Financial and managerial accounting

Assignment Help Financial Accounting

Reference no: EM1311923

Objective Questions on Process Costing System & Overheads allocation

1. The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows:

April 1, work in process:

Materials cost. 3000 units - $7,500

Conversion cost , 3000 units 2/3 completed - 6,000

Materials added during april, 10000 units - 26,000

Conversion costs during April - 31,000

Goods finished during April 11500 units - --

April 30 work in process 1500 units

½ completed - --

All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The materials cost per equivalent unit for April is:

a.$2.50

b.$2.60

c.$5.50

d.$2.26

2. Summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for:

a.finished goods and cost of goods sold

b.work in process and factory overhead

c.work in process and cost of goods sold

d.work in process and finished goods

3. Which of the following is not a characteristic of a process cost system?

a.The system may use several Work-in-Process accounts.

b.Manufacturing costs are grouped by departments.

c.The system allocates costs between completed and partially completed units within a department.

d.The system measures costs for each completed job.

4. 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 Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date) the overhead is over/under applied by?

a.$4,000,000 under

b.$2,000,000 under

c.$2,000,000 over

d.$4,000,000 over

5. Which of the following statements is false?

a.There is no overlap between financial and managerial accounting.

b.Managerial accounting does not need to conform to GAAP.

c.Managerial accounting sometimes relies on past information.

d.Financial accounting must conform to GAAP.

6. Which of the following is the correct flow of manufacturing costs?

a.Cost of goods sold, raw materials, work in process, finished goods.

b.Raw materials, work in process, finished goods, cost of goods sold.

c.Raw materials, finished goods, cost of goods sold, work in process.

d.Work in process, finished goods, raw materials, cost of goods sold.

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

a.transferred to Work in Process

b.transferred to Cost of Goods Sold

c.transferred to Finished Goods

d.allocated between Work in Process and Finished Goods

8. The cost of production of completed and finished goods during the period amounted to $400,000, and the finished products shipped to customers had total production costs of $337,000. From the following, select the entry to record the transfer of costs from finished goods to cost of goods sold.

Reference no: EM1311923

Questions Cloud

What is ball''s speed at the lowest point : When in deep space, the block accelerates at 4.2 m/s^2 even as a 120 N force is applied to it. The coefficient of static friction for a particular plane and this block is 0.31. What angle can this plane make with horizontal before the object starts t..

Trying to conclude a nations economic success. : what could affect every also a Discussion of why it is more accurate to examine both when trying to conclude a nation's economic success.

Short and long run viewpoint : The airline has an average of 40 passengers paying an average of $200 for this flight. Do you think the airline should be flying between the two cities? Evaluate from a short-run and long-run perspective.

What is its speed after it has moved the 7.50m : A force of k is applied to an object for a small fraction of a second, t_k, less than the duration of one frame, t_f. Our simulation doesn't support applying forces for less than an entire frame, so if we wanted to simulate the effect of force k over..

Financial and managerial accounting : Which of the following statements is false and There is no overlap between financial and managerial accounting.

Hypothesis test for two population proportions : Conduct the hypothesis test and compute the p-value. At a 0.05 level of significance, what is your conclusion?

Determining number of absences has declined : At the 0.05 significance level, can he conclude that number of absences has declined? calculate approximately the p -value.

Accounting profit from farming an additional year : He projects that his costs also revenue will be similar this year if he continues farming. Illustrate what is Bowen's accounting profit from farming an additional year.

Find out the intensity if the frequency is increased : Find out the intensity if the frequency is increased to 2.90 kHz while constant displacement amplitude is maintained.

User Account

All Pages