As of December 31, 2013, Nilsen Industries had $2,000

of raw materials inventory. At the beginning of 2013,

there was $1,600 of materials on hand. During the year,
the company purchased $324,000 of materials; however
it paid for only $314,000. How much inventory was $323,600
requisitioned for use on jobs during 2013?

Paid doesn't matter(?) 2,000-1,600=400 324,000-400=

Barnes Company applies overhead on the basis of machine hours.

Given the following date, compute overhead applied and the
under- or overapplication of overhead for the period:
$2,900,000 applied and $40,000
Estimated annual overhead cost $3,000,000
Actual annual overhead cost $2,940,000
underapplied
Estimated machine hours 300,000
Actual machine hours 290,000

Because of automation, which

component of product cost is direct labor
declining?

A company expected its annual overhead costs to be

$1,800,000 and direct labor costs to be $1,000,000.
$1.80
Actual overhead was $1,740,000, and actual labor costs This only used OH and ignored
totaled $1,100,000. How much is the company's
predetermined overhead rate to the nearest cent? DL.

appears on both manufacturing and

merchandising companies' income
statements.
Cost of goods sold is calculated exactly the same for
merchandising and manufacturing
companies.
Cost of raw materials is debited to
materials are received.
Raw Materials Inventory when the

Equivalent units of production are the work done in a period

a measure of expressed in fully completed units

Gammil Company has beginning and

ending raw materials inventories of
$96,000 and $120,000, respectively. If
$464,000.
direct materials used were $440,000,
what was the cost of raw materials
purchased?

Given the following data for Harder Company, compute cost of

goods manufactured
Direct materials used $120,000 Beginning work in process
$20,000
Direct labor $200,000 Ending work in process $10,000
Manufacturing overhead $150,000 Beginning finished goods
$25,000
$480,000
Operating expenses $175,000 Ending finished goods $15,000

Beg WIP + Total manf costs - ending WIP = COGM

ignore 25,000, 175,000, 15,000

If actual overhead is less than
applied manufacturing overhead,
then manufacturing overhead is:
overapplied.
a loss on the income statement under
"Other Expenses and Losses."
considered a miscellaneous expense.
 If manufacturing overhead has
been underapplied during the
debit to Cost of Goods Sold
year, the adjusting entry at the
end of the year will show a

In a process cost system, a

for each processing department
production cost report is prepared

In a process cost system, product

on production cost reports
costs are summarized

denominator of units produced

In a process cost system, unit during the period
costs are determined using a
total costs/units produced, right?

Beginning work in process

In computing equivalent units,
___________ is not part of the
equivalent units of production
formula.
Units Completed and Transferred Out
+ Equivalent Units of Ending Work in
Process (EWIP)
= Equivalent Units of Production
In Moyer Company, the Cutting Department had
beginning work in process of 6,000 units, transferred out
16,000 units, and had an ending work in process of
3,000 units. How many units were started by Moyer 13,000.
during the month?
Transferred out - EWIP

In the Camria Company, materials are

entered at the beginning of the process. If
there is no beginning work in process, but
there is an ending work in process
the same as the units started
inventory, the number of equivalent units
as to materials costs will be

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 90,000 units
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?

In the Shaping Department of Rollins Company the unit

materials cost is $5.00 and the unit conversions cost is
$3.00. The department transferred out 20,000 units and
had 2,500 units in ending work in process 20% 14,000.
complete. If all materials are added at the beginning of
the process, the total cost to be assigned to the ending
work in process is

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 $60,000
sold was $50,000, how much would Kushman report for
cost of goods manufactured?
Madison Inc. uses job order costing for its brand new line of $1,950
sewing machines. The cost incurred for production during 2013
totaled $18,000 of materials, $9,000 of direct labor costs, and
$6,000 of manufacturing overhead applied. The company ships all 18+9+6=33,000
goods as soon as they are completed which results in no finished 15-9=6,000
goods inventory on hand at the end of any year. Beginning work
in process totaled $15,000, and the ending balance is $9,000. 33+6=39,000
During the year, the company completed 20 machines. How much 39,000/20= $1,950
is the cost per machine?
Picture this on a sheet

The major reporting standard for

presenting managerial accounting Relevance
information is

Management accountants would prepare reports primarily for

not external users

MANAGERIAL accounting applies

Managerial accounting applies to
to each of the following types of
all types of firms
businesses except

A manufacturing company reports component in the calculation of

cost of goods manufactured as cost of goods sold on the income
a(n) statement.
 Manufacturing overhead is by means of a predetermined
applied to each job overhead rate.

On the costs of goods

appears in the manufacturing
manufactured schedule,
overhead section.
depreciation on factory equipment

Physical units accounted for are 160,000. Total conversion

costs are $276,500. There are 4,000 units in ending
inventory which are 50% complete as to conversion costs.
How much is the conversion cost per unit?
4,000 x .5= 2,000 $1.75
Units accounted for (160,000) - Ending inventory (2,000)=
Equivalent units of conversion cost (158,000)
Total conversion costs (276,500) / Equivalent units of
conversion cost (158,000)

The predetermined overhead rate

estimated annual costs and
is based on the relationship
expected annual activity.
between

the production process is

Process costing is used when
continuous.
A process with 1,600 units of beginning work in process,
completed and transferred out 20,000 units during a
period. There were 10,000 units in the ending work in
process that were 50% complete as to conversion
costs. Materials are added 80% at the beginning of the 28,000 equivalent units.
process and 20% when the units are 90% complete.
How much is equivalent units of production for the period
for material costs?

A process with no beginning work in process, completed

and transferred out 28,000 units during a period and had
14,000 units in the ending work in process that were
50% complete. How much is equivalent units of 35,000 equivalent units.
production for the period for conversion costs?
28,000 + 7,000

direct materials, direct labor, and

Product cost consist of
manufacturing overhead

debited for invoice costs and

The Raw Materials Inventory
freight costs chargeable to the
account is
purchaser.

The sum of the direct materials

costs, direct labor costs, and
manufacturing overhead incurred total manufacturing cost
is the
DL+DL+MOH
 Total units to be accounted for
less units in beginning work in units started into production
process equals

Using the following information, Using the following information,

compute the cost of direct compute the cost of direct
materials used. materials used.

Using the following information,

$1,380,000
compute the direct materials used

Which of the following is

considered a difference between
Documents used to track costs
a job order cost and a process
cost system?

Which of the following is not

viewed as part of accumulating
Cost of goods sold is recognized
manufacturing costs in a job order
cost system?
Which of the following statements Most internal reports are
about internal reports is not true? summarized rather than detailed.

Which of the following statements

After the entry to transfer over- or
about under- or overapplied
underapplied overhead to Cost of
manufacturing overhead is
Goods
correct?

Which one of the following does

not appear on the balance sheet Cost of goods manufactured
of a manufacturing company?