Brooks Final Exam Questions and Correct Answers 2024/2025 with complete solution.

Brooks Final Exam Questions and Correct Answers 2024/2025 with complete solution. Which of the following is not typical of traditional costing systems? Use of multiple cost drivers to allocate overhead. Value-added activities all of the above. Which of the following is a batch-level activity? Purchase ordering The use of activity-based costing in service industries all of these. An "Ordering and Receiving Materials" cost pool would most likely have as a cost driver: number of purchase orders. Which of the following is a unit-level activity? Painting If actual overhead is less than applied manufacturing overhead, then manufacturing overhead is: overapplied. If the entry to assign factory labor showed only a debit to Work In Process Inventory, then all labor costs were direct labor. An important feature of a job order cost system is that each job has its own distinguishing characteristics. The predetermined overhead rate is based on the relationship between estimated annual costs and expected annual activity. Process costing is not used when jobs have distinguishing characteristics. The Raw Materials Inventory account is debited for invoice costs and freight costs chargeable to the purchaser. In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 80,000 units were transfered into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. How many units were transferred out of the process in June? 90,000 units Materials costs of $800,000 and conversion costs of $1,020,000 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 20,000 units were started into production in September, and there were 5,000 units in ending work in process that were 40% complete at the end of September. What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September? $1,500,000. Holton Company has the following equivalent units for July: materials 20,000 and conversion 18,000. Production cost data are: D A process with no beginning work in process, completed and transferred out 95,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete. The equivalent units of production for the period were: 110,000 equivalent units. Using $2,540,000 as the cost of goods manufactured, compute the cost of goods sold using the following information. $2,548,000. Using $2,500,000 as the total manufacturing costs, compute the cost of goods manufactured using the following information. $2,506,000. Assuming that the total manufacturing costs are $2,900,000, compute the cost of goods manufactured using the information below. $2,909,000. Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2013. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured? $60,000 The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000. Based on this information, manufacturing overhead has been overapplied During 2013, Tanner Manufacturing expected Job No. 26 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Tanner applied overhead based on direct labor cost. Actual production required an overhead cost of $280,000, $550,000 in materials used, and $210,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods? $1,075,000 Redman Company manufactures customized desks. The following pertains to Job No. 978: What is the total manufacturing cost for Job No. 978? $23,450 For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $360,000 of factory labor costs are incurred of which $100,000 is indirect labor. Actual overhead incurred was $180,000. The amount of overhead debited to Work in Process Inventory should be: $182,000 Equivalent units are calculated by multiplying the percentage of work done by the physical units. When manufacturing overhead costs are assigned to production in a process cost system, they are debited to a Work in Process account. A product requires processing in two departments, the Baking Department and then the Packaging Department, before it is completed. Costs transferred out of the Baking Department will be transferred to: Work in Process—Packaging Department. The total costs accounted for in a production cost report equal the cost of units completed and transferred out plus the cost of ending work in process. In a process cost system, unit costs are determined using a denominator of units produced during the period. In a production cost report, which one of the following sections is not shown under Costs? Units accounted for. Addison Company manufactures two products, Regular and Supreme. Addison's overhead costs consist of machining, $2,500,000; and assembling, $1,250,000. Information on the two products is: Overhead applied to Supreme using activity-based costing is $2,675,000. Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell's total overhead costs consist of assembly costs and inspection costs. The following information is available: Sitwell is considering switching from one overhead rate based on labor hours to activity-based costing. Total overhead costs assigned to titanium racquets, using a single overhead rate, are $63,000. A company incurs $2,400,000 of overhead each year in three departments: Processing, Packaging, and Testing. The company performs 800 processing transactions, 200,000 packaging transactions, and 2,000 tests per year in producing 400,000 drums of Oil and 600,000 drums of Sludge. The following data are available: The amount of overhead assigned to Sludge is $1,105,000. For its inspecting cost pool, Davidson, Inc. expected overhead cost of $300,000 and 4,000 inspections. The actual overhead cost for that cost pool was $360,000 for 5,000 inspections. The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is $75 per inspection. Financial statements for external users can be described as general-purpose. The wages of a timekeeper in the factory would be classified as indirect labor. Manufacturing costs that cannot be classified as either direct materials or direct labor are known as manufacturing overhead. On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n) subtraction from raw materials available for use. Managerial accounting information is generally prepared for managers. Which one of the following is an example of a period cost? A manager's salary for work that is done in the corporate head office Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively. If direct materials used were $290,000, what was the cost of raw materials purchased? $306,000. Dolan Company's accounting records reflect the following inventories: Dec. 31, 2013 Dec. 31, 2012 Raw materials inventory $ 310,000 $ 260,000 Work in process inventory $ 300,000 $ 160,000 Finished goods inventory $ 190,000 $ 150,000 During 2013, $600,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000. If Dolan Company's cost of goods manufactured for 2013 amounted to $1,390,000, its cost of goods sold for the year is $1,350,000 Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $440,000, what was the cost of raw materials purchased? $464,000. Which of the following is one of the components of cost accounting? It involves measuring product costs. Usually, under- or overapplied overhead is considered to be an adjustment to cost of goods sold. If Manufacturing Overhead has a credit balance at the end of the period, then overhead has been overapplied. Which of the following is not a control account? Factory Labor Manufacturing overhead is applied to each job by means of a predetermined overhead rate.