Principles of Accounting II- Please help me to answer these questions and explanation so I can re-read through the chapters and understand better.
Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is
|Materials 165,000 Accounts Payable 165,000|
|Materials 190,000 Accounts Payable 190,000|
|Materials 190,000 Cash 190,000|
|Accounts Payable 190,000 Materials 190,000|
Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered direct or indirect cost for the cost object given.
|Lubricants used on the bar stool manufacturing equipmentNails and screws used in the production of the bar stoolsManufacturing costs for wood and steel used in the bar stoolsThe production labor wages for the bar stool assemblersThe factory supervisor’s salary for the bar stool factory||1.Direct2.Indirect|
A product cost is
|expensed in the period in which it is manufactured|
|shown with current liabilities on the balance sheet|
|shown with operating expenses on the income statement|
|expensed in the period the product is sold|
Which of the following statements is false?
|There is no overlap between financial and managerial accounting.|
|Managerial accounting sometimes relies on past information.|
|Managerial accounting does not need to conform to GAAP.|
|Financial accounting must conform to GAAP.|
Job cost sheets can provide information to managers for all except
|the cost impact of materials changes|
|the cost impact of continuous improvement in the manufacturing process|
|the cost impact of materials price or direct labor rate changes over time|
|utilities, managerial salaries, and depreciation of computers in the corporate office|
The financial budgets of a business include the cash budget, the budgeted income statement, and the budgeted balance sheet.
Match each phrase that follows with the term (a-f) it describes..
|a plan that lists dollar amounts to be both spent on purchasing additional pant assets to carry out the budgeted business activitiesan accounting report that presents predicted amounts of the company’s assets, liabilities, and equity as of the end of the budget perioda plan that shows the expected cash inflows and outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loansa plan showing the number of units to be produced each monthplans an important role for organizations in planning, directing, and controlling a company’s future goalsa plan showing the units of goods to be sold and the sales to be derived; usually the starting point in the budgeting process||1.budget2.capital expenditures budget3.sales budget4.production budget5.cash budget6.budgeted balance sheet|
Depreciation expense on factory equipment is part of factory overhead cost.
In a process costing system, indirect materials are charged to Work in Process.
Match each of the following phrases with the term (a-e) that it most closely describes it. Each term will be used only once.
|these make up the work in process subsidiary ledgerprepared when materials that have been ordered are received and inspectedserves as the basis for recording materials usedserves as the basis for recording direct labor on a job cost sheetthe process by which factory overhead is assigned to a cost object||1.job cost sheets2.materials requisitions3.receiving report4.time tickets5.cost allocation|
Managerial accounting reports must be useful to the user of the information.
Department J had no work in process at the beginning of the period. 18,000 units were completed during the period, and 2,000 units were 30% completed at the end of the period. The following manufacturing costs were debited to the departmental work in process account during the period (Assume the company uses FIFO and rounds cost per unit to two decimal places):
|Direct materials (20,000 at $5)||$100,000|
Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the departmental work in process inventory at the end of the period?
Which of the following products would be manufactured using a job order costing system?
|a cell phone|
|a highlighter pen|
|a graduation invitation|
Principal components of a master budget include
|capital expenditures budget|
|all of these|
The Cardinal Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were: January – 200,000 units; February – 180,000 units; March – 210,000 units; and April – 230,000 units. The Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following month’s sales.
Determine the budgeted units of inventory for March 31.
|cannot be determined from the data given|
Match each phrase that follows with the term (a-h) it describes.
|measure of the work done during a production period, expressed in terms of fully complete units of outputa process costing method that costs each period’s equivalent units of work with that period’s costs per equivalent unitconversion costscosts incurred in a previous process that are carried forward as part of the product’s cost when it moves to the next departmentsummary of the activity in a processing department for a specific periodprime costscosting system used by a company producing custom window treatmentscosting system used by a company producing computer chips||1.direct labor and factory overhead2.direct labor and direct materials3.transferred in costs4.equivalent units5.process costing6.job order costing7.first-in, first-out method8.cost of production report|
Match each of the methods that follow with the correct category (a–b).
|Internal rate of return methodAverage rate of return methodCash payback methodNet present value method||1.Methods that does not use present value2.Methods that uses present value|
The Botosan Factory has determined that its budgeted factory overhead for the year is $13,500,000, and the budgeted direct labor hours are 10,000,000. If the actual direct labor hours for the period are 350,000, how much overhead would be allocated to the period?
Custom-made goods would be accounted for using a process costing system.
A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a minimum cash requirement of $340,000. The following data has been provided:
What is the amount of cash excess or deficiency (after considering the minimum cash balance required) for March?
|excess of $214,200|
|excess of $15,800|
|deficiency of $60,000|
|excess of $25,300|
Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:
|Work in process, beginning of period||$ 60,000|
|Costs added during period:|
|Direct materials (10,400 at $9.8365)||102,300|
Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, determine the equivalent units for materials and conversion costs, respectively.
|14,000 and 12,160|
|10,400 and 10,960|
|14,000 and 13,600|
|10,400 and 10,240|
Prime costs are
|direct materials and factory overhead|
|direct materials and direct labor|
|direct labor and factory overhead|
|period costs and factory overhead|
Conversion cost is the combination of direct materials cost and factory overhead cost.
The Lucy Corporation purchased and used 129,000 board feet of lumber in production, at a total cost of $1,548,000. Original production had been budgeted for 22,000 units with a standard material quantity of 5.7 board feet per unit and a standard price of $12 per board foot. Actual production was 23,500 units.
The materials price variance is
Detailed supplemental schedules based on department responsibility are often prepared for major items in the operating expenses budget.