31) Which of the following is NOT one of the reasons that companies use an annual time period to compute the budgeted indirect-cost rate? 31) ______ A) the variable indirect-cost rate is too high B) the benefits of shorter periods do not outweigh the costs C) the budgeted quantity of the allocation base may fluctuate too much in periods shorter than one year D) a single annual indirect-cost rate helps to smooth out some of the erratic and period specific bumps E) the shorter the time period, the greater the seasonal influence 32) The first step in Job Costing […]

  61) Which of the following entries properly records the cost of goods sold for the month? 61) ______ A) Finished Goods control$1,045,000 Work in Process$1,045,000 B) Cost of Goods Sold$1,045,000 Finished Goods control$1,045,000 C) Cost of Goods Sold$1,045,000 Work in Process$1,045,000 D) Finished Goods control$1,045,000 Cost of Goods Sold$1,045,000 E) Cost of Goods Sold$1,045,000 Conversion costs control$1,045,000 62) Acme, Inc., manufactures air compressors. For July there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, “conversion costs.” Journal entries are recorded when materials […]

  51) The net present value method is better than the internal rate of return because 51) ______ A) the internal rate of return is simple. B) the net present value method is difficult to use in management decisions. C) investments may have multiple internal rates of return. D) the NPV's of different projects can be added together, and investments may have multiple internal rates of return. E) the NPV's of different projects can be added together. 52) A “what-if” technique that examines how a result will change if the original predicted data are not achieved, or if an underlying […]

  35) Which of the following statements concerning CCA is TRUE? 35) ______ A) the amortization method used does not affect cash outflows B) the accounting book value for all assets in a class equals the UCC for that class C) the total CCA available over the life of the asset depends on the method of amortization used D) the amortization method used does not affect cash inflows from operations E) since CCA does not involve a cash expenditure, it can be ignored in capital-budgeting decisions 36) A company purchased a class 8 asset (there were no disposals). If the […]

  81) Tornado Electronics manufactures stereos. All processing is initiated when an order is received. For April there were no beginning inventories. Conversion Costs and Direct Materials are the only manufacturing cost accounts. Direct Materials are purchased under a just-in-time system. Backflush costing is used with a finished goods trigger point. Additional information is as follows:   Actual conversion costs$232,000 Standard materials costs per unit60 Standard conversion cost per unit140 Units produced3,200 Units sold2,800   Required: Record all journal entries for the monthly activities related to the above transactions if backflush costing is used.  81) _____________ 82) Corry Corporation manufactures […]