Question

1. ABC generally causes the least amount of cost distortion among products because indirect costs are allocated to the products based on

	types of activities used by the product.
	the extent to which the activities are used.
	both A and B.
	none of the above. 2. Chicago Steel's operating activities for the year are listed below: Beginning inventory $1,000,800 Ending inventory $350,500 Purchases $750,300 Sales revenue $1,500,400 Operating expenses $700,200 What is the cost of goods sold for the year? $1,751,100 $1,400,600 $750,100 $50,100 3. The following is selected financial data from Turtle Bay Manufacturing for the most recent year: Ending raw materials inventory $21,200 Ending work in process inventory $44,900 Ending finished goods inventory $53,200 Amount of underallocated manufacturing overhead $5,100 Cost of goods sold for year $85,500 Cost of raw materials purchased during year $45,700 Cost of direct materials requisitioned during year $44,300 Cost of indirect materials requisitioned during year $7,200 Cost of goods completed during year $120,200 Manufacturing overhead allocated $60,400 Manufacturing overhead % of direct labor cost 135% What is the beginning raw materials inventory? $27,000 $51,500 $19,800 $5,800 4. Which of the following is not an activity in an ABC system that determines the cost of a manufactured product? Materials handling Inspecting Machining Accounting 5.  Which type of company utilizes managerial accounting? Manufacturers Service Retailers All of the above 6. On a traditional income statement, all manufacturing-related costs, whether fixed or variable, are listed above the gross profit line. below the operating income line. above the sales line. above the contribution margin line. 7. In a process costing system, direct labor and manufacturing overhead are normally incurred evenly throughout the process. incurred at the end of the process. incurred in full at the beginning of the process. not recorded. 8.  Manufacturing overhead costs for a product include operating expenses. indirect manufacturing costs. direct material. prime costs. 9.   Here are selected basic data for Wilson Company: Estimated manufacturing overhead $243,750 Factory utilities $30,900 Estimated labor hours 35,000 Indirect labor $22,600 Actual direct labor hours 36,000 Sales commissions $54,600 Estimated direct labor cost $325,000 Factory rent $47,800 Actual direct labor cost $320,000 Factory property taxes $28,700 Factory depreciation $65,600 Indirect materials $33,300 If the company allocates overhead based on direct labor cost, what are the total actual manufacturing overhead costs? $173,000 $283,500 $228,900 $260,900 10. ERP stands for Enterprise Resource Planning. Enclosed Resource Placement. Edwin R. Perry, the man that created the first system. Entity Replacement Product.

Answer 1

1

Both A&B.

2

Cost of goods sold=Beginning inventory+Purchases-Ending inventory=1000800+750300-350500=1400600

Answer is second option.

3

Ending raw materials inventory=Beginning raw materials inventory+Cost of raw material purchased during the year-Cost of direct materials requisitioned-cost of indirect materials requisitioned

Put Beginning raw materials inventory=x

21200=x+45700-44300-7200

21200=x-5800

x=21200+5800=27000

Answer is first option $ 27000.

4

Accounting is not an activity in ABC system

5

Usually service company uses managerial accounting

6

Above the gross profit line

Other options are wrong

7

incurred evenly throughout the process.

8

Indirect manufacturing costs

Operating expenses and Direct material are not part of manufacturing overhead

Prime cost=Direct material+Direct labor.Both this are not part of the manufacturing overhead

9

Actual manufacturing overhead cost:

Factory depreciation

65600

Factory utilities

30900

Indirect labor

22600

Factory rent

47800

Factory property taxes

28700

Indirect materials

33300

Total

228900

Answer is 3rd option

10

Enterprise Resource Planning.