iPad 4:21 PM COST ACCOUNTING QUIZ 1 FALL 2018 Home Insert Draw Layout Review Vie
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iPad 4:21 PM COST ACCOUNTING QUIZ 1 FALL 2018 Home Insert Draw Layout Review View Select Objects Draw with Touch COST ACCOUNTING FALL 2018 QUIZ 1 . CHAPTERS 1 and 2 (15 Points) NAME 12 rea n n a MULTIPLE CHOICE (1 POINT EACH) 1. Cost and management accounting a. require an entirely separate group of accounts than financial accounting uses b· focus solely on determing how much it costs to manufacture a product or provide a service. provide product/service cost information as well as information for internal decision making d. are required for business recordkeeping as are financial and tax accounting. 2. One major difference between financial and management accounting is that a. financial accounting reports are prepared primanily for users extemal to the company b. management accounting is not under the jurisdiction of the Secunities and Exchange Commission government regulations do not apply to management accounting d.) all of the above are true 3. The ethical standards established for management accountants are in the areas of a. competence, licensing, reporting, and education. b. budgeting, cost allocation, product costing, and insider trading competence, confidentiality, integrity, and credibility disclosure, communication, decision making, and planning 4. The term "prime cost" refers to a. all manufacturing costs incurred to produce units of output b. all manufacturing costs other than direct labor and raw material costs c. raw material purchased and direct labor costs. the raw material used and direct labor costs. 5. In a perpetual inventory system, the sale of items for cash consists of two entries. One entry is a debit to Cash and a credit to Sales. The other entry is a debit to a. Work in Process Inventory and a credit to Finished Goods Inventory b. Finished Goods Inventory and a credit to Cost of Goods Sold c. Cost of Goods Sold and a credit to Finished Goods Inventory d. Finished Goods Inventory and a credit to Work in Prooess InventoryExplanation / Answer
Q1. Answer is C. provide product service cost information and inofrmation for decision making. Q2. Answer is d. All of the above are true. Q3. Answer is C. Competence, confidentiality, integrity and credibility. Q4. Answer is d. Raw material used and directc labor cost. Q5. Answer is c. cost of goods sold and credit to finished goods inventory. Q6. Answer is d. Increases; Remain constant Q7. Answer is c. as goods are sold. Q8. Answer is b. Beginning WIP plus direct labor plus direct material plus overheads minus ending WIP. Q9. Answer is a. Prevention cost. Q10. Answer is b. Direct material. Problem-1 Beginning Inventory of RM 17407 Add: Purchases 96806 Less: Ending Inventory of RM -10817 Raw material consumed 103396 Direct Labor (21092 DLH @18.15) 382820 Factory Overheads: Indirect labor 19919 Supplies used 1988 Dep on equipment 17878 Insurance-factory 3787 Repairs and maintenance 4222 Total Factory Overheads 47794 Total Manufacturing Cost 534010 Add: beginning WIP 31716 Total cost of goods manufacturing 565726 Less: Ending WIP 28988 Cost of goods manufactured 536738 Add: Beginning Inventory of FG 19214 Cost of goods available for sale 555952 Less: Ending inventory of FG 37501 Cost of Goods ssold 518451 Problem-2 Journal Entries: S.no. Accounts title and explanations Debit $ Credit $ a. Raw material inventory Dr. 63176 Accounts payable 63176 b. Work in process inventory Dr. 10892 Manufacturing Overheads Dr. 2717 Raw Material inventory 13609 c. Work in process inventory Dr. 65868 Manufacturing Overheads Dr. 23748 Wages payable 89616 d. Manufacturing Overheads Dr. 39621 Cassh 39621 e. Finished Goods inventory Dr. 98569 Work in process inventory 98569 f. Accounts receivable Dr. 119320 Sales revenue 119320 Cost of goods sold Ddr. 74718 Finished Goods inventory 74718
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