post acc211 unit 1 and 2 quiz

• Question
1
3 out of 3 points

Green Company’s costs for the
month of August were as follows: direct materials, $27,000; direct labor,
$34,000; selling, $14,000; administrative, $12,000; and manufacturing overhead,
$44,000. The beginning work in process inventory was $16,000 and the ending
work in process inventory was $9,000. What was the cost of goods manufactured
for the month?

A.
$105,000
B.
$132,000
C.
$138,000
D.
$112,000

• Question
2
3 out of 3 points

Consider the following costs
incurred in a recent period:
Direct Materials
$ 33,000
Depreciation on factory equipment $ 12,000
Factory janitor’s salary
$ 23,000
Direct labor
$ 28,000
Utilities for factory
$ 9,000
Selling expenses
$ 16,000
Production supervisor’s salary $ 34,000
Administrative expenses
$ 21,000
What was the total amount of the period costs listed above
for the period?
a.
$78,000
b.
$71,000
c.
$37,000
d.
$46,000

• Question
3
3 out of 3 points

The following inventory balances
relate to Lequin Manufacturing Corporation at the beginning and end of the
year:

Beginning Ending
Raw materials
$ 14,000 $ 19,000
Work in proces $ 31,000
$ 7,000
Finished goods $ 25,000
$ 23,000
Lequin’s total manufacturing cost was $543,000. What was
Lequin’s cost of goods sold?

a.
$517,000
b.
$545,000
c.
$569,000
d.
$567,000

• Question
4
3 out of 3 points

Corcetti Company manufactures and
sells prewashed denim jeans. Large rolls of denim cloth are purchased and are
first washed in a giant washing machine. After the cloth is dried, it is cut up
into jean pattern shapes and then sewn together. The completed jeans are sold
to various retail chains.
Which of the following terms could be used to correctly
describe the cost of the soap used to wash the denim cloth?
Direct
Cost Product Cost
A) Yes Yes
B) Yes No
C) No Yes
D) No No

a.
A)

b.
B)

c.
C)

d.
D)

• Question
5
3 out of 3 points

The variable cost per unit is
constant and does not depend on how many units are produced.

False

• Question
6
0 out of 3 points

Which two terms below describe
the wages paid to security guards that monitor a factory 24 hours a day?

A.

variable cost and direct cost

B.

fixed cost and direct cost

C.

variable cost and indirect cost

D.
fixed cost and indirect cost

• Question
1
3 out of 3 points

When applying overhead to
products in an activity-based costing system:

a.
Cash or a liability is debited and Manufacturing Overhead is
credited.
b.
Manufacturing Overhead is debited and Cash or a liability is
credited.
c.
Manufacturing Overhead is debited and Work In Process is
credited.
d.
Work In Process is debited and Manufacturing Overhead is
credited

• Question
2
3 out of 3 points

Matt Company uses activity-based costing. The
company has two products: A and B. The annual production and sales of Product A
is 8,000 units and of Product B is 6,000 units. There are three activity cost
pools, with estimated total cost and expected activity as follows:
Expected Activity
Activity Cost Pool Estimated
Cost
ProductA Product B Total
Activity 1
$ 20,000 100 400 500
Activity 2
$ 37,000 800 200 1,000
Activity 3
$ 91,200 800 3,000 3,800
The cost per unit of Product A under activity-based costing
is closest to:

a.
$2.40
b.
$3.90
c.
$10.59
d.
$6.60

• Question
3
3 out of 3 points

Departmental overhead rates may
not correctly assign overhead costs due to:

a.
the use of direct
labor hours in allocating overhead costs to products rather than machine time
or quantity of materials used.
b.
the high correlation between direct labor-hours and the
incurrence of overhead costs.
c.
overreliance on volume as a basis for allocating overhead
costs where products differ regarding the number of units produced, lot size,
or complexity of production
d.
difficulties associated with identifying cost pools for the
first stage of the allocation process.

• Question
4
3 out of 3 points

Vex Corporation manufactures a variety of
products. In the past, Vex had been using a traditional overhead allocation
system based on machine hours. For the current year, Vex decided to switch to
an activity-based costing system using machine hours and the number of
inspections as measures of activity. Information on these measures of activity
and related overhead rates for the current year is as follows:
Estimated
Activity Predetermined Overhead
Rate
Machine hours 50,000
$ 8.00
Number of inspections 3,000
$40.00

Job #812 for the current year required 15 machine hours and
2 inspections. Would this job have been overcosted or undercosted under the
traditional system and by how much?

a.
undercosted by $36
b.
undercosted by $44
c.
overcosted by $80
d.
undercosted by $80
• Question
5
3 out of 3 points

Even departmental overhead rates
will not correctly assign overhead costs in situations where a company has a
range of products that differ in volume, lot size, or complexity of production.

True
False

• Question
6
3 out of 3 points

In activity-based costing, a
separate activity rate (i.e., predetermined overhead rate) is computed for each
activity cost pool by dividing the estimated overhead cost in the activity cost
pool by the total expected activity for the activity cost pool.

True
False