Quiz- Final Exam Preparation 10 Points!

Quiz- Final Exam Preparation 10 Points! - Exam Prep Quiz 1....

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Exam Prep Quiz 1. In order to be useful to managers, management accounting reports should possess all of the following characteristics except: a. provide objective measures of past operations and subjective estimates about future decisions b. be prepared in accordance with generally accepted accounting principles (GAAP) c. be provided at any time management needs information d. be prepared to report information for any unit of the business to support decision making 2. The cost of materials entering directly into the manufacturing process is classified as: a. direct labor cost b. factory overhead cost c. burden cost d. direct materials cost 3. Which of the following is an example of a factory overhead cost? a. Repair and maintenance cost on the administrative building b. Factory heating and lighting cost c. Insurance premiums on salespersons' automobiles d. President's salary 4. The Collins Company forecasts that total overhead for the current year will be $12,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If the Collins Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate? a. $80 per hour b. $120 per hour c. $40 per hour d. $60 per hour 5. Which of the following statements is false? a. There is no overlap between financial and managerial accounting. b. Managerial accounting sometimes relies on past information. c. Managerial accounting does not need to conform to GAAP d. Financial accounting must conform to GAAP. 6. In a process cost system, ending inventory is valued by: a. finding the sum of all open job costs b. allocating departmental costs between completed and partially completed units c. multiplying units in ending inventory by the direct materials cost per unit d. all of the above 7. The two categories of cost comprising conversion costs are: a. direct labor and indirect labor b. direct labor and factory overhead c. factory overhead and direct materials
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d. direct labor and direct materials 8. Department W had 2,400 units, one-third completed at the beginning of the period, 12,000 units were transferred to Department X from Department W during the period; and 1,800 units were one- half completed at the end of the period. What are the equivalent units of production used to compute unit conversion cost of Department W for this period of operation? (Assume FIFO) a. 12,100 units b. 12,000 units c. 15,000 units d. 11,400 units (Use the following Information to answer questions 9-11) Department H had 3,600 units, one-third completed at the beginning of the period, 12,000 units were completed during the period, 2,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $30,000 Costs added during period: Direct materials (10,400 at $8)
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This note was uploaded on 11/25/2010 for the course BUSINESS bus 100 taught by Professor Jones during the Spring '10 term at Thomas Edison State.

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Quiz- Final Exam Preparation 10 Points! - Exam Prep Quiz 1....

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