I would like have the answers for questions 65 - 130

ACCA 310 FALL 2015 ASSIGNMENT QUIZ CHAPTERS 7 TO 10 Multiple Choice: 1. The financial budget includes a. only the capital budget and the cash budget. b. only the capital budget and the budgeted balance sheet. c. the capital budget, the cash budget, and the budgeted balance sheet. d. the cash budget, the budgeted statement of cash flows, and the retained earnings budget. 2. Which of the following is considered a long range planning decision? a. addition or deletion of product line. b. design and location of new plants. c. acquisitions of buildings and equipment. d. all of the above. 3. A major drawback of using historical results for judging current performance is that a. past results may be incorrect. b. results may refer to a different manager. c. inefficiencies maybe concealed in the past performance. d. all of the above. 4. The master budget quantifies targets for all of the following EXCEPT a. sales. b. production. c. markets. d. cost-driver activity. 5. The master budget includes forecasts for all of the following EXCEPT a. sales. b. number of employees. c. balance sheets. d. cash disbursements. 6. Pro forma statements are most closely associated with a. master budget. b. operating budget. c. financial budget. d. strategic plans. 7. 8. ______________ set the overall goals and objectives of the organization. a. Strategic plans. b. Capital budgets. c. Pro forma statements. d. Continuous budgets. __________ detail the planned expenditures for facilities, equipment, new products, and other long-term investments is (are) a. a strategic plan. b. capital budgets. c. pro forma statements. d. continuous budgets. 9. Continuous budgets are a common form of a. strategic plans. b. capital budgets. c. pro forma statements. d. financial reports. 10. Which of the following is sometimes called rolling budgets? a. strategic plans b. capital budgets c. pro forma statements d. continuous budgets 11. Continuous budgets are constructed by a. adding a new goal as a current goal is achieved b. adding a new cost object as a current cost object is eliminated. c. adding a month in the future as the month just ended is dropped d. adding a year in the future as the current year just ended is dropped 12. Which of the following are components of a master budget? a. strategic plan and operating budget b. operating budget and financial budget c. continuous budget and static budget d. cash budget and activity budget 13. _______________ is a major part of the master budget that focuses on the income statement and its supporting schedules. a. b. c. d. An operating budget A financial budget A cash budget A capital budget 14. All of the following are operating budgets, EXCEPT a. The sales budget. b. The operating expenses budget. c. The budgeted income statement. d. The cash budget. 15. All a. b. c. d. of the following are operating budgets, EXCEPT The purchases budget. The capital budget. The cost of goods sold budget. The budgeted income statement. 16. All a. b. c. d. of the following are financial budgets, EXCEPT The purchases budget. The capital budget. The cash budget. The budgeted balance sheet. 17. All a. b. c. d. of the following are financial budgets, EXCEPT The budgeted balance sheet. The capital budget. The cash budget. The budgeted income statement. 18. Which of the following is NOT a major benefit of budgeting? a. It compels managers to think ahead. b. It provides definite expectations that are the best framework for judging subsequent performance. c. It aids managers in coordinating their efforts, so that the objectives of the organization as a whole match the objectives of its parts. d. It allows managers to operate day to day, reacting to current events rather than planning for the future. 19. Which of the following is generally prepared as the first step in preparing the operating budgets? a. sales budget b. operating expense budget c. purchases budget d. budgeted income statement 20. Which of the following expenses is influenced by sales? a. commission expenses b. rent expense c. insurance expense d. depreciation expense 21. What is the sequence of steps used in preparing the master budget? a. output from operating budgets is used to prepare the financial budgets b. output from financial budgets is used to prepare the operating budgets. c. operating and financial budgets are prepared independently at the beginning of the budgeting process. d. operating and financial budgets are prepared independently at the end of the budgeting process. 22. Preparing the master budget begins by establishing a. a targeted balance sheet. b. a targeted income statement. c. the expected cash. d. the expected sales. 23. The operating budget process results in the a. budgeted balance sheet b. budgeted cash balance c. sales budget d. budgeted statement of income 24. The financial budget process results in the a. budgeted balance sheet b. budgeted cash balance c. sales budget d. budgeted statement of income 25. Which of the following would probably NOT be used as a measure of activity in a flexible budget? a. sales volume b. number of direct labor hours worked c. number of machine hours used d. number of hours worked by salespeople 26. A static budget is another name for the a. financial budget. b. operating budget. c. strategic budget. d. master budget. 27. Which of the following is an example of a favorable variance? a. Actual revenues are less than expected. b. Actual expenses are less than expected. c. Material prices are greater than expected. d. Expected labor costs are less than actual costs. 28. _______________ compares actual results with budget. a. Performance report b. Variance c. Sensitivity analysis d. Dynamic analysis 29. Which of the following is NOT a true statement about flexible budgets? a. They help provide a basis for management by exception. b. They are not based on the same revenue and cost behavior assumptions as the master budget. c. They are prepared for a range of activity. d. They are automatically matched to changes in activity levels. 30. Any differences between the master budget and the flexible budget are due to a. problems of cost control. b. poor usage of material and labor. c. a combination of price and material variances. d. actual activity differing from expected activity levels. 31. A variance is the difference between a. a budgeted amount and a benchmark amount. b. the required number of inputs for the number of outputs. c. an actual result and a budgeted amount. d. a budgeted amount and a standard amount. 32. The type of budget which serves as the original benchmark for evaluating performance is called a. a balanced budget. b. a cost budget. c. a flexible budget. d. a static budget. 33. A budget that is often changed at the end of a reporting period is called a. a balanced budget. b. a cost budget. c. a flexible budget. d. a trial balance budget. 34. Best Insurance Company had a static budgeted operating income of $4.6 million; however, actual income was $3.0 million. What is the static budget variance of operating income? a. $3.0 million favorable b. $4.6 million unfavorable c. $1,6 million favorable d. $1.6 million unfavorable 35. If the actual level of sales significantly exceeds the sales in the master budget, the variances associated with the variable costs will probably be a. favorable b. unfavorable c. zero d. cannot be determined 36. Alexandria Company's master budget sales were $212,000. Actual sales were $207,000. Sales in the prior year were $210,000. The master budget variance for sales was? a. $5,000 favorable b. $5,000 unfavorable c. $3,000 favorable d. $3,000 unfavorable 37. Fastener Box Company currently produces cardboard boxes in an automated process. Expected production per month is 40,000 units. The required direct materials costs of $0.30 per unit. Manufacturing fixed overhead costs are $24,000 per month. Manufacturing overhead is allocated based on units of production. What is the budgeted manufacturing fixed overhead rate? a. $1.00 per unit b. $0.77 per unit c. $0.60 per unit d. $0.30 per unit 38. Fastener Box Company currently produces cardboard boxes in an automated process. Expected production per month is 40,000 units. The required direct materials costs of $0.30 per unit. Manufacturing fixed overhead costs are $24,000 per month. Manufacturing overhead is allocated based on units of production. What is the flexible budget for 40,000 and 20,000 units, respectively? a. $26,000; $20,000 b. $36,000; $30,000 c. $40,000; $34,000 d. $44,000; $38,000 39. The Summer Sandal Company currently produces sandals in an automated process. Expected production per month is 20,000 units. The required direct materials costs of $1.50 per unit. Manufacturing fixed overhead costs are $30,000 per month. Manufacturing overhead is allocated based on units of production. What is the budgeted manufacturing fixed overhead rate? a. $2.00 per unit b. $3.00 per unit c. $1.50 per unit d. $1.20 per unit 40. The Summer Sandal Company currently produces sandals in an automated process. Expected production per month is 20,000 units. The required direct materials costs $1.50 per unit. Manufacturing fixed overhead costs are $30,000 per month. Manufacturing overhead is allocated based on units of production. What is the flexible budget for 15,000 and 20,000 units, respectively? a. $22,500; $30,000 b. $52,500; $60,000 c. $45,000; $60,000 d. $88,000; $76,000 41. Lighthouse Company had the following information: At a manufacturing level of 5,000 units, variable and fixed manufacturing costs are $30 and $8 per unit, respectively. Selling price is $60 per unit. What is the total manufacturing cost for 10,000 units? a. $300,000 b. $380,000 c. $340,000 d. $600,000 42. Which of the following is NOT a characteristic of a management control system? a. It aids and coordinates the process of making decisions. b. It encourages short-term profitability. c. It motivates individuals throughout the organization to act in concert. d. It coordinates forecasting sales and cost-driver activities, budgeting, and measuring and evaluating performance. 43. ________ are specific tangible achievements that can be observed on a short-term basis. a. key success factors b. guidelines c. objectives d. performance measures 44. What is the logical integration of management accounting tools to gather and report data and to evaluate performance? a. Internal control system b. Quality control system c. Financial reporting system d. Management control system 45. Which of the following would NOT be a step in the design of a successful management control system? a. Specify organizational goals, sub goals and objectives. b. Identify responsibility centers. c. Measure and report financial performance but not non-financial performance. d. Develop measures of performance for motivation and goal congruence. 46. A management control system includes the techniques to gather and control information to a. motivate employees. b. evaluate performance. c. make decisions d. All of the above. 47. What is the first step in designing a management control system? a. evaluating management's performance. b. establishing organizational goals. c. preparing financial statements. e. distinguishing between profit centers and cost centers. 48. What is the most basic component of a management control system? a. the organization's long range budget. b. the organization's goals. c. the stockholder's preferences. d. top management's preferences. 49. _________ are characteristics or attributes that managers must achieve in order to drive the organization toward its goals. a. Specific performance measures b. Targets c. Key Success Factors d. Goals 50. An effective management control system reports on all of the following EXCEPT a. the results of activities. b. the manager's influence on those results. c. effects of uncontrollable events. d. effects of controllable events. 51. Responsibility accounting includes a. identifying what parts of the organization have primary responsibility for each objective. b. developing measures of achievement and objectives c. creating reports d. all of the above 52. Which of the following statements regarding responsibility centers is F? a. Responsibility centers usually have one objective. b. Management control systems monitor responsibility center objectives. c. Responsibility centers are usually classified according to their financial responsibility. d. Cost centers, profit centers and investments centers are all examples of responsibility centers. 53. A(n) __________ is responsibility center for which costs are accumulated. a. profit center b. cost center c. investment center d. accounting center 54. Profit centers are responsible for a. cost only. b. revenues and cost. c. invested capital and revenues. d. cost and invested capital. 55. A(n) __________ is responsibility center whose success is measured NOT only by its income, but also by relating that income to its invested capital. a. profit center b. cost center c. investment center d. accounting center 56. Which of the following is NOT a type of responsibility center? a. investment center b. cost center c. profit center d. budget center 57. Effective management control systems allow top managers to delegate a. decision-making. b. planning. c. control. d. all of the above 58. To create a management control system that meets the organization's needs, designers need to consider all of the following EXCEPT a. existing constraints. b. external reporting requirements. c. internal controls. d. costs versus benefits. 59. What term refers to the set of activities assigned to a manager or a group of managers or other employees? a. Internal control system b. Management control system c. Responsibility center d. Total quality control system 60. Which of the following is an outcome of organizational learning? a. financial strength b. increased customer satisfaction c. continuous process improvement d. all of the above 61. Which of the following is NOT a measure of organizational learning? a. training time b. employee turnover c. staff satisfaction d. management performance 62. Retention of target customers is a measure of a. financial strength b. customer satisfaction c. business process improvement d. organizational learning 63. Employee turnover rate is a measure of a. financial strength b. customer satisfaction c. business process improvement d. organizational learning 64. Revenue growth in segments is a measure of a. financial strength b. customer satisfaction c. business process improvement d. organizational learning Multiple Choice: 11- 14 65. _______________ is NOT another name for the required rate of return? a. Hurdle rate b. Discount rate c. Compound rate d. Cost of capital 66. Long-term planning for making and financing investments that affect financial results for more than the current year is: a. operational budgeting. b. capital budgeting decisions. c. strategic analysis. d. sensitivity analysis. 67 Which of the following is NOT a phase of capital budgeting? a. A postaudit of the investment b. The selection of the investment to undertake c. The identification of potential investments d. The identification of possible sources of funds for the investment 68. The lower the minimum desired rate of return, the a. lower the present value of each future cash outflow. b. higher the net present value of the project. c. higher the present value of each future cash outflow. d. lower the present value of each future cash inflow. 69. The cost of capital is sometimes referred to as a. the discount rate. b. the hurdle rate. c. the required rate of return. d. all of the above. 70. Below are two potential investment alternatives: Case A Initial capital investment Estimated useful life Estimated terminal salvage value Estimated annual savings in cash operating costs Minimum desired rate of return Case B $180,000 3 yrs. -0- $270,000 3 yrs. -0- $75,000 10 percent $120,000 12 percent Assume straight-line depreciation in all computations, and ignore income taxes. The net present value in case A is a. $6,518. b. $(123,652). c. $75,000. d. $186,518. 71. Below are two potential investment alternatives: Case A Initial capital investment Estimated useful life Estimated terminal salvage value Estimated annual savings in cash operating costs Minimum desired rate of return Case B $180,000 3 yrs. -0- $270,000 3 yrs. -0- $75,000 10 percent $120,000 12 percent Assume straight-line depreciation in all computations, and ignore income taxes. The net present value in case B is a. $120,000. b. $18,216. c. $(492). d. $184,584. 72. 73. Your crazy aunt Gladys has offered to give you $10,000 today or $3,000 per year for the next five years. If the cost of capital is 10%, you should a. choose $10,000 today. b. choose $3,000 for five years. c. choose either, the results will be the same. d. do nothing. You cannot make a decision with the above information. When evaluated using a nominal rate of 8 percent, the net present value of a project is zero. Which of the following statements is true? a. At 6 percent the project is desirable; at 8 percent it is undesirable. b. At 8 percent the project is desirable; at 6 percent it is undesirable. c. The project is equally desirable at 6 percent or 8 percent. d. The project is equally undesirable at 6 percent or 8 percent. 74. An accountant's main function in capital budgeting is to a. identify potential investments. b. Choose which investments to make. c. Gather and interpret information. d. Do all of the above. 75. An annuity is a. a series of equal cash flows at equal intervals. b. A cash amount received only once. c. A yearly payment of any amount. d. None of the above. In the net present value model, the perfect capital markets assumption means that a. a company can borrow exactly the amount of money it needs. b. Each lender charges the same interest rate. 76. c. All amounts can be borrowed at the minimum desired rat of return. d. Net cash flows equals net cash outflows. 77. 78. Assume that the desired rate of return is 10% and that interest is compounded annually. How much must be invested today in order to have $10,000 in 5 years and 10 years, respectively? a. $5,000; $1,000 b. $3,791; $6,145 c. $6,209; $3,855 d. $1,000; $5,000 Cost allocation base refers to the a. cost driver. b. total costs to be allocated. c. total allocated costs. d. cost objectives. 79. Which of the following is NOT a type of cost allocation? a. b. c. d. 80. Allocation of costs to the appropriate organizational unit. Reallocation of costs from service departments to production departments. Allocation of costs of a particular organizational unit to products or services. Reallocation of costs from production departments to service departments. Costs are allocated for all the following purposes EXCEPT to a. b. c. d. predict the economic effects of planning and control decisions. obtain reimbursement. determine inventory levels. compute income and asset valuation. 81. Which of the following is a cost objective? a. Products b. Jobs c. Projects d. All of the above 82. The preferred guidelines for allocating service department costs include a. identify the direct and indirect costs. b. evaluate performance using allocated costs for each service department. c. establish part or all of the details regarding cost allocation in advance of rendering the service. d. allocate variable- and fixed-cost pools simultaneously. 83. Gibson Company has two production departments, Mixing and Finishing, served by one maintenance department. Budgeted fixed costs for the maintenance department were $30,000, and the variable cost per labor hour was $4.00. Other relevant data are as follows: Long-run capacity available* Budgeted* Actual* 15,000 Mixing 18,000 12,000 9,000 Finishing 12,000 10,500 Actual maintenance department costs were $36,000 fixed and $100,000 variable. *in labor hours The amount of fixed maintenance costs allocated to the Mixing Department should be a. $20,000. b. $12,000. c. $18,000. d. $14,000. 84. Gibson Company has two production departments, Mixing and Finishing, served by one maintenance department. Budgeted fixed costs for the maintenance department were $30,000, and the variable cost per labor hour was $4.00. Other relevant data are as follows: Long-run capacity available* Budgeted* Actual* 15,000 Mixing 18,000 12,000 9,000 Finishing 12,000 10,500 Actual maintenance department costs were $36,000 fixed and $100,000 variable. *in labor hours The amount of fixed maintenance costs allocated to the Finishing Department should be a. $18,000. b. $12,000. c. $14,000. d. $11,250. 85. Gibson Company has two production departments, Mixing and Finishing, served by one maintenance department. Budgeted fixed costs for the maintenance department were $30,000, and the variable cost per labor hour was $4.00. Other relevant data are as follows: Long-run capacity available* Budgeted* Actual* 15,000 Mixing 18,000 12,000 9,000 Finishing 12,000 10,500 Actual maintenance department costs were $36,000 fixed and $100,000 variable. *in labor hours The amount of variable maintenance costs allocated to the Mixing Department should be a. $60,000. b. $72,000. c. $48,000. d. $62,500. 86. Gibson Company has two production departments, Mixing and Finishing, served by one maintenance department. Budgeted fixed costs for the maintenance department were $30,000, and the variable cost per labor hour was $4.00. Other relevant data are as follows: Long-run capacity available* Budgeted* Actual* Mixing 18,000 12,000 15,000 Finishing 12,000 10,500 9,000 Actual maintenance department costs were $36,000 fixed and $100,000 variable. *in labor hours The amount of variable maintenance costs allocated to the Finishing Department should be a. $42,000. b. $48,000. c. $37,500. d. $36,000. 87. The use of budgeted service department cost rates protects using departments from a. service department efficiencies. b. price fluctuations. c. service outages. d. all of the above 88. Which formula should be used to allocate variable costs? a. Budgeted unit rate x total budgeted units planned to be used. b. Actual unit rate x total budgeted units planned to be used. c. Budgeted unit rate x actual units used. d. Actual unit rate x actual units used. 89. Which formula should be used to allocate fixed costs? a. Actual fraction of capacity used x total budgeted fixed costs. b. Budgeted fraction of capacity available for use x total budgeted fixed costs. c. Actual fraction of capacity used x actual fixed costs. d. Budgeted fraction of capacity available for use x actual fixed costs. 90. What are the preferred cost drivers for fixed-cost pools and variable-cost pools, respectively? a. capacity available; capacity used. b. capacity available; capacity available. c. capacity used; capacity available. d. capacity used; capacity used. 91. What are the preferred cost drivers for fixed-cost pools and variable-cost pools, respectively? a. capacity available; capacity used. b. capacity available; capacity available. c. capacity used; capacity available. d. capacity used; capacity used. 91. Allocating fixed costs on the basis of long-range plans may inadvertently encourage managers to a. underutilize available capacity. b. overestimate planned usage. c. underestimate planned usage. d. overestimate planned cost. 92. Which of the following is a product cost? a. Direct material cost b. Selling cost c. Distribution cost d. Administrative cost 92. Which of the following is a product cost? a. Direct material cost b. Selling cost c. Distribution cost e. Administrative cost 93. _______________ is better suited for a single physical unit or a few like units. a. b. c. d. Process costing system Period costing system Product costing system Job-order costing system 94. Which of the following statements regarding Job order costing is TRUE? a. Job order costing deals with great masses of like units. b. Job order costing is an averaging process. c. In job order costing the measure of production is small, whereas in process costing the measure of production is large. d. Job order costing is one of the two common systems of product costing. 95. Which of the following industries is most likely to NOT use a job-order costing system? a. Construction b. Lumber c. Aircraf d. Printing 96. Which of the following industries is most likely to use a job-order costing system? a. Chemicals b. Plastics c. Printing d. Meat packing 97. In a job-cost system all costs for a particular product service or batch of product are recorded on he a. Materials requisition form b. Job-cost record c. Labor time ticket d. Budgeted overhead rate 98. Which general ledger account is supported by a file of job-cost records for partially completed jobs? a. WIP Inventory account b. Direct-Materials Inventory account c. Finished goods Inventory account d. Cost of goods sold account 99. Which general ledger account is supported by a file of completed job-cost records? a. Cost of goods sold account b. Direct materials inventory account c. WIP inventory account d. Finished goods inventory account 100. For external reporting purposes, how are costs incurred in the production and distribution phases of the value chain regarded? a. Both are product costs. b. Both period costs. c. Period cost and product cost, respectively. d. Product cost and period cost, respectively. 101. Hybrid costing systems use a combination of a. job order costing and process costing ideas. b. Value-added and non-value added costs. c. Direct and indirect costs. d. Fixed and variable costs. 102. Which of the following is a job-cost source document? a. job-cost record b. Inventory summary record c. Budgeted overhead rate d. Labor time ticket 103. A debit to WIP inventory is used to record a. requisition of direct materials b. Cost of goods completed c. Sale of merchandise d. Purchase of direct materials 104. A debit to finished goods inventory is used to record a. requisition of direct materials b. cost of goods completed c. sale of merchandise d. purchase of direct materials 105. A debit to Cost of goods sold is used to record a. requisition of direct materials b. cost of goods completed c. sale of merchandise d. purchase of direct materials 106. A debit to direct materials inventory is used to record a. requisition of direct materials b. cost of goods completed c. sale of merchandise d. purchase of direct materials 107. Which of the following would be part of the entry to record the requisition of direct materials? a. credit to WIP Inventory b. credit to Direct-Materials Inventory c. credit to Accounts Payable d. debit to Finished goods Inventory 108. Which of the following would be part of the entry to record the incurrence of direct labor costs? a. credit to Accrued Payroll b. credit to WIP Inventory c. credit to Finished goods Inventory d. credit to Cost of goods sold 109. Which of the following would be part of the entry to record application of factory costs? a. debit to WIP Inventory b. credit to Cost of goods sold c. debit to Factory Department Overhead Control d. debit to Factory Overhead Applied 110. Which of the following would be part of the entry to record the cost of goods completed? a. debit to Cost of goods sold b. credit to Finished goods Inventory c. debit to Factory Department Overhead Control d. credit to WIP Inventory 111. Which of the following would be part of the entry to record the sale of goods? a. credit to finished goods inventory b. credit to cost of goods sold c. debit to WIP Inventory d. debit to sales 112. Garretts Company uses a job-order cost system and had the following data available. Beginning direct-materials inventory Beginning WIP Inventory Beginning finished goods inventory Direct materials purchased on account Direct materials requisitioned Direct-labor cost incurred Factory overhead incurred Cost of goods completed Cost of goods sold Overhead application rate (as a percent of direct-labor cost) $26,000 64,000 58,000 148,000 82,000 130,000 146,000 292,000 256,000 125 percent The journal entry to record the factory overhead costs incurred would include a a. debit to Factory Department Overhead Control for $146,000. b. credit to Factory Department Overhead Control for $162,500. c. debit to WIP Inventory for $146,000. d. credit to WIP Inventory for $162,500. 113. Garretts Company uses a job-order cost system and had the following data available. Beginning direct-materials inventory Beginning WIP Inventory Beginning finished goods inventory Direct materials purchased on account Direct materials requisitioned Direct-labor cost incurred Factory overhead incurred Cost of goods completed Cost of goods sold Overhead application rate (as a percent of direct-labor cost) $26,000 64,000 58,000 148,000 82,000 130,000 146,000 292,000 256,000 125 percent The journal entry to record the purchase of direct materials would include a a. debit to WIP inventory for $148,000. b. debit to direct materials inventory for $148,000. c. credit to direct materials inventory for $148,000. d. credit to WIP Inventory for $148,000. 114. Garretts Company uses a job-order cost system and had the following data available. Beginning direct-materials inventory Beginning WIP Inventory Beginning finished goods inventory Direct materials purchased on account Direct materials requisitioned Direct-labor cost incurred Factory overhead incurred Cost of goods completed Cost of goods sold Overhead application rate (as a percent of direct-labor cost) $26,000 64,000 58,000 148,000 82,000 130,000 146,000 292,000 256,000 125 percent The journal entry to record the cost of goods completed would include a a. debit to WIP Inventory for $256,000. b. credit to Finished goods Inventory for $292,000. c. credit to Cost of goods sold for $256,000. d. credit to WIP Inventory for $292,000. 115. Garretts Company uses a job-order cost system and had the following data available. Beginning direct-materials inventory Beginning WIP Inventory Beginning finished goods inventory Direct materials purchased on account Direct materials requisitioned Direct-labor cost incurred Factory overhead incurred Cost of goods completed Cost of goods sold Overhead application rate (as a percent of direct-labor cost) $26,000 64,000 58,000 148,000 82,000 130,000 146,000 292,000 256,000 125 percent The journal entry to record the sale of all jobs would include a a. debit to Finished goods Inventory for $292,000. b. credit to WIP Inventory for $256,000. c. credit to Finished goods Inventory for $256,000. d. credit to Cost of goods sold for $292,000. 116. Garretts Company uses a job-order cost system and had the following data available. Beginning direct-materials inventory Beginning WIP Inventory Beginning finished goods inventory Direct materials purchased on account Direct materials requisitioned Direct-labor cost incurred Factory overhead incurred Cost of goods completed Cost of goods sold Overhead application rate (as a percent of direct-labor cost) $26,000 64,000 58,000 148,000 82,000 130,000 146,000 292,000 256,000 125 percent The ending inventory of direct materials is a. $94,000. b. $174,000. c. $82,000. d. $108,000. 117. Garretts Company uses a job-order cost system and had the following data available. Beginning direct-materials inventory Beginning WIP Inventory $26,000 64,000 Beginning finished goods inventory Direct materials purchased on account Direct materials requisitioned Direct-labor cost incurred Factory overhead incurred Cost of goods completed Cost of goods sold Overhead application rate (as a percent of direct-labor cost) 58,000 148,000 82,000 130,000 146,000 292,000 256,000 125 percent The ending inventory of work in process is a. $438,000. b. $146,500. c. $130,000. d. $422,000. Garretts Company uses a job-order cost system and had the following data available. Beginning direct-materials inventory Beginning WIP Inventory Beginning finished goods inventory Direct materials purchased on account Direct materials requisitioned Direct-labor cost incurred Factory overhead incurred Cost of goods completed Cost of goods sold Overhead application rate (as a percent of direct-labor cost) $26,000 64,000 58,000 148,000 82,000 130,000 146,000 292,000 256,000 125 percent The ending inventory of finished goods is a. $58,000. b. $36,000. c. $94,000. d. $292,000. 119. Quincy Company incurred actual overhead costs of $80,000 for the year. A budgeted factory-overhead rate of 210 percent of direct-labor cost was determined at the beginning of the year. Budgeted factory overhead was $78,750, and budgeted direct-labor cost was $37,500. Actual direct-labor cost was $40,000 for the year. The disposition of the variance, assuming a material amount, would include a a. debit to Factory Department Overhead Control for $4,000. b. credit to Factory Department Overhead Control for $1,250. c. debit to Cost of goods sold for $4,000. d. credit to Cost of goods sold for $1,250. 121. 120. The following information was gathered for Richardson Company: Budgeted direct-labor hours Actual direct-labor hours Budgeted factory overhead Actual factory overhead 8,000 8,100 $224,000 $224,970 Assume that direct-labor hours is the cost driver. What is the amount of over/underapplied overhead? a. $970 underapplied b. $970 overapplied c. $1,830 underapplied d. $1,830 overapplied The following information was gathered for Silkie Company: Budgeted direct-labor hours Actual direct-labor hours Budgeted factory overhead Actual factory overhead 31,000 32,400 $147,250 $149,980 Assume that direct-labor hours is the cost driver. What is the amount of over/underapplied overhead? a. $2,730 underapplied b. $2,730 overapplied c. $6,450 underapplied d. $3,920 overapplied 122. Which statement regarding process costing is TRUE? a. Process-costing systems are usually simpler than job-order costing systems. b. Individual jobs exist in process costing. c. The process costing approach does not distinguish among individual units of product. d. The unit cost for inventory purposes is calculated by accumulating the costs of all processing departments and dividing the total costs by the number of units produced. 123. _______________ is the system which applies costs to like products that are usually mass produced in continuous fashion through a series of production processes. a. Process costing b. Variable costing c. Job-order costing d. JIT costing 124. Which of the following is an example of a product that would not be manufactured in a process costing? a. Flour b. Glass c. Toothpaste d. Building 125. Process costing can be used for a. manufacturing activities only. b. nonmanufacturing activities only. c. both manufacturing and nonmanufacturing activities. d. neither manufacturing nor nonmanufacturing activities. 126. Which statement is true? a. Process costing uses a single work-in process account; job order costing uses multiple work-in process accounts. b. Job order costing uses a single work-in process account; process costing uses multiple work-in process accounts. c. Both process costing and job order costing use multiple work-in process accounts. d. Both process costing and job order costing use a single work-in process account. 127. The central product costing problem is how each department computes the cost of a. uncompleted goods sold and completed goods sold. b. uncompleted goods transferred and completed goods sold. c. uncompleted goods remaining in the department and completed goods transferred. d. all of the above. 128. Units that are started but not completed by the end of the accounting period are known as a. units started and completed. b. budgeted units. c. units in ending work-in-process. d. units sold. 129. Which of the following is NOT a step in process costing? a. Calculate output in terms of equivalent units. b. Calculate unit costs. c. Summarize the total costs to account for. d. Summarize the total costs by job. 130. What is the logical integration of management accounting tools to gather and report data and to evaluate performance? a. Internal control system b. Quality control system c. Financial reporting system d. Management control system