Exercise 5
When Job 711 was completed, direct materials totaled $3,000; direct labor, $3,500; and factory overhead, $1,500, respectively. Units produced totaled 1,000. Unit costs are:
Select one:
a. $8,000
b. $800
c. $80
d. $8
Exercise 6
Compute conversion costs given the following data: Direct Materials, $247,800; Direct Labor, $183,400; Factory Overhead, $121,300.
Select one:
a. $431,200
b. $552,500
c. $304,700
d. $369,100
Exercise 7
Albany, Inc. has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year. If direct labor hours for Job N41 total 1,000, calculate applied factory overhead applied to this job.
Select one:
a. $40,000
b. $20,000
c. $2,000
d. cannot be determined
Exercise 8
Compute factory overhead cost from the following costs:
Depreciation on factory buildings |
$ 15,000 |
Depreciation on office equipment |
20,000 |
Direct materials used |
70,000 |
Indirect labor |
3,000 |
Select one:
a. $3,000
b. $35,000
c. $18,000
d. $108,000
Exercise 9
The following information is available for the first month of operations for Atlantis, Inc.:
Sales |
$570,000 |
Gross Profit |
200,000 |
Indirect Labor |
20,000 |
Indirect Materials |
9,000 |
Other factory overhead |
7,500 |
Materials purchased |
250,000 |
Total manufacturing costs |
420,000 |
Materials inventory, end of period |
10,000 |
a. Calculate cost of goods sold:
Select one:
a. $420,000
b. $370,000
c. $286,500
d. $277,500
b. Calculate direct materials cost used in production:
Select one:
a. $231,000
b. $240,000
c. $250,000
d. $259,000
Exercise 10
In a job order cost accounting system the effect of receiving materials and the invoice is to
Select one:
a. increase Work in Process, decrease Materials Inventory
b. increase Materials Inventory, increase Accounts Payable
c. increase Materials Inventory, decrease Accounts Payable
d. decrease Work in Process, decrease Materials Inventory
Exercise 11
Which of the following would probably NOT be found in the accounting system of a service provider?
Select one:
a. Cost ledger
b. Finished goods ledger
c. Cost of services account
d. Job cost sheets
Exercise 12
A DISADVANTAGE of maintaining high inventory levels includes:
Select one:
a. providing a ‘buffer’ to protect against process problems
b. hiding underlying production problems such as unexpected scrap and rework
c. maintaining inventory is wasteful and unnecessary
d. both (b) and (c) are disadvantages of maintaining inventory
Exercise 13
The amount of time spent by an employee in the factory is usually recorded on:
Select one:
a. time tickets
b. job order cost sheets
c. employees' earnings records
d. clock cards
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