Acc206 Principles of Accounting: Week 3 Quiz (Version 5 - October 2012)

Acc206 Principles of Accounting

Week 3 Quiz (Version 5 - October 2012)
1. A service company’s income statement does NOT include cost of goods sold. (Points : 1)
True
False

2. Village Company's selected cost data for 2012 are shown below:
Cost of goods manufactured $145,200
Work in process inventory, Jan. 1, 2012 18,500
Work in process inventory, Dec. 31, 2012 22,500
Direct materials used 15,800
Assuming manufacturing overhead costs of $83,375, what is the amount of direct labor incurred by Village Company in 2012? (Points : 1)
$50,025
$62,550
$41,700
$83,400
None of these is correct

3. On June 1, 2012, Dalton Production Company had beginning balances as shown in the T-accounts below.
Materials inventory Work in process inventory Finished goods inventory Manufacturing overhead
10,000 20,000 25,000 41,000
During June, the following transactions took place:
June 2: Issue $2,400 of direct materials and $200 of indirect materials to production.
Following this transaction, what was the balance in the Work in process inventory account? (Points : 1)
$20,000
$22,400
$22,600
$20,200
None of these is correct

4. Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data:
Total manufacturing overhead estimated at the beginning of the year: $140,000
Total direct labor costs estimated at the beginning of the year: $350,000
Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hours
Actual manufacturing overhead costs for the year: $159,000
Actual direct labor costs for the year: $362,000
Actual direct labor hours for the year: 12,400 direct labor hours

Based on the data above, how much manufacturing overhead was allocated to production? (Please round to nearest whole dollar.) (Points : 1)
$825,360
$905,000
$144,800
$159,280
None of these is correct

5. Accounting firms, building contractors, and healthcare providers are companies that use job order costing. (Points : 1)
True
False

6. The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.
Purchases $ 126,000
Selling and Administrative Expenses 90,000
Merchandise inventory, 1/1/2012 14,000
Merchandise inventory, 12/31/2012 10,000
Sales Revenue 250,000
What is the cost per unit sold? (Points : 1)
$13.00
$12.40
$14.00
$10.40
None of these is correct

7. Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. In June, 2012, Arabica completed job number 511. Job stats are as follows:
Direct materials cost $27,500
Direct labor cost $13,000
Direct labor hours 400 hours
Units of product produced: 200 crates
How much manufacturing overhead was allocated to the job? (Points : 1)
$16,250
$10,400
$ 5,000
$34,375
None of these is correct

8. The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.
Purchases $ 126,000
Selling and Administrative Expenses 90,000
Merchandise inventory, 1/1/2012 14,000
Merchandise inventory, 12/31/2012 10,000
Sales Revenue 250,000
What is the operating income for 2012? (Points : 1)
$250,000
$140,000
$ 30,000
$ 90,000
None of these is correct

9. When materials are requisitioned for a job, the materials inventory account is debited. (Points: 1)
True
False

10. At the beginning of 2011, the Taylor Company's work in process inventory account had a balance of $30,000. During 2011, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Manufacturing overhead in 2011 amounted to $90,000. The cost of goods manufactured was $220,000 in 2011. What is the balance in work in process inventory on December 31, 2011? (Points : 1)
$24,000
$66,000
$ 6,000
$34,000
None of these is correct
Powered by