Principles of Accounting II- Please help me to answer these questions and explanation so I can re-read through the chapters and understand better.

Question 1

Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is

	Materials 165,000 Accounts Payable 165,000
	Materials 190,000 Accounts Payable 190,000
	Materials 190,000 Cash 190,000
	Accounts Payable 190,000 Materials 190,000

Explanation:

Question 2

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered direct or indirect cost for the cost object given.

	Lubricants used on the bar stool manufacturing equipment
	Nails and screws used in the production of the bar stools
	Manufacturing costs for wood and steel used in the bar stools
	The production labor wages for the bar stool assemblers
	The factory supervisor’s salary for the bar stool factory

1.	Direct
2.	Indirect

Explanation:

Question 3

A product cost is

	expensed in the period in which it is manufactured
	shown with current liabilities on the balance sheet
	shown with operating expenses on the income statement
	expensed in the period the product is sold

Explanation:

Question 4

Which of the following statements is false?

	There is no overlap between financial and managerial accounting.
	Managerial accounting sometimes relies on past information.
	Managerial accounting does not need to conform to GAAP.
	Financial accounting must conform to GAAP.

Explanation:

Question 5

Job cost sheets can provide information to managers for all except

	the cost impact of materials changes
	the cost impact of continuous improvement in the manufacturing process
	the cost impact of materials price or direct labor rate changes over time
	utilities, managerial salaries, and depreciation of computers in the corporate office

Explanation:

Question 6

The financial budgets of a business include the cash budget, the budgeted income statement, and the budgeted balance sheet.

	True
	False

Explanation:

Question 7

Match each phrase that follows with the term (a-f) it describes..

	a plan that lists dollar amounts to be both spent on purchasing additional pant assets to carry out the budgeted business activities
	an accounting report that presents predicted amounts of the company’s assets, liabilities, and equity as of the end of the budget period
	a plan that shows the expected cash inflows and outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans
	a plan showing the number of units to be produced each month
	plans an important role for organizations in planning, directing, and controlling a company's future goals
	a plan showing the units of goods to be sold and the sales to be derived; usually the starting point in the budgeting process

1.	budget
2.	capital expenditures budget
3.	sales budget
4.	production budget
5.	cash budget
6.	budgeted balance sheet

Explanation:

Question 8

Depreciation expense on factory equipment is part of factory overhead cost.

	True
	False

Explanation:

Question 9

In a process costing system, indirect materials are charged to Work in Process.

	True
	False

Explanation:

Question 10

Match each of the following phrases with the term (a-e) that it most closely describes it. Each term will be used only once.

	these make up the work in process subsidiary ledger
	prepared when materials that have been ordered are received and inspected
	serves as the basis for recording materials used
	serves as the basis for recording direct labor on a job cost sheet
	the process by which factory overhead is assigned to a cost object

1.	job cost sheets
2.	materials requisitions
3.	receiving report
4.	time tickets
5.	cost allocation

Explanation:

Question 11

Managerial accounting reports must be useful to the user of the information.

	True
	False

Explanation:

Question 12

Department J had no work in process at the beginning of the period. 18,000 units were completed during the period, and 2,000 units were 30% completed at the end of the period. The following manufacturing costs were debited to the departmental work in process account during the period (Assume the company uses FIFO and rounds cost per unit to two decimal places):

Direct materials (20,000 at $5)	$100,000
Direct labor	142,300
Factory overhead	57,200

Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the departmental work in process inventory at the end of the period?

	$90,000
	$283,140
	$199,500
	$16,438

Explanation:

Question 13

Which of the following products would be manufactured using a job order costing system?

	a cell phone
	a highlighter pen
	a graduation invitation
	a recliner

Explanation:

Question 14

Principal components of a master budget include

	production budget
	sales budget
	capital expenditures budget
	all of these

Explanation:

Question 15

The Cardinal Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were: January - 200,000 units; February - 180,000 units; March - 210,000 units; and April - 230,000 units. The Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following month's sales.

Determine the budgeted units of inventory for March 31.

	46,000
	36,000
	cannot be determined from the data given
	42,000

Explanation:

Question 16

Match each phrase that follows with the term (a-h) it describes.

	measure of the work done during a production period, expressed in terms of fully complete units of output
	a process costing method that costs each period’s equivalent units of work with that period’s costs per equivalent unit
	conversion costs
	costs incurred in a previous process that are carried forward as part of the product’s cost when it moves to the next department
	summary of the activity in a processing department for a specific period
	prime costs
	costing system used by a company producing custom window treatments
	costing system used by a company producing computer chips

1.	direct labor and factory overhead
2.	direct labor and direct materials
3.	transferred in costs
4.	equivalent units
5.	process costing
6.	job order costing
7.	first-in, first-out method
8.	cost of production report

Explanation:

Question 17

Match each of the methods that follow with the correct category (a–b).

	Internal rate of return method
	Average rate of return method
	Cash payback method
	Net present value method

1.	Methods that does not use present value
2.	Methods that uses present value

Explanation:

Question 18

The Botosan Factory has determined that its budgeted factory overhead for the year is $13,500,000, and the budgeted direct labor hours are 10,000,000. If the actual direct labor hours for the period are 350,000, how much overhead would be allocated to the period?

	$675,000
	$470,630
	$472,500
	$236,250

Explanation:

Question 19

Custom-made goods would be accounted for using a process costing system.

	True
	False

Explanation:

Question 20

A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a minimum cash requirement of $340,000. The following data has been provided:

	January	February	March
Cash receipts	$1,061,200	$1,182,400	$1,091,700
Cash payments	984,500	1,210,000	1,075,000

What is the amount of cash excess or deficiency (after considering the minimum cash balance required) for March?

	excess of $214,200
	excess of $15,800
	deficiency of $60,000
	excess of $25,300

Explanation:

Question 21

Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:

Work in process, beginning of period	$ 60,000
Costs added during period:
Direct materials (10,400 at $9.8365)	102,300
Direct labor	79,800
Factory overhead	25,200

Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, determine the equivalent units for materials and conversion costs, respectively.

	14,000 and 12,160
	10,400 and 10,960
	14,000 and 13,600
	10,400 and 10,240

Explanation:

Question 22

Prime costs are

	direct materials and factory overhead
	direct materials and direct labor
	direct labor and factory overhead
	period costs and factory overhead

Explanation:

Question 23

Conversion cost is the combination of direct materials cost and factory overhead cost.

	True
	False

Explanation:

Question 24

The Lucy Corporation purchased and used 129,000 board feet of lumber in production, at a total cost of $1,548,000. Original production had been budgeted for 22,000 units with a standard material quantity of 5.7 board feet per unit and a standard price of $12 per board foot. Actual production was 23,500 units.

The materials price variance is

	$0
	$59,400 unfavorable
	$59,400 favorable
	$6,000 unfavorable

Explanation:

Question 25

Detailed supplemental schedules based on department responsibility are often prepared for major items in the operating expenses budget.

	True
	False

Explanation: