Question 1.
1. TCO 1) The goal of managerial accounting is to provide

information that managers need for which of the following?
(Points : 7)

Decision making
All of the above

Question 1.
1. TCO 1) The goal of managerial accounting is to provide information that managers ne
(Points : 7)
Decision making
All of the above

Question 2.
2. TCO 1) Josie’s Grill budgeted the following costs for a month in which 1,600 steak dinner

$4,080; hourly labor (variable), $6,976; rent (fixed), $1,700; depreciation, $800; and other fix
sells for $14.00 each. How much is the budgeted variable cost per unit? (Points : 7)

Question 3.
3. (TCO 1) Which of the following is NOT a period cost? (Points : 7)
Advertising cost
Direct Material
Accounting staff salaries
Depreciation on accounting office equipment

Question 4.
4.(TCO 1) On December 31, 2015, GLE Inc. has a balance in the Work-in-Process Inventory

2015, the balance was $47,000. Current manufacturing costs for the year are $292,000, and
much is cost of goods manufactured? (Points : 7)

Question 5.
5. TCO 2) Paul Company applies manufacturing overhead based on direct labor hours. Info

overhead and labor for August follows.
Overhead cost
Direct labor hours
Direct labor cost



How much is the predetermined overhead rate? (Points : 7)

Question 6.
6. TCO 2) During 2015, Michael Company applied overhead using a job-order costing syste

hour. Estimated direct labor hours for the year were 150,000, and estimated overhead for the
labor hours for 2015 were 140,000, and actual overhead was $1,420,000.
What was the amount of under- or over-applied overhead for the year? (Points : 7)
$300,000 under-applied
$20,000 under-applied
$300,000 over-applied
$120,000 over-applied

Question 7.
7. TCO 2) Manufacturing overhead may be allocated on the basis of (Points : 7)
machine hours.
direct labor hours.
direct labor costs.

any of the listed choices above.

Question 1.
1. TCO 1) Which of the following types of costs are conversion costs? (Points :
Direct materials and direct labor
Direct materials and overhead
Direct labor and overhead
Direct materials, direct labor, and overhead
Question 2.
2. (TCO 6) Smile Labs develops 35mm film using a four-step process that moves

progressively through four departments. The company specializes in overnight
service and has the largest drug store chain as its primary customer. Currently,
direct labor, direct materials, and overhead are accumulated by department. The
cost accumulation system that best describes the system that Smile Labs is using
(Points : 7)
operation costing.
random costing.
job-order costing.
process costing.

Question 3.
3. TCO 3) Kerner Manufacturing uses a process cost system to manufacture laptop comput

laptop computer model #KJK20 during the quarter ending March 31:
Work-in-process inventory, January 1
Started during the quarter
Completed during the quarter
Work-in-process inventory, March 31
Costs added during the quarter


Direct Labor


Beginning work-in-process inventory was 50% complete for direct labor costs. Ending workcosts. What are the total equivalent units of production with respect to direct labor? (apply th
of calculating equivalent units)
(Points : 7)


4. TCO 2) Sweet Co. uses budgeted overhead rates to apply overhead to individual jobs. Th

company made the following estimates for this year.
Direct labor costs
Factory overhead costs
Direct Labor Hours
Machine Hours


(a) What is the predetermined overhead rate (per direct labor hour) for the company?
(b) If Job #34567 had the following:
Material costs were $450,000;
Direct labor costs were $375,000;
Direct labor hours 20,000; and
Machine hours were 28,000,
What is the total cost of Job #34567? (Points : 30)

5. TCO 3) Adnan Company uses process costing. At the beginning of the month, there were

70% complete with respect to conversion costs. 30,000 units were started during the month
Process Inventory were 80% complete with respect to material and 20% complete with respe
used in calculating the cost per unit for materials? (apply the formula for the more commonl
(Points : 30)

6. TCO 6) Handy Display Company manufactures display cases to be sold to retail stores. T

Handy Display Company uses a single plant-wide overhead rate to allocate its $3,357,800 o
associated with the Large Case line, $1,276,800 is associated with the Medium Case line, a
Display Company is currently running a total of 33,000 machine hours: 10,000 in the Large C
Case line. Handy Display Company uses machine hours as the cost driver for manufacturing

Requirement: Calculate the departmental overhead rate for each of the three departments lis

7. TCO 2)

Fred Co. incurred costs of $800,000 for direct materials (raw) purchased. Direct labor was $5
Inventories were as follows:
Raw materials beginning $2,000; raw materials ending $4,000;

Work-in-process beginning $210,000; work-in-process ending $190,000;
Finished goods beginning $13,000; finished goods ending $12,500;
What is the cost of goods manufactured? Please show your work. (Points : 30)