Question 1:<\/b><\/p>\n
Assume that actual overhead consisted of $30,000 for indirect labor, $20,000 for indirect material, and $10,000 for depreciation of factory equipment. Based on the preset rates, $65,000 of overhead was applied to work in process.<\/b><\/p>\n
a. Overhead is over applied.<\/p>\n
b. This is viewed as an unfavorable situation.<\/p>\n
c. There will be a $5,000 debit balance in Factory Overhead.<\/p>\n
d. All of the above.<\/p>\n
e. None of these<\/p>\n
Question<\/b> 2: <\/b><\/p>\n
The contract interest rate for bonds:<\/b><\/p>\n
A. must equal the effective interest rate.<\/p>\n
B. is greater than the effective interest rate when bonds are issued at a discount.<\/p>\n
C. has no relation to the cash flow associated with a particular bond.<\/p>\n
D. will fluctuate over the life of a bond.<\/p>\n
E. None of these.<\/p>\n
Question 3:<\/b><\/p>\n
Norman Corporation issued $100,000 of 7%, 15-year bonds on January 1, 2014 at 102. The proper entry to record issuance of the bonds includes a debit to Cash for:<\/b><\/p>\n
a. $100,000.<\/p>\n
b. $101,000.<\/p>\n
c. $101,167.<\/p>\n
d. $102,000..<\/p>\n
e. None of these.<\/p>\n
Question 4:<\/b><\/p>\n
Which of the following statements about treasury stock is true? <\/b><\/p>\n
a. Excess of the sales price over cost should be credited to retained earnings.<\/p>\n
b. Gains are not recorded on treasury stock transactions but losses are.<\/p>\n
c. Reacquiring treasury stock causes stockholders equity to decrease.<\/p>\n
d. Reacquiring treasury stock causes stockholders equity to increase.<\/p>\n
e. Losses on treasury stock transactions are recorded in income.<\/p>\n
Question 5:<\/b><\/p>\n
Maxlo Company has 100,000 shares of common stock outstanding. On April 15, the board declared a $.30 dividend to be paid to stockholders of record on May 4. The dividend was paid on May 15. The proper journal entry for Maxlo Company on May 15 does include:<\/b><\/p>\n
a. a debit to Dividends Payable for $30,000.<\/p>\n
b. a debit to Dividends for $30,000.<\/p>\n
c. a debit to Cash for $30,000.<\/p>\n
d. Both A and C, above.<\/p>\n
e. None of these.<\/p>\n
Question 6:<\/b><\/p>\n
Assume the following sales data for a company:<\/b><\/p>\n
2010 $1,000,000<\/b><\/p>\n
2009 900,000<\/b><\/p>\n
2008 750,000<\/b><\/p>\n
2007 600,000<\/b><\/p>\n
If 2007 is the base year, what is the percentage<\/b> increase in sales from 2007 to 2009?<\/b><\/p>\n
a. 100%<\/p>\n
b. 150%<\/p>\n
c.<\/b> 50%<\/p>\n
d. 66.7%<\/p>\n
Question 7:<\/b><\/p>\n
Alpha Corporation has cumulative preferred stock. If dividends are not declared in a period, then those dividends are<\/b><\/p>\n
a. considered a liability.<\/p>\n
b. called dividends in arrears.<\/p>\n
c. distributions of earnings.<\/p>\n
d. never paid.<\/p>\n
Question 8:<\/b><\/p>\n
Maloney Company’s balance sheet included cash ($4,000,000), accounts receivable ($16,000,000), inventories ($10,000,000), prepaid expenses ($2,000,000), accounts payable ($9,000,000), and accrued expenses ($7,000,000). These are the only current items.<\/b><\/p>\n
a. The quick ratio is 2:1.<\/p>\n
b. The quick ratio is 1.25:1.<\/p>\n
c. The current ratio is 1.875:1.<\/p>\n
d. Both A and C.<\/p>\n
e. None of these.<\/p>\n
Question 9:<\/b><\/p>\n
Selected information for 2014 is: cost of goods sold, $5,400,000; average inventory, $1,800,000; net sales, $7,200,000; average receivables, $960,000; and net income, $720,000. Assuming a 360-day year, what was the inventory turnover ratio for 2014?<\/b><\/p>\n
a. 333<\/p>\n
b. 3<\/p>\n
c. 7.5<\/p>\n
d. 20<\/p>\n
e. None of these.<\/p>\n
Question 10:<\/b><\/p>\n
On the schedule of cost of goods manufactured<\/b>:<\/p>\n
a. beginning work-in-process plus direct materials used equals manufacturing costs.<\/p>\n
b. cost of goods manufactured is the same thing as total manufacturing costs.<\/p>\n
c. work-in-process will necessarily increase if total manufacturing costs increase.<\/p>\n
d. factory overhead plus beginning work-in-process equals manufacturing costs.<\/p>\n
e. None of these.<\/p>\n
Question 11:<\/b><\/p>\n
Which costing method seems ideally suited to the production of homogenous products in continuous throughput?<\/b><\/p>\n
a. Activity-based costing.<\/p>\n
b. Job order costing.<\/p>\n
c. Process costing.<\/p>\n
d. Absorption costing.<\/p>\n
e. None of these.<\/p>\n
Question 12:<\/b><\/p>\n
White Company uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $200,000 and direct labor hours of 50,000. For job 836, direct labor hours were 800. <\/b><\/p>\n
a. Factory Overhead should be debited for $3,200.<\/p>\n
b. Factory Overhead should be credited for $3,200.<\/p>\n
c. Overhead Expense should be debited for $3,200.<\/p>\n
d. Overhead Expense should be credited for $3,200.<\/p>\n
e. None of these.<\/p>\n
Question 13:<\/b><\/p>\n
For job 1838, there were 1,000 direct labor hours, and actual overhead was $500 for depreciation and $1,400 for indirect labor. Overhead is applied at $2 per direct labor hour. Which account should be debited for $1,900?<\/b><\/p>\n
a. Work in Process.<\/p>\n
b. Cost of Goods Sold.<\/p>\n
c. Factory Overhead.<\/p>\n
d. Cost of Goods Manufactured.<\/p>\n
e. None of these.<\/p>\n
Question 14:<\/b><\/p>\n
7,000 units in a process that are 70% complete are referred to as<\/b><\/p>\n
a. 7,000 equivalent units of production.<\/p>\n
b. 2,100 equivalent units of production.<\/p>\n
c. 4,900 equivalent units of production.<\/p>\n
d. 2,100 inequivalent units of production<\/p>\n
Question 15:<\/b><\/p>\n
A process cost system would be used for all of the following products except<\/b><\/p>\n
a. chemicals.<\/p>\n
b. computer chips.<\/p>\n
c. soft drinks.<\/p>\n
d. fur coats<\/p>\n
Question 16:<\/b><\/p>\n
Killox<\/b> Company makes units that each requires 2 pounds of material at $3 per pound. 500 and 700 units will be built in May and June, respectively. Frick keeps material on hand at 20% of the next month’s production needs. How much is the material cost for May’s output?<\/b><\/p>\n
a. $2,400<\/p>\n
b. $3,000<\/p>\n
c. $3,240<\/p>\n
d. $4,200<\/p>\n
e. None of these.<\/p>\n
Question 17:<\/b><\/p>\n
Anticipated unit sales are January, 5,000; February, 4,000; and March 8,000. Finished goods are consistently maintained at 80% of the following month’s sales. If units cost $10 each to produce, how much is February’s total cost of production?<\/b><\/p>\n
a. $0<\/p>\n
b. $40,000<\/p>\n
c. $72,000<\/p>\n
d. $80,000<\/p>\n
e. None of these.<\/p>\n
Question 18:<\/b><\/p>\n
Total production of 1,000 units of finished goods required 3,900 actual hours at $12 per hour. The standard is 4 hours per unit of finished goods, at a standard rate of $11 per hour. Which of the following statements is true?<\/b><\/p>\n
a. The labor rate variance is $3,900 favorable.<\/p>\n
b. The labor rate variance is $4,000 unfavorable.<\/p>\n
c. The labor efficiency variance is $1,100 unfavorable.<\/p>\n
d. The labor efficiency variance is $1,100 favorable.<\/p>\n
e. None of these.<\/p>\n
Question 19:<\/b><\/p>\n
If beginning work in process was 600 units, 1,400 additional units were put into production, and ending work in process was 500 units, how many units were completed?<\/b><\/p>\n
a. 500<\/p>\n
b. 900<\/p>\n
c. 1,500<\/p>\n
d. 2,000<\/p>\n
e. None of these.<\/p>\n
Question 20:<\/b><\/p>\n
Cost of goods manufactured is calculated as follows:<\/b><\/p>\n
a. Beginning WIP + direct materials used + direct labor + manufacturing overhead + ending WIP.<\/p>\n
b. Direct materials used + direct labor + manufacturing overhead \u2013 beginning WIP + ending WIP.<\/p>\n
c.<\/b> Beginning WIP + direct materials used + direct labor + manufacturing overhead \u2013 ending WIP.<\/p>\n
d. Direct materials used + direct labor + manufacturing overhead \u2013 ending WIP \u2013 beginning WIP.<\/p>\n
e. None of the above<\/p>\n","protected":false},"excerpt":{"rendered":"
Question 1: Assume that actual overhead consisted of $30,000 for indirect labor, $20,000 for indirect material, and $10,000 for depreciation of factory equipment. Based on the preset rates, $65,000 of overhead was applied to work in process. a. Overhead is Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50478","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50478","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=50478"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50478\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=50478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=50478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=50478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}