All of the following statements regarding management accounting's role in assigning decision-making authority are true except:
A. Since management accounting information is used for decision making purposes, historical information is unnecessary.
B. Information from the management accounting system supports decision making.
C. The syllabus for a college course is a type of report that outlines students' decision-making responsibilities.
D. All members of an organization have some decision-making ability.
Which of the following costs would not be considered part of the manufacturing overhead of a furniture manufacturer?
A. The cost of compliance with federal factory safety regulations.
B. Depreciation expense on factory equipment.
C. The cost of grease used to lubricate factory equipment.
D. The cost of wood used in furniture construction.
Which of the following costs would not be considered part of the manufacturing overhead of a chemical plant?
A. The costs of disposing of toxic waste materials.
B. Salaries of factory medical personnel.
C. Salaries of employees who operate distilling equipment used in the production process.
D. The cost of complying with federal safety regulations concerning plant operations.
Duffy Brothers manufactures a single product using a process involving (1) mixing ingredients and (2) a subsequent packaging operation. Duffy uses a process costing system to account for the flow of costs through its production process
Refer to the information above. In the production process described, what is the Work in Process Inventory: Packaging Department debited for?
A. Costs transferred from the Work in Process Inventory: Mixing Department only.
B. The cost of materials, direct labor, and overhead applicable to the packaging operation only.
C. Costs transferred from the Work in Process Inventory: Mixing Department, as well as materials, direct labor, and overhead applicable to the packaging operation.
D. Costs transferred to the Finished Goods Inventory.
Refer to the information above. In Duffy s operation, the Finished Goods Inventory account is debited for:
A. The cost of units transferred directly from the Mixing Department.
B. The cost of units transferred directly from the Packaging Department.
C. The cost of units transferred directly from both the Mixing Department and the Packaging Department.
D. The cost of the units sold.
Sue s Soup Products uses a process costing system with two processing departments: the Mixing and Cooking Department and the Canning Department. Work in process inventories are reduced to zero each month. In March, the Mixing and Cooking Department incurred manufacturing costs of $63,000 to mix 42,000 gallons of soup. The Canning Department incurred manufacturing costs of $9,000. A total of 170,000 cans of soup were transferred to the finished goods warehouse during the month.
Refer to the information above. The journal entry to record the transfer of soup out of the Mixing and Cooking Department during March would include:
A. A debit to Work in Process Inventory, Mixing and Cooking Department of $63,000.
B. A credit to Work in Process Inventory, Canning Department of $72,000.
C. A debit to Finished Goods Inventory of $72,000.
D. A credit to Work in Process Inventory, Mixing and Cooking Department of $63,000.
Refer to the information above. The journal entry to record the transfer of soup out of the Canning Department during March would include:
A. A credit to Work in Process Inventory, Canning Department of $9,000.
B. A credit to Work in Process Inventory, Canning Department of $63,000.
C. A debit to Finished Goods Inventory of $72,000.
D. A credit to Finished Goods Inventory, Mixing and Cooking Department of $72,000.
Refer to the information above. The unit cost per gallon of soup transferred to the Canning Department during March was:
A. $1.50.
B. $1.62.
C. $1.71.
D. $1.83.
Refer to the information above. The unit cost per can of soup transferred to the finished goods warehouse during March was:
A. $0.05.
B. $0.42.
C. $0.37.
D. $1.71.
Evans Products uses a process costing system with two processing departments: the Mixing Department and the Finishing Department. In June, unit costs incurred by the Mixing Department amounted to $4.00 per unit. Unit costs transferred to the finished goods warehouse during the month amounted to $22. Work-in-process inventories are reduced to zero each month.
Refer to the information above. If 80% of all inventory was sold at $32 per unit and 3,500 units were sold, what is the cost of the finished goods inventory at year-end?
A. $16,800.
B. $77,000.
C. $19,250.
D. $96,250