Exam 1: Introduction to Cost Accounting

The Shawshank Manufacturing Co. uses a job order cost system of accounting. The following information was taken from the books of the company after all posting had been completed at the end of January: a.Prepare the journal entries to allocate the costs of materials, labor, and factory overhead to each job and to transfer the costs of jobs completed to Finished Goods. b.Compute the total production cost of each job. c.Compute the unit cost of each job. d.Compute the selling price per unit for each job, assuming a mark-on percentage of 40 percent.

The following data were taken from Middletown Merchandisers on July 31, for the first month of its fiscal year: Compute the inventory at July 1.

Ashley Corp. had finished goods inventory of $50,000 and $60,000 at April 1 and April 30, respectively, and cost of goods manufactured of $175,000 in April. Cost of goods sold in April was:

Under a job order cost system of accounting, the entry to distribute payroll to the appropriate accounts would be:

Which of the following items of cost would be least likely to appear on a performance report based on responsibility accounting for the supervisor of an assembly line in a large manufacturing situation?

Which of the following is not a key element of the Sarbanes Oxley Act to improve corporate governance?

In the financial statements, Materials should be categorized as:

Prepare a performance report showing both month and year-to-date data for Post Manufacturing's Machining Department for February, 2011 using the following data:

Unit cost information is important for making all of the following marketing decisions except:

The statement of costs of goods manufactured shows:

An industry that would most likely use process costing procedures is:

Which of the following is not a cost that is accumulated in Work in Process?

The balance in Kayser Manufacturing Company's Finished Goods account at November 30 was $825,000. Its November cost of goods manufactured was $2,350,000 and its cost of goods sold in November was $2,455,000. What was the balance in Kayser's Finished Goods at November 1?

ISO 9000 is a set of international standards for:

A typical factory overhead cost is:

Which of the following production operations would be most likely to employ a job order system of cost accounting?

The process of establishing objectives or goals for the firm and determining the means by which they will be met is:

The business entity that purchases finished goods for resale is a:

As a result of recent accounting scandals involving companies such as Enron and World Com, the Sarbanes-Oxley Act of 2002 was written to protect shareholders of public companies by improving

The following inventory data relate to the Reta Company: Revenues and costs for the period: Prepare journal entries for the following, making any necessary computations: a.Purchase of materials on account b.Issuance of materials into production c.Transfer the cost of completed work to Finished Goods d.Record the sale of the goods on account and the related cost of goods sold.