Practice test mcqs | Accounting homework help

Instructions:  Designate the right reply for each of the following questions.

 

____     1.  Given the following data, compute equal fashions of producing for conversion costs:

                        Beginning Work in Course of—eight,000 fashions, 40% full

                        Fashions Completed and Transferred Out—90,000 fashions

                        Ending Work in Course of—6,000 fashions, 20% full.

                  a.   88,000

                  b.   91,200

                  c.   94,400

                  d.   96,000

 

____     2.  When there’s beginning work in course of, fashions transferred out will probably be computed by subtracting

                  a.   ending work in course of fashions from the fashions accounted for.

                  b.   ending work in course of fashions from the fashions started into manufacturing.

                  c.   beginning work in course of fashions from the fashions to be accounted for.

                  d.   beginning work in course of fashions from the fashions started into manufacturing.

 

____     three.  Given the following data, compute equal fashions of producing for provides costs. Provides are added initially of the strategy.

                        Beginning Work in Course of—eight,000 fashions, 40% full

                        Fashions Completed and Transferred Out—90,000 fashions

                        Ending Work in Course of—6,000 fashions, 20% full.

                  a.   88,000

                  b.   91,200

                  c.   94,400

                  d.   96,000

 

____     4.  Which of the following does not describe a attribute in fact of costing?

                  a.   Job value sheets ought to go from one manufacturing division to the next day by day.

                  b.   As quickly as manufacturing begins, it continues until the finished product emerges.

                  c.   All fashions of producing acquire precisely the an identical amount of material, labor, and overhead.

                  d.   Work in course of accounts are maintained for each manufacturing division.

 

____     5.  Which of the following is not an very important facet of JIT (merely in time) processing?

                  a.   A corporation might want to have dependable suppliers who’re ready to ship on fast uncover exact parts of raw provides in keeping with actual prime quality specs.

                  b.   A corporation might want to have a multiskilled work strain, so that one worker can have the responsibility to operate and preserve numerous varied sorts of machines.

                  c.   A course of value accounting system need to be in place.

                  d.   A whole prime quality administration system need to be established all by means of the manufacturing operations.

 

 

 

____     6.  In a JIT value accounting system,

                  a.   lowered product prime quality is offset by lowered value.

                  b.   manufacturing overhead is utilized inside the standard technique.

                  c.   Raw Provides and Work in Course of Inventory accounts are modified by Raw and In-Course of Inventory.

                  d.   conversion costs are eradicated.

 

____     7.  The number of purchase orders could possibly be an relevant value driver for

                  a.   inspecting and testing value.

                  b.   machining value.

                  c.   ordering and receiving provides value.

                  d.   supervising value.

 

____     eight.  All the next are true about low-volume merchandise moreover

                  a.   they sometimes require further explicit coping with than high-volume merchandise.

                  b.   the overhead costs incurred by low-volume merchandise are generally disproportionate to a typical allocation base.

                  c.   they’re commonly answerable for further overhead costs per unit than a high-volume product.

                  d.   direct labor hours is generally a better value driver for assigning overhead costs to low-volume merchandise.

 

____     9.  The primary advantage of activity-based costing is that it ends in

                  a.   further value swimming swimming pools used to assign overhead costs to merchandise.

                  b.   further right product costing.

                  c.   enhanced administration over overhead costs.

                  d.   increased administration selections.

 

____   10.  All the next are value-added actions in a producing operation moreover

                  a.   assembly.

                  b.   engineering design.

                  c.   inspections.

                  d.   machining

____   11.  ABC costing is an technique for allocating

                  a.   direct provides to merchandise.

                  b.   direct labor to merchandise.

                  c.   manufacturing overhead to merchandise.

                  d.   direct provides and direct labor to merchandise.

 

____   12.  The first step in activity-based costing is to

                  a.   assign overhead costs for each train value pool to merchandise.

                  b.   compute the activity-based overhead charge.

                  c.   set up value drivers that exactly measure each train’s contribution to the finished product.

                  d.   set up and classify the primary actions involved inside the manufacture of explicit merchandise.

 

 

 

 

 

Instructions: Using the following data, full the requirements given beneath. If you end up given portions to think about as a result of the options to earlier requirements, be careful to utilize such assumed portions pretty than your options (with a view to cut back carry-through errors).

 

The Ending Division of Curtis Firm tales the following for January 2011:

 

Manufacturing: All provides are added initially of the strategy. Beginning work in course of 20,000 fashions, 60% full. Fashions started into manufacturing 240,000 fashions. Ending work in course of 10,000 fashions, 30% full.

 

Manufacturing Costs: Beginning work in course of, $40,000, comprised of $15,000 of provides and $25,000 of conversion costs. Provides added $160,000; labor and overhead added $465,000.

 

(a)     Required: Compute equal fashions of producing for (1) provides and (2) conversion costs.

                                                Provides                     Conversion

 

 

 

 

 

(b)    Assume your options to (a) above have been 250,000 fashions for provides and 245,000 for conversion costs.

         Required: Compute the unit costs for the month.

 

                                                            Provides                     Conversion

 

 

 

 

 

 

(c)     Assume your options to (b) above have been $.90 for provides and $2.10 for conversion costs. Required: Resolve the costs to be assigned to the 240,000 fashions transferred out.

 

 

 

 

 

 

(d)    Assume the an identical unit costs as given in (c) above.

         Required: Resolve the costs assigned to the 10,000 fashions in ending work in course of.

 

 

 

 

 

 

 

 

Shiny Window Agency designs and builds personalized house home windows for luxurious properties. Loads of the house home windows are personalized made nonetheless usually the company does mass manufacturing on order.  Its budgeted manufacturing overhead costs for the 12 months 2011 are as follows:

 

                        Overhead Worth Swimming swimming pools                                                     Amount 

            Shopping for                                                                               $   180,000

            Manufacturing (slicing, milling, ending)                                        400,000

            Organising machines                                                                     135,000

            Inspecting                                                                                    160,000

            Utilities                                                                                        300,000

                  Complete funds overhead costs                                             $1,175,000

 

For the ultimate three years, the company has been charging overhead to merchandise on the thought of machine hours.  For the 12 months 2011, 100,000 machine hours are budgeted.

 

Susan Craft, owner-manager of Shiny Window, not too way back directed her accountant to implement the activity-based costing system she has repeatedly proposed. At Susan’s request, the accountant and manufacturing foreman set up the following value drivers and their utilization for the beforehand budgeted overhead value swimming swimming pools.

 

                  Overhead Worth Swimming swimming pools                                  Train Worth Drivers            Complete Drivers

         Shopping for                                                          Number of orders                          500

         Manufacturing (slicing, milling, ending)              Direct labor hours                    80,000

         Organising machines                                           Number of setups                       1,000

         Inspecting                                                          Number of inspections               5,000

         Utilities                                                              Sq. toes occupied               75,000

 

All through this month, the company acquired an order for 50 window items from a housing progress contractor. The accountant prepares value estimates for producing elements for 50 window items so Susan can submit a contract worth per window set to the contractor. The following data for the manufacturing of 50 window items is gathered:

 

            Direct provides                                                        $120,000

            Direct labor                                                              $135,000

            Machine hours                                                              12,000

            Direct labor hours                                                        10,000

            Number of purchase orders                                                 50

            Number of machine setups                                                 80

            Number of inspections                                                      380

            Number of sq. toes occupied                                    7,000

 

Instructions

(a)   Compute the predetermined overhead charge using standard costing with machine hours as the thought.

(b)   Compute the manufacturing value per window set under standard costing.

(c)   Compute the manufacturing value per window set under the proposed activity-based costing.