Question 1

The journal entry needed to record $5,000 of advertising for Oxner Manufacturing would include:

Accepted Answer

A) a debit to Advertising Expense. 
B) a credit to Advertising Expense. 
C) a debit to Manufacturing Overhead. 
D) a credit to Manufacturing Overhead. 
E) a debit to Projects-in-Process. 
A) a debit to Advertising Expense. 
B) a credit to Advertising Expense. 
C) a debit to Manufacturing Overhead. 
D) a credit to Manufacturing Overhead. 
E) a debit to Projects-in-Process.

Question 2

A review of a company's Work-in-Process Inventory account found a debit for materials of $67,000. If all procedures were performed in the correct manner, this means that the ﬁrm:

Accepted Answer

A) also recorded a credit to Raw-Material Inventory. 
B) also recorded a credit to Manufacturing Supplies Inventory. 
C) was accounting for the usage of direct materials. 
D) was accounting for the usage of indirect materials. 
E) also recorded a credit to Raw-Material Inventory and was accounting for the usage of 
A) also recorded a credit to Raw-Material Inventory. 
B) also recorded a credit to Manufacturing Supplies Inventory. 
C) was accounting for the usage of direct materials. 
D) was accounting for the usage of indirect materials. 
E) also recorded a credit to Raw-Material Inventory and was accounting for the usage of

Question 3

Metalica Company applies overhead based on machine hours.At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000.By 20x1 year-end, actual overhead totaled $525,000, and actual machine hours were 25,000.On the basis of this information, the 20x1 predetermined overhead rate was:

Accepted Answer

A) $0.04 per machine hour. 
B) $0.05 per machine hour. 
C) $20 per machine hour. 
D) $21 per machine hour. 
E) $25 per machine hour. 
A) $0.04 per machine hour. 
B) $0.05 per machine hour. 
C) $20 per machine hour. 
D) $21 per machine hour. 
E) $25 per machine hour.

Question 4

Which of the following manufacturers would most likely use job-order costing?

Accepted Answer

A) Chemical manufacturers. 
B) Microchip processors. 
C) Custom-furniture manufacturers. 
D) Gasoline reﬁners. 
E) Fertilizer manufacturers. 
A) Chemical manufacturers. 
B) Microchip processors. 
C) Custom-furniture manufacturers. 
D) Gasoline reﬁners. 
E) Fertilizer manufacturers.

Question 5

Product or service cost is a very objective number that anyone could agree on.

Accepted Answer

A) True 
 B)False

Question 6

Norwood Corporation uses a predetermined overhead rate of $20 per machine hour.In deriving this ﬁgure, the company's accountant used:

Accepted Answer

A) a denominator of budgeted machine hours for the current accounting period. 
B) a denominator of actual machine hours for the current accounting period. 
C) a denominator of actual machine hours for the previous accounting period. 
D) a numerator of budgeted machine hours for the current accounting period. 
E) a numerator of actual machine hours for the current accounting period. 
A) a denominator of budgeted machine hours for the current accounting period. 
B) a denominator of actual machine hours for the current accounting period. 
C) a denominator of actual machine hours for the previous accounting period. 
D) a numerator of budgeted machine hours for the current accounting period. 
E) a numerator of actual machine hours for the current accounting period.

Question 7

Use the following labor budget data for Roy & Miller Accounting, LLP.   The budgeted overhead cost for the year is $1,260,000.The company has estimated that one-third of the budgeted overhead cost is incurred to support the ﬁrm's two partners, and two-thirds goes to support the staff accountants.The current audit bid for Monoco Industries requires $18,000 in direct partner professional labor, $30,000 in direct staff accountant professional labor, $5,000 in direct material. What is the overhead rate for staff accountants, if separate rates are used for partners and staff accountants?

Accepted Answer

A) 50% 
B) 75% 
C) 66.7% 
D) 100% 
E) 150% 
A) 50% 
B) 75% 
C) 66.7% 
D) 100% 
E) 150%

The journal entry needed to record $5,000 of advertising for Oxner Manufacturing would include:

A review of a company's Work-in-Process Inventory account found a debit for materials of $67,000. If all procedures were performed in the correct manner, this means that the ﬁrm:

Which of the following manufacturers would most likely use job-order costing?

Product or service cost is a very objective number that anyone could agree on.

Norwood Corporation uses a predetermined overhead rate of $20 per machine hour.In deriving this ﬁgure, the company's accountant used:

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis, Cost Behavior, and Cost Estimation

Cost-Volume-Profit Analysis

Variable Costing and the Costs of Quality and Sustainability

Financial Planning and Analysis: the Master Budget

Standard Costing and Analysis of Direct Costs

Flexible Budgeting and Analysis of Overhead Costs

Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard

Inventory Management and Economic Order Quantity (EOQ) Analysis

Filters

Exam 3: Product Costing and Cost Accumulation in a Batch Production Environment

The journal entry needed to record $5,000 of advertising for Oxner Manufacturing would include:

A review of a company's Work-in-Process Inventory account found a debit for materials of $67,000. If all procedures were performed in the correct manner, this means that the ﬁrm:

Which of the following manufacturers would most likely use job-order costing?

Product or service cost is a very objective number that anyone could agree on.

Norwood Corporation uses a predetermined overhead rate of $20 per machine hour.In deriving this ﬁgure, the company's accountant used:

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis, Cost Behavior, and Cost Estimation

Cost-Volume-Profit Analysis

Variable Costing and the Costs of Quality and Sustainability

Financial Planning and Analysis: the Master Budget

Standard Costing and Analysis of Direct Costs

Flexible Budgeting and Analysis of Overhead Costs

Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard

Inventory Management and Economic Order Quantity (EOQ) Analysis

Filters