ACCT 212 Exam 1 Liberty University Solution

Question 1

Craigmont Company's direct materials costs are $3,400,000, its direct labor costs total $7,360,000, and its factory overhead costs total $5,360,000. Its conversion costs total:

Question 2

Current information for the Healey Company follows:

All raw materials used were traceable to specific units of product. Healey Company's total manufacturing costs for the year are:

Question 3

Comet Company accumulated the following account information for the year:

Using the above information, total factory overhead costs would be:

Question 4

Using the information below for Laurels Company; determine the manufacturing costs added during the current year:

Question 5

Using the information below for Sundar Company; determine the cost of goods manufactured during the current year:

Question 6

Managerial accounting reports and information are used by external users and financial accounting by internal users.

Question 9

Last year, Flash Company sold 15,000 units of its only product. If sales decreased by 17% in the current year, how will total variable cost and total fixed cost be affected?

Question 11

Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

Question 12

Which of the following is not part of the production activity in the flow of manufacturing activities?

Question 13

Under a just-in-time manufacturing system, large quantities of inventory are accumulated throughout the factory to be certain that components are available each time that they are needed.

Question 14

The main goal of the lean business model is the elimination of waste while satisfying the customer and providing a positive return to the company.

Question 16

Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for each employee hour worked. Materials are assigned to each job according to actual cost. Jobs are marked up 15% above cost to determine the selling price. If Job M-47 used $370 of materials and took 20 hours of labor to complete, what is the selling price of the job?

Question 18

Andrew Industries purchased $167,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,400, and the materials used to complete jobs during the month were $142,800 of direct materials and $13,200 of indirect materials. What is the ending Raw Materials Inventory balance for March?

Question 20

When materials are used as indirect materials, their cost is debited to the Factory Overhead account.

Question 21

A materials requisition is a source document used by materials managers of a manufacturing company to order raw materials from suppliers; it serves the same purpose as a purchase order in a merchandising company.

Question 23

There are two basic types of cost accounting systems: job order costing and periodic costing.

Question 24

When actual overhead cost exceeds the overhead applied, overhead is said to be overapplied.

Question 25

The rate established prior to the beginning of a period that uses estimated overhead and an allocation factor such as estimated direct labor, and that is used to assign overhead cost to jobs, is the: