Mmid Term

Topics: Inventory, Costs, Cost Pages: 11 (2638 words) Published: October 9, 2012
MID TERQuestion 2
In order to obtain information about benchmarks, a manager might join a trade association for the company's particular industry. Answer True False
2 points  
Question 3 Management accounting and financial accounting are similar in which of the following respects? | | Both use the same unit of measurement.|
| | Both rely heavily on the double-entry system.|
| | Both produce almost all of their respective informational reports on a routine monthly basis.| | | Both provide relevant and useful information to management.| 2 points  
Question 4 Carlson Manufacturing is a producer of plastic bottles for bottled water companies. In July of this year, the plant manager switched to a new supplier of raw materials. The materials have a lower cost, and because of their chemical composition, more bottles can be made per hour. The downside of this faster production is that more bad, unusable bottles result. Below are the production data for the two months before and after the switch of suppliers.  | May| June| July| August|

 | Good| Bad| Good| Bad| Good| Bad| Good| Bad|
Machine 1| 21,014| 1,116| 20,560| 1,182| 22,584| 1,564| 23,651| 1,622| Machine 2| 19,876| 1,220| 19,614| 1,202| 22,108| 1,605| 23,615| 1,638| Machine 3| 19,912| 1,204| 20,811|    951| 22,916| 1,477| 23,918| 1,714| | | | | | | | | |

a. Compute bad units as a percentage of total production for each month. Round answers to two decimal places. b. What does the plant manager need to consider in determining whether or not to continue buying raw material from the new supplier? 4 points  

Question 5 Salaries of supervisory production personnel should be classified as direct labor costs. Question 6 The costs of labor for maintenance and inspections are examples of direct labor. Answer True False

2 points  
Question 7 Standard costing is based on actual direct materials and direct labor plus estimated overhead. Answer True False
2 points  
Question 8 Both direct labor and indirect labor are recorded in the Work in Process Inventory account as the product is being manufactured. Answer True False
3 points  
Question 9 Materials costs flow from the Materials Inventory to the Work in Process Inventory to the Cost of Goods Sold account. Answer True False
2 points   Question 10 The expressions total manufacturing costs and total cost of goods manufactured are not synonymous. Answer True False
1 points  Question 11 Which of the following is not a product cost? Answer
| | Depreciation of office furniture|
| | Overhead|
| | Direct labor|
| | Direct materials|
2 points  
Question 12 Which of the following is a value-adding cost?
| | Depreciation on personnel department equipment|
| | Depreciation on factory equipment|
| | Depreciation on office equipment|
| | Depreciation on sales department equipment|
2 points   Question 13 Which of the following should not be included in the computation of cost of goods manufactured? Answer
| | Power costs|
| | Small tools expense|
| | Total selling costs|
| | Work in Process Inventory|
2 points   Question 14 The cost of goods manufactured decreases which of the following accounts? Answer
| | Work in Process Inventory|
| | Finished Goods Inventory|
| | Overhead|
| | Cost of Goods Sold|
1 points   Question 15 The Finished Goods Inventory and Cost of Goods Sold for a manufacturing company for the year 20xx are as follows: January 1 Finished Goods Inventory, $382,500; December 31 Finished Goods Inventory, $270,000; Cost of Goods Sold for the year, $1,488,000. The cost of goods manufactured for the year was | | $1,105,500.|

| | $610,500.|
| | $1,150,500.|
| | $1,375,500.|
2 points   Question 16 Which of the following results in a predetermined overhead rate? Answer
| | Estimated overhead divided by estimated...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Long Term and Short Term Budget Essay
  • Long-Term & Short-Term Budgetting Essay
  • term paper short term financing
  • Term and Nestle Essay
  • Short Term and Long Term Financing Essay
  • Key Terms in Strategic Management Essay
  • Essay about Term and Hr Data
  • Goal and Long Term Goals Essay

Become a StudyMode Member

Sign Up - It's Free