Accounting Help

[chromecarz00]

Edited March 7, 2008 by chromecarz00

[mjdx88]

8 False, there are 2 methods which i believe are both accepted I know the one is ABC method, dont remember the other name google it.

9 False, dont forget Raw materials

1-5 True, but not accepted.

1-7 if i understand it correctly is true

1-7 to 2-2 i dont know never covered it

2-2 True

26 B or D (just working on that now, im not sure about the ruling I was total 5%

I don know any of the other ones, good luck go back and read! Hope this helps these are all to my knowledge and by no means am i going to become an accountant so dont hold me too these answers

Mike

[r1v3th3ad]

Holy cow...
I took accounting a year ago and dropped it 3/4 of the way through. I'll see if I can dig up my notebook when I get back to my apt. tomorrow...going around noon, is that too late for you?

[Hookah_Bob3]

These question was part of a study guide for a midterm I have tomorrow...
Not graded, of course, but I couldnt figure out the problems...decided to give you guys a run...
Now Im going to annoy you with a bunch of probs, if you could help that would be great, my guesses underneath are in parenths. Please correct me if im wrong.

T/F

1) If the Cost of employee wages is not a significant portion of total product cost, wages are classified as direct materials cost.
False. Direct labor cost

3) If the cost of materials is not a significant portion of total product cost, materials may be classified as part of factory overhead cost.
True. Nuts and bolts are generally not considered direct costs because they are too hard to measure.

8) Generally Accepted Accounting Principles (GAAP) require companies to use only one factory overhead rate for product costing.
False. Multiple

9) Manufacturing business reports two types of inventory, work in progress and finished goods.
False. 3. Raw materials

1-0) On a balance sheet, for a manufacturing business, the cost of direct materials, direct labor, and factory overhead, which have been entered into manufacturing process but are associated with products that have not been finished, is reported as direct materials inventory.
False

1-5) If straight-line method of amortization is used, the amount of yearly interest expense will remain the same as bonds mature.
True. Don't know why they're asking this question. All bonds pay a fixed coupon payment, except for TIPS

1-7) If bonds of $1,000,000 w/ unamotrized discount of $20,000 are redeemed @ 99, the loss on redemption of bonds is $10,000.
Not sure what the question is asking

1-9) The balance in premium on bonds payable should be reported as an addition to bonds payable on the balance sheet.
False

2-0) If the conparative balance sheets indicate no liability for bodns payable on the first, or base, date and a liability of $500,000 on the later date, the increase of $500,000 can be stated as a 100% increase.
False

2-1) Factors which reflect the ablility of business to pay for its debts and earn a resonable amount of income are reffered to as equity and leverage.
Believe it's true, higher leverage = more potential profit, but also more potential loss

2-2) The excess of current asets over current liabilites is reffered to as leverage.
In my opinion, false. I don't think leverage is generally considered in short terms, and would generally be total assets over total liability

23) The number of day's sales in inventory is one means of expressing hte relationship btw/ the cost of goods sold and inventory.
False

25) tendency of the rate earned on stockholders equity to vary disportionatly from the rate earned on total assets is reffered to as solvency.
False.

Multiple Choice

26) @ the end of the fiscal year, balance in factory overhead is small. This balance would normally be
A) transerred to work in progress
B)transferred to Cost Of Goods Sold
C)transfered to finished gods
D) allocated btw. Work in Progress and finished goods.

31) Controlling account for cost ledger is
A) Finished goods
Materials
C) Work in progress
D) Cost of goods sold

33) When job 711 (random number) was completed, direct materials totaled $4000, direct labor $4600, and factory overhead $2400, respectively. Units produced totaled 1000. Unit costs are.
a) 11000
1100
C) 110
D) 11

35) Job Cost Sheets can provide information to managers for all but the following;
A) cost impact of materials changes
cost impact of continuous improvement in manufacturing process
C) cost impact of materials price, direct labor rates changes over itme
D) utilities managerial salaries, depreciation of computers in the corporate office.

36) In process cost accounting, hte costs of direct materials and labor are charged directly to
A) service dept
processing dept
C) customer accounts recieveable
d) Job order

37) In process cost, cost of completed production in Dept. A is transfered to Dept. B by which entry?

A) Debit WIP - Dept B; Credit WIP (works in progress) Dept A
Debit WIP - Debt B; Credit finished goods - Dept A
D) Debit finished goods, credit WIP- Dept A
You're missing C, which I assume is debit finish goods Dept B, raw materials dept a

Thanks guys.

Edited March 6, 2008 by Hookah_Bob3

[chromecarz00]

Holy cow...
I took accounting a year ago and dropped it 3/4 of the way through. I'll see if I can dig up my notebook when I get back to my apt. tomorrow...going around noon, is that too late for you?

naw, not too late.
thanks for you who have answered....God Bless

[chromecarz00]

Hey guys, my finals today, so i wont be bothering you after this. can you give me some guidance here?
Dept. G had 3600 units, 1/3 complete at beginning of period, 12000 units completed during the period, and 2000 1/5 complete at the end of the period. following manufacturing costs debited to departmental work in progress account during this period.

WIP beginning 30000
Added during:
Direct Materials (10,400 @ $8) 83200
Direct labor 62000
Factory overhead 24,800
Direct materils are placed at beginning of production, FIFO used, what is total cost of WiP inventory at the end.
How the heck do I calculuate that?

Also if theres any way you can give formulas for the following concepts;
equivalent units
Overhead
Cost of unfinished jobs at end of a period
machine hours
activity rate
acid test
inventory turnover

[mjdx88]

I believe all you do is add it all up if thats all the numbers you are given then just do that, your WIP should contain DM, DL, OH, + your beginning balance, there are no formulas, your just moving money around you need to know your debts and credits, also use T accounts they help alot.

I have never heard of the acid test.... Ivnt, Turn, activity rate google it, i'd give you the formula but my buddy has my book, overhead is found by what ever is related to production but not directly, machine hours should be give you may need to add or multiply somethings. Cost of unfinished jobs = whats left in WIP


Mike

[Perrj99]

You guys are all beautiful.

[mjdx88]

Chrome, where do you go to school?

[chromecarz00]

Chrome, where do you go to school?

uci, porque?