Managerial Accounting

Topics: Inventory, Supply chain management terms, Costs Pages: 5 (1492 words) Published: November 2, 2014

rading Summary
These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. Date Taken: 7/20/2014 Time Spent: 1 h , 53 min , 10 secs

Points Received: 85 / 90  (94.4%)
Question Type: # Of Questions: # Correct:
Multiple Choice 6 5
Essay 4 N/A
Grade Details - All Questions
Page:   1  2 
Question 1. Question : (TCO F) Computing unit product costs involves averaging in:    Job-Order Costing Process Costing
A Yes No  
B Yes Yes  
C No Yes  
D No No  
  Student Answer:  Choice A.
   Choice B.
   Choice C.
   Choice D.
  Instructor Explanation: Chapter 3
  Points Received: 0 of 5
  Comments: Question 2. Question : (TCO F) Process costing would be appropriate for each of the following except:   Student Answer:  custom furniture manufacturing.
   oil refining.
   grain milling.
   newsprint production.
  Instructor Explanation: Chapter 4
  Points Received: 5 of 5
  Comments: Question 3. Question : (TCO F) Unizat Corporation uses the weighted-average method in its process costing system. The following information pertains to one of the company's processing departments for a recent month:     Units Material Cost

Beginning work in process 30,000 $22,000
Started during the month 80,000 $72,000
Units completed 85,000  
Ending work in process 25,000  
  All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to:   Student Answer:  $0.86
   $0.90
   $1.10
   $1.18
  Instructor Explanation:  To solve for ending work in process:  + Work in process, beginning 30,000
+ Units started into production during the month 80,000
- Units completed and transferred out during the month 85,000 = Work in process, ending 25,000
 Equivalent Units of Production 
  Materials
Transferred to next department 85,000
Ending work in process  
     (conversion: 25,000 units x 10% complete) 25,000
Equivalent units of production 110,000
 Cost per Equivalent Unit 
  Conversion
Cost of beginning work in process $22,000
Cost added during the period 72,000
Total cost (a) $94,000
   
Equivalent units of production (b) 110,000
Cost per equivalent unit (a) / (b) $0.85
  Points Received: 5 of 5
  Comments: Question 4. Question : (TCO F) Which of the following accounts is debited when direct labor is recorded?   Student Answer:  Work in process
   Salaries and wages expense
   Salaries and wages payable
   Manufacturing overhead
  Instructor Explanation: Chapter 3
  Points Received: 5 of 5
  Comments: Question 5. Question : (TCO F) During December at Ingrim Corporation, $74,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $6,000. The journal entry to record the requisition from the storeroom would include a:   Student Answer:  debit to Raw Materials of $74,000.

   debit to Work in Process of $68,000.
   credit to Manufacturing Overhead of $6,000.
   debit to Work in Process of $74,000.
  Instructor Explanation: Chapter 3
  Points Received: 5 of 5
  Comments: Question 6. Question : (TCO F) Valles Corporation had $22,000 of raw materials on hand on February 1. During the month, the company purchased an additional $75,000 of raw materials. The journal entry to record the purchase of raw materials would include a:   Student Answer:  credit to Raw Materials of $97,000.

   debit to Raw Materials of $97,000.
   credit to Raw Materials of $75,000.
   debit to Raw Materials of $75,000.
  Instructor Explanation: Chapter 3
  Points Received: 5 of 5
  Comments: Page:   1  2 
ons
Page:   1  2 
Question 1. Question : (TCO F) Whether a company uses process costing or job-order costing depends on its industry. A number of companies in different industries are listed below: i. Brick manufacturerii. Contract printer that produces posters,...
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