Instructor Explanation: Chapter 5 Points Received: 6 of 6 Comments: 5. Question : (TCO F) Which of the following statements is true? I. Overhead application may be made slowly as a job is worked on. II. Overhead application may be made in a single application at the time of completion of the job. III. Overhead application should be made to any job not completed at year end in order to properly value the work in process inventory. Student Answer: Only statement
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| B | Conversion cost. | C | Period cost. | D | Nonmanufacturing cost. | 2. | Prime cost and conversion cost share what common element of total cost? | A | Direct materials. | B | Direct labor. | C | Variable overhead. | D | Variable overhead. | 3. | On the Schedule of Cost of Goods Manufactured‚ the final Cost of Goods Manufactured figure represents: | A | the amount of cost charged to Work in Process during the period. | B | the amount of cost transferred from
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Bal. | 143‚435 | | | | (6) | 18‚300 | | | | | | | | (7) | 78‚750 | All Other Liabilities | | | | | 384‚600 | | | Bal. | 47‚250 | | Bal. | 384‚600 | | | | | | | | | | | | Overhead | | Wages Payable | (5a) | 40‚500 | (8) | 99‚000 | | (5b) | 116‚700 | Bal. | 6‚150 | (6) | 55‚800 | | | | |
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and sales for the current year of $100‚000. How much is Juniper’s break-even point? a. 4‚600 units b. 5‚600 units c. 6‚200 units d. 2‚133 units e. none of the above 5. Guerry Company applies overhead on the basis of machine hours. Given the
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$21.25 $22.00 $23.00 200 1000 700 $21.50 $22.25 $23.50 Sales 2820 3080 2950 $34.00 $35.75 $35.75 4 Discussion Question Calculate the cost of goods sold and year-end inventory amounts for 2005‚ 2006‚ and 2007 using..‚ • FIFO • LIFO • Average cost method 5 Cartons 2005 Cost of goods sold Inventory 2006 Cost of goods sold Inventory 2007 Cost of goods sold Inventory 1840 600 380 2820 420 400 200 1020 FIFO Price $20.00 $20.25 $21.00 $36‚800
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$2‚000 for direct labor. From this information‚ it appears that the company is using a predetermined overhead rate‚ as a percentage of direct labor costs‚ of: A. 50% B. 200% C. 300% D. 20% 2. Job 607 was recently completed. The following data have been recorded on its job cost sheet: The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 607
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between actual and planned results. b. management may take corrective action. c. management may modify the future plans. d. all of these. 4. The purpose of the departmental overhead cost report is to a. control indirect labor costs. b. control selling expense. c. determine the efficient use of materials. d. control overhead costs. 5. The purpose of the sales budget report is to a. control selling expenses. b. determine whether income objectives are being met. c. determine whether sales goals
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Waterways Continuing Problem 1 Waterways Continuing Problem WCP1 Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms‚ parks‚ commercial projects‚ and private homes. It has a centrally located factory in a U.S. city that manufactures the products it markets to retail outlets across the nation. It also maintains a division that provides installation and warranty servicing in six metropolitan areas. The mission
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I. Overhead application may be made slowly as a job is worked on. II. Overhead application may be made in a single application at the time of completion of the job. III. Overhead application should be made to any job not completed at year end in order to properly value the work in process inventory. 6. Question : (TCO F) A job-order cost system is employed in those situations where 7. Question : (TCO F) The FIFO method only provides a major advantage over the weighted-average method
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___________________________________________________________________________ 1. What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? A. $31‚300 B. $5‚300 C. $23‚500 D. $(2‚500) The West Division of Fitzmaurice Corporation had average operating assets of $450‚000 and net operating income of $87‚300 in November. The minimum required rate of return for performance evaluation purposes is 18%. 2. What was the West Division’s minimum required return in November? A. $87‚300 B
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