptionist in the sales office.

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count, inspect the goods, and complete a:

receiving report

Which of the following is not a characteristic of a job order costing system?

It accumulates cost for each department within the factory.

The document authorizing the issuance of materials from the storeroom is the:

materials requisition

What is the primary criterion for the preparation of managerial accounting reports?

Meet the manager needs

The Collins Company forecasts that total overhead for the current year will be $12,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If the Collins C

$60 per machine hour

At the end of the fiscal year, the balance in Factory Overhead is small. This balance would normally be:

transferred to Cost of Goods Sold

What term is used to describe the process of developing the organization's objectives and goals?

Planning

Which types of inventories does a manufacturing business report on the balance sheet?

Direct materials inventory, work in process inventory, and finished goods inventory

The basis for recording direct and indirect labor costs incurred is a summary of the period's:

time tickets

The entry to record direct labor costs into production in a job order cost accounting system is:

debit Work in Process, credit Wages Payable

If Department H had 500 units, 60% completed, in process at the beginning of the period, 6,000 units were completed during the period, and 600 units were 30% completed at the end of the period, what was the number of equivalent units of production for the

5,880

Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period,

15,650

Just-in-time processing is a business philosophy that focuses on reducing time and cost and eliminating poor quality. This is accomplished in manufacturing and non-manufacturing processes by:

combining processing functions into work centers and cross-training workers to perform more than one function

For which of the following businesses would a process cost system be appropriate?

An oil refinery

In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following entries?

Debit Work in Process--Dept. B; credit Work in Process--Dept. A.

Department A had 1,000 units in Work in Process that were 70% completed at the beginning of the period at a cost of $7,000. 4,000 units of direct materials were added during the period at a cost of $8,200. 4,500 units were completed during the period, and

$3,455

A form prepared periodically for each processing department summarizing (1) the units for which the department is accountable and the units to be assigned costs and (2) the costs charged to the department and the allocation of these costs is termed a:

cost of production report

The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is:

process

Which of the following best describes the effect on direct labor when management adopts a just-in-time environment?

Workers are often cross-trained to perform more than one function.

Which of the following measures would not help managers to control and improve operations?

Commissions paid per time period