28 Dec •Number of continuing patient visits.

ACC650 Managerial Accounting

Week 1 Quiz

•A custom-home builder would likely utilize:

•job-order costing.

•process costing.

•mass customization.

•process budgeting.

•joint costing.

Harrison Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $56,000 and the cost of goods sold during the month was $125,000. The cost of goods manufactured during July was:

•$104,000.

•$125,000.

•$117,000.

•$133,000.

•None of the answers is correct.

•Shu Corporation recently computed total product costs of $567,000 and total period costs of $420,000, excluding $35,000 of sales commissions that were overlooked by the company’s administrative assistant. On the basis of this information, Shu’s income statement should reveal operating expenses of:

•$35,000.

•$420,000.

•$455,000.

•$567,000.

•$602,000.

•Which of the following is not an element of competency?

•To develop appropriate knowledge about a particular subject.

•To perform duties in accordance with relevant laws.

•To perform duties in accordance with relevant technical standards.

•To refrain from engaging in an activity that would discredit the accounting profession.

•To prepare clear reports after an analysis of relevant and reliable information.

•Metalica Company applies overhead based on machine hours. At the beginning of 20×1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20×1 year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. On the basis of this information, the 20×1 predetermined overhead rate was:

•$0.04 per machine hour.

•$0.05 per machine hour.

•$20 per machine hour.

•$21 per machine hour.

•$25 per machine hour.

ACC650 Managerial Accounting

Week 2 Quiz

•Equivalent-unit calculations are necessary to allocate manufacturing costs between:

•units completed and ending work in process.

•beginning work in process and units completed.

•units sold and ending work in process.

•cost of goods manufactured and beginning work in process.

•cost of goods manufactured and cost of goods sold.

•Which of the following is true concerning cost drivers for the predetermined overhead rate in a process-costing system?

•Predetermined overhead rates are not used in a process-costing system.

•If direct material cost is the cost driver, direct labor and direct materials may be combined into the single element of prime cost.

•If direct labor hours is the cost driver, direct labor and manufacturing overhead may be combined into the single element of conversion cost.

•If direct labor cost is the cost driver, direct labor and manufacturing overhead may be combined into the single element of conversion cost.

•Cost drivers are irrelevant in process-costing systems.

•Process costing would likely be used in all of the following industries except:

•petroleum refining.

•chemicals.

•truck tire manufacturing.

•wood pulp production.

•automobile repair.

•Corrigan, Inc. overstated the percentage of work completed with respect to conversion cost on the ending work-in-process inventory. What is the effect of this overstatement on conversion-cost equivalent units and physical units manufactured, respectively?

•Overstated, overstated.

•Overstated, understated.

•Overstated, none.

•None, overstated.

•None, none.

•Hornsby has a single production department, and uses a process-costing system. The balance in its Work-in-Process account on January 1 was $68,000. The account was charged with direct materials, direct labor, and manufacturing overhead of $450,000 throughout the year. If a review of the accounting records determined that $86,000 of goods were still in production at year-end, Hornsby should make a journal entry on December 31 that includes:

•a debit to Cost of Goods Sold for $432,000.

•a debit to Finished-Goods Inventory for $432,000.

•a debit to Work-in-Process Inventory for $432,000.

•a debit to Finished-Goods Inventory for $86,000.

•a credit to Work-in-Process Inventory for $86,000.

ACC650 Managerial Accounting

Week 3 Quiz

•Which of the following cost drivers would best be associated with the activity of physician time in a medical clinic?

•Number of new patient visits.

•Number of continuing patient visits.

•Physician minutes with a patient.

•Number of line items on the clinic’s bill.

•The number of accreditations held by the clinic.