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Sets with similar termsSets found in the same folderOther sets by this creatorVerified questions
ACCOUNTING
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ACCOUNTING
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ACCOUNTING
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ACCOUNTING
Marathon Oil Company manufactures two products, Regular and Supreme. Marathon's overhead costs consist of machining, $3,000,000; and assembling,$1,500,000. Information on the two products is: Regular: 10,000 Direct labor hours, 10,000 Machine hours, 90,000 parts Supreme: 15,000 Direct labor hours, 30,000 Machine hours, 160,000 parts How much Overhead is applied to Regular using traditional costing based on direct labor hours? A) $3,210,000. B)$1,290,000. C) $2,700,000. D)$1,800,000.
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Other Quizlet setsRelated questions Recommended textbook solutions
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One difference between accounting for a governmental (not-for-profit) unit and a commercial (for-profit) enterprise is that a governmental unit should b. Always establish and maintain complete self-balancing accounts for each fund. Belle Valley incurred $100,000 of salaries and wages for the month ended March 31, 20X2. How should this be recorded on that
date? a. Expenditures—Salaries and Wages Vouchers Payable
a. Not record depreciation expense in any of its funds.
b. Always establish and maintain complete self-balancing accounts for each fund.
c. Use only the cash basis of
accounting.
d. Use only the modified accrual basis of accounting.
Exercises
LO 17-7
a. Expenditures—Salaries and Wages Vouchers Payable
b. Salaries and Wages Expense Vouchers Payable
c. Encumbrances—SalariesandWages Vouchers Payable
d. Fund Balance Vouchers Payable
Which of the
following accounts of a governmental unit is credited when taxpayers are billed
for property taxes?
a. Estimated Revenue.
b. Revenue.
c. Appropriations.
d. Fund Balance—Assigned for Encumbrances.
Fixed assets purchased from general fund revenue were received. What account, if any, should have been debited in the general fund?
a. None.
b. FixedAssets.
c. Expenditures.
d. Fund Balance—Unassigned.
The initial transfer of cash from the general fund to establish an internal service fund requires the general fund to credit Cash and debit
a. Accounts Receivable—Internal Service Fund.
b. Transfers Out.
c. Budgetary Fund Balance—Assigned for Encumbrances.
d. Expenditures.
Which of the following steps in the acquisition of goods and services occurs
first?
a. Appropriation. b. Encumbrance. c. Budget.
d. Expenditure.
What account is used to earmark the fund balance to recognize the contingent obligations of goods ordered but not yet received?
a. Appropriations.
b. Encumbrances.
c. Obligations.
d. Fund Balance—Assigned for Encumbrances.
d. Fund Balance—Assigned for Encumbrances.
When a governmental unit’s Estimated Revenues Control account is closed out at the end of the fiscal year, the excess of estimated revenues over estimated appropriations is
a. Debited to Fund Balance—Unassigned.
b. Debited to Fund Balance—Assigned for Encumbrances.
c. Debited to Budgetary Fund Balance—Unassigned.
d. Credited to Fund Balance—Assigned for
Encumbrances.
c. Debited to Budgetary Fund Balance—Unassigned.
Carson City’s general fund issued purchase orders of $630,000 to vendors for supplies. Which of the following entries should the city make to record this transaction?

A. ENCUMBRANCES 630,000 BUDGETARY FUND BALANCE—ASSIGNED
FOR ENCUMBRANCES
630,000
B. Expenditures 630,000 Vouchers Payable
630,000
C. Expenses 630,000 Accounts Payable
630,000
D. BUDGETARY FUND BALANCE—ASSIGNED FOR ENCUMBRANCES 630,000 ENCUMBRANCES
A. ENCUMBRANCES 630,000 BUDGETARY FUND BALANCE—ASSIGNED FOR ENCUMBRANCES
630,000
The following balances are included in the subsidiary records of Dogwood’s Parks and Recre- ation Department on March 31, 20X2:
Appropriations—Supplies - $7,500
Expenditures—Supplies - 4,500 Encumbrances—Supply Orders - 750
How much does the department have available to purchase additional supplies?
a. $0.
b. $2,250. c. $3,000. d. $6,750.
Which of the following accounts of a governmental
unit is credited when the budget is recorded?
a. Encumbrances.
b. Budgetary Fund Balance—Assigned for Encumbrances.
c. Estimated Revenue Control.
d. Appropriations Control.
d. Appropriations Control.
Which of the following accounts of a governmental unit is debited when supplies
previously ordered are received?
a. Encumbrances.
b. Budgetary Fund Balance—Assigned for Encumbrances.
c. VouchersPayable.
d. Appropriations Control.
b. Budgetary Fund Balance—Assigned for Encumbrances.
Which of the following situations will increase a governmental unit’s fund balance
at the fiscal year-end?
a. Appropriations are less than expenditures and budgetary fund balance assigned for encumbrances.
b. Appropriations are less than expenditures and encumbrances. c. Appropriations are more than expenditures and encumbrances. d. Appropriations are more than estimated revenue.
c. Appropriations are more than expenditures and encumbrances.
Which of the following accounts of a governmental unit is credited to close it out at the fiscal year-end?
a. Appropriations Control.
b. Revenue—Property Tax.
c. Budgetary Fund Balance—Assigned for Encumbrances. d. Encumbrances.
The primary focus in accounting and reporting for governmental funds is
a. Income determination.
b. Flow of
financial resources.
c. Capital maintenance.
d. Transfers relating to proprietary activities.
b. Flow of financial resources.
A Budgetary Fund Balance—Assigned for Encumbrances in excess of a balance of Encum- brances Control indicates
a. An excess of vouchers payable over encumbrances. b. An
excess of purchase orders over invoices received. c. A recording error.
d. An excess of appropriations over encumbrances.
The Encumbrances Control account of a governmental unit is debited when
a. Goods are received.
b. A voucher payable is recorded. c. A purchase order is approved. d. The budget is recorded.
c. A purchase order is approved.
Oak City issued a purchase order for supplies with an estimated cost of $5,000. When the supplies and accompanying invoice were received, the invoice indicated a $4,950 actual price. What amount should Oak City debit (credit) to Budgetary Fund Balance—Assigned for Encumbrances?
a. $5,000. b. $(50). c. $4,950. d. $50.
Encumbrances outstanding at year-end in a state’s general fund should be reported as a
a. Liability in the general fund.
b. Fund balance designation in the general fund.
c. Fund balance reserve in the general fund.
d. Liability in the general long-term debt account group.
c. Fund balance reserve in the general fund.
Which of the following statements is correct regarding comparability of governmental finan- cial reports?
a. Comparability is not relevant in governmental financial reporting.
b. Differences between financial reports should be due to substantive differences in underly-
ing transactions or the governmental structure.
c. Selection of different alternatives in accounting procedures or practices account for
the dif-
ferences between financial reports.
d. Similarly designated governments perform the same functions.
b. Differences between financial reports should be due to substantive differences in underly-
ing transactions or the governmental structure.
Questions not included in Flash Cards:
E17-3 --> 4
E17-4 --> 2, 5, 7, 9