Which of the following items is not likely an extraordinary item? - 93921

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The job order cost sheets used by Garza Company revealed the following: Job. No. Bal., May 1 May Production Costs 124 $ 2,400 $ - - - 125 1,900 440 126 - - - - 1,040 Job No. 125 was completed during May and Jobs No. 124 and 125 were shipped to customers in May. What was the company's cost of goods sold for May and the goods in process inventory on May 31? $1,900; $4,300. $5,780; $0. $4,740; $1,040. $2,400; $1,460. $4,300; $1,900. The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as: Overapplied overhead. Estimated overhead. Predetermined overhead. Adjusted overhead. Underapplied overhead. Horizontal analysis: Is a method used to evaluate changes in financial data across time. Is the presentation of financial ratios. Evaluates financial data across industries. Is a tool used to evaluate financial statement items relative to industry statistics. Is also called vertical analysis. Job order costing systems normally use: All of inventory systems normally use job order costing. Periodic inventory systems. Real inventory systems. Perpetual inventory systems. General inventory systems. A primary difference between variable costs and fixed costs is: Total variable costs are fixed and fixed costs per unit never change over the relevant range of activity. Variable costs per unit fluctuate and fixed costs per unit remain constant over the relevant range of activity. Variable costs per unit are fixed and fixed costs per unit are variable over the relevant range of activity. Variable costs per unit change in varying increments while fixed costs per unit change in equal increments over the relevant range of activity. Variable costs per unit change in equal increments while total fixed costs change in proportion to the level of activity over the company's relevant range. Which of the following items is not likely an extraordinary item? Loss due to an earthquake in Florida. Condemnation of property by the city government. Expropriation of property by a foreign government. Loss of use of property due to a new and unexpected environmental regulation. Loss from an unexpected union strike. A system of accounting for production operations that produces timely information about inventories and manufacturing costs per unit of product is a: Finished goods accounting system. Production accounting system. Manufacturing accounting system. Cost accounting system. General accounting system. Labor costs in production can be: Direct or payroll. Direct or sunk. Direct or indirect. Indirect or payroll. Indirect or sunk. Refer to the following selected financial information from Hansen's, LLC. Compute the company's profit margin for Year 2. Year 2 Year 1 Net sales $ 485,500 $ 427,650 Cost of goods sold 277,700 251,520 Interest expense 11,100 12,100 Net income before tax 68,650 54,080 Net income after tax 47,450 41,300 Total assets 319,900 296,400 Total liabilities 174,400 168,700 Total equity 145,500 127,700 14.1%. 32.6%. 17.1%. 9.8%. 12.1%. 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: Chargeable overhead rate. Predetermined overhead allocation rate. Miscellaneous overhead rate. Overhead variance rate. Estimated labor cost rate. Ajax Company accumulated the following account information for the year: Beginning raw materials inventory $ 6,600 Indirect materials cost 2,600 Indirect labor cost 5,600 Maintenance of factory equipment 3,400 Direct labor cost 7,600 Using the above information, total factory overhead costs would be: $14,800. $11,600. $19,200. $9,000. $17,600. A job order cost accounting system would best fit the needs of a company that makes: Custom machinery. Cement. Pencils and erasers. Shoes and apparel. Paint. The two basic types of cost accounting systems are: Job order costing and customized product costing. Job order costing and perpetual costing. Job order costing and periodic costing. Job order costing and process costing. Job order costing and customized service costing. Which of the following represents the correct formula for calculating cost of goods manufactured? Direct materials used + direct labor + factory overhead + beginning goods in process + ending goods in process. Direct materials used + direct labor + factory overhead + beginning goods in process - ending goods in process. Direct materials used + direct labor + factory overhead - beginning goods in process - ending goods in process. Direct materials used + direct labor + factory overhead - beginning goods in process + ending goods in process. Direct materials used + direct labor - factory overhead + beginning goods in process - ending goods in process. Period costs for a manufacturing company would flow directly to: Factory overhead. The current manufacturing statement. The current balance sheet. The current income statement. Job cost sheet. Industry standards for financial statement analysis: Are set by the financial performance and condition of the company's industry. Are based on a company's prior performance. Are based on rules of thumb. Are set by the government. Compare a company's income with the prior year's income. Refer to the following selected financial information from Hansen's, LLC. Compute the company's return on total assets for Year 2. Year 2 Year 1 Net sales $ 488,500 $ 428,250 Cost of goods sold 278,300 252,120 Interest expense 11,700 12,700 Net income before tax 69,250 54,680 Net income after tax 48,050 41,900 Total assets 321,100 300,000 Total liabilities 171,400 169,300 Total equity 149,700 130,700 9.8%. 22.3%. 2.8%. 15.5%. 15.0%. A job cost sheet includes: Direct materials, direct labor, selling costs. Direct materials, overhead, administrative costs. Direct labor, overhead, selling costs. Direct material, direct labor, overhead. Direct materials, direct labor, operating costs. Which of the following items are management concepts that were created to improve companies' performances? Just-in-time manufacturing. Total quality management. Customer orientation. Continuous improvement. All of the above are ways that management can improve companies' performances. The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is: Lean business model. Continuous improvement. Customer orientation. Total quality management. Managerial accounting. The cost of labor that is not clearly associated with specific units or batches of product is called: Indirect labor. Basic labor. Unspecified labor. Joint labor. Direct labor. A job cost sheet shows information about each of the following items except: The direct materials costs assigned to the job. The direct labor costs assigned to the job. The overhead costs assigned to the job. The name of the customer. The costs incurred by the marketing department in selling the job. Which of the following costs is not included in factory overhead? Direct materials. Manufacturing supplies used. Payroll taxes on the wages of supervisory factory workers. Depreciation of manufacturing equipment. Indirect labor. Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $196,000 of raw materials on credit; issued materials to production of $207,000 of which $18,000 were indirect. Bard incurred a factory payroll of $151,000, paid in cash, of which $28,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. The total manufacturing costs added during the period are: $566,500. $514,500. $538,500. $496,500. $584,500. Refer to the following selected financial information from Fennie's, LLC. Compute the company's inventory turnover for Year 2. Year 2 Year 1 Cash $ 37,800 $ 32,550 Short-term investments 93,000 61,500 Accounts receivable, net 87,000 81,000 Merchandise inventory 122,500 126,500 Prepaid expenses 12,400 10,000 Plant assets 389,500 339,500 Accounts payable 111,900 109,300 Net sales 712,500 677,500 Cost of goods sold 391,500 376,500 3.14. 5.82. 3.20. 3.54. 3.09. Which of the following statements is true regarding product and period costs? Office rent is a product cost and supervisors' salaries expense is a period cost. Delivery expense is a product cost and indirect materials is a period cost. Sales commissions is a product cost and indirect labor is a period cost. Factory rent is a product cost and advertising expense is a period cost. Office salaries expense is a product cost and factory maintenance is a period cost. A manufacturing company has a beginning finished goods inventory of $14,800, raw material purchases of $18,200, cost of goods manufactured of $32,900, and an ending finished goods inventory of $18,000. The cost of goods sold for this company is: $28,000. $29,700. $47,700. $21,400. $32,900. Refer to the following selected financial information from Fennie's, LLC. Compute the company's accounts receivable turnover for Year 2. Year 2 Year 1 Cash $ 38,300 $ 33,050 Short-term investments 98,000 64,000 Accounts receivable, net 89,500 83,500 Merchandise inventory 125,000 129,000 Prepaid expenses 12,900 10,500 Plant assets 392,000 342,000 Accounts payable 109,400 111,800 Net sales 715,000 680,000 Cost of goods sold 394,000 379,000 8.27 times 7.99 times 5.72 times 7.30 times 8.56 times Net sales divided by average accounts receivable, net is the: Average accounts receivable ratio. Days' sales uncollected. Profit margin. Accounts receivable turnover ratio. Current ratio. A company that uses a job order cost accounting system would make the following entry to record the flow of direct materials into production: rev: 02_28_2013_QC_27107 Debit Goods in Process Inventory, credit Raw Materials Inventory. Debit Goods in Process Inventory, credit Factory Overhead. Debit Finished Goods Inventory, credit Raw Materials Inventory. Debit Factory Overhead, credit Raw Materials Inventory. Debit Goods in Process Inventory, credit Cost of Goods Sold. Refer to the following selected financial information from Hansen's, LLC. Compute the company's times interest earned for Year 2. Year 2 Year 1 Net sales $ 488,500 $ 428,250 Cost of goods sold 278,300 252,120 Interest expense 11,700 12,700 Net income before tax 69,250 54,680 Net income after tax 48,050 41,900 Total assets 321,100 300,000 Total liabilities 171,400 169,300 Total equity 149,700 130,700 4.1 times 12.8 times 5.1 times 5.9 times 6.9 times The three major cost components of a manufactured product are: Differential costs, opportunity costs, and sunk costs. Indirect labor, indirect materials, and miscellaneous factory expenses. General, selling, and administrative costs. Direct materials, direct labor, and factory overhead. Marketing, selling, and administrative costs. Three of the most common tools of financial analysis are: Vertical analysis, political analysis, horizontal analysis. Trend analysis, financial reporting, ratio analysis. Horizontal analysis, vertical analysis, ratio analysis. Ratio analysis, horizontal analysis, financial reporting. Financial reporting, ratio analysis, vertical analysis. Use the following selected information from Farris, LLC to determine the Year 2 and Year 1 common size percents for operating expenses using net sales as the base. Year 2 Year 1 Net sales $ 440,200 $ 359,400 Cost of goods sold 196,900 133,490 Operating expenses 71,740 69,140 Net earnings 36,220 25,720 28.4% for Year 2 and 17.9% for Year 1. 20.0% for Year 2 and 19.3% for Year 1. 122.5% for Year 2 and 100.0% for Year 1. 44.7% for Year 2 and 37.1% for Year 1. 16.3% for Year 2 and 19.2% for Year 1. The common-size percent is computed by: Subtracting the base amount from the analysis amount and multiplying the result by 100. Dividing the base amount by the analysis amount and multiplying the result by 1,000. Dividing the base amount by the analysis amount. Dividing the analysis amount by the base amount and multiplying the result by 100. Dividing the analysis amount by the base amount. Hancock Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Hancock estimated total overhead of $358,700; materials of $401,000 and direct labor of $211,000. During the year Hancock incurred $409,000 in materials costs, $412,300 in overhead costs and $215,000 in direct labor costs. Compute the amount of overhead applied to jobs during the year. $423,550. $412,300. $365,500. $412,290. $358,700. Which of the following costs would not be classified as factory overhead? Property taxes on maintenance machinery. Small tools used in production. Expired insurance on factory equipment. Wages of the factory janitor. Metal doorknobs used on wood cabinets produced. Use the following selected information from Farris, LLC to determine the Year 2 and Year 1 trend percents for net sales using Year 1 as the base. Year 2 Year 1 Net sales $ 283,200 $ 232,800 Cost of goods sold 150,500 130,990 Operating expenses 53,840 51,840 Net earnings 29,420 21,220 114.9% for Year 2 and 100.0% for Year 1. 53.1% for Year 2 and 56.3% for Year 1. 121.6% for Year 2 and 100.0% for Year 1. 35.8% for Year 2 and 39.6% for Year 1. 67.3% for Year 2 and 64.6% for Year 1. Penn Company uses a job order cost accounting system. In the last month, the system accumulated labor time tickets totaling $24,600 for direct labor and $4,300 for indirect labor. These costs were accumulated in Factory Payroll as they were paid. Which entry should Penn make to assign the Factory Payroll? Debit Payroll Expense $28,900; credit Cash $28,900. Debit Payroll Expense $24,600; debit Factory Overhead $4,300; credit Factory Payroll $28,900. Debit Goods in Process Inventory $28,900; credit Factory Payroll $28,900. Debit Goods in Process Inventory $24,600; debit Factory Overhead $4,300; credit Factory Payroll $28,900. Debit Goods in Process Inventory $24,600; debit Factory Overhead $4,300; credit Wages Payable $28,900. A company has an overhead application rate of 126% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $30,000? $30,000. $378,000. $18,900. $37,800. $23,810. Dividing ending inventory by cost of goods sold and multiplying the result by 365 is the: Inventory turnover ratio. Total asset turnover. Profit margin. Current ratio. Days' sales in inventory. Managerial accounting is different from financial accounting in that: Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors. Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization. Managerial accounting is mainly used to set stock prices. Managerial accounting never includes nonmonetary information. Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions. The measurement of key relations among financial statement items is known as: Ratio analysis. Financial reporting. Risk analysis. Investment analysis. Horizontal analysis. A company's prime costs total $3,600,000 and its conversion costs total $7,660,000. If direct materials are $1,540,000 and factory overhead is $5,600,000, then direct labor is: $5,140,000. $1,540,000. $15,320,000. $3,600,000. $2,060,000. Using the information below for Talking Toys, Inc., determine cost of goods manufactured for the year: Direct materials used $ 13,800 Goods in process, January 1 52,600 Goods in process, December 31 38,300 Total Factory overhead 6,800 Direct labor used 27,800 $14,300. $101,000. $55,900. $48,400. $62,700.
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