Practice set for exam 1-1 PDF

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Practice exam review questions for chapters 1-4. ...

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Practice set for Exam 1 1 )Count r yFur ni t ur eCompa nymanuf a c t ur esf ur ni t ur ea ti t sAkr on,Ohi o, f a c t or y . Someofi t sc os t sf r om t hepas tye ar i nc l ude : De pr ec i a t i onons al e soffic e De pr ec i a t i ononf a c t or yequi pme ntPRODUCT F ac t or ys uper vi s ors al ar yPRODUCTOH S al e sc ommi s s i ons Lubr i c ant sus e di nf a c t or yequi pme nt PRODUCTOH I ns ur a nc ec os t sf o rf a c t or yPRODUCTOH Wa ge spa i dt oma i nt e nanc ewor ker s PRODUCTOH F abr i cus edt ouphol s t e rf ur ni t ur ePRODUCT DM Fr e i ght i n( onr a w ma t e r i a l s )PRODUCTDM ALS OI MPORTWOULDBEDM Cos t sofde l i ve r yt oc us t omer sFREI GHTOUT BEPERI ODTOO Wa ge spa i dt oas s e mbl yl i newor ke r s PRODUCTDL Lumbe rus edt obui l dpr oduc tPRODUCTDM Ut i l i t i e si nf a c t or yPRODUCTOH Ut i l i t i e si ns al e soffic e

$ 9, 00 0 16 , 0 00 50 , 5 00 23 , 000 3, 00 0 2 1, 00 0 1 15, 00 0 10, 00 0 3, 00 0 9 , 0 00 155 , 500 8 2, 000 54, 50 0 2 6, 500

Pe r i odc os t sf orCount r yFur ni t ur eCompa nyt ot a l e d  Di r ec tl abor /ove r he ad( c oul dbei ns t e adofPe r i odc os t ) 6 750 0

2 )Chi c a goSt e e l ' sope r a t i ngac t i vi t i e sf ort heye arar el i s t e dbe l ow. Be gi nni ngi nve nt or y Endi ngi nve nt or y Pur c ha s es S al e sr e venue Ope r at i nge xpe ns e s

$1 , 000 , 0 00 $3 50, 0 00 $ 750 , 000 $1 , 5 00, 0 00 $70 0, 00 0

Wha ti st hegr os spr ofitf ort heye ar ? Re ve nue -c ogs =GP 1 , 0 00, 0 00BI 7 50, 00 0PURCHASES =17 50 000 3 500 00EI =14 00 000COGS S ALES1 500 00 0 COGS-140 000 0 GM/GP=1 000 00 3 )Lot sofSt uffCompan yr epor t st hef ol l owi ngda t af ori t sfir s tye a rofope r a t i on.CHAPTER2STATEMENTOFGOODS MANUF ACTURE FI NI SHEDGOODSTRANSFEREDTODI FFERENTDEP ARTMENT Cos tofgoodsmanuf ac t ur e d $ 45 5, 000 Wor ki npr oc e s si nve nt or y , be gi nni ng 0 Wor ki npr oc e s si nve nt or y , endi ng 140 , 000 Di r ec tma t e r i al sus e d 11 0, 000

Manuf a c t ur i ngov er he a d Fi ni s he dg oodsi nv ent or y , begi nni ng Fi ni s he dg oodsi nv ent or y , endi ng

18 5, 000 0 9 0, 00 0

Whati st hec os tofgoodss ol d? FGBEG 0 COSTOFGOODSMANUF ATURED 4 55 000 GOODSAVALI ABLEFORSALE 45 500 0 LESSEFG 900 00 COGS 36 500 0 4 )Ta l lTi mber sr e por t st hef ol l o wi ngda t af ori t sfir s tye arofope r a t i on. Wor ki npr oc es si nve nt or y ,be gi nni ng Wor ki npr oc es si nve nt or y ,e ndi ng Manuf ac t ur i ngov er he a d Di r ec tma t e r i al sus e d Fi ni s he dgoodsi nve nt or y , be gi nni ng Fi ni s he dgoodsi nve nt or y , e ndi ng Cos tofgoodsmanuf a c t ur e d

$ 0 5 0, 00 0 25, 00 0 7, 000 0 20 , 00 0 8 5, 00 0

Whatar et het o t a lmanuf ac t ur i ngc os t st oa c c ountf or ? I NCLUDEALLTHECOS TI N WI P BEGWI P DL DM OH

0 ? 7, 000 25 , 0 00

13 500 025 00 070 00=10 30 00

COSTGMAN 8 5, 00 0 EWI P 50, 00 0 TOTALMANUF ACTURI NGCOS TSTO ACCOUNTFOR

1 350 00

5 )Pa pe rCl i pCompanys el l soffic es uppl i e s .Thef ol l owi ngi nf or ma t i ons ummar i ze st hec ompany' sope r at i ngac t i vi t i e sf or t heye ar : Ut i l i t i e sf ort hes t or e S al e sc ommi s s i ons S al e sr e venue Pur c has esofmer c handi s e J a nuar y1i nve nt or y Re ntf ors t or e Dec embe r31i nve nt or y Whati soper a t i ngi nc ome ? OPERATI NG-GROS SPROFI T

$9 , 5 00 10 , 0 00 164 , 000 8 9, 000 2 7, 00 0 13, 5 00 23, 00 0

BI NVENTORY 2 700 0 PURCHASE 8 90 00 AVAI L =116 00 0 LESSEI 230 00 COGS =93 000

REV LESSCOGS GP UTI L COMM RENT OI

164 00 0 9 300 0 =710 00 95 00 1 000 0 13 500 38 000

6 )S t a t ewhet he re a c hc ompa nybe l ow woul dbemor el i ke l yt ous eaj obc os t i ngs ys t e m orapr oc es sc os t i ngs ys t e m. A)_ ___ J OB__ _c us t om homebui l der B) ___ PROCESS ___ __ pa i ntmanuf ac t ur er C)_ ___ _P__ _c ar petma nuf ac t ur er D)__ ___ P__ c onc r e t emanuf ac t ur er E) ___ __J _ __j umboj e tmanuf a c t ur er

7 )He r ea r es e l ec t e dda t af orTyl e rCor por a t i on: Cos tofma t e r i al spur c has esonac c ount Cos tofma t e r i al sr equi s i t i oned( i nc l ude s$ 4, 500ofi ndi r e c t ) Di r ec tl a borc os t si nc ur r ed Manuf ac t ur i ngov er he a dc os t si nc ur r ed,i nc l udi ngi ndi r e c tma t e r i al s Cos tofgoodsmanuf a c t ur e d Cos tofgoodss ol d Be gi nni ngr a w ma t e r i al si nve nt or y Be gi nni ngwor ki npr oc es si nve nt or y Be gi nni ngfini s he dgoodsi nve nt or y Pr e de t er mi nedma nuf ac t ur i ngove r he a dr a t e( as% ofdi r ec tl aborc os t ) Whati st hebal anc ei nwor ki npr oc e s si nve nt or ya tt hee ndoft heye a r ? BEGWI P DM DL OH

297 00 460 00. ( 51 000 450 0) 770 00 10 010 0( 7 700 0* 1. 30) 25 330 0COSTSTOACCOUNTFOR COSTOFGOODSMANUF ACTURED 22 300 0

$68 , 000 5 1, 00 0 77 , 0 00 9 7, 50 0 2 23, 00 0 1 51 , 0 00 1 4, 50 0 29, 7 00 32 , 800 130 %

EWI P

303 00

8 )Be f or et heye arbe gan,Mur phyManuf ac t ur i nges t i ma t e dt ha tma nuf ac t ur i ngove r he adf ort heye arwoul dbe$1 75 , 5 00 a ndt hat13 , 0 00di r ec tl a borhour swoul dbewor ked.Ac t ua lr e s ul t sf ort heye a ri nc l ude dt hef ol l o wi ng: Ac t ualmanuf ac t ur i ngov er he a dc os t Ac t ualdi r e c tl aborhour s

$1 84, 00 0 1 4, 500

Thepr e de t er mi nedma nuf ac t ur i ngo ver he adr a t epe rdi r ec tl aborhouri sc l os e s tt o 1 755 00 /1 30 00=1 3. 50

9 )J a mesI ndus t r i esus e sde pa r t me nt a lover he adr a t e st oal l oc a t ei t smanuf ac t ur i ngove r he adt oj obs .Thec ompa nyhast wo depar t me nt s : As s embl ya ndSa ndi ng. TheAs s embl yDe pa r t me ntus e sadepar t ment alov er he a dr at eof$3 5pe rmac hi ne hour , whi l et heS andi ngDepar t mentus esade par t me nt a lover hea dr a t eof$2 0pe rdi r ec tl a borhour .J ob60 3us e dt he f ol l owi ngdi r ec tl a borhour sandma c hi nehour si nt het wode pa r t me nt s :

Ac t ualr es ul t s Di r ec tl a borhour sus e d Mac hi nehour sus ed

As s embl y De par t me nt 8 1 0

S andi ng Depa r t me nt 5 7

Thec os tf ordi r e c tl abori s$ 30perdi r e c tl aborhourandt hec os toft hedi r e c tmat e r i al sus edbyJ ob603i s$ 1, 40 0. How muc hmanuf ac t ur i ngov er he adwoul dbea l l oc a t edt oJ ob603us i ngt hedepa r t me nt alove r he adr a t es ? AS SEMBL Y1 0* 35 =3 50 S ANDI NG5* 20=1 00 =45 0 TOTALMANUF ACTURI NGCOS TFORJ OB60 3 1 400 +450 +( 30* 13 )

1 0)Kr a me rCompanyma nuf a c t ur esc offe et abl esa ndus esanac t i vi t yba s edc os t i ngs ys t e mt oal l oc at ea l lmanuf a c t ur i ng c onve r s i onc os t s .Ea c hc offeet abl ec ons i s t sof20s e par a t epar t st ot al i ng$24 0i ndi r e c tma t e r i a l s ,a ndr e qui r es5. 0hour sof mac hi net i met opr oduc e . Addi t i onali nf or ma t i onf ol l ows : Ac t i vi t y Ma t e r i a l shandl i ng Mac hi ni ng

Allocation Base Numberofpar t s Ma c hi nehour s

Cost Allocation Rate $2 . 0 0pe rpa r t $2. 75pe rmac hi nehour

As s e mbl i ng Pa c kagi ng

Numberofpa r t s Numberoffini s heduni t s

$ 1. 00pe rpar t $ 3. 00pe rfini s he duni t

Whati st het ot a lmanuf a c t ur i ngc os tperc offe et abl e ? 2 40( DM) +0( DL) +7 6. 75 ( MOH) =3 76 . 7 5 2 0P ARTS* 2 . 0 0=40 5 * 2 . 7 5=13 . 7 5 2 0* 1=20 1 * 3 =3 =76 . 75

Here are selected data for Campbell Company: Cost of goods manufactured

$320,000

Work in process inventory, beginning

109,000

Work in process inventory, ending

104,000

Direct materials used

73,000

Manufacturing overhead is allocated at 60% of direct labor cost. B WIP+DM+DL+MOH= COST TO ACCOUNT FOR COST TO ACCOUNT FOR = 320,000+ 104,000=424,000 109000+73000+X+.60X=42400 X=151250=DL HOW MUCH IS YOUR OH =(151250*.60) What was the amount of direct labor costs?...