Accounting & Reporting

1) In a job-order cost system, the use of indirect materials would usually be reflected in the general ledger as an increase in

2) Cannon Cannery, Inc. estimated its factory overhead at $490,000 for 1997, based on a normal capacity of 100,000 direct manufacturing labor hours. Standard direct manufacturing labor hours for the year totaled 105,000, while the factory overhead control account at the end of the year showed a balance of $540,000. How much was the underapplied factory overhead for 1997?

3) In developing a factory overhead application rate for use in a process costing system, which of the following could be used in the denominator?

4) In the computation of manufacturing cost per equivalent unit, the weighted-average method of process costing considers

5) In its July 1999 production, GEM Corp., which does not use a standard cost system, incurred total production costs of $1,600,000, of which GEM attributed $60,000 to normal spoilage and $40,000 to abnormal spoilage. GEM should account for this spoilage as

6) For purposes of allocating joint costs to joint products, the sales price at point of sale reduced by cost to complete after split-off is assumed to be equal to the

7) Randall Company manufactures products Dee and Eff from a joint process. Product Dee has been allocated $2,500 of total joint costs of $20,000 for the 1,000 units produced. Dee can be sold at the split-off point for $3 per unit, or it can be processed further with additional costs of $1,000 and sold for $5 per unit. If Dee is processed further and sold, the result would be

8) Breakeven analysis assumes over the relevant range that

9) Kory Co. has sales of $200,000 with variable expenses of $160,000, fixed expenses of $50,000, and an operating loss of $10,000. By how much would Kory have to increase its sales in order to achieve an operating income of 10% of sales?

10) Assuming that sales and net income remain the same, a company's return on investment will

11) Residual income is the

12) In the contribution margin approach to pricing, the price at which the income remains constant is equal to the price that covers

13) Cafй quotes a price of $30 per person for a dinner party. This price includes the 8% sales tax and the 12% service charge. Sales tax is computed on the food plus the service charge. The service charge is computed on the food only. At what amount does the cafй owner price the food?

14) All of the following are features of just-in-time (JIT) systems except

15) The absolute minimum cost that would be possible under the best conceivable operating conditions is a description of which type of standard cost?