Question 1

Which of the following is not an inventory account for a manufacturer?

Accepted Answer

Manufacturing overhead inventory is not an inventory account for a manufacturer. It is an expense account that includes indirect costs incurred during the manufacturing process such as rent, utilities, and insurance. Raw materials, finished goods, and work-in-process are all inventory accounts for a manufacturer.

Question 2

Use the following to answer questions 
Giltronics, Inc. applies materials handling manufacturing overhead on the basis of the number of moves required. The following information is available:
 
-The amount of over- underapplied manufacturing overhead is:

Accepted Answer

To calculate the amount of over- or underapplied manufacturing overhead, we need to compare the amount of manufacturing overhead applied to the actual amount of manufacturing overhead incurred.

Actual manufacturing overhead = $213,100 
Manufacturing overhead applied = 14,006 moves x $17.50 per move = $245,105

Overhead applied - Actual overhead incurred = $245,105 - $213,100 = $32,005

Since the question is asking for the amount of over- or underapplied manufacturing overhead, we need to determine whether this is a positive or negative amount.

Since the overhead applied is greater than the actual overhead incurred, we have overapplied manufacturing overhead. Therefore, the answer choices that are underapplied are incorrect.

The correct answer is B) $6,369 underapplied.

Question 3

Reynolds Company has estimated its finished goods inventory-handling costs at $240,000.It has determined that an appropriate cost driver is the number of units completed.It estimates that 500,000 units will be completed this year.If 40,000 units are completed during the current month,what amount of inventory-handling cost should be recognized?

Accepted Answer

Using the cost driver of number of units completed, we can calculate the cost of inventory-handling for the current month as:

Cost per unit = Total estimated inventory-handling costs / Total estimated units completed
Cost per unit = $240,000 / 500,000 units
Cost per unit = $0.48

Total cost for current month = Cost per unit x Number of units completed in current month
Total cost = $0.48 x 40,000 units
Total cost = $19,200

Therefore, the inventory-handling cost recognized for the current month would be $19,200. Option D is correct.

Question 4

Which of the following is an example of a manufacturing overhead cost?

Accepted Answer

Lease payments on a factory are considered a manufacturing overhead cost because they are expenses related to the production process but are not directly tied to the production of specific goods.

Question 5

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Dodd Corporation used $90,000 of direct material, $112,000 of direct labor, and applied $104,000 of manufacturing overhead during July. Its beginning and ending work-in-process and finished goods inventories were as follows:
 
-The differences between standard and actual financial amounts of inputs are referred to as:

Accepted Answer

The differences between standard and actual financial amounts of inputs are commonly referred to as variances in accounting. Therefore, the best choice is B, variances. A refers to a statistical concept and is not applicable in this scenario. C and D are not used in accounting to describe differences between standard and actual financial amounts.

Question 6

Winslett Company had a $34,000 beginning balance in its raw materials inventory and a $30,000 ending balance.During the period $197,000 of raw materials was purchased.What amount of raw materials was used?

Accepted Answer

The amount of raw materials used is calculated as: Beginning Inventory + Purchases - Ending Inventory = $34,000 + $197,000 - $30,000 = $201,000.

Question 7

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Dodd Corporation used $90,000 of direct material, $112,000 of direct labor, and applied $104,000 of manufacturing overhead during July. Its beginning and ending work-in-process and finished goods inventories were as follows:
 
-What was Dodd's cost of goods manufactured for July?

Accepted Answer

The cost of goods manufactured is calculated as the total manufacturing costs plus beginning work in process inventory minus ending work in process inventory. Based on the given options, $314,000 is the correct calculation for Dodd's cost of goods manufactured for July.

Question 8

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Keowee Enterprises began the year with $165,700 of finished goods inventory. During the year the company manufactured goods costing $689,200. At the end of the year, $194,100 of finished goods remained in inventory. Actual manufacturing overhead was $235,800, estimated manufacturing overhead was $230,000, and manufacturing overhead applied totaled $221,500.
-The cost of goods available for sale was:

Accepted Answer

The cost of goods available for sale is calculated as the beginning finished goods inventory plus the cost of goods manufactured during the year. The cost of goods manufactured includes the actual manufacturing costs (direct materials, direct labor, and manufacturing overhead applied). Given that the beginning finished goods inventory is $165,700, the cost of goods manufactured is $689,200, and manufacturing overhead applied does not directly affect this calculation as it's part of the manufacturing costs, the cost of goods available for sale is $165,700 (beginning inventory) + $689,200 (cost of goods manufactured) = $854,900.

Question 9

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Dodd Corporation used $90,000 of direct material, $112,000 of direct labor, and applied $104,000 of manufacturing overhead during July. Its beginning and ending work-in-process and finished goods inventories were as follows:
 
-The standard cost for direct labor is $190,000 if the company produces 15,200 units of product.Actual direct labor cost to produce 15,800 units of product totaled $213,300.What is price variance and is it favorable or unfavorable?

Accepted Answer

Price variance = Actual cost - (Actual quantity x Standard price) 
Price variance = $213,300 - (15,800 x $190,000/15,200) 
Price variance = $23,300 unfavorable

Question 10

Suranden Company manufacturers oil-drilling equipment.The utilities costs incurred in machining the drilling equipment is an example of what kind of cost?

Accepted Answer

Utilities costs incurred in machining drilling equipment are considered unit-related costs because they vary with the number of units produced.

Question 11

Paltrow Corporation applies unit-related overhead at the rate of $100 per direct-labor hour.If 3,000 direct labor hours were used,which of the following entries should be made?

Accepted Answer

When overhead is applied, it is added to the cost of the product being manufactured, which is initially recorded in the work-in-process (WIP) account. Therefore, the correct entry is to debit work-in-process and credit manufacturing overhead, reflecting the allocation of overhead costs to the products being produced.

Question 12

Hunter Corporation,a computer manufacturer,tests each completed computer before shipping it.This is an example of what kind of cost?

Accepted Answer

The answer of Hunter Corporation,a computer manufacturer,tests each completed computer...

Question 13

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Keowee Enterprises began the year with $165,700 of finished goods inventory. During the year the company manufactured goods costing $689,200. At the end of the year, $194,100 of finished goods remained in inventory. Actual manufacturing overhead was $235,800, estimated manufacturing overhead was $230,000, and manufacturing overhead applied totaled $221,500.
-Assuming the over-underapplied manufacturing overhead was considered small and,therefore,closed out to Cost of Goods Sold,the cost of goods sold reported on the income statement for the period was:

Accepted Answer

The cost of goods sold can be calculated as follows:
Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory = Cost of goods sold
$165,700 + $689,200 - $194,100 = $660,800
To adjust for the overapplied overhead, we add the amount of overapplied overhead to Cost of goods sold:
$660,800 + ($235,800 - $221,500) = $675,100

Question 14

Which of the following shows the order of cost flows through the manufacturing inventories?

Accepted Answer

The order of cost flows in manufacturing inventories is from raw materials to work-in-process, and then to finished goods. Option B correctly follows this order, with raw materials being the first inventory, followed by work-in-process, and finally finished goods. Option A and C have the correct starting and ending inventory but are in the wrong order. Option D follows the correct ending inventory but has the incorrect order of cost flows.

Question 15

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Dodd Corporation used $90,000 of direct material, $112,000 of direct labor, and applied $104,000 of manufacturing overhead during July. Its beginning and ending work-in-process and finished goods inventories were as follows:
 
-The standard cost for direct labor is $190,000 if the company produces 15,200 units of product.Actual direct labor cost to produce 15,800 units of product totaled $213,300.What is the standard cost for direct labor at the actual level of production:

Accepted Answer

The answer of Use the following to answer questions 
Dodd...

Question 16

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Fostoria Corporation began the current period with $21,975 of raw materials, purchased $97,950 of raw materials during the period, and ended the period with $30,205 of raw materials. Indirect materials used and indirect labor totaled $16,950 and $25,320, respectively.
-The total amount of raw materials put into production during the current period was:

Accepted Answer

The answer of Use the following to answer questions 
Fostoria...

Question 17

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Dodd Corporation used $90,000 of direct material, $112,000 of direct labor, and applied $104,000 of manufacturing overhead during July. Its beginning and ending work-in-process and finished goods inventories were as follows:
 
-What was Lange's cost of goods sold for July?

Accepted Answer

The answer of Use the following to answer questions 
Dodd...

Question 18

Crawford,Inc.,manufacturers lamps.Which of the following is a direct labor cost?

Accepted Answer

The answer of Crawford,Inc.,manufacturers lamps.Which of the following is a...

Question 19

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Keowee Enterprises began the year with $165,700 of finished goods inventory. During the year the company manufactured goods costing $689,200. At the end of the year, $194,100 of finished goods remained in inventory. Actual manufacturing overhead was $235,800, estimated manufacturing overhead was $230,000, and manufacturing overhead applied totaled $221,500.
-The amount of over- underapplied manufacturing overhead was:

Accepted Answer

The answer of Use the following to answer questions
Keowee Enterprises...

Question 20

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Keowee Enterprises began the year with $165,700 of finished goods inventory. During the year the company manufactured goods costing $689,200. At the end of the year, $194,100 of finished goods remained in inventory. Actual manufacturing overhead was $235,800, estimated manufacturing overhead was $230,000, and manufacturing overhead applied totaled $221,500.
-The unadjusted cost of goods sold was:

Accepted Answer