ACTG 2020 Chapter Notes - Chapter 2: Opportunity Cost, Marginal Revenue, Fixed Cost
Document Summary
Get access
Related Documents
Related Questions
1. ABC generally causes the least amount of cost distortionamong products because indirect costs are allocated to the productsbased on
types of activities used by theproduct. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
the extent to which the activitiesare used. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
both A and B. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
none of the above. 2. Chicago Steel's operating activities for the year are listedbelow:
What is the cost of goods sold for the year?
|
1. Azucar, Inc. has six processing departments for refining sugarâAffination, Carbonation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughout each process. Data from August for the Decolorization Department are as follows:
â | Metric Tons |
Beginning Work-in-Process Inventory | 0 |
Transferred in | 13,500 |
Completed and transferred out to Boiling in August | 5500 |
Ending Work-in-Process Inventory | 8000 |
â | Costs |
Beginning Work-in-Process Inventory | $0 |
Costs added during August | â |
Direct materials | 3,000,000 |
Direct labor | 1,100,000 |
Manufacturing overhead | 625,000 |
Total costs added during August | $4,725,000 |
The ending Work-in-Process Inventory is 100% and 75% complete with respect to direct materials and conversion costs, respectively. The weighted-average method is used. Compute the cost per equivalent unit for direct materials and conversion costs. (Round any intermediate calculations and your final answer to two decimal places.)
A | $81.48 per metric ton for direct materials; $200.00 per metric ton for conversion costs | |
B | $200.00 per metric ton for direct materials; $81.48 per metric ton for conversion costs | |
C | $222.22 per metric ton for direct materials; $150.00 per metric ton for conversion costs | |
D | $222.22 per metric ton for direct materials; $222.22 per metric ton for conversion costs |
2. Martinez Manufacturing incurred $4000 for indirect labor in Department III. The journal entry to record indirect labor utilized, but not paid is ________. Process costing is used.
A | debit Manufacturing Overhead, $4000; credit Wages Payable, $4000 | |
B | debit Wages Payable, $4000; credit Manufacturing Overhead, $4000 | |
C | debit Accounts Payable, $4000; credit Manufacturing Overhead, $4000 | |
D | debit Manufacturing Overhead, $4000; credit Accounts Payable, $4000 |
3. The managerial role that involves the day-to-day running of the business is the ________.
A strategic planning function | ||
B directing function | ||
C planning function | ||
D controlling function |
4. Manufacturing costs flow from Work-in-Process Inventory to Cost of Goods Sold to Finished Goods Inventory.
A True
B False
5. Payton Corporation provided the following information for the year:
Beginning BalanceâWork-in-Process Inventory | $26,000 |
Ending BalanceâWork-in-Process Inventory | 55,000 |
Beginning Balanceâ Direct Materials | 81,000 |
Ending Balanceâ Direct Materials | 59,000 |
Purchases â Direct Materials | 360,000 |
Direct Labor | 471,000 |
Indirect Labor | 19,000 |
Depreciation on Factory Plant and Equipment | 24,000 |
Plant Utilities and Insurance | 268,000 |
What was the amount of the cost of goods manufactured for the year?
A | $1,363,000 | |
B | $1,164,000 | |
C | $1,193,000 | |
D | $1,135,000 |
1.A key difference between managerial and financial accounting is that
Managerial is only historical data and financial is only future data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Managerial users are typically internal and financial users typically external | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Managerial is highly regulated and financial is not | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial uses much more economic data than managerial
--------------------- 3.Major inventory accounts in a manufacturing environment typically include all of the following except
|