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1. ABC generally causes the least amount of cost distortion among products becau

ID: 2413047 • Letter: 1

Question

1. ABC generally causes the least amount of cost distortion among products because indirect costs are allocated to the products based on

none of the above.

2.

Chicago Steel's operating activities for the year are listed below:

$1,000,800

$350,500

$750,300

$1,500,400

$700,200

What is the cost of goods sold for the year?

$50,100

3.

The following is selected financial data from Turtle Bay Manufacturing for the most recent year:

$21,200

$44,900

$53,200

$5,100

$85,500

$45,700

$44,300

$7,200

$120,200

$60,400

135%

What is the beginning raw materials inventory?

$5,800

4. Which of the following is not an activity in an ABC system that determines the cost of a manufactured product?

Accounting

5.  Which type of company utilizes managerial accounting?

All of the above

6. On a traditional income statement, all manufacturing-related costs, whether fixed or variable, are listed

above the contribution margin line.

7. In a process costing system, direct labor and manufacturing overhead are normally

not recorded.

8.  Manufacturing overhead costs for a product include

prime costs.

9.  

Here are selected basic data for Wilson Company:

$243,750

$30,900

35,000

$22,600

36,000

$54,600

$325,000

$47,800

$320,000

$28,700

$65,600

$33,300

If the company allocates overhead based on direct labor cost, what are the total actual manufacturing overhead costs?

$260,900

10. ERP stands for

types of activities used by the product. the extent to which the activities are used. both A and B.

none of the above.

2.

Chicago Steel's operating activities for the year are listed below:

Beginning inventory

$1,000,800

Ending inventory

$350,500

Purchases

$750,300

Sales revenue

$1,500,400

Operating expenses

$700,200

What is the cost of goods sold for the year?

$1,751,100 $1,400,600 $750,100

$50,100

3.

The following is selected financial data from Turtle Bay Manufacturing for the most recent year:

Ending raw materials inventory

$21,200

Ending work in process inventory

$44,900

Ending finished goods inventory

$53,200

Amount of underallocated manufacturing overhead

$5,100

Cost of goods sold for year

$85,500

Cost of raw materials purchased during year

$45,700

Cost of direct materials requisitioned during year

$44,300

Cost of indirect materials requisitioned during year

$7,200

Cost of goods completed during year

$120,200

Manufacturing overhead allocated

$60,400

Manufacturing overhead % of direct labor cost

135%

What is the beginning raw materials inventory?

$27,000 $51,500 $19,800

$5,800

4. Which of the following is not an activity in an ABC system that determines the cost of a manufactured product?

Materials handling Inspecting Machining

Accounting

5.  Which type of company utilizes managerial accounting?

Manufacturers Service Retailers

All of the above

6. On a traditional income statement, all manufacturing-related costs, whether fixed or variable, are listed

above the gross profit line. below the operating income line. above the sales line.

above the contribution margin line.

7. In a process costing system, direct labor and manufacturing overhead are normally

incurred evenly throughout the process. incurred at the end of the process. incurred in full at the beginning of the process.

not recorded.

8.  Manufacturing overhead costs for a product include

operating expenses. indirect manufacturing costs. direct material.

prime costs.

9.  

Here are selected basic data for Wilson Company:

Estimated manufacturing overhead

$243,750

Factory utilities

$30,900

Estimated labor hours

35,000

Indirect labor

$22,600

Actual direct labor hours

36,000

Sales commissions

$54,600

Estimated direct labor cost

$325,000

Factory rent

$47,800

Actual direct labor cost

$320,000

Factory property taxes

$28,700

Factory depreciation

$65,600

Indirect materials

$33,300

If the company allocates overhead based on direct labor cost, what are the total actual manufacturing overhead costs?

$173,000 $283,500 $228,900

$260,900

10. ERP stands for

Enterprise Resource Planning. Enclosed Resource Placement. Edwin R. Perry, the man that created the first system. Entity Replacement Product.

Explanation / Answer

1 Both A&B. 2 Cost of goods sold=Beginning inventory+Purchases-Ending inventory=1000800+750300-350500=1400600 Answer is second option. 3 Ending raw materials inventory=Beginning raw materials inventory+Cost of raw material purchased during the year-Cost of direct materials requisitioned-cost of indirect materials requisitioned Put Beginning raw materials inventory=x 21200=x+45700-44300-7200 21200=x-5800 x=21200+5800=27000 Answer is first option $ 27000. 4 Accounting is not an activity in ABC system 5 Usually service company uses managerial accounting 6 Above the gross profit line Other options are wrong 7 incurred evenly throughout the process. 8 Indirect manufacturing costs Operating expenses and Direct material are not part of manufacturing overhead Prime cost=Direct material+Direct labor.Both this are not part of the manufacturing overhead 9 Actual manufacturing overhead cost: Factory depreciation 65600 Factory utilities 30900 Indirect labor 22600 Factory rent 47800 Factory property taxes 28700 Indirect materials 33300 Total 228900 Answer is 3rd option 10 Enterprise Resource Planning.