Major Exam 1 Review KEY 2007-crunchers

Major Exam 1 Review KEY 2007-crunchers - CHAPTER 1 REVIEW...

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CHAPTER 1 REVIEW FOR MAJOR EXAM # 1-TOTAL OF 23 PAGES. 17. Prime costs of a company are $3,000,000, manufacturing overhead is $1,500,000 and direct labor is $750,000. What is the amount of direct materials? a. $1,500,000. D. Can not be determined from this information. b. $750,000. c. $2,250,000. $ 3,000,000-$750,000. Use the following information for questions 25 and 26. Craft Manufacturing Company's accounting records reflect the following inventories: Dec. 31, 2002 Dec. 31, 2001 Raw materials inventory $310,000 $260,000 Work in process inventory 300,000 160,000 Finished goods inventory 190,000 150,000 During 2002, $500,000 of raw materials were purchased, direct labor costs amounted to $600,000, and manufacturing overhead incurred was $480,000. 25. The total raw materials available for use during 2002 for Craft Manufacturing Company is a. $810,000. b. $260,000. c. $450,000. d. $760,000 . Beginning balance + purchases. $ 260,000+$500,000 purchased=$760,000. 26. If Craft Manufacturing Company's cost of goods manufactured for 2002 amounted to $1,390,000, its cost of goods sold for the year is a. $1,500,000. b. $1,250,000. c. $1,350,000. Beginning Finished Goods plus CGM-Ending FinishedGoods=CGS. $150,000+$1,390,000- $190,000=$1,350,000. d. $1,430,000.
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27. Nolte Manufacturing Company reported the following year-end information: Beginning work in process inventory $360,000 Beginning raw materials inventory 100,000 Ending work in process inventory 300,000 Ending raw materials inventory 160,000 Raw materials purchased 320,000 Direct labor 300,000 Manufacturing overhead 200,000 Nolte Manufacturing Company's cost of goods manufactured for the year is a. $760,000. b. $820,000. c. $700,000. d. $880,000. Sol. BWIP+DM+DL+FO-EWIP=CGM $360,000+($100,000+$320,000-$160,000) $260,000 DM + $300,000DL+$200,000-$300,000=$820,000. CHAPTER 2-REVIEW FOR MAJOR EXAM 1 JOB ORDER COST ACCOUNTING MULTIPLE CHOICE QUESTIONS 87. Sportly, Inc. completed Job No. B14 during 2004. The job cost sheet listed the following: Direct materials $33,000 Direct labor $18,000 Manufacturing overhead applied $12,000 Units produced 3,000 units Units sold 1,800 units How much is the cost of the finished goods on hand from this job? a. $63,000 b. $37,800 c. $25,200 ($63,000tc/3000=$21 x 1,200=$25,200) d. $30,600
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93. A company expected its annual overhead costs are expected to be $600,000 and direct labor costs to be $1,000,000. Actual overhead was $580,000, and actual labor costs totaled $1,100,000. How much is the company’s predetermined overhead rate to the nearest cent? a. $0.58 b. $0.53 c. $0.60 $600,000/$1,000,000 d. $0.55 95. At the beginning of the year, Swaim Company estimated annual overhead costs to be $400,000 and machine hours to be used at 200,000. Swaim uses machine hours as the base. Actual machine hours totaled 180,000 during the year. How much overhead did the company apply during the year? a.
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This note was uploaded on 03/24/2008 for the course ACC 121 taught by Professor Ross during the Fall '07 term at Central Piedmont Community College.

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Major Exam 1 Review KEY 2007-crunchers - CHAPTER 1 REVIEW...

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