A guitar manufacturer requisitions $130 worth of wood for Custom Guitar Job #28. Please select the journal entry that is needed to record this transaction.

Question 1 options:

	DR: WIP Inventory $130 CR: Accounts Payable $130
	DR: Raw Materials Inventory $130 CR: WIP Inventory $130
	DR: WIP Inventory $130 CR: Raw Materials Inventory $130
	DR: Raw Materials Inventory $130 CR: Accounts Payable $130

Question 2 (2 points)

North Shore Manufacturing began business on January 1. During its first year of operation, North Shore worked on 2 industrial jobs and reported the following information at year-end:

Job 1

Direct Labor and Materials $14,800

Allocated Mfg. Overhead $2,000

Job 2

Direct Labor and Materials $15,400

Allocated Mfg. Overhead $3,700

North Shore's allocation of overhead costs left a debit balance of $2,500 in the Manufacturing Overhead account, which was adjusted to zero at year-end. Total sales during the year were $74,000. What was the amount of gross profit earned during the year?

Question 2 options:

	$35,600
	$38,100
	$33,100
	$38,400

Question 3 (2 points)

Examples of manufacturing overhead would include all EXCEPT ________.

Question 3 options:

	depreciation on manufacturing equipment
	direct labor costs
	indirect materials
	plant supervisor's salary

Question 4 (2 points)

Dog Threads Company sells dog shirts for $20 per shirt. It incurs monthly fixed costs of $8,000. The contribution margin ratio is calculated to be 30%. How many sales dollars must be made to generate a target profit of $4,000? (Round your answer UP to the nearest whole unit.)

Question 4 options:

	$16,000
	$12,000
	$40,000
	$14,000

Question 5 (2 points)

________ is the maximum cost to develop, produce, and deliver a product or service and earn the desired net profit.

Question 5 options:

	Marginal cost
	Sunk cost
	Target cost
	Variable cost

Question 6 (2 points)

Calculate equivalent units of production for direct materials for Smith Co.'s in-process units. Direct materials are 70% complete. Conversion costs are 30% complete. The number of physical in-process units is 23,000.

Question 6 options:

	6,900
	16,100
	7,200
	17,100

Question 7 (2 points)

Which of the following is a focus of managerial accounting?

Question 7 options:

	to generate a company's financial statements for tax reporting
	to ensure that the reports produced for internal and external business purposes are GAAP compliant
	to provide information to shareholders to assist them with their investment decisions
	to provide information to business managers to assist them in controlling their businesses

Question 8 (2 points)

North Shore Manufacturing began business on January 1. During its first year of operation, North Shore worked on 2 industrial jobs and reported the following information at year-end:

Job 1

Direct Labor and Materials $22,800

Allocated Mfg. Overhead $3,200

Job 2

Direct Labor and Materials $13,400

Allocated Mfg. Overhead $4,700

North Shore's allocation of overhead costs left a credit balance of $1,700 in the Manufacturing Overhead account, which was adjusted to zero at year-end. Total sales during the year were $102,000. What was the amount of gross profit earned during the year?

Question 8 options:

	$45,800
	$59,600
	$35,600
	$42,400

Question 9 (2 points)

JoJo, Inc. has received a bid for 14,000 units. The costing estimates show that the average cost per unit for this bid will be $600. The company uses cost-based pricing and adds 25% markup to total costs. What total price will JoJo ask for the entire order?

Question 9 options:

	$2,100,000
	$6,300,000
	$8,400,000
	$10,500,000

Question 10 (2 points)

Saved

When there are no beginning or ending balances in Finished Goods Inventory, variable and absorption costing will result in ________.

Question 10 options:

	the same operating income
	different sales revenue
	different amounts for ending Work-in-Process Inventory
	different amounts for cost of goods sold

Question 11 (2 points)

Saved

One of the major purposes of a cost accounting system for a manufacturer is to ________.

Question 11 options:

	assist creditors in determining whether to grant a loan
	show investors a company is operating efficiently
	compute the cost of goods sold for the income statement
	classify all costs as operating or marketing costs

Question 12 (2 points)

Job 421 had $5,000 in actual direct labor costs for the Assembly Department and $4,500 in actual direct labor costs in the Packaging Department. If the predetermined overhead allocation rate is 80% of direct labor costs, how much overhead will be allocated to job 421?