Review assessment online assignment 1 s2 2012
Paper type: Financing,
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1 . The service department cost allocation method that completely neglects reciprocal services between assistance departments is referred to as the: Solution
2 . So as to have a top quality finished product:
the product’s design requirements must meet customers’ targets AND the merchandise must fulfill the standards of its design.
3. The ‘direct method’ ignores the very fact that:
a lot of service departments provide companies to additional service departments
4. Consider the following data.
Direct material used$150 000
Selling costs$5 000
Indirect labour$7 000
Administrative costs$10 000
Depreciation on factory equipment$70 000
Direct labour$40 000
Overtime rates paid$20 000
Roundabout materials$45 500
The product costs are:
5. The Casual Household furniture Company companies outdoor household furniture, and received the following costs during the month of January. Timber$25 1000
Wages”assembly personnel$20 000
Wages”factory supervisor$3 500
Factory cleaner’s wages$2 500
Sales commissions$10 500
Management staff salaries$4 000
Depreciation”factory equipment$3 000
Depreciation”sales workplace equipment$1 1000
Utilities, insurance”factory$6 000
Utilities, insurance”sales office$2 000
Total costs$90 1000
The making overhead is definitely:
Correct Answer: $15 000
6th. Cost of Products Manufactured = Beginning Operate Process & Total Production Costs ” Ending Operate Process. Response
Chosen Answer: Authentic
7. Once recording products on hand in the financial statements, the accounting requirements prescribe which the companies make use of the lower of cost or perhaps net realisable value. Response
Picked Answer: Accurate
8. The Lots More Store has a Sanitizing Department and a Employees Department which provide services to three Sales Departments. The Sanitizing Department value is allocated depending on space plus the Personnel Section cost is allotted based on workers. The following info is available.
Budget$45 000$30 000
Space (sq m)4 0001 00020 00030 00050 000
No . of Employees510154530
Using the step-down technique, calculate the number of Janitorial Office cost invested in Sales Section #2, if the Personnel Division is given first. Solution
on the lookout for. Quality of conformance refers to:
the degree where the product fulfills its design and style specifications. twelve. Which in the following is not an objective of administration accounting? Answer
Providing information for income and damage statements
11. Evaluation costs make reference to costs sustained:
Appropriate Answer: in determining if defects can be found.
12. Leisure time Life makes a variety of sporting goods items. The business predetermined overhead application price was one hundred and fifty per cent of direct work cost. Job 101 included direct elements of $15 000 and direct labour of $6 000. The manufacturing over head applied to Task 101 during the year was: Solution
13. Which of the subsequent is not only a cost of quality?
Productive ineffectiveness cost
18. If development increases, varying cost will: Correct Response: remain continuous on a per unit basis.
12-15. The support department price allocation technique that completely accounts for the mutual dotacion of companies between support departments is referred to as the: Solution
18. Which of the following assertions is correct?
Price accounting is a subset of management accounting.
17. Richardson & Daughters purchased immediate material well worth $15 1000 during the most current period. By the end of the period the direct material account balance was $6 000 bigger than the beginning harmony. Cost of products sold was $150 500. Overhead is applied at 50 % of immediate labour expense. Other account balances happen to be:
Work in process$75 000$20 1000
Done goods$110 000$60 000
What is the amount of prime cost added to production to get the period? Solution
18. Product costs comprise:
immediate materials, direct labour and manufacturing overhead.
nineteen. The stream of manufacturing costs through the system is:
raw materials products on hand; work in method inventory; completed goods products on hand; cost of goods sold. twenty. Whether a expense is classified while direct or indirect would depend on: Answer
the size of the cost subject AND whether or not the cost can be economically followed to the cost object. twenty one. Barrett Companies began the month of June having a finished goods inventory of $15 500. The completed goods products on hand at the end of June was $10 1000 and the expense of goods offered during the month was 20 dollars 000.
The cost of goods manufactured throughout the month of June was: Answer
twenty-two. In the developing firm, stocks consist of:
raw materials, work in method and done goods.
23. Which usually of the following statements is correct in relation to determining whether a value is direct or indirect? Solution
The wider the definition off the cost object the greater costs that is to be direct costs. 24. Make reference to the following info.
Immediate material used$150 000
Selling costs$5 000
Indirect labour$7 000
Administrative costs$10 000
Depreciation about factory equipment$70 000
Direct labour$40 000
Overtime rates paid$20 1000
Roundabout materials$45 1000
The prime costs are:
25. A courier business may watch kilometres influenced as a possible cost driver. Response
Selected Answer: True
26. Rappaport Corporation reported the following info for the month of February:
The direct components cost pertaining to February is:
twenty-seven. During the month of August, direct labor cost totaled $13, 1000 and direct labor price was twenty percent of prime cost. In the event total making costs during August had been $88, 000, the developing overhead was: Answer
28. Rappaport Corporation reported the following data for the month of February:
The adjusted cost of goods sold that looks on the profits statement to get February is definitely: Answer
30. A partial report on costs received at Peggs Corporation during September appears below:
The overall of the period costs listed above for Sept is: Response
35. The following info pertain to Harriman Company’s operations during July:
The ending finished goods inventory was:
31. To get the current year, Paxman Organization incurred $150, 000 in actual manufacturing overhead expense. The Production Overhead account showed that overhead was overapplied inside the amount of $6, 000 for the entire year. If the established overhead price was $8. 00 every direct labor-hour, how many hours had been worked in the past year? Answer
19, five-hundred hours
32. Supervision of Berndt Corporation has asked your help as an intern in organizing some key reports to get August. First balance inside the raw materials products on hand account was $33, 500. During the month, the company produced raw materials acquisitions amounting to $62, 1000. At the end of the month, the balance in the unprocessed trash inventory account was $30, 000. Immediate labor price was $46, 000 and manufacturing over head was $74, 000. The beginning balance inside the work in process account was $13, 500 and the stopping balance was $19, 1000. The beginning equilibrium in the done goods account was $54, 000 plus the ending harmony was $50, 000. Sales totaled $270, 000. Advertising expense was $18, 000 and management expense was $49, 500.
The net operating income intended for August was:
thirty-three. Management of Berndt Corporation has asked your help as an intern in preparing several key reports for Aug. The beginning equilibrium in the unprocessed trash inventory accounts was $33, 000. Throughout the month, the corporation made unprocessed trash purchases amounting to $62, 000. Towards the end of the month, the balance in the raw materials inventory account was $30, 000. Direct labor cost was $46, 1000 and manufacturing overhead was $74, 000. The beginning harmony in the work in process consideration was $13, 000 plus the ending stability was $19, 000. The start balance inside the finished goods account was $54, 000 and the finishing balance was $50, 000. Sales totaled $270, 1000. Selling expenditure was $18, 000 and administrative expenditure was $49, 000.
The expense of goods sold for August was:
thirty four. The corporate controller’s salary can be considered a(n): Answer
thirty-five. Choice of share base needs to be made based on:
whether the base actually pushes the cost staying allocated.
36. The three standard elements of developing cost happen to be direct materials, direct labor, and: Answer
thirty seven. An opportunity expense is:
the benefit forgone by selecting 1 alternative rather than another. 37. Which conditions below appropriately describe the cost of the dark paint accustomed to paint the dots over a pair of cube?
39. Buford Company rent out a little unused part of its manufacturer to another organization for $1, 000 each month. The leasing agreement will expire next month, and instead of renew the agreement Buford Company is definitely thinking about using the space itself to store components. The term to explain the $1, 000 each month is: Response
40. Cost of goods made will usually include:
some costs incurred throughout the prior period as well as costs incurred during the current period.