GB519 Management Level Control quiz

2. The two main advantages of using predetermined factory overhead rates are to provide more accurate unit cost information and to: (Points : 2)

3. The total cost of direct materials, direct labor, and factory overhead transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account during an accounting period is: (Points : 2)

4. When completed units are transferred to the warehouse: (Points : 2)

5. Which of the following activities is a facility-level activity? (Points : 2)

6. An activity that is performed for each unit of production is a(n): (Points : 2)

7. An activity that is performed to support the production of a new custom-order product is a(n): (Points : 2)

8. Which of the following would likely be the most appropriate cost driver of electric power used by machines? (Points : 2)

9. The journal entry to record requisitioned and usage of direct materials would include a credit to: (Points : 2)

10. In calculating unit cost in a process costing system, "conversion cost" is defined as the sum of: (Points : 2)

11. Process cost systems are used in all of the following industries except: (Points : 2)

12. The key difference between weighted-average and FIFO process costing methods is the handling of the partially completed: (Points : 2)

13. ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC charges direct materials to WIP, while indirect materials are charged to the Factory Overhead account. During the month of April, the company has the following cost information:
 
Total Materials (Direct and Indirect) Purchsed   =        $ 90,000
Indirect Materials Issued to Production         =                30,000
Total Materials Issued to Production             =              110,000
Beginning Materials Inventory                      =                 50,000
 
The ending materials inventory cost is: (Points : 2)

14. Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:
 
Overhead Cost Pool  - Budgeted O/H $ -   Budgeted Level for Cost Driver  - O/H Cost Driver
Materials Handling         $160,000                      3,200 lbs.                                 Material Weight
Machine Setup                   13,200                          390 S/U’s                               # of S/Us
Machine Repair                   1,380                      30,000 Mach. Hrs                      Machine Hrs.
Inspections                         10,560                           160 Inspections                     # of Inspections
 
Requirements for Job #971 which included 4 Units of Production:
D/L Hours     =      20 Hours
D/Mat’ls        =     130 lbs.
Machine S/U  =      30 Set-ups
Machine Hrs.  =    15,000 Machine Hours
Inspections    =       15 Inspections.
 
Using ABC, the materials handling overhead cost assigned to Job #971 is: (Points : 2)

15. Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below.
 
Direct Materials January 1      =          $77,000
Direct Materials December 31 =            40,000
WIP January 1    =                                 66,000
WIP December 31    =                           42,000
Finished Goods January 1 =                       115,000
Finished Goods December  31 =                100,000
 
Other Information:
Direct Materials Purchased     =             $324,000
Cost of Goods Available for Sale   =       950,000
Actual Factory Overhead =                       206,000
 
The cost of goods manufactured during the year is: (Points : 2)