Spring06_Midterm1-5_soln

Spring06_Midterm1-5_soln - Section I: Do on SCANTRON sheet....

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Section I: Do on SCANTRON sheet. ONLY SCANTRON circles graded (15 x 1=15 points). ===================================================================== 1. Maher, Inc., applies manufacturing overhead at the rate of $60 per machine hour. Budgeted machine hours for the current period were anticipated to be 80,000; however, a lengthy strike resulted in actual machine hours being worked of only 65,000. Budgeted and actual manufacturing overhead figures for the year were $4,800,000 and $4,180,000, respectively. On the basis of this information, the company's year-end overhead was: A) overapplied by $280,000. B) underapplied by $280,000. C) overapplied by $620,000. D) underapplied by $620,000. E) underapplied by $900,000. 2. Under a traditional costing system, which of the following costs would likely be classified as indirect with respect to the various products manufactured? A) Plant maintenance. B) Factory supplies. C) Utilities. D) Machinery depreciation. E) All of the above would be considered indirect costs. 3. Conversion costs are: A) direct material, direct labor, and manufacturing overhead. B) direct material and direct labor. C) direct labor and manufacturing overhead. D) prime costs. E) period costs. 4. When underapplied or overapplied manufacturing overhead is pro-rated, amounts can be assigned to which of the following accounts? A) Raw-Material Inventory, Manufacturing Overhead, and Direct Labor B) Work-in-process inventory, Raw Material Inventory, and Cost of Goods Sold C) Raw-Material Inventory, Finished Goods Inventory, and Cost of Goods Sold D) Raw-Material Inventory, Work-in Process Inventory, and Finished Goods Inventory E) None of the above. Version 5 Page 1
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5. An accountant recently debited Work-in-Process Inventory and credited Manufacturing Overhead. The accountant was: A) applying a predetermined overhead amount to production. B) recognizing receipt of the factory utilities bill. C) recording a year-end adjustment for an insignificant amount of underapplied overhead. D) recognizing actual overhead incurred during the period. E) recognizing the completion of production. 6. The accounting records of Bronco Company revealed the following information: Raw materials used $ 60,000 Direct labor 125,000 Manufacturing overhead 360,000 Work-in-process inventory, 1/1 50,000 Finished-goods inventory, 1/1 189,000 Work-in-process inventory, 12/31 76,000 Finished-goods inventory, 12/31 140,000 Bronco's cost of goods manufactured is: A) $519,000. B) $522,000. C) $568,000. D) $571,000. E) some other amount. 7. Electricity costs that were incurred by a company's factory machines should be debited to which of the following? [Hint: Be careful. Think about this carefully.] A) Selling & Administrative Expense. B) Accounts Payable.
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Spring06_Midterm1-5_soln - Section I: Do on SCANTRON sheet....

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