A) Products. B) Services. C) Departments. D) All of the answers are correct. A) Products. B) Services. C) Departments. D) All of the answers are correct.

A) is the point at which production of joint products begins. B) is the point at which joint products become unidentifiable. C) refers to the point where title to goods sold passes from the seller to the buyer. D) is the point at which joint products separated from each other. A) is the point at which production of joint products begins. B) is the point at which joint products become unidentifiable. C) refers to the point where title to goods sold passes from the seller to the buyer. D) is the point at which joint products separated from each other.

The following are Acme's production costs for the quarter ended September 30th: \[\begin{array} { l l } \text { Direct materials } & \$ 150,000 \\ \text { Direct labor } & \$ 175,000 \\ \text { Factory overhead } & \$ 225,000 \end{array}\] What amount of costs should be traced to specific products in the process?

A) $150,000 B) $175,000 C) $225,000 D) $325,000 A) $150,000 B) $175,000 C) $225,000 D) $325,000

Alleghany Community College operates four departments.The square footage used by each department is shown below. \[\begin{array} { l r } & \text { Square } \\ \text { Department } & \text { Footage } \\ \text { Accounting } & 3,000 \\ \text { Marketing } & 4,000 \\ \text { Technology } & 6,000 \\ \text { Sciences } & \underline{3,000} \\ \text { Total } & \underline{16,000 }\\ \end{array}\] Alleghany's annual building rental cost is $320,000. What amount of rent expense should be allocated to the Technology Department?

A) $60,000 B) $80,000 C) $120,000 D) $192,000 A) $60,000 B) $80,000 C) $120,000 D) $192,000

Exam 4: Cost Accumulation,tracing,and Allocation

Alvarez Company makes three joint products,products A,B,and C.For each batch,the materials cost is $16,000,direct labor cost is $4,000,and manufacturing overhead is $10,000.From each batch,the company makes 2,000 pounds of A,1,200 pounds of B,and 800 pounds of C. Required: 1)What are the total joint costs for each batch of the products? 2)Allocate the joint costs to each of the three products. 3)Determine the cost per pound for product A.

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Question 1

Correct Answer:

Verified

1)Total joint costs = $30,000
2)Amount of joint costs allocated to A = $30,000 × 2,000 ÷ 4,000 = $15,000
Amount of joint costs allocated to B = $30,000 × 1,200 ÷ 4,000 = $9,000
Amount of joint costs allocated to C = $30,000 × 800 ÷ 4,000 = $6,000
3)Cost per pound for product A = $15,000 ÷ 2,000 pounds = $7.50

For financial reporting,joint costs are assigned to the product with the highest sales value.

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(True/False)

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Question 2

Correct Answer:

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False

Indicate whether each of the following statements is true or false.

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(Short Answer)

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Question 3

Correct Answer:

Verified

Using the direct method of allocating service department costs,the costs are allocated to:

(Multiple Choice)

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Question 4

Great Outdoors Company makes two types of camping tents.Making a standard camping tent requires 4 hours of labor while making a deluxe camping tent requires 10 hours of labor.During the most recent accounting period the company made 2,000 standard camping tents and 500 deluxe camping tents.Indirect manufacturing costs amounted to $52,000 and are allocated based on labor hours.Based on this information:

(Multiple Choice)

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Question 5

The goal in allocating a cost to cost objects is to achieve a rational allocation.

(True/False)

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Question 6

Pets 'n Pals is attempting to determine the cost of operating a particular store.Which of the following costs would be classified as an indirect cost?

(Multiple Choice)

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Question 7

A chair manufacturer makes custom chairs using hand tools,wood,glue,and varnish.Which of the following statements is true?

(Multiple Choice)

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Question 8

Which of the following regarding direct costs is a correct statement?

(Multiple Choice)

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Question 9

Cost objects may be:

(Multiple Choice)

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Question 10

Cost allocation involves:

(Multiple Choice)

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Question 11

An allocation base has a cause-and-effect relationship with a cost object.

(True/False)

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Question 12

The split-off point:

(Multiple Choice)

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Question 13

The following are Acme's production costs for the quarter ended September 30^th: Direct materials \ 150,000 Direct labor \ 175,000 Factory overhead \ 225,000 What amount of costs should be traced to specific products in the process?

(Multiple Choice)

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Question 14

Biden Department Store has four departments: men's,women's,children's,and electronics.The following information is provided: Men's Women's Children's Electronics Floor space 10,00 csq. ft. 20,000 sq. ft. 8,000 sq. ft. 2,000.. Sales \3 5,000 \ 75,000 \ 20,000 \ 12,000 The company's accountant needs to allocate the store's annual rent of $160,000. Required: 1)Compute the allocation rate that should be used to allocate the rent cost to the four departments. 2)Compute the amount of rent that should be allocated to each of the four departments. 3)Currently,the managers are paid a bonus based on sales.As you can see from the above table,the women's department manager will receive the largest bonus.Do you believe this bonus plan is fair to all four department managers? Why or why not?

(Essay)

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Question 15

Volume measures serve as good cost drivers for allocating variable overhead costs because of the causal relationship that exists between those drivers and variable costs.

(True/False)

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Question 16

What are cost objects? List examples of cost objects.

(Essay)

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Question 17

Alleghany Community College operates four departments.The square footage used by each department is shown below. Square Department Footage Accounting 3,000 Marketing 4,000 Technology 6,000 Sciences Total Alleghany's annual building rental cost is $320,000. What amount of rent expense should be allocated to the Technology Department?

(Multiple Choice)

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Question 18

The method used to allocate service department costs can cause overstatement of costs for some cost objects and understatement for others.

(True/False)

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Question 19

The step method of allocating service department costs allocates those costs to operating departments only.

(True/False)

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Question 20

Showing 1 - 20 of 159

For financial reporting,joint costs are assigned to the product with the highest sales value.

Indicate whether each of the following statements is true or false.

Using the direct method of allocating service department costs,the costs are allocated to:

The goal in allocating a cost to cost objects is to achieve a rational allocation.

Pets 'n Pals is attempting to determine the cost of operating a particular store.Which of the following costs would be classified as an indirect cost?

A chair manufacturer makes custom chairs using hand tools,wood,glue,and varnish.Which of the following statements is true?

Which of the following regarding direct costs is a correct statement?

Cost objects may be:

Cost allocation involves:

An allocation base has a cause-and-effect relationship with a cost object.

The split-off point:

The following are Acme's production costs for the quarter ended September 30^th: Direct materials \ 150,000 Direct labor \ 175,000 Factory overhead \ 225,000 What amount of costs should be traced to specific products in the process?

Volume measures serve as good cost drivers for allocating variable overhead costs because of the causal relationship that exists between those drivers and variable costs.

What are cost objects? List examples of cost objects.

The method used to allocate service department costs can cause overstatement of costs for some cost objects and understatement for others.

The step method of allocating service department costs allocates those costs to operating departments only.

Management Accounting and Corporate Governance

Cost Behavior, operating Leverage, and Profitability Analysis

Analysis of Cost, volume, and Pricing to Increase Profitability

Cost Management in an Automated Business Environment: ABC, ABM, and TQM

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Responsibility Accounting

Planning for Capital Investments

Product Costing in Service and Manufacturing Entities

Job-Order, process, and Hybrid Costing Systems

Financial Statement Analysis

Statement of Cash Flows

Filters

Exam 4: Cost Accumulation,tracing,and Allocation

For financial reporting,joint costs are assigned to the product with the highest sales value.

Indicate whether each of the following statements is true or false.

Using the direct method of allocating service department costs,the costs are allocated to:

The goal in allocating a cost to cost objects is to achieve a rational allocation.

Pets 'n Pals is attempting to determine the cost of operating a particular store.Which of the following costs would be classified as an indirect cost?

A chair manufacturer makes custom chairs using hand tools,wood,glue,and varnish.Which of the following statements is true?

Which of the following regarding direct costs is a correct statement?

Cost objects may be:

Cost allocation involves:

An allocation base has a cause-and-effect relationship with a cost object.

The split-off point:

The following are Acme's production costs for the quarter ended September 30th: Direct materials \ 150,000 Direct labor \ 175,000 Factory overhead \ 225,000 What amount of costs should be traced to specific products in the process?

Volume measures serve as good cost drivers for allocating variable overhead costs because of the causal relationship that exists between those drivers and variable costs.

What are cost objects? List examples of cost objects.

The method used to allocate service department costs can cause overstatement of costs for some cost objects and understatement for others.

The step method of allocating service department costs allocates those costs to operating departments only.

Management Accounting and Corporate Governance

Cost Behavior, operating Leverage, and Profitability Analysis

Analysis of Cost, volume, and Pricing to Increase Profitability

Cost Management in an Automated Business Environment: ABC, ABM, and TQM

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Responsibility Accounting

Planning for Capital Investments

Product Costing in Service and Manufacturing Entities

Job-Order, process, and Hybrid Costing Systems

Financial Statement Analysis

Statement of Cash Flows

Filters

The following are Acme's production costs for the quarter ended September 30^th: Direct materials \ 150,000 Direct labor \ 175,000 Factory overhead \ 225,000 What amount of costs should be traced to specific products in the process?