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Managerial Accounting Assignment 1 - 29 Questions
Managerial Accounting Assignment 1 - 29 Questions
3
Troy Corporation purchased bicycles from a British manufacturer at a price of 35,000 British
pounds on November 15, 2005, with payment due in 60 days. Using the following exchange
rates, compute the gain or loss from currency fluctuations that Troy should recognize in 2005 and
2006.
Nov. 15, 2005$1.70 per British pound
Dec. 31, 2005$1.75 per British pound
Jan. 15, 2006$1.73 per British pound
$1,750 loss in 2005; $700 gain in 2006
Packard Construction applies overhead to its projects at a rate of $100 per direct labor hour.
Laborers are paid an average rate of $25 per hour. The Seaside Apartments project was charged a
total of $450,000 in direct materials and $150,000 in direct labor costs.
Refer to the information above. The journal entry to transfer the completed Seaside Apartments
project to Packard's finished goods inventory would include:
Amounts debited to the Work in Process Inventory account may best be described as:
direct materials purchased, direct labor costs paid, and payments for items classified as
manufacturing overhead.
the cost of finished goods manufactured during the period.
The following information has been taken from the perpetual inventory system of Regal Mfg.
Co. for the month ended September 30:
Materials $? $55,000
Work in Process 30,000 40,000
Finished Goods 83,000 71,000
Refer to the above data. The cost of goods sold in September is:
$165,000
$140,000
$153,000
consists of the cost of new materials used, labor but not overhead.
10
In a recent financial journal, the exchange rate between the dollar and the British pound was
quoted in two ways:
Refer to the above data. The number of dollars equivalent to 30,000 on this date is:
$18,750
$48,000
11
An international joint venture involves the creation of a new company that is owned by two or
more firms from different countries.
True
False
14
Packard Construction applies overhead to its projects at a rate of $100 per direct labor hour.
Laborers are paid an average rate of $25 per hour. The Seaside Apartments project was charged a
total of $450,000 in direct materials and $150,000 in direct labor costs.
Refer to the information above. The journal entry made by Packard to record the sale of the
Seaside Apartments project to Tessa Development Company for $3,200,000 would include:
15
An activity base is said to be a "driver" of overhead costs when the activity base:
16
The set of linked activities and resources needed to create and deliver a product or service to the
customer is referred to as
The budget
17
political systems.
economic systems.
19
Red Rose, Inc. sold American fashions to a Japanese company at a price of 3 million yen. On the
sale date, the exchange rate was $.0100 per Japanese yen, but when Red Rose received payment
form its customer, the exchange rate was $.0103 per Japanese yen. When the foreign receivable
was collected, Red Rose:
21
A job cost sheet should:
contain information that summarizes all jobs finished.
24
The price of one currency stated in terms of another currency is the
Current ratio
Exchange rate
25
Which of the following is not a product cost?
Depreciation on a raw materials warehouse
26
The following information has been taken from the perpetual inventory system of Regal Mfg.
Co. for the month ended September 30:
Materials $? $55,000
Work in Process 30,000 40,000
Finished Goods 83,000 71,000
Refer to the above data. The cost of finished goods manufactured in September is:
$138,000
$165,000
$140,000
Some other amount
30
$2,005
$4,900
$4,475
$5,270
32
In a recent financial journal, the exchange rate between the dollar and the British pound was
quoted in two ways:
Refer to the above data. The number of pounds equal to $30,000 on this date is:
18,750
48,000
34
The principal difference between managerial accounting and financial accounting is that
managerial accounting information is
Prepared by managers
Intended primarily for use by decision makers inside the business organization
35
Which of the following is true about foreign trade zones?
They are illegal in the United States
Goods imported into these designated U.S. areas are duty free until they leave the zone
They are areas outside the United States that offer special tax treatments
38
The following information has been taken from the perpetual inventory system of Regal Mfg.
Co. for the month ended September 30:
Materials $? $55,000
Work in Process 30,000 40,000
Finished Goods 83,000 71,000
Refer to the above data. The total amount of inventory to be included in Regal's September 30
balance sheet amounts to:
$215,000
$122,000
$170,000
41
If the exchange rate for a foreign currency (stated in dollars) has risen, a dollar will purchase:
42
Of the following globalization strategies, which would be least demanding in terms of the
quantity and variety of accounting information required?
Joint ventures
International licensing
Exporting
In a recent financial journal, the exchange rate between the dollar and the Japanese yen was
quoted in two ways:
Refer to the above data. The number of Japanese yen equivalent to $60,000 on this date is
(rounded to whole ):
6,000,000
7,853,400
44
Packard Construction applies overhead to its projects at a rate of $100 per direct labor hour.
Laborers are paid an average rate of $25 per hour. The Seaside Apartments project was charged a
total of $450,000 in direct materials and $150,000 in direct labor costs.
Refer to the information above. Overhead applied to the Seaside Apartments project amounted
to:
$1,500,000
$1,200,000
$600,000
45
In a recent financial journal, the exchange rate between the dollar and the Japanese yen was
quoted in two ways:
Exchange rate (in dollars) $.00764
Exchange rate (in yen) 130.89
Refer to the above data. The number of dollars equivalent to 6,000,000 on this date is:
$45,840.00
$67,500.00
46
Quintal imports a desk from a French manufacturer for sale in its chain of U.S. stores. The cost
of a desk to Quintal is 2,000 Euros. What is the dollar cost of one of these desks if the exchange
rate is currently 1.117 Euros per U.S. dollar? (round to nearest cent)
$1,117.00
$1,254.46
$1790.51
47
Gains and losses from fluctuations in exchange rates should be shown on the:
balance sheet.
income statement.
49
The following information has been taken from the perpetual inventory system of Regal Mfg.
Co. for the month ended September 30:
Materials $? $55,000
Work in Process 30,000 40,000
Finished Goods 83,000 71,000
Refer to the above data. Total manufacturing costs charged (debited) to work in process during
September amount to:
$195,000
$155,000
$165,000