All questions in this multiple-choice test are worth 5 points.
When preparing an income statement, the proper order for income statement components can be one of the following options:
a. Comprehensive income, Other comprehensive income items, irregular items, Net income
b. Net income, irregular items, Comprehensive income, Other comprehensive income items
c. Irregular items, Net income, Other comprehensive income items, Comprehensive income
d. Irregular items, Net income, Comprehensive income, Other comprehensive income items
2. Which statement below is not true regarding changes in accounting principles? a. Most changes in accounting principles are only reported in current periods when the principle change takes place. b. Changes in accounting principles are allowed when new principles are preferable to old ones. c. Most changes in accounting principles are retroactively reported. d. Consistency is one of the biggest concerns when a change in accounting principle is undertaken.
3. Management accountants would not assist in budget planning, prepare reports primarily for external users, determine cost behavior, or be concerned with the impact of cost and volume on profits.
4. Which of the following statements about internal reports is false? a. The content of internal reports may go beyond the double-entry accounting system. b. Internal reports may display all amounts at market values.
c.Internal reports may discuss prospective events. Most internal reports are summarized rather than detailed.
5. The flow of costs in a job order cost system involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done. It cannot be measured until all jobs are complete and measures product costs for a set time period, generally following a LIFO cost flow assumption.
6. A job cost sheet is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job. It is also used to track manufacturing overhead costs to specific jobs and by management to understand how direct costs affect profitability. Additionally, it is a daily form that management uses for tracking worker productivity, on which employee raises are based.
7. In a process cost system, there are several ways in which a Work in Process account is managed. Firstly, there is a separate Work in Process account for each product being produced. Secondly, when materials are requested, the requisition form must specify the job for which the materials will be utilized. Additionally, there is also a separate Work in Process account for each individual process involved in production. Lastly, there is an option to use a single Work in Process account that covers all the processes, similar to how it is done in a job order cost system.
8. A process cost accounting system is suitable for situations where multiple products are created, each with varying material, labor, and overhead requirements. Additionally, it is used when the attention is directed towards a specific job or order.
c. Similar products are produced in large quantities.
d. Individual products are tailored to customer specifications.
9. Activity-based costing is a method that involves the allocation of overhead to activity cost pools. The allocated overhead is then assigned to products and services using cost drivers. This method differs from others in that it accumulates overhead in one cost pool and assigns it to products and services by means of a cost driver. Additionally, it assigns activity cost pools to products and services and then allocates overhead back to the activity cost pools. Another approach is to allocate overhead directly to products and services based on activity levels.
10. A well-designed activity-based costing system begins by:
- a) identifying the activity-cost pools.
- b) computing the activity-based overhead rate.
- c) assigning overhead costs to products.
- d) analyzing the activities performed to manufacture a product.
Each problem is worth 30 points.
Norton Brooks, PSC is an architectural firm that employs activity-based costing. The firm utilizes three activity cost pools, which include Salaries and Wages, Travel Expense, and Plan Reproduction Expense. Norton Brooks has provided the following details regarding activity and costs:
Salaries and wages: $390,000
Travel expense: $100,000
Plan reproduction expense: $120,000
Total: $610,000
Activity Cost Pools
ProjectBusiness
AssignmentDevelopmentOther
Salaries and wages60%
Travel expense40%
Plan reproduction expense35%
Instructions
Calculate the total cost to be allocated to the (a) Project Assignment, (b) Business Development, and (c) Other activity cost pools.
Seasonal Delights manufactures a diverse range of holiday and seasonal decorative items. The overhead rates for Seasonal Delights’ activity-based costing are as follows:
Purchasing: $380 per order
Storing: $2 per square foot/days
Machining: $100 per machine hour
Supervision: $5 per direct labor hour
The Snow Man project consisted of three purchase orders, totaling 4,000 square feet/days, 60 machine hours, and 40 direct labor hours. The job incurred $19,000 in direct material costs and had a direct labor rate of $30 per hour.
Instructions
Determine the total cost of the Snow Man project.
Crenshaw Company inputs materials at the start of each process. The Work in Process (WIP) inventories, containing the conversion work percentage, and production data for its Painting Department during specific months are provided below:
Beginning Work In ProcessEnding Work In Process
PercentageUnits CompletedPercentage
MonthUnitsCompletedand Transferred OutUnitsCompleted
July-0-—11,00050090%
Sept.2,50020%9,0004,00070%
Instructions
(a) Calculate the physical units for July.
(b) Determine the equivalent units of production for materials and conversion costs for September.
In May 2013, Nitz Company’s Assembly Department began manufacturing 25,000 units. Of these, 20,000 units were transferred out while 5,000 units were fully completed in terms of materials and partially completed by 40% in terms of conversion costs.
Manufacturing Costs: The overall costs of manufacturing amount to $90,000 for materials, $72,000 for labor, and $60,000 for overhead expenses.
Instructions:
Please generate a production cost report for the month of May.
Garnder Company began operating on July 1, 2013. The job cost sheets display the manufacturing costs assigned for each month with their respective job numbers and amounts.
Job No. July August September
100 $12,000 $8,800
101 $8,800 $9,700 $12,000
102 $5,000
103 $11,800 $6,000
104 $5,800 $7,000
Job 102, completed in July, Job 100, completed in August, and Jobs 101 and 103, completed in September
were each sold for 80% above their respective costs in the month following completion.
Instructions
In the month after completion, Job 102 (completed in July), Job 100 (completed in August), and both Jobs 101 and 103 (both completed in September) were all sold at a price that was 80% higher than their individual costs.
Compute the balance in Work in Process Inventory at the end of July, the balance in Finished Goods Inventory at the end of September, and the gross profit for August.
Students Allowance
What is the minimum allowance of a college student?
Minimum allowance of a student is base on how much their parents have to give them. We all know that a college student had much greater need than in high school days. We very much interested this issue because every one of us can relate this topic. Mostly of us don’t know how to manage their allowance and organize a budget. To budget your allowance is one way of showing your parents that you can be trusted and you’re responsible enough. We sometimes temp to buy things which are not really important and temp to hang out with friends which are not included in your budgetary allowance. “For most students, college represents a crash course on how to manage money and organize a budget. If a student has never paid for his or her living expenses, the experience can often be frightening and over whelming. Stick to a budget while at college to enjoy life without sacrificing comfort or taking away from the experience” (frazier, 2006). This study will help you more about allowance budget and gives you some extra tips. As students, we often whine about our allowance due to financial dilemmas and we should remember how to budget our allowance or better yet we should be thrifty enough so that in a way we’ll be able to help our parents. The aim of the scheme is to ensure the need to meet day-to-day living expenses doesn’t act as a barrier to full time education for students from low and socio-economic group.
The concept of allowance involves a limited amount of something, typically regulated or designated for a specific purpose. It may refer to the provision of a fixed amount of food and beverages, as well as the provision of a set and restricted quantity. The statement emphasizes that allowances are limited, therefore requiring mindful expenditure. It is important to cultivate self-awareness in managing allowances. Certain students engage in part-time work. “Part-time students who can demonstrate that they are not anticipated to devote 21 hours or more per week to studying should still be eligible to claim Career’s Allowance.”
The purpose of conducting a study on students’ allowance is to gain insight into their spending habits and whether it adequately covers their daily living expenses. There are several reasons why this study is important. Firstly, behavior plays a role in how we manage our money. According to Crumley (1978), behaviorism suggests that our actions are influenced by our surroundings and mental states. For example, if someone invites us to go shopping but we know we don’t have extra funds, we should decline.
Secondly, decision making is crucial when it comes to financial matters. Teays (2006) emphasizes the importance of doing preliminary work before making decisions that may result in regret later on. For instance, assuming friends will cover the expenses when going out but then being surprised when asked to contribute.
Lastly, considering the cost of living is vital for budgeting purposes. Student Financial Aid determines eligibility for financial aid each year by establishing a reasonable cost of living allowance which covers various expenses such as housing, utilities, food, transportation, personal and miscellaneous items as well as medical expenses.
Theoretical Background
Research on student spending has discovered that students worldwide have diverse ways of using their money. However, there are common trends in their spending behavior. In recent times, there has been a significant global shift in how young individuals spend their money. The commercial industry has always targeted the spending habits of students (IFIM Students Lifestyle and Spending Habits, 2009). A bank and financial institution conducted a study which revealed that youth typically allocate their funds towards activities such as purchasing cell phone load, playing computer games at Internet cafes, buying cigarettes and alcohol, socializing outings, and shopping for clothing and accessories (TJ Manotoc, ABS-CBN News, 2010).
According to Tempo (2010), teenagers are influential consumers who actively spend money and shape societal trends. Despite growing up during a time of rapid change, they display confidence in their decision-making abilities. Many teenagers prioritize staying on-trend and following what is currently popular. They typically receive income from allowances or part-time jobs, which is not determined by their family’s income or social status but rather by the parents’ upbringing and lifestyle choices (Felipe, 2007). Ming Barcelona, TNS Philippines Associate Research Director, states that Filipino teens do not solely prefer low-priced brands due to limited budgets. Gary de Ocampo, TNS Philippines Managing Director, highlights the importance of understanding Filipino teenagers’ mindsets, preferences, purchasing habits, as well as their views on brand values, product offerings, and social issues (TRU study).
The study focuses on the Student’s Allowance at La Salle University, Ozamiz City. It aims to address the following questions: 1. How do parents provide allowance to their children? 2. What is the frequency of the allowance (daily, weekly or monthly)? 3. Do students manage their own budget?
In. Significance of the Study.
This study highlights the importance of La Salle University students being aware of their parents’ expenses and finding ways to reduce financial issues. One way to overcome this predicament is for students to have part-time jobs in order to remove the barrier of financial concerns on their academic performance. Additionally, students should practice thriftiness and wise money management. For future researchers, it would be beneficial to include the effects of these measures.
V. Scope and Limitations.
The study focused on the portrayal of students wasting their money allowance. Researchers aimed to promote proper usage of allowance to ensure students’ long-term financial well-being. They examined various approaches and limitations by analyzing images of female students’ allowances through different models. The research compared these changing images to present-day students. The topic was chosen to highlight the significance of womanhood and gain a deeper understanding of the evolving roles of students across time.
The Article “The Next President: Mastering A Daunting Agenda” Review
Article Review
The article “The Next President: Mastering a Daunting Agenda” by Richard Holbrooke discusses international challenges since World War II and special attention is paid to presidential actions when coping with those challenges. The article is very informative and contributes significantly economic field as the author provides well-supported arguments that the next president us expected to inherit leadership of the nation. A set of international challenges is difficult to overcome and the president should find new ways and policies. The author writes that the USA remains the most powerful nation in the world. The United States of America is a rich nation with dynamic and diverse population. Therefore, America is expected to inspire and lead the whole world. Nevertheless, despite the positive tendencies in country’s prosperity, the next president is assumed to inherit difficult set of international challenges compared with predecessors.
The key challenge of the next president is to re-shape a sense of national purpose, to re-state a sense of national strength and to prevent disastrous mistakes. The author writes that the next president has to “to reshape policies on the widest imaginable range of challenges, domestic and international” (Holbrooke, 2008) and to re-build relations with allies and friendly nations. Flagging economy should be revitalized and a budget should be tamed. The next president is expected to reduce energy dependence and to cope with the problem of nuclear proliferation. Defense of homeland security should be improved and global terrorists’ actions should be prevented. More pressure, of course, should be put on al Qaeda in Pakistan. It is rather difficult to manage two wars at the same time. The author concludes that the country is not a helpless giant and it remains the most powerful state on the Earth. The USA is still able to shape its own destiny and to remain a leading payer in multi-polar world. The country can address the most pressing problems in the world. The country deserve worthy of its population and country’s leadership aims at restoring the national pride.
References
Holbrooke, Richard. The Next President: Mastering a Daunting Agenda. Foreign Affairs, September/October 2008.