Review Assessment: Online Assignment One S2 2012 Essay

1.The service part represent allocation method that in all ignores reciprocal sketch between service departments is called the dissolverSelected resolution restrain method.2.In order to have a high-quality finished growth dissolving agentSelected f arthe products design specifications must(prenominal) meet customers expectations AND the product must meet the standards of its design.3.The bring method ignores the fact that comeSelected solve rough service departments provide services to other service departments4.Refer to the future(a) selective information. unionise material used$150 000 interchange greet$5 000 verificatory savvy$7 000Administrative be$10 000Depreciation on grind equipment$70 000 tell labour$40 000Overtime premiums compensable$20 000In ac equal materials$45 000The product cost are resolventSelected effect$332 0005.The Casual Furniture Company manufactures outdoor furniture, and incurred the following costs during the month of January. Timber$25 000 Paint$5 000Glue$ cholecalciferolWagesassembly personnel$20 000Wages grind supervisor$3 500Factory cleaners wages$2 000Sales commissions$10 000Administrative staff salaries$4 000Depreciation pulverization equipment$3 000Depreciationsales office equipment$1 000Utilities, insurancefactory$6 000Utilities, insurancesales office$2 000Advertising$8 000Total costs$90 000The manufacturing bang isCorrect react $15 0006.Cost of Goods Manufactured = Beginning Work in Process + Total Manufacturing be Ending Work in Process. coiffureSelected resultant role True7.When record archive in the financial statements, the accounting standards prescribe that the companies use the put down of cost or displace realisable value. settleSelected suffice True8.The lashings More Store has a Janitorial plane section and a Personnel Department that provide services to three Sales Departments. The Janitorial Department cost is allocated ground on space and the Personnel Department cost is allocated based on employees. The following information is available.PersonnelJanitorialSalesSalesSalesDeptDept123Budget$45 000$30 000Space (sq m)4 0001 00020 00030 00050 000No. of Employees510154530Using the step-down method, calculate the inwardness of Janitorial Department cost allocated to Sales Department 2, if the Personnel Department is allocated first. AnswerSelected Answer$10 3509.Quality of conformance refers toAnswerSelected Answerthe degree to which the product meets its design specifications. 10.Which of the following is not an objective of management accounting? AnswerSelected AnswerProviding information for profit and loss statements11.Appraisal costs refer to costs incurredCorrect Answer in find out whether defects exist.12.Leisure Life manufactures a categorization of sporting equipment. The firms predetermined smasher application arrange was 150 per cent of reign labour cost. Job 101 include get up materials of $15 000 and direct labour of $6 000. The manufacturing ov erhead apply to Job 101 during the year was AnswerSelected Answer$9 00013.Which of the following is not a cost of quality?AnswerSelected Answer procreative inefficiency cost14.If production increases, variable cost will Correct Answer remain constant on a per unit basis.15.The service department cost allocation method that fully accounts for the mutual provision of services between service departments is called the AnswerSelected Answerreciprocal method.16.Which of the following statements is set?AnswerSelected AnswerCost accounting is a subset of management accounting.17.Richardson & Sons purchased direct material worth $15 000 during the most recent occlusion. At the halt of the period the direct material account eternal rest was $6 000 bigger than the setoff equilibrium. Cost of goods interchange was $150 000. Overhead is applied at 50 per cent of direct labour cost. Other account residues areBeginningEndingWork in process$75 000$20 000Finished goods$one hundred ten 000$ 60 000What is the amount of superlative cost added to production for the period? AnswerSelected Answer$33 00018.Product costs compriseAnswerSelected Answerdirect materials, direct labour and manufacturing overhead.19.The flow of manufacturing costs through the system isAnswerSelected Answerraw materials catalogue work in process take stock finished goods inventory cost of goods sold. 20.Whether a cost is classified as direct or indirect will depend on AnswerSelected Answerthe nature of the cost object AND whether the cost can be economically traced to the cost object. 21.Barrett Industries began the month of June with a finished goods inventory of $15 000. The finished goods inventory at the end of June was $10 000 and the cost of goods sold during the month was $20 000.The cost of goods manufactured during the month of June was AnswerSelected Answer$15 00022.In the manufacturing firm, inventories consist ofAnswerSelected Answerraw materials, work in process and finished goods.23 .Which of the following statements is correct in relation to determining whether a cost is direct or indirect? AnswerSelected AnswerThe wider the definition of the cost object the more costs that will be direct costs. 24.Refer to the following entropy.Direct material used$150 000Selling costs$5 000Indirect labour$7 000Administrative costs$10 000Depreciation on factory equipment$70 000Direct labour$40 000Overtime premiums paid$20 000Indirect materials$45 000The prime costs areAnswerSelected Answer$190 00025.A courier association may view kilometres driven as a possible cost driver. AnswerSelected Answer True26.Rappaport sess reported the following data for the month of FebruaryThe direct materials cost for February isAnswerSelected Answer$88,00027.During the month of rattling(a), direct labor cost be $13,000 and direct labor cost was 20% of prime cost. If total manufacturing costs during August were $88,000, the manufacturing overhead was AnswerSelected Answer$23,00028. Rappapor t Corporation reported the following data for the month of FebruaryThe adjusted cost of goods sold that appears on the income statement for February is AnswerSelected Answer$240,00029.A partial itemization of costs incurred at Peggs Corporation during September appears belowThe total of the period costs listed above for September is AnswerSelected Answer$318,00030.The following data pertain to Harriman Companys operations during JulyThe ending finished goods inventory wasAnswerSelected Answer$7,00031.For the current year, Paxman Company incurred $150,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was overapplied in the amount of $6,000 for the year. If the predetermined overhead rate was $8.00 per direct labor-hour, how many hours were worked during the year? AnswerSelected Answer19,500 hours32.Management of Berndt Corporation has asked your help as an intern in preparing some key reports for August. The beginning brace in the ra w materials inventory account was $33,000. During the month, the company make raw materials purchases amounting to $62,000. At the end of the month, the balance in the raw materials inventory account was $30,000. Direct labor cost was $46,000 and manufacturing overhead was $74,000. The beginning balance in the work in process account was $13,000 and the ending balance was $19,000. The beginning balance in the finished goods account was $54,000 and the ending balance was $50,000. Sales totaled $270,000. Selling expense was $18,000 and administrative expense was $49,000.The net operating income for August wasAnswerSelected Answer$20,00033.Management of Berndt Corporation has asked your help as an intern in preparing some key reports for August. The beginning balance in the raw materials inventory account was $33,000. During the month, the company make raw materials purchases amounting to $62,000. At the end of the month, the balance in the raw materials inventory account was $30,000. Direct labor cost was $46,000 and manufacturing overhead was $74,000. The beginning balance in the work in process account was $13,000 and the ending balance was $19,000. The beginning balance in the finished goods account was $54,000 and the ending balance was $50,000. Sales totaled $270,000. Selling expense was $18,000 and administrative expense was $49,000.The cost of goods sold for August wasAnswerSelected Answer$183,00034.The corporate controllers salary would be considered a(n) AnswerSelected Answeradministrative cost.35.Choice of allocation base should be made based onAnswerSelected Answerwhether the base actually drives the cost being allocated.36.The three basic elements of manufacturing cost are direct materials, direct labor, and AnswerSelected Answermanufacturing overhead.37.An opportunity cost isAnswerSelected Answerthe do good forgone by selecting one alternative instead of another. 38.Which terms below flop describe the cost of the black paint used to paint the dots on a pair of dice?AnswerSelected AnswerChoice B39.Buford Company rents out a small unused portion of its factory to another company for $1,000 per month. The rental agreement will expire close month, and rather than renew the agreement Buford Company is thinking about use the space itself to store materials. The term to describe the $1,000 per month is AnswerSelected Answeropportunity cost.40.Cost of goods manufactured will usually includeAnswerSelected Answersome costs incurred during the prior period as well as costs incurred during the current period.