Questions and Answers of Managerial Accounting Tools For Business Decision Making 9th

Which of the following is not one of the categories in Standards of Ethical Conduct for Management Accountants?(a) Confidentiality.(b) Competence.(c) Integrity.(d) Independence.
The management of an organization performs several broad functions. They are:(a) planning, directing and motivating, and selling.(b) planning, directing and motivating, and controlling.(c) planning,
Direct materials are a Product Cost Manufacturing Period. Overhead Cost (a) Yes Yes No (b) Yes No No [e] Yes Yes Yes (d) No No No
Which of the following costs would be included in manufacturing overhead of a computer manufacturer? (a) The cost of the 3-inch disk drives. (b) The wages earned by computer assemblers. (c) The cost
In a manufacturer's balance sheet, three inventories may be reported: (1) raw materials, (2) work in process, and (3) finished goods. Indicate in what sequence these inventories generally appear on a
(a) Identify the four categories of ethical standards for management accountants. (b) Is the responsibility of the management accountant limited to only his or her own acts? Explain.
Karen Gish is studying for the next accounting midterm examination. Summarize for Karen what she should know about management functions.
Sue Sablow is studying for her next accounting examination explain to Sue what she should know about the differences between the income statements for a manufacturing and for a merchandising company
Bob Jackson is unclear as to the difference between the balance sheets of a merchandising company and a manufacturing company. Explain the difference to Bob.
Gene Toni claims that the distinction between directed indirect materials is based entirely on physical association with the product. Is Gene correct? Why?
Jane Diaz is confused about the differences between a product cost and a period cost. Explain the differ- ences to Jane.
Sajjad Manufacturing has beginning raw materials inventor) $12.000, ending raw materials inventor) $$18,000$. and raw materials purchases $180,000.What is the 1 "siol direct materials used?
Jam Manufacturing Inc. has beginning work in process $$27,200$, direct materials used $$240,000$, di- rect labor $$200,000$, total manufacturing overhead$$150,000$, and ending work in process
Using the data in Q15, what are(a) the total cost of work in process and(b) the cost of goods manufactured?Data from in Q15Jam Manufacturing Inc. has beginning work in process $$27,200$, direct
Identify whether each of the following costs should be classified as product costs 399 (a) Manufacturing overhead. (d) Advertising expenses. (b) (c) Selling expenses. Administrative expenses. (e)
Presented below are Hyde Company's monthly manufacturing cost data related to its personal computer products.Entei each cosl item in the following table placing an "X" undei the appropriate headings
Buslik Manufacturing company has the following data direct labor $$242,000$, direct materials used $$180,000$, total manufacturing overhead $$208,000$ and beginning work in process $$25,000$.
In alphabetical order below are current asset items for Ivy Company's balance sheet at December 31, 2002. Prepare the current assets section (including a complete heading). Accounts receivable
Presented below are incomplete 2002 manufacturing cost data for Hyun Corporation. Determine the missing amounts. Direct Direct Materials Labor Used Used Factory Overhead Total Manufacturing Costs (a)
A work sheet is used in preparing financial statements for Lawney Manufacturing Company. The following accounts are included in the adjusted trial balance: Finished Goods Inventory $$28,000$, Work
Honmura Company reports the following costs and expenses in MayInstructions From the information, determine the total amount of:(a) Manufacturing overhead.(b) Product costs.(c) Period costs. Factory
Manufacturing cost data for Hermes Company arc presented below. Instructions Indicate the missing amount for each letter (a) through (i). Direct materials used Direct labor Manufacturing overhead
Karpman Company is a manufacturer of personal computers. Various costs and Classify various costs into expenses associated with its operations are as follows.1.Property taxes on the factory
The cost of goods manufactured schedule shows each of the cost elements. Complete the following schedule for Salazar Manufacturing Company.Instructions Indicate the missing amount for each letter (a)
Jazz Motor Company manufactures automobiles. During September 2002 the company purchased 5,000 head lamps at a cost of $9 per lamp. Jazz withdrew 4,650 lamps from the warehouse during the month.
Manufacturing cost data for Hermes Company arc presented below.Instructions Indicate the missing amount for each letter (a) through (i) Direct materials used Direct labor Manufacturing overhead Total
Incomplete manufacturing cost data for Hollis Company for 2002 are presented as follows.Instructions (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of goods
lssey Corporation has the following cost records for June 2002.Instructions (a) Prepare a cost of goods manufactured schedule for June 2002.(b) Prepare an income statement through gross profit for
A snapper Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000
A Galex Com pain, a manufacturer of stereo systems, started its production in October 2002. For the preceding 3 years Galex had been a retailer of stereo systems. Alter a thorough survey ol stereo
Istanbul Company is a manufacturer of computers. Its controller resigned in October 2002. An inexperienced assistant accountant has prepared the following income statement for the month of October
Ever heart Manufacturing Company uses a simple manufacturing accounting sys- tem. At the end ol its fiscal year on August 31, 2002, the adjusted trial balance contains the following accounts.Physical
Kanjo Company specializes in manufacturing motorcycles. The company has enough orders to keep the factory production at 1,000 motorcycles per month. Kanjo's monthly manufacturing cost and other
Match Company, a manufacturer of tennis rackets, started production in November 2002. For the preceding 5 years Match had been a retailer of sports equipment.After a thorough survey of tennis racket
In Cleo Company, the predetermined overhead rate is 80% of direct labor cost. During the month, $$210,000$ of factory labor costs are in- curred, oi which $$180,000$ is direct labor
In BAC Company, Job No. 26 is completed at a cost of $$4,500$ and later sold for $$7,000$ cash.A correct entry is:(a) Debit Finished Goods Inventory $$7,000$ and credit Work in Process
In preparing monthly financial statements, overapplied overhead is rep orated in the balance sheet as a(an):(a) prepaid expense.(b) unearned revenue.(c) noncurrent asset. navigator(d) noncurrent
Hal Adelman is studying for an accounting midterm examination. What should Hal know about how management may use job cost data?
"Only normal daily entries are made to manufacturing overhead." Do you agree? Explain.
Phil Rammers is confused about the source documents used in assigning materials and labor costs. Identify the documents and give the entry for each document.
Differentiate between a "materials inventory record"and a "materials requisition slip" as used in a job or- der cost system.
John Simon believes actual manufacturing overhead should be charged to jobs. Do you agree? Why or why not?
Pam Smith believes that the cost of goods manufactured schedule in job order cost accounting (Illustration 2-20) is the same as the cost of goods manufactured schedule in general manufacturing ac-
Greg Carnes is confused about under- and overapplied manufacturing overhead. Define the terms for Greg, and indicate the balance in the manufacturing overhead account applicable to each term.
"Under- or overapplied overhead is reported in the income statement when monthly financial statements are prepared." Do you agree? If not, indicate the proper presentation.
Sinason Tool & Die begins operations on January 1. Because all work is done Prepare a flowchart of a job to customer specifications, the company decides to use a job cost accounting system. Pre-
Factory labor data for Sinason Tool & Die is given in BE2-2. During January, time tickets show that the factory labor of $$4,000$ was used as follows: Job 1 $$1,200$, Job 2 $$1,600$, Job 3
Carlos Company estimates that annual manufacturing overhead costs will be $$400,000$. Estimated annual operating activity bases are: direct labor cost $$500,000$, di- rect labor hours 50,000, and
In March, Santana Company completes Jobs 10 and 11. Job 10 cost $$20,000$ and Job 11 $$32,000$. On March 31, Job 10 is sold to the customer for $$35,000$ in cash. Jour- nalize the entries for
On September 30, balances in Manufacturing Overhead are: Wendy Company- debit $$1,800$, Mahmoud Company-credit $3,000: Indicate how each company should re- port its balance at September 30,
At December 31, balances in Manufacturing Overhead are: Sanchez Company- debit $$1,000$, Gomez Company-credit $$900$. Prepare the adjusting entry for each com- pany at December 31, assuming the
The gross earnings of the factory workers for Cerrato Company during t he month of January) are $$90,000$. The employer's payroll taxes for the factory payroll are $$9,000$. The fringe bene! its
Alvarez Manufacturing uses a job order cost accounting system. On Max 1. the company has a balance in Work in Process Inventory of $$3,200$ and two jobs in process: Job No. 429 $$2,000$, and Job
Manufacturing cost data for Lopez Company, which uses a job order cost system, are presented below.Instructions Indicate the missing amount for each letter. Assume that in all cases manufacturing
Ramirez Company applies manufacturing overhead to jobs on the basis of ma chine hours used. Overhead costs are expected to total $$275,000$ for the year, and ma- chine usage is estimated at 125,000
A job cost sheet of Serrano Company is given below.Instructions (a) Answer the following questions. (1) What are the source documents for direct materials, direct labor, and manufacturing overhead
Tejada Corporation incurred the following transactions.1 I'm chased raw materials on account $46,300.2. Raw materials of $$36,000$ were requisitioned to the factory. An analysis of the materials
Barajas Printing Corp. uses a job order cost system. The following data summa- Prepare entries for manufacrize the operations related to the first quarter's production. turing costs. (SO 2, 3, 4.
At May 31, 2002, the accounts of Corrales Manufacturing Company show the fol- lowing.1. May 1 inventories —finished goods $$12,600$, work in process $$14,700$, and raw materials $8,200.2. May
Mendoza Company begins operations on April 1. Information from job cost sheets shows the following.Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June.
Don Tidrick Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2002, Job No. 50 was the only job in process. The costs
Peoria Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer pref- erence. On June 1, 2002, the
A Urbana Manufacturing Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department
Florida Boot Corporation's fiscal year ends on November 30. The following ac- counts are found in its job order cost accounting system for the first month of the new fiscal year.Other data:1. On
Du Page Products Company uses a job order cost system. For a number of months there has been an ongoing rift between the sales department and the production department concerning a special-order
Tina Turner believes there are no significant differences in the flow of costs between job order cost accounting and process cost accounting. Is Turner correct? Explain.
At Kun Company, overhead is assigned to production departments at the rate of $15 per machine hour. In July, machine hours were 3,000 in the Machining Department and 2,400 in the Assembly Department.
Kent Krause is uncertain about the steps used to prepare a production cost report. State the procedures that are required, in the sequence in which they are performed.
Alan Bruski is confused about computing physical units. Explain to Alan how physical units to be ac- counted for and physical units accounted for are determined
Sandy Company had zero units of beginning work in *22. process. During the period, 9,000 units were completed, and there were 600 units of ending work in process. What were the units started into
Cesska Co. has zero units of beginning work in process. During the period 12,000 units were completed, and there were 600 units of ending work in process one-fifth complete as to conversion cost and
Hipp Co. started 3,000 units for the period. Its beginning inventory is 800 units one-fourth complete as to conversion costs and 100% complete as to materials costs. Its ending inventory is 400 units
Gruber Company transfers out 14,000 units and has 2,000 units of ending work in process that are 25% complete. Materials are entered at the beginning of the process and there is no beginning work in
(a) Jane Jelk believes the production cost report is an external report for stockholders. Is Jane correct? Explain. (b) Identify the sections in a production cost report
At Apex Company, there are 800 units of ending work in process that are 100% complete as to materials and 40% complete as to conversion costs. If the unit cost of materials is $4 and the costs
Sielert Co. started and completed 2,000 units for the period. Its beginning inventory is 600 units one fourth complete and its ending inventory is 400 units one-fifth complete. Sielert uses the FIFO
Osgood Company transfers out 12,000 units and has 2,000 units of ending work in process that are 25% complete. Materials are entered at the beginning of the process and there is no beginning work in
Table Manufacturing purchases $$50,000$ of raw materials on account, and it in- curs $$40,000$ of factory labor costs. Journalize the two transactions on March 31 assuming the labor costs are not
Burrand Manufacturing Company has the following production data for selected months.Compute the physical units for each month. Month Beginning Work in Process Units Transferred Out Units January -0-
In Caroline Company, total material costs are $$48,000$, and total conversion costs are $$60,000$. Equivalent units of production are materials 10,000 and conversion costs 12,000. Compute the
Sota Company has the following production data for April: units transferred out 40,000, and ending work in process 5,000 units that are 100% complete for materials and 40% complete for conversion
Data for Madlock Company are given in BE3-8. Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion cost and
Motta Company has the following production data for April: units started and completed 40,000, and ending work in process 5,000 units that are 100% complete for materials and 40% complete for
Using the data in BE3-1 1, prepare the cost section of port for Motta Company.
Mary Lou Company manufactures pizza sauce through two production depart- Journalize transactionsents: Cooking and Canning. In each process, materials and conversion costs are incurred evenly
Yellowknife Manufacturing Company has two production departments: Cutting Journalize transactions for and Assembly July 1 inventories are Raw Materials $$4,200$, Work in Process —Cutting two
In Kam Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing
The Sanding Department of Copa Furniture Company has the following production and manufacturing cost data for March 2002. Production: 12,000 units finished and transferred out; 3,000 units started
The Blending Department of Battle Company has the following cost and production data for the month of April.Units transferred out totaled 8,000. Ending work in process was 1,000 units that are 100%
The ledger of Tombert Company has the Following work in process accountProduction records show that there were 700 units in the beginning inventory, 30%complete, 1,100 units started, and 1,300 units
Larry Lair has recently been promoted to production manager, and so he has just Explain the production cost started to receive various managerial reports. One of the reports he has received is the
The Welding Department of Tomlin Manufacturing Company has the following Prepare a production cost production and manufacturing cost data for February 2002. All materials are added at report.the
The Cutting Department of Cruz Manufacturing has the following production and cost data for July.Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during
The ledger of Grogan Company has the following work in process account.Production records show that there were 800 units in the beginning inventory, 30% complete, 1,100 units started, and 1,300 units
The Welding Department of Nagano Manufacturing Company has the following production and manufacturing cost data for February 2002. All materials are added at the beginning of the process. Nagano uses
Vargas Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materials are entered at the beginning of each process. On October 1, 2002,
Zion Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In
Stein Industries Inc. manufactures in separate processes furniture for homes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost
Elite Company has several processing departments. Costs charged to the Assembly Department for November 2002 totaled $2,129,000 as follows.Production records show that 30,000 units were in beginning
Sprague Company manufactures basketballs. Materials are added at the begin- ning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of July

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