1. Managerial accounting helps managers make planning decisions. Which of the following is related to the Planning function? Group of answer choices Establishing goals at the beginning of a period and identifying steps on how to achieve them   Comparing actual results with the expected results at the end of a period   Monitoring business operations during a period   Evaluating mid-level managers and providing feedback 2. Classification of Direct and Indirect costs is based on: Group of answer choices When the costs are reported to income statement.   How easily and cost-effectively product costs can be traced to cost objects.   When the costs are reported to balance sheet.   Whether the costs are substantial part of the total product costs. 3. The finished goods inventory account is used to record: Group of answer choices The costs of products that are complet and ready to sell   The cost of materials not yet put into production   The costs of products that are in production but that are not yet complete   The costs of completed products that have been sold 4. Manufacturing overhead is allocated by: Group of answer choices Debiting costs of goods sold and crediting the Manufacturing overhead account   Debiting the Manufacturing overhead account and crediting the Work-in-process inventory account   Debiting the Work-in-process inventory account and crediting the Manufacturing overhead account   Debiting the Manufacturing overhead account and crediting factory related costs 5. The accounts of Tim Tam Inc. showed the following debit balances at the beginning of December: Name of the Accounts Debit Raw Materials Inventory $69,000 Work-in-Process Inventory 85,000 Finished Goods Inventory 40,000 Manufacturing Overhead 34,000 The following transactions took place during the month: December 2: Assigned direct materials $49,000 and indirect materials $16,000 to production. December 15: Incurred $15,000 and $14,000 toward factory's direct labor costs and indirect labor costs, respectively. What should be the balance in the Manufacturing overhead account following these transactions? Group of answer choices $149,000   $109,000   $64,000   $99,000 6. Jay Jay Inc. worked on 4 jobs during the current accounting period. The beginning balance of work-in-process inventory was $21,800. The total manufacturing costs incurred during the period amounted to $79,300. Three jobs were completed during the period. The costs of the incomplete job remaining in the Work-in-process inventory account at the end of the period was $23,500. The journal entry to record the completion of the three jobs include: Group of answer choices Debit $81,000 to Finished goods inventory and Credit $81,000 to Work-in-process inventory   Debit $77,600 to Finished goods inventory and Credit $77,600 to Work-in-process inventory   Debit $77,600 to Finished goods inventory and Credit $77,600 to Manufacturing costs   Debit $81,000 to Costs of goods sold and Credit $81,000 to Work-in-process inventory 7. The final step in the preparation of a production cost report is: Group of answer choices Computing equivalent units of production   Assigning production costs to the "units completed & transferred out" and "the partially completed units in the ending work-in-process inventory"   Summarizing the physical flow of units   Computing costs per equivalent units of production 8. The Labelling Department of Delightful Color Inc. has 60,000 units to account for, of which 40,000 units are completed and transferred to the Packaging Department. The remaining 20,000 units are left in the process at the end of the period that are 70% complete for direct materials and 50% complete with respect to conversion costs. What is the total equivalent units (EU) of production for conversion costs under the Weighted average method?   Group of answer choices 24,000 EU   50,000 EU   10,000 EU   54,000 EU

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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1. Managerial accounting helps managers make planning decisions. Which of the following is related to the Planning function?

Group of answer choices

Establishing goals at the beginning of a period and identifying steps on how to achieve them

 

Comparing actual results with the expected results at the end of a period

 

Monitoring business operations during a period

 

Evaluating mid-level managers and providing feedback

2. Classification of Direct and Indirect costs is based on:

Group of answer choices

When the costs are reported to income statement.

 

How easily and cost-effectively product costs can be traced to cost objects.

 

When the costs are reported to balance sheet.

 

Whether the costs are substantial part of the total product costs.

3. The finished goods inventory account is used to record:

Group of answer choices

The costs of products that are complet and ready to sell

 

The cost of materials not yet put into production

 

The costs of products that are in production but that are not yet complete

 

The costs of completed products that have been sold

4. Manufacturing overhead is allocated by:

Group of answer choices

Debiting costs of goods sold and crediting the Manufacturing overhead account

 

Debiting the Manufacturing overhead account and crediting the Work-in-process inventory account

 

Debiting the Work-in-process inventory account and crediting the Manufacturing overhead account

 

Debiting the Manufacturing overhead account and crediting factory related costs

5. The accounts of Tim Tam Inc. showed the following debit balances at the beginning of December:

Name of the Accounts Debit
Raw Materials Inventory $69,000
Work-in-Process Inventory 85,000
Finished Goods Inventory 40,000
Manufacturing Overhead 34,000

The following transactions took place during the month:
December 2: Assigned direct materials $49,000 and indirect materials $16,000 to production.
December 15: Incurred $15,000 and $14,000 toward factory's direct labor costs and indirect labor costs, respectively.

What should be the balance in the Manufacturing overhead account following these transactions?

Group of answer choices

$149,000

 

$109,000

 

$64,000

 

$99,000

6. Jay Jay Inc. worked on 4 jobs during the current accounting period. The beginning balance of work-in-process inventory was $21,800. The total manufacturing costs incurred during the period amounted to $79,300. Three jobs were completed during the period. The costs of the incomplete job remaining in the Work-in-process inventory account at the end of the period was $23,500.

The journal entry to record the completion of the three jobs include:

Group of answer choices

Debit $81,000 to Finished goods inventory and Credit $81,000 to Work-in-process inventory

 

Debit $77,600 to Finished goods inventory and Credit $77,600 to Work-in-process inventory

 

Debit $77,600 to Finished goods inventory and Credit $77,600 to Manufacturing costs

 

Debit $81,000 to Costs of goods sold and Credit $81,000 to Work-in-process inventory

7. The final step in the preparation of a production cost report is:

Group of answer choices

Computing equivalent units of production

 

Assigning production costs to the "units completed & transferred out" and "the partially completed units in the ending work-in-process inventory"

 

Summarizing the physical flow of units

 

Computing costs per equivalent units of production

8. The Labelling Department of Delightful Color Inc. has 60,000 units to account for, of which 40,000 units are completed and transferred to the Packaging Department. The remaining 20,000 units are left in the process at the end of the period that are 70% complete for direct materials and 50% complete with respect to conversion costs.

What is the total equivalent units (EU) of production for conversion costs under the Weighted average method?
 

Group of answer choices

24,000 EU

 

50,000 EU

 

10,000 EU

 

54,000 EU

 

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The finished goods inventory account is used to record which of the following?
Group of answer choices
The costs of completed products that have been sold
The cost of materials not yet put into production
The costs of products that are complete and ready to sell
The costs of products that are in production but that are not yet complete
 
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