Acc 400 Final Examination Solution

ACC 400 Final Examination Solution

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ACC 400 Final Examination Solution

Final Examination Solution

1. Which of the following is not a characteristic of managerial accounting?

• Reports are used primarily by insiders rather than by persons outside of the business entity.

• Its purpose is to assist managers in planning and controlling business operations.

• Information must be developed in conformity with generally accepted accounting principles or with income tax regulations.

• Information may be tailored to assist in specific managerial decisions.

2. In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial accounting report is less likely to:

• Focus upon the entire organization as the accounting entity.

• Focus upon future accounting periods.

• Make use of estimated amounts.

• Be tailored to the specific needs of an individual decision maker.

3. Alton Company produces metal belts. During the current month, the company incurred the following product costs:

Raw materials $100,000

Direct labor $75,000

Electricity used in the Factory $25,000

Factory foreperson salary $3,750

Maintenance of factory machinery $2,000

Alton Company’s total product costs:

1. $175,000.

750. $30,750.

750. $205,750.

751. $28,750.

4. Objectives of a cost accounting system

What are the major objectives of a cost accounting system in a manufacturing company?

5. 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 debit to Work in Process Inventory, Mixing and Cooking Department of $63,000.

• A credit to Work in Process Inventory, Canning Department of $72,000.

• A debit to Finished Goods Inventory of $72,000.

• A credit to Work in Process Inventory, Mixing and Cooking Department of $63,000.

6. Refer to the...