In a job-order costing system, indirect materials that have been previously purchased and that are used in production are recorded as a debit to:

For a lamp manufacturing company using a traditional absorption cost system, the cost of the insurance on its vehicles that deliver lamps to customers is best described as a:

December cash disbursements for merchandise purchases would be:

Multiple Choice (27 questions @ 2 points each = 54 points)Please mark the answer corresponding to the BEST answer.   Manufacturing overhead consists of:

A continuous (or perpetual) budget:

Problem 1 (7 points) Skyway Company manufactures dining carts for airlines.  The company uses variable costing for internal management reports and absorption costing for external reporting.  The company has the following (incomplete) data related to inventory and income     2013 2014 2015 Beginning Inventory (units) 200   e Ending Inventory (units) a b f Variable Costing net operating income $260,000 d $320,000 Absorption Costing net operating income c $300,000 g             The company’s fixed manufacturing overhead was constant over the three years at $500,000.  Production was also constant over the three-year period at 2,000 units per year.  Sales (in units) were as follows: 1,800 units in 2013; 2,200 units in 2014;2,200 units in 2015.  Find the missing amounts in the table above. Input your answers for letters a-g.   

Problem 2 (25 points)Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store’s operations follow: Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 for January. Collections are expected to be 75% in the month of sale, 20% in the month following the sale, and 5% uncollectible. The cost of goods sold is 65% of sales. The company desires ending merchandise inventory to equal 80% of the following month’s cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21,000. Monthly depreciation is $16,000. Ignore taxes.  Required:a. Prepare a Schedule of Expected Cash Collections for November and December.  (4 points)b. Prepare a Merchandise Purchases Budget for November and December. (4 points)c. Prepare Cash Budgets for November and December. (4 points)

Mancuso Corporation has provided its contribution format income statement for January. The company produces and sells a single product.  If the company sells 3,100 units, its total contribution margin should be closest to:

National Telephone company has been forced by competition to put much more emphasis on planning and controlling its costs. Accordingly, the company’s controller has suggested initiating a formal budgeting process. Which of the following steps will NOT help the company gain maximum acceptance by employees of the proposed budgeting system?

Exam 4 (Chaps 13-17)-1.pdf