Exam 2: Measuring Product Costs

Fisher Products Company The Fisher Products Company uses a job costing system.The company estimated its annual overhead to be $100,000,and the number of direct labor hours for the year to be 20,000 hours.In the first month,the following jobs were completed:

Explain how to compute end-of-period inventory book value using equivalent units of production.

Operation costing is a hybrid of which of the following two costing methods?

To record the cost of producing the same type of tables made of different materials,but undergoing the same manufacturing process,a furniture manufacturing company would most likely use a(n)

Michael Visual Works,Inc.uses a normal costing system and estimated its overhead costs for the current year to be as follows: fixed,$525,000;variable,$4 per unit.Michael expected to produce 350,000 units during the year.During the year,the company incurred overhead costs of $2,100,000 and produced 400,000 units.Calculate the rate to be used to apply manufacturing overhead costs to products.

Jenkins Company Jenkins Company applies overhead costs to products at a rate of 50 percent of direct labor costs.The following data relate to the manufacturing activities of Jenkins Company during April:

Use this information to answer the following question(s): Refer to the above information;determine the cost of goods sold during the period.

Using the following information,calculate equivalent units of production for Jetton Manufacturing using the FIFO method: Beginning Inventory: 30,000 units,40% complete Units started & completed: 75,000 units Units in ending inventory: 20,000 units,70% complete

Which of the following is true regarding normal costing?

Which of the following is not a fraudulent practice for assigning costs?

Jenkins Company Jenkins Company applies overhead costs to products at a rate of 50 percent of direct labor costs.The following data relate to the manufacturing activities of Jenkins Company during April: Factory costs incurred during the month were: Refer to Jenkins Company.Calculate the cost of direct materials used during April.

Fisher Products Company The Fisher Products Company uses a job costing system.The company estimated its annual overhead to be $100,000,and the number of direct labor hours for the year to be 20,000 hours.In the first month,the following jobs were completed: Refer to the Fisher Products Company.What is the overhead assigned to job #115?

Normal costing does not use which of the following to measure product costs?

An effective cost system has which of the following characteristic(s)?

Susan Johnson Products Company The Susan Johnson Products Company uses a job costing system.For Year 4,the firm estimated total overhead to be $40,000 and the number of direct labor hours to be 10,000. Refer to the Susan Johnson Products Company.Calculate the predetermined overhead rate.

Which of the following statements is true?

In recording costs by departments,the accounting system has served its functions of providing data for department performance evaluation,and also assigns costs to products for managerial decision making,such as

Which costing system is generally used by companies who provide professional services to their clients,such as accountants and lawyers?

Which of the following costs is not part of manufacturing overhead?

Actual costs and normal costs.Canyon Ridge Company uses a predetermined rate for applying overhead to production using normal costing.The rates for Year 1 follow: variable,200 percent of direct labor dollars;fixed,300 percent of direct labor dollars.Actual overhead costs incurred follow: variable,$20,000;fixed,$26,000.Actual direct materials costs were $5,000,and actual direct labor costs were $9,000.Canyon Ridge produced one job in Year 1. Required: a.Calculate actual costs of the job. b.Calculate normal costs of the job using predetermined overhead rates. (Canyon Ridge Company;actual costs and normal costs. )