BAC1054 Final Exam MCQ

Management accountants would not

• assist in budget planning.

• prepare reports primarily for external users.

• determine cost behavior.

• be concerned with the impact of cost and volume on profits.

Directing includes

• providing a framework for management to have criteria to terminate employees when needed.

• running a department under quality control standards universally accepted.

• coordinating a company's diverse activities and human resources to produce a smooth-running operation.

• developing a complex performance ranking system to give certain high performers good raises.

For the work of factory employees to be considered as direct labor, the work must be conveniently and

• materially associated with raw materials conversion.

• periodically associated with raw materials conversion.

• physically associated with raw materials conversion.

• promptly associated with raw materials conversion.

A manufacturing company reports cost of goods manufactured as a(n)

• current asset on the balance sheet.

• administrative expense on the income statement.

• component in the calculation of cost of goods sold on the income statement.

• component of the raw materials inventory on the balance sheet.

Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $816,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Worth Company's cost of goods sold for the year is

• $804,000.

• $828,000.

• $776,000.

• $552,000.

Wood Company has beginning work in process inventory of $128,000 and total manufacturing costs of $477,000. If cost of goods manufactured is $480,000, what is the cost of the ending work in process inventory?

• $110,000.

• $131,000.

• $140,000.

• $125,000.

A company expected its annual overhead costs to be $1,800,000 and direct labor costs to be $1,000,000. Actual overhead was $1,740,000, and actual labor costs totaled $1,100,000. How much is the company’s predetermined overhead rate to the nearest cent?

• $1.74

• $1.57

• $1.80

• $1.64

Vektek, Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $1,025,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $1,050,000. The budgeted machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12?

• $1,050

• $51,250

• $52,500

• $1,025

Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $100,000 of direct materials costs and $120,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is

• $220,000.

• $400,000.

• $300,000.

• $270,000.

When determining costs of jobs, how does a company account for indirect materials?

• It is added to work in process as used.

• It remains part of raw materials inventory.

• It is transferred out of raw materials into manufacturing overhead when used.

• It is transferred out of raw materials into work in process as used.