Acc206 Principles of Accounting: Week 3 Quiz (Version 2 - May 2012)

Acc206 Principles of Accounting
Week 3 Quiz (Version 2 - May 2012)

1. 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
What are total manufacturing costs incurred by Village Company in 2012? (Points : 1)
$149,200
$158,300
$139,800
$117,100
None of these is correct

2. 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

3. A service company’s income statement does NOT include cost of goods sold. (Points : 1) True
False

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

5. Management accounting is influenced significantly by rules of GAAP and guidelines of the Securities Exchange Commission. (Points : 1)
True
False

6. Indirect materials and indirect labor are tracked to individual job costing records and recorded in the Work in process account. (Points : 1)
True
False

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. 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

9. The journal entry to record the incurrence of $1,500 of direct labor and $200 of indirect labor includes which of the following? (Points : 1)
Debit to Manufacturing overhead for $1,700
Debit to Work in process inventory for $1,500 and debit to Finished goods for $200
Debit to Work in process inventory for $1,700
Debit to Work in process for $1,500, debit to Manufacturing overhead for $200

10. Which of the following describes the cost of goods manufactured? (Points : 1)
The cost of the goods that were sold during the period
The total cost of all goods that were completed, or partially completed during the period
The cost of those goods which were completed during the period
The total costs in inventory at the end of the period
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