Question 1

The Transfers In (TI)costs in the basic cost flow model of a manufacturing firm are direct materials,direct labor,and manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 2

Trippett Industries manufactures cleaning products.During the year,the company spent $600,000 on chemicals and $728,000 on conversion costs.Overhead is applied at a rate of 180% of direct labor costs.How much did the company spend on manufacturing overhead during the year?

Accepted Answer

A)  $260,000. 
B)  $468,000. 
C)  $128,000. 
D)  $404,444. 
A)  $260,000. 
B)  $468,000. 
C)  $128,000. 
D)  $404,444.

Question 3

For Case (B)above,what is the Ending Balance (EB)? $$\begin{array} { | l | r | r | r | } 
\hline & \text { Case } ( A ) & \text { Case } ( B ) & \text { Case } ( C ) \
\hline \text { Beginning Balance (BB) } & ? & \$ 8,630 & \$ 71,600 \
\hline \text { Ending Balance (EB) } & 34,360 & ? & 75,100 \
\hline \text { Transterred In } ( T ) ) & 194,600 & 42,600 & ? \
\hline \text { Transterred Out } ( T O ) & 192,800 & 46,500 & 181,900 \
\hline
\end{array}$$

Accepted Answer

A)  $4,730. 
B)  $12,530. 
C)  $46,500. 
D)  $8,630. 
A)  $4,730. 
B)  $12,530. 
C)  $46,500. 
D)  $8,630.

Question 4

Moore Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the most recently completed year appear below: The predetermined overhead rate for the recently completed year was closest to:

Accepted Answer

A)  $7.89. 
B)  $30.95. 
C)  $24.52. 
D)  $32.41. 
A)  $7.89. 
B)  $30.95. 
C)  $24.52. 
D)  $32.41.

Question 5

Rapid Enterprises applies manufacturing overhead to its cost objects on the basis of 75% of direct material cost.If Job 17X had $72,000 of manufacturing overhead applied to it during May,the direct materials assigned to Job 17X was:

Accepted Answer

A)  $54,000. 
B)  $72,000. 
C)  $96,000. 
D)  $126,000. 
A)  $54,000. 
B)  $72,000. 
C)  $96,000. 
D)  $126,000.

Question 6

Determine the missing values from the table below:
 $\begin{array}{|l|r|r|r|r|}
\hline & \begin{array}{r}
\text { Case } \
\text { (A) }
\end{array} & \text { Case } & \text { Case } & \text { Case } \
\text { (C) } & \text { (D) } \
\begin{array}{l}
\text { Beginning Balance } \
\text { (BB) }
\end{array} & \$ 41,520 & \$ 24,100 & \$ 5,450 & ? \
\hline \begin{array}{l}
\text { Ending Balance } \
\text { (EB) }
\end{array} & ? & 22,400 & 11,370 & \$ 38,910 \
\begin{array}{l}
\text { Transterred In (TI) }
\end{array} & 224,870 & ? & 84,400 & 189,460 \
\hline \begin{array}{l}
\text { Transterred Out } \
\text { (TO) }
\end{array} & 217,400 & 106,200 & ? & 193,610 \
\hline
\end{array}$ Case A: $48,990
Case B: $104,500
Case C: $78,480
Case D: $43,060

Accepted Answer

Case A: $41,520 + 224,870 - 217,4

Question 7

For Case (C)above,what is the Transferred-Out (TO)? $$\begin{array} { | l | r | r | r | } 
\hline & \text { Case } ( A ) & \text { Case (B) } & \text { Case (C) } \
\hline \text { Beginning Balance (BB) } & \$ 36,520 & \$ 15,100 & \$ 5,600 \
\hline \text { Ending Balance (EB) } & ? & 11,400 & 12,200 \
\hline \text { Transterred In (T)) } & 166,200 & ? & 68,400 \
\hline \text { Transterred Out } ( T O ) & 164,400 & 93,200 & ? \
\hline
\end{array}$$

Accepted Answer

A)  $75,000. 
B)  $61,800. 
C)  $68,400. 
D)  $80,600. 
A)  $75,000. 
B)  $61,800. 
C)  $68,400. 
D)  $80,600.

Question 8

Logansville Manufacturing produces lamps for large department stores.For 2016,the two production departments had budgeted allocation bases of 100,000 machine hours in Department 1 and 50,000 direct manufacturing labor hours in Department 2.The budgeted manufacturing overheads for 2016 were $1,200,000 for Department 1 and $1,000,000 for Department 2.For Job 100,the actual costs incurred in the two departments were as follows:
Job 100 incurred 700 machine hours in Department 1 and 75 in Department 2 and 200 manufacturing labor hours in Department 1 and 250 in Department 2.The company uses a budgeted departmental overhead rate for applying overhead to production.Job 100 consisted of 3,000 lamps.Required:
Calculate the total cost and per unit cost of Job 100. $$\begin{array} { | l | r | r | } 
\hline & \text { Department 1 } & \text { Department 2 } \
\hline \text { Direct materials purchased } & \$ 44,000 & \$ 71,000 \
\hline \text { Direct materials used } & 34,000 & 7,600 \
\hline \text { Direct manufacturing labor } & 21,000 & 21,400 \
\hline \text { Indirect manufacturing labor } & 4,400 & 3,600 \
\hline \text { Indirect materials used } & 3,000 & 1,900 \
\hline \text { Lease on equipment } & 6,500 & 1,500 \
\hline \text { Utilities } & 1,000 & 1,200 \
\hline
\end{array}$$

Accepted Answer

The answer of Logansville Manufacturing produces lamps for large department...

Question 9

The following data have been recorded for recently completed Job 674 on its job cost sheet.Direct materials cost was $2,039.A total of 32 direct labor-hours and 175 machine-hours were worked on the job.The direct labor wage rate is $14 per labor-hour.The company applies manufacturing overhead on the basis of machine-hours.The predetermined overhead rate is $15 per machine-hour.The total cost for the job on its job cost sheet would be:

Accepted Answer

A)  $2,967. 
B)  $2,487. 
C)  $2,068. 
D)  $5,112. 
A)  $2,967. 
B)  $2,487. 
C)  $2,068. 
D)  $5,112.

Question 10

If costs are allocated on a somewhat arbitrary base,what purpose does computing product costs have?

Accepted Answer

The cost of conducting a special study e

Question 11

Individual product costs are relevant for managerial decision-making but irrelevant for preparing the financial statements..

Accepted Answer

A) True 
 B)False

Question 12

For Case (B)above,what is the Transferred-In (TI)? $$\begin{array} { | l | r | r | r | } 
\hline & \text { Case } ( A ) & \text { Case (B) } & \text { Case (C) } \
\hline \text { Beginning Balance (BB) } & \$ 36,520 & \$ 15,100 & \$ 5,600 \
\hline \text { Ending Balance (EB) } & ? & 11,400 & 12,200 \
\hline \text { Transterred In (T)) } & 166,200 & ? & 68,400 \
\hline \text { Transterred Out } ( T O ) & 164,400 & 93,200 & ? \
\hline
\end{array}$$

Accepted Answer

A)  $96,900. 
B)  $119,700. 
C)  $89,500. 
D)  $66,700. 
A)  $96,900. 
B)  $119,700. 
C)  $89,500. 
D)  $66,700.

Question 13

The Paris Manufacturing Company produces a single uniform product throughout the year.Which of the following product costing systems should be used by Paris?

Accepted Answer

A)  Job-order costing. 
B)  Process costing. 
C)  Operation costing. 
D)  Batch costing. 
A)  Job-order costing. 
B)  Process costing. 
C)  Operation costing. 
D)  Batch costing.

Question 14

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

Accepted Answer

A)  Machine-hours. 
B)  Power consumption. 
C)  Direct labor-hours. 
D)  Machine setups. 
A)  Machine-hours. 
B)  Power consumption. 
C)  Direct labor-hours. 
D)  Machine setups.

Question 15

The process of first allocating costs to intermediate cost pools and then to the individual cost objects using different allocation bases is a(n):

Accepted Answer

A)  continuous flow process. 
B)  cost management system. 
C)  two-stage allocation system. 
D)  operations cost. 
A)  continuous flow process. 
B)  cost management system. 
C)  two-stage allocation system. 
D)  operations cost.

Question 16

Under Pierre Company's job-order costing system,manufacturing overhead is applied to Work in Process inventory using a predetermined overhead rate.During January,Pierre's transactions included the following: Pierre Company had no beginning or ending inventories.What was the cost of goods manufactured for January? (CMA adapted)

Accepted Answer

A)  $302,000. 
B)  $310,000. 
C)  $322,000. 
D)  $330,000. 
A)  $302,000. 
B)  $310,000. 
C)  $322,000. 
D)  $330,000.

Question 17

What is each component of the basic cost flow model? Describe each component.

Accepted Answer

The basic cost flow model appears as fol

Question 18

Flare Co.manufactures textiles.Among Flare's 2016 manufacturing costs were the following salaries and wages: What was the amount of Flare's 2016 indirect labor? (CPA adapted)
$$\begin{array} { | l | r | } 
\hline \text { Loom operators } & \$ 120,000 \
\hline \text { Factory foremen } & 45,000 \
\hline \text { Machine mechanics } & 30,000 \
\hline
\end{array}$$

Accepted Answer

A)  $75,000 
B)  $165,000 
C)  $150,000 
D)  $120,000 
A)  $75,000 
B)  $165,000 
C)  $150,000 
D)  $120,000

Question 19

For Case (C)above,what is the Transferred-In (TI)? $$\begin{array} { | l | r | r | r | } 
\hline & \text { Case } ( A ) & \text { Case } ( B ) & \text { Case } ( C ) \
\hline \text { Beginning Balance (BB) } & ? & \$ 8,630 & \$ 71,600 \
\hline \text { Ending Balance (EB) } & 34,360 & ? & 75,100 \
\hline \text { Transterred In } ( T ) ) & 194,600 & 42,600 & ? \
\hline \text { Transterred Out } ( T O ) & 192,800 & 46,500 & 181,900 \
\hline
\end{array}$$

Accepted Answer

A)  $146,700. 
B)  $178,400. 
C)  $190,790. 
D)  $185,400. 
A)  $146,700. 
B)  $178,400. 
C)  $190,790. 
D)  $185,400.

Question 20

Overhead is normally applied to production using a predetermined overhead rate based on some underlying cost driver.The amount of overhead allocated to jobs will normally not be the same as the actual amount of overhead cost incurred.The difference is called the overhead variance.Required:
Name two possible treatments for the overhead variance at the end of the accounting period.What are the pros and cons of each treatment? When should each be used?

Accepted Answer

The two treatments for the overhead vari

The Transfers In (TI)costs in the basic cost flow model of a manufacturing firm are direct materials,direct labor,and manufacturing overhead.

Trippett Industries manufactures cleaning products.During the year,the company spent $600,000 on chemicals and $728,000 on conversion costs.Overhead is applied at a rate of 180% of direct labor costs.How much did the company spend on manufacturing overhead during the year?

For Case (B)above,what is the Ending Balance (EB)? Case (A) Case (B) Case (C) Beginning Balance (BB) ? \ 8,630 \ 71,600 Ending Balance (EB) 34,360 ? 75,100 Transterred In (T)) 194,600 42,600 ? Transterred Out (TO) 192,800 46,500 181,900

Moore Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the most recently completed year appear below: The predetermined overhead rate for the recently completed year was closest to:

Rapid Enterprises applies manufacturing overhead to its cost objects on the basis of 75% of direct material cost.If Job 17X had $72,000 of manufacturing overhead applied to it during May,the direct materials assigned to Job 17X was:

For Case (C)above,what is the Transferred-Out (TO)? Case (A) Case (B) Case (C) Beginning Balance (BB) \ 36,520 \ 15,100 \ 5,600 Ending Balance (EB) ? 11,400 12,200 Transterred In (T)) 166,200 ? 68,400 Transterred Out (TO) 164,400 93,200 ?

If costs are allocated on a somewhat arbitrary base,what purpose does computing product costs have?

Individual product costs are relevant for managerial decision-making but irrelevant for preparing the financial statements..

For Case (B)above,what is the Transferred-In (TI)? Case (A) Case (B) Case (C) Beginning Balance (BB) \ 36,520 \ 15,100 \ 5,600 Ending Balance (EB) ? 11,400 12,200 Transterred In (T)) 166,200 ? 68,400 Transterred Out (TO) 164,400 93,200 ?

The Paris Manufacturing Company produces a single uniform product throughout the year.Which of the following product costing systems should be used by Paris?

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

The process of first allocating costs to intermediate cost pools and then to the individual cost objects using different allocation bases is a(n):

What is each component of the basic cost flow model? Describe each component.

Flare Co.manufactures textiles.Among Flare's 2016 manufacturing costs were the following salaries and wages: What was the amount of Flare's 2016 indirect labor? (CPA adapted) Loom operators \ 120,000 Factory foremen 45,000 Machine mechanics 30,000

For Case (C)above,what is the Transferred-In (TI)? Case (A) Case (B) Case (C) Beginning Balance (BB) ? \ 8,630 \ 71,600 Ending Balance (EB) 34,360 ? 75,100 Transterred In (T)) 194,600 42,600 ? Transterred Out (TO) 192,800 46,500 181,900

Cost Accounting: Information for Decision Making

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

Filters

Exam 6: Fundamentals of Product and Service Costing

The Transfers In (TI)costs in the basic cost flow model of a manufacturing firm are direct materials,direct labor,and manufacturing overhead.

Trippett Industries manufactures cleaning products.During the year,the company spent $600,000 on chemicals and $728,000 on conversion costs.Overhead is applied at a rate of 180% of direct labor costs.How much did the company spend on manufacturing overhead during the year?

For Case (B)above,what is the Ending Balance (EB)? Case (A) Case (B) Case (C) Beginning Balance (BB) ? \ 8,630 \ 71,600 Ending Balance (EB) 34,360 ? 75,100 Transterred In (T)) 194,600 42,600 ? Transterred Out (TO) 192,800 46,500 181,900

Moore Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the most recently completed year appear below: The predetermined overhead rate for the recently completed year was closest to:

Rapid Enterprises applies manufacturing overhead to its cost objects on the basis of 75% of direct material cost.If Job 17X had $72,000 of manufacturing overhead applied to it during May,the direct materials assigned to Job 17X was:

For Case (C)above,what is the Transferred-Out (TO)? Case (A) Case (B) Case (C) Beginning Balance (BB) \ 36,520 \ 15,100 \ 5,600 Ending Balance (EB) ? 11,400 12,200 Transterred In (T)) 166,200 ? 68,400 Transterred Out (TO) 164,400 93,200 ?

If costs are allocated on a somewhat arbitrary base,what purpose does computing product costs have?

Individual product costs are relevant for managerial decision-making but irrelevant for preparing the financial statements..

For Case (B)above,what is the Transferred-In (TI)? Case (A) Case (B) Case (C) Beginning Balance (BB) \ 36,520 \ 15,100 \ 5,600 Ending Balance (EB) ? 11,400 12,200 Transterred In (T)) 166,200 ? 68,400 Transterred Out (TO) 164,400 93,200 ?

The Paris Manufacturing Company produces a single uniform product throughout the year.Which of the following product costing systems should be used by Paris?

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

The process of first allocating costs to intermediate cost pools and then to the individual cost objects using different allocation bases is a(n):

What is each component of the basic cost flow model? Describe each component.

Flare Co.manufactures textiles.Among Flare's 2016 manufacturing costs were the following salaries and wages: What was the amount of Flare's 2016 indirect labor? (CPA adapted) Loom operators \ 120,000 Factory foremen 45,000 Machine mechanics 30,000

For Case (C)above,what is the Transferred-In (TI)? Case (A) Case (B) Case (C) Beginning Balance (BB) ? \ 8,630 \ 71,600 Ending Balance (EB) 34,360 ? 75,100 Transterred In (T)) 194,600 42,600 ? Transterred Out (TO) 192,800 46,500 181,900

Cost Accounting: Information for Decision Making

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

Filters