Question 1

The Shawshank Manufacturing Co.uses a job order cost system of accounting.The following information was taken from the books of the company after all posting had been completed at the end of January:  ​ 
a.Prepare the journal entries to allocate the costs of materials,labor,and factory overhead to each job and to transfer the costs of jobs completed to Finished Goods.
b.Compute the total production cost of each job.
c.Compute the unit cost of each job.
d.Compute the selling price per unit for each job,assuming a mark-on percentage of 40 percent.

Accepted Answer

The answer of The Shawshank Manufacturing Co.uses a job order...

Question 2

The following inventory data relate to the Reta Company:  Revenues and costs for the period:  Compute the following for the year: 
a.Direct materials purchased
b.Direct labor costs incurred
c.Cost of goods sold
d.Gross profit

Accepted Answer

The answer of The following inventory data relate to the...

Question 3

Custom Cabinets Inc.manufactures goods on a job order basis.During the month of November,three jobs were started.(There was no work in process at the beginning of the month. )Jobs 401 and 402 were completed and sold for $14,500 and $19,000,respectively,during the month;Job 403 was still in process at the end of November.
The following data are taken from the job cost sheets for each job.Factory overhead charges include a total of $900 of indirect materials and $600 of indirect labor.One work in process control account is used.  Prepare a journal entry to record each of the following: 
a.Materials used
b.Factory wages and salaries earned
c.Factory Overhead transferred to Work in Process
d.Jobs completed
e.Jobs sold

Accepted Answer

The answer of Custom Cabinets Inc.manufactures goods on a job...

Question 4

The following data were taken from Middletown Merchandisers on July 31,for the first month of its fiscal year:  Compute the inventory at July 1.

Accepted Answer

The answer of The following data were taken from Middletown...

Question 5

Joey Bruce is a cost accountant at ABC Industries.Joey told Tanner Scott,his financial advisor,that he was working on a project to determine the feasibility of a merger of ABC Industries with Left Guard Company,a major competitor.Which of the Institute of Management Accountant's (IMA)ethical standards may have been violated?
A)Competence
B)Confidentiality
C)Integrity
D)Credibility

Accepted Answer

Joey violated the IMA's ethical standard of confidentiality by discussing the confidential information about the potential merger with his financial advisor.

Question 6

Under a job order system of cost accounting,Cost of Goods Sold is debited and Finished Goods is credited for a:
A)Transfer of materials to the factory.
B)Shipment of completed goods to the customer.
C)Transfer of completed production to the finished goods storeroom.
D)Purchase of goods on account.

Accepted Answer

Under job order system, Cost of Goods Sold is recorded only when the finished products are sold and shipped out to the customer. Therefore, when completed goods are shipped out, Cost of Goods Sold account is debited and Finished Goods account is credited. A is incorrect because transfer of materials would result in a debit to Raw Materials inventory and credit to Work-in-Progress (not Finished Goods). C is incorrect because transfer of completed products to the finished goods storeroom would also result in a debit to Finished Goods inventory and credit to Work-in-Progress (not Cost of Goods Sold). D is incorrect because purchase of goods on account would increase the Raw Materials inventory (not Cost of Goods Sold or Finished Goods).

Question 7

Following is a list of costs incurred by the Sitka Products Co.during the month of June:  Prepare the journal entries necessary to record the issuance of materials,the distribution of labor cost,the recording of factory overhead,and the entry transferring Factory Overhead to Work in Process.

Accepted Answer

The answer of Following is a list of costs incurred...

Question 8

Tom Jones,a management accountant,was faced with an ethical conflict at the office.According to the Institute of Management Accountants' (IMA)Statement of Professional Practice,the first action Tom should pursue is to:
A)follow his organization's established policies on the resolution of such conflict.
B)contact the local newspaper.
C)contact the company's audit committee.
D)consult an attorney.

Accepted Answer

According to the Institute of Management Accountants' (IMA) Statement of Professional Practice, the first action that should be pursued in an ethical conflict at the office is to follow the organization's established policies on the resolution of such conflict. This is the most appropriate course of action as it shows respect for the organization's policies and procedures while also seeking to address the conflict in a professional and ethical manner. Contacting the local newspaper, the company's audit committee, or consulting an attorney are not necessarily appropriate initial actions in the resolution of an ethical conflict.

Question 9

The following data were taken from the general ledger of Data Corp. ,a retailer of computers and accessories:  Compute the cost of goods sold for the month of August.

Accepted Answer

The answer of The following data were taken from the...

Question 10

Prepare a performance report showing both month and year-to-date data for Post Manufacturing's Machining Department for February,201X using the following data:

Accepted Answer

The answer of Prepare a performance report showing both month...

Question 11

The following inventory data relate to the Anaheim Ltd.:  Revenues and costs for the period:  Prepare journal entries for the following,making any necessary computations: 
a.Purchase of materials on account
b.Issuance of materials into production
c.Transfer the cost of completed work to Finished Goods
d.Record the sale of the goods on account and the related cost of goods sold.

Accepted Answer

The answer of The following inventory data relate to the...

Question 12

The following data was taken from the general ledger and other records of Marwick Manufacturing Co.at January31,the end of the first month of operations in the current fiscal year:  
a.Prepare a statement of cost of goods manufactured.
b.Determine the cost of goods sold for the month.

Accepted Answer

The answer of The following data was taken from the...

Question 13

According to the Institute of Management Accountants (IMA)Statement of Ethical Professional Practice,under the Integrity Standard,each member has the responsibility to:
A)Communicate information fairly and objectively.
B)Keep information confidential.
C)Mitigate actual conflicts of interest.
D)Maintain an appropriate level of professional competence.

Accepted Answer

The Integrity Standard states that members must mitigate actual conflicts of interest. While the other options listed are also responsibilities of IMA members (fairly and objectively communicating information, maintaining confidentiality, and maintaining professional competence), they fall under different standards in the IMA Statement of Ethical Professional Practice.

Question 14

The following data were taken from the general ledger and other data of Price Fabricators on July 31:  Compute the cost of goods sold for Price Fabricators,selecting the appropriate items from the list provided.

Accepted Answer

The answer of The following data were taken from the...

Question 15

The following data was taken from the general ledger and other records of Martinez Manufacturing Co.at July 31,the end of the first month of operations in the current fiscal year:  
a.Prepare a statement of cost of goods manufactured.
b.Determine the cost of goods sold for the month.

Accepted Answer

The answer of The following data was taken from the...

Question 16

The Institute of Management Accountants (IMA)Statement of Professional Practice includes all of the following standards except:
A)Confidentiality.
B)Commitment.
C)Integrity.
D)Competence.

Accepted Answer

The IMA Statement of Professional Practice includes the standards of confidentiality, integrity, and competence, but the standard of commitment is not included. However, the IMA does emphasize the importance of ethical behavior and adherence to professional standards as a necessary component of commitment to the profession.

Question 17

According to the Institute of Management Accountants (IMA)Statement of Ethical Professional Practice,performing professional duties in accordance with relevant laws,regulations and technical standards is a component of which standard?
A)Competence
B)Confidentiality
C)Integrity
D)Credibility

Accepted Answer

The standard that requires performing professional duties in accordance with relevant laws, regulations, and technical standards is the Competence standard of the IMA Statement of Ethical Professional Practice.

Quiz 1: Introduction to Cost Accounting

The following inventory data relate to the Reta Company: Revenues and costs for the period: Compute the following for the year: a.Direct materials purchased b.Direct labor costs incurred c.Cost of goods sold d.Gross profit

The following data were taken from Middletown Merchandisers on July 31,for the first month of its fiscal year: Compute the inventory at July 1.

Under a job order system of cost accounting,Cost of Goods Sold is debited and Finished Goods is credited for a:

Following is a list of costs incurred by the Sitka Products Co.during the month of June: Prepare the journal entries necessary to record the issuance of materials,the distribution of labor cost,the recording of factory overhead,and the entry transferring Factory Overhead to Work in Process.

Tom Jones,a management accountant,was faced with an ethical conflict at the office.According to the Institute of Management Accountants' (IMA) Statement of Professional Practice,the first action Tom should pursue is to:

The following data were taken from the general ledger of Data Corp. ,a retailer of computers and accessories: Compute the cost of goods sold for the month of August.

Prepare a performance report showing both month and year-to-date data for Post Manufacturing's Machining Department for February,201X using the following data:

The following data was taken from the general ledger and other records of Marwick Manufacturing Co.at January31,the end of the first month of operations in the current fiscal year: a.Prepare a statement of cost of goods manufactured. b.Determine the cost of goods sold for the month.

According to the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice,under the Integrity Standard,each member has the responsibility to:

The following data were taken from the general ledger and other data of Price Fabricators on July 31: Compute the cost of goods sold for Price Fabricators,selecting the appropriate items from the list provided.

The following data was taken from the general ledger and other records of Martinez Manufacturing Co.at July 31,the end of the first month of operations in the current fiscal year: a.Prepare a statement of cost of goods manufactured. b.Determine the cost of goods sold for the month.

The Institute of Management Accountants (IMA) Statement of Professional Practice includes all of the following standards except:

According to the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice,performing professional duties in accordance with relevant laws,regulations and technical standards is a component of which standard?