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SC ACCT 226 - Acct226TEST1StudyGuide

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ACCT 226 – SPRING 2015REVIEW FOR EXAM 1Lectures 1-4ACCT 226 – SPRING 2015REVIEW FOR EXAM 1Lectures 1-4 The first exam will consist of 33 multiple-choice questions worth 3 points each. The questions will address various topics we have covered from Lectures 1-4. Some questions will be definitional/conceptual in nature and others will require you to perform a calculation in order to answer the question. Topics that you should study include, but are not limited to, the following: Financial versus Managerial Accounting Cost Classifications (very important)  Calculating the amount of various types of costs (lots of questions) Examples of companies likely to use job-order and process costing  Calculating a POHR Over- versus underapplied MOH Closing out balance in MOH account Calculating the total cost of a job  Journal entries in a job-order costing system (several questions) Identifying costs in T-accounts (several questions) Calculating COGM  Calculating unadjusted and/or adjusted COGS Processing Costing: Calculating equivalent units (materials and conversion) Calculating cost per equivalent unit Calculating cost to ending WIP and/or units transferred out Please remember that the above list is only an outline, and the review problems that follow to do not cover every topic that is on the first exam. Please do not study solely from these problems. You should have read and studied the assigned pages in the textbook, watched video lectures 1-5 at least once, worked all the homework assignments, and understand the in-class exercises covered in the recitation sessions. Also, the inclass exercises do not cover all of the material that you are responsible for. Any material covered in the first five video lectures may be tested on the first exam. 1. Gamecock Manufacturing, Inc. has provided the following partial listing of costs incurredduring January:Direct labor $ 180,000Sales commissions 25,000Factory supervisor salaries $ 36,000Direct materials used 70,000Rent on finished goods warehouse 20,000Utilities, factory 11,000Administrative salaries 110,000Wages for factory machine operators 14,000Utilities, office 1,000Factory rent 12,000Advertising 17,000Depreciation on production equipment 9,000Office supplies 1,000Property taxes on factory 3,000Depreciation on office equipment 2,000Insurance on factory 5,000Calculate the following for Gamecock Manufacturing for the month of January:1. Indirect labor costs2. Manufacturing overhead costs3. Total manufacturing costs4. Prime costs5. Conversion costs6. Period costs7. Product costs8. Selling & Administrative costs2. Associates uses a job-order costing system and applies overhead on the basis of direct labor hours. At the beginning of the year, management estimated that 26,000 direct labor hours would be worked and $1,100,000 of manufacturing overhead costs would be incurred.During the year, the company actually worked 24,000 direct labor hours and incurred the following manufacturing costs: Direct materials used $1,240,000Direct labor 1,800,000Indirect labor 280,000Indirect materials 190,000Insurance 220,000Utilities 150,000Maintenance 180,000Depreciation 320,0001. Calculate the predetermined overhead rate for the year.2. Determine the amount of manufacturing overhead applied to work- in-process during the year.3. Determine the amount of underapplied or overapplied manufacturing overhead for the year. 4. Prepare the journal entry to close the Manufacturing Overhead account balance to Cost of Goods Sold.3. Blackwelder Company uses a job-order costing system and applies manufacturingoverhead on the basis of direct labor hours. The company’s direct labor wage rate is $9.00 per hour and its predetermined overhead rate is $12.00 per hour. Job 291 has just been completed. The job was charged with the following:Direct materials $1,240Direct labor-hours 24What is the total cost of Job 291?4. Clamp Inc. reported the following data for the month of March:Beginning EndingRaw materials inventory $10,000 $40,000Work in process inventory 20,000 50,000Finished goods inventory 90,000 130,000Additional information:Raw material purchases 190,000Direct labor cost 200,000Indirect materials included in manufacturing overhead 25,000Manufacturing overhead cost applied to work in process 233,000Overapplied Manufacturing Overhead 5,000Based on the information above, compute the following for Clamp, Inc. for the month of March:1. Cost of direct materials used2. Cost of goods manufactured3. Adjusted cost of goods sold5. SC Manufacturing Inc. uses the weighted-average method in its processing costing system. The following data concern the operations of the first processing department for June:Percent CompleteUnits Materials ConversionBeginning work in process inventory 100 70% 90%Started into production during June 10,000Ending work in process inventory 400 90% 70% Costs in beginning WIP inventory: Materials cost $182 Conversion costs $3,429Costs added to production during the month: Materials cost $27,986 Conversion costs $373,8151. How many units were transferred to the next department during June?2. What were the equivalent units for materials?3. What were the equivalent units for conversion costs?4. What was the cost per equivalent units for materials?5. What was the cost per equivalent units for conversion costs?6. What was the total cost of units completed and transferred out of the department during June?7. How much conversion cost was assigned to the ending work in process inventory in the department for


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