Managerial Accounting Study Guide 9/28/21 PDF

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study guide for Chapter 3 Test. Professor Richard A. Minot....

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Managerial Accounting Study Guide 9/28/21 Professor Richard A. Minot 1. During the month of May, direct labor cost totaled $10,000 and direct labor cost was 40% of prime cost. If total manufacturing costs during May were $86,000, the manufacturing overhead was: Prime Costs = direct materials + direct labor 40x = 1,000,000 x = $25,000 $86,000 - $25,000 = $61,000 of manufacturing overhead 2. Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June. During the same period, the Manufacturing Overhead applied to Work-in-Process was $92,000. The journal entry to record the application of the Manufacturing Overhead to Work in Process would include a: Work in Process 92,000 Manufacturing Overhead 92,000 3. Period costs = sales commissions + variable administrative expense + fixed selling and administrative expense 4. In a job-order costing system, indirect labor cost is usually recorded as a debit to: Manufacturing Overhead 5. Debit balance: underapplied overhead, credit balance: overapplied overhead 6. Prime costs consist of: direct materials and direct labor. 7. In a job-order costing system, manufacturing overhead applied is recorded as a debit to: Work in Process inventory 8. Sales - cost of goods sold = gross margin 9. In May direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000 and the direct materials cost was $30,000, the direct labor was: Conversion cost = direct labor + overhead = 60% + 40% = x + $54,000 10. Fixed costs expressed on a per unit basis: decrease with increases in activity. 11. For an automobile manufacturer, the cost of a driver’s side air bag purchased from a supplier and installed in every automobile would best be described as a: variable cost. 12. Products associated with unsold finished goods and work in process appear on the balance sheet as assets. 13. In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the “total raw materials available” is computed by adding together the “beginning raw materials inventory” and: purchases of raw materials. 14. Which of the following is classified as both a prime cost and a conversion cost? Direct labor. 15. Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs: completed during the period.

16. Within the relevant range, variable costs can be expected to: vary in total in direct proportion to changes in the activity level. 17. During July at Loeb Corporation, $83,000 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 $4,000. The journal entry to record the requisition from the storeroom would include a: debit to Work in Process of $79,000 18. The costs of direct materials are classified as: manufacturing cost and prime cost. 19. In the standard cost formula, Y = a +bX, what does the “Y” represent? Total cost. 20. If manufacturing overhead is underapplied, then: the amount of manufacturing overhead cost applied to Work in Process is less than the actual manufacturing overhead cost incurred....