exam 2 Prin Mang Acct

The only difference between the weighted-average method of process costing and the FIFO method is A) the method for calculating ending inventory. B) the method for calculating units completed. C) the method for calculating beginning inventory.D) the method for calculating unit cost.

C) the method for calculating beginning inventory

The high-low method basically fits a line through the highest and lowest __________ point's. A) fixed cost B) variable cost C) volume D) none of the above

C) volume

ABM stands for A) activity-based management. B) all but managers. C) activity-based manufacturing. D) activity-biased management.

A) activity-based management

The cost of maintaining quality control testing equipment would be classified as a(n) ________ cost. A) appraisal B) prevention C) internal failure D) external failure

A) appraisal

All fixed costs are listed ________ on a contribution margin income statement. A) below the contribution margin line B) above the gross profit line C) above the contribution margin line D) below the gross profit line

A) below the contribution margin line

60,000 units 90,000 units Cost A $75,000 $75,000 Cost B $120,000 $180,000 Cost C $65,000 $80,000 Total Costs $260,000 $335,000 Cost A is a _______________ cost. A) fixed B) variable C) mixed D) sunk

A) fixed

If a company were to decrease its prevention costs by eliminating employee training, the company's external failure costs would most likely A) increase. B) decrease. C) remain the same. D) Unable to predict

A) increase.

In the equation y =$11.75x +$550, "x" represents A) number of units produced. B) total fixed costs. C) total costs. D) none of the above.

A) number of units produced.

When using the high-low method, the variable cost per unit can be found as A) rise overrun. B) run-over rise. C) change in volume over a change in cost. D) vertical intercept.

A) rise over run.

The use of either absorption or variable costing will make little difference in companies A) using just-in-time inventory methods. B) with large inventories. C) with high fixed costs. D) with high variable costs.

A) using just-in-time inventory methods.

What term represents the variable cost per unit of activity in the equation: y =vx +f? (Assume xrepresents the volume of activity.) A) v B) f C) y D) vx

A) v

A(n) ________ cost is a cost whose total amount changes in direct proportion to a change in volume. A) variable B) fixed C) mixed D) irrelevant

A) variable

When using the high-low method, what is the correct order of the following three steps? i. write the cost equation ii. find the vertical intercept iii. find the slope A) i, ii, iii B) ii, iii, i C) iii, ii, i D) iii, i, ii

C) iii, ii, i

By increasing ________, a manager can increase operating income under absorption costing. A) variable costs B) fixed costs C) production D) leased assets

C) production

A company manufactures wallets. Last month's costs were: Direct materials $247,000 Direct labor 149,000 Manufacturing Overhead 70,000 What were the conversion costs for the month? A) $247,000 B) $396,000 C) $219,000 D) $466,000

149,000 + 70,000= 219,000 Answer: C

Start the Day Right has 2500 gallons of orange juice in WIP Inventory, with 75% of materials already added. What are equivalent units in ending WIP Inventory for materials if the orange juice is 58% through the process? A) 1450 B) 1875 C) 0 D) 425

2500 x 75% = 1875 B

Start the Day Right has 2800 gallons of orange juice in WIP Inventory, with 72% of materials already added. The orange juice is 55% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs? A) 0 B) 476 C) 1540 D) 2016

2800 x 55% = 1540 C

George Company has a relevant range of 150,000 units to 400,000 units. The company has total fixedcosts of $525,000. Total fixed and variable costs are $612,500 at a production level of 175,000 units. The variable cost per unit at 300,000 units is A) the same as at 175,000 units. B) greater than at 175,000 units. C) less than at 175,000 units. D) dependent upon fixed costs per unit.

612500= v * 300,000 + 525000 = A

The following data pertain to costs at Massey Company: Total fixed costs $320,000 Total variable costs $79,000 Production level 21,000 units The variable cost per unit is A) $3.76 B) $15.24 C) $19.00 D) $11.48

79,000= v * 21,000 79000/21000= 3.76 A

Pelicans Ice is a snow cone stand near the local park. To plan for the future, Pelicans Ice wants todetermine its cost behavior patterns. It has the following information available about its operatingcosts and the number of snow cones served. Month Number of snow cones Total operating costs January 6,400 $5,980 February 7,000 $6,400 March 6200 $5740 April 6,900 $6,330 May 8100 $7320 June 7,250 $6,575 The variable cost per snow cone using the high-low method isA) $1.20 B) $0.83 C) $0.90 D) $0.93

8,100 (high units) 6,200 (low units) 7,320 (high cost) 5,740 (low cost) 7,320-5,740 / 8100-6200= 1580/1900= 0.83 Answer: B

Yummy Tummy Desserts has 2600 quarts of ice cream in the WIP Inventory, with all materials already added. The ice cream is 72% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs? A) 0 B) 2600 C) 1872 D) 728

= 2600 x 72% = 1872 C

Garrison Company adds direct materials at the beginning of the process and adds conversion coststhroughout the process. Data for the Shaping Department follows: WIP, April 1 12,000 units Transferred-in costs in WIP, April 1 $79,940 Direct materials (100%) in WIP, April 1 $24,420 Conversion costs (75%) in WIP, April 1 $28,400 Units transferred-in 47,000 Transferred-in costs during April $550,900 Units completed 42,000 April direct materials cost $155,500 April conversion costs $243,600 WIP, April 30 17,000 units (100% for materials and 40% for conversion costs) The cost per equivalent unit for conversion costs would be closest to A) $5.57. B) $4.61. C) $5.81. D) $4.97.

A) $5.57.

At Trapeze Corporation, direct materials are added at the beginning of the process and conversionscosts are uniformly applied. Other details include: WIP beginning (50% for conversion) 21,200 units Units started 120,500 units Units completed and transferred out 111,700 units WIP ending (60% for conversion) 30,000 units Beginning WIP direct materials $39,000 Beginning WIP conversion costs $32,500 Costs of materials added $393,100 Costs of conversion added $265,125 What is the total cost of units completed and transferred out? A) $596,478.00 B) $643,966.31 C) $538,205.35 D) $606,745.74

A) $596,478.00

At Panther Company, materials are added at the beginning of the process, and conversion costs are added uniformly. Work in process, beginning: Number of units 13,000 Transferred-in costs $91,000 Direct materials (100%) $24,500 Conversion costs (75%) $32,400 Units transferred-in: Number of units 53,500 Transferred-in costs $643,500 Units completed 33,000 Costs during the period: Direct materials $164,475 Conversion costs $225,225 Work in process, ending: Number of units 33,500 (100% complete for materials and 35% complete for conversion) The total cost of units transferred out to Finished Goods Inventory is closest to A) $646,140. B) $584,621.05. C) $283,071.05. D) $989,975

A) $646,140.

Stanley's Bicycles store buys bicycles on average for $650 and sells them on average for $770. He paysa sales commission of 15% of sales revenue to his sales staff. Stanley pays $1400 a month rent for hisstore, and also pays $4000 a month to his staff in addition to the commissions. Stanley sold 150bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his contribution margin? A) $675 B) $115,500 C) $98,175 D) $230,325

A) $675

Howard, Fine, & Howard is an advertising agency. The firm uses an activity-based costing system to allocate overhead costs to its services. Information about the firm's activity cost pool rates follows: Activity cost pool Activity Rate Clerical costs 16 per administrative assistant hour Legal filing fees 105 per new ad campaign Client meeting time 48 per meeting hour Stooge Company was a client of Howard, Fine, & Howard. Recently, 9 administrative assistant hours, 3 new ad campaigns, and 10 meeting hours were incurred for the Stooge Company account. Using the activity-based costing system, how much overhead cost would be allocated to the Stooge Company account? A) $939 B) $459 C) $169 D) $3718

A) $939

Which is true about a scatterplot? A) If there is a strong relationship between cost and volume, the points will fall in a linear pattern. B) If there is a strong relationship between cost and volume, the points will fall in a scattered pattern. C) Cost and volume have no effect on the pattern of the points on a scatterplot. D) A strong relationship between production and inventory is shown by a linear pattern.

A) If there is a strong relationship between cost and volume, the points will fall in a linear pattern.

Which of the following items is not a characteristic of a lean company? A) Machines are arranged by function. B) Machine setup times are reduced.C) Production is in small batches.D) Employees are trained to operate more than one machine

A) Machines are arranged by function.

All of the following are discretionary fixed costs except? A) Property taxes B) Advertising C) Research and development D) Employee development

A) Property taxes

Which method are managers using when they plot all the data points to see if there is a linear relationship among the data? A) Scatterplot B) Account analysis C) Regression analysis D) Low-high method

A) Scatterplot

What will the use of departmental overhead rates generally result in? A) The use of a separate cost allocation base for each department in the factory B) The use of a single cost allocation base C) The use of a single overhead cost pool for the factory D) The use of separate cost allocation base for each activity in the factory

A. The use of a separate cost allocation base for each department in the factory

Machine set-up would most likely be classified as a ________ cost. A) batch-level B) unit-level C) product-level D) facility-level

A. batch-level

Molding and sanding each unit of product would most likely be classified as a ________ cost. A) unit-level B) batch-level C) product-level D) facility-level

A. unit level

Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments: Actual results Assembly Department Sanding Department Direct labor hours used 7 5 Machine hours used. 11 6 The cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 603 is $1600. How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates? A) $675 B) $575 C) $700 D) $300

Assembly overhead rate= $50 per machine hours Sanding overhead rate= $25 per DL hours 50x11= 550 25x5=125 550+125= 675 A

Four basic steps are used in an ABC system. List the proper order of these steps, which are currently scrambled below: a. Identify the primary activities and estimate a total cost pool for each. b. Allocate the costs to the cost object using the activity cost allocation rates. c. Select an allocation base for each activity. d. Calculate an activity cost allocation rate for each activity. A) c, a, b, d B) a, c, d, b C) b, a, c, d D) a, d, c, b

B

Hyper Color Company manufactures widgets. The following data is related to sales and productionof the widgets for last year. Selling price per unit $140 Variable manufacturing costs per unit $62 Variable selling and administrative expenses per unit $6 Fixed manufacturing overhead (in total) $32,000 Fixed selling and administrative expenses (in total) $6000 Units produced during the year 2000 Units sold during year 900 Using variable costing, what is the operating income for last year? A) $126,000 B) $26,800 C) $64,800 D) $102,800

B) $26,800

At Panther Company, materials are added at the beginning of the process, and conversion costs are added uniformly. Work in process, beginning: Number of units 18,000 Transferred-in costs $90,000 Direct materials (100%) $30,500 Conversion costs (75%) $27,400 Units transferred-in: Number of units 56,500 Transferred-in costs $643,500 Units completed 37,000 Costs during the period: Direct materials $159,475 Conversion costs $215,225 Work in process, ending: Number of units 37,500 (100% complete for materials and 35% complete for conversion) The total cost of units remaining in ending WIP Inventory is closest to A) $646,351.37. B) $528,525. C) $159,155.24. D) $586,963.09

B) $528,525

Materials are added at the beginning of the process and conversion costs are added uniformly Work in process, beginning: Number of units 12,000 Transferred-in costs $94,000 Direct materials (100%) $22,500 Conversion costs (75%) $25,400 Units transferred-in: Number of units 55,500 Transferred-in costs $640,500 Units completed 42,000 Costs during the period: Direct materials $155,475 Conversion costs $213,225 Work in process, ending: Number of units 25,500 (100% complete for materials and 35% complete for conversion) At period end, what would be the total equivalent units for direct materials? A) 43,500 B) 67,500 C) 54,000 D) 42,000

B) 67,500

Using account analysis, what type of cost is the rental of a space at $6,000 per month? A) Mixed B) Fixed C) Step D) Variable

B) Fixed

When the number of units produced is less than the number of units sold, how does operating incomeunder variable costing differ from operating income under absorption costing? A) It is lower than operating income under absorption costing. B) It is higher than operating income under absorption costing. C) It is the same as operating income under absorption costing. D) It depends upon the amount of decline

B) It is higher than operating income under absorption costing.

In ABC, how is the activity allocation rate computed? A) The total estimated activity allocation base is divided by the total estimated activity cost pool. B) The total estimated activity cost pool is divided by the total estimated activity allocation base. C) The total estimated activity allocation base is multiplied by the total estimated activity cost pool. D) You take the total estimated activity allocation base and subtract the total estimated total activity cost pool.

B) The total estimated activity cost pool is divided by the total estimated activity allocation base.

The journal entry a company would make under process costing to record the transfer of costsfrom the Assembly Department to the Packaging Department would be A) WIP Inventory - Assembly XXX CGS XXX B) WIP Inventory - Packaging XXX WIP Inventory - Assembly XXX C) Finished Goods Inventory XXX WIP Inventory - Assembly XXX D) WIP Inventory - Packaging XXX Finished Goods Inventory XXX

B) WIP Inventory - Packaging XXX WIP Inventory - Assembly XXX

Management has little or no control over A) discretionary fixed costs. B) committed fixed costs. C) all fixed costs. D) all of the above.

B) committed fixed costs.

Manufacturing costs are usually combined into two categories in a process costing system. These two categories are A) direct labor and conversion costs. B) direct materials and conversion costs. C) Manufacturing Overhead and conversion costs. D) direct materials and direct labor.

B) direct materials and conversion costs.

In process costing, ________ is/are found by taking the number of partially completed physical units and multiplying it by the percentage of the process completed. A) Cost of Goods Sold B) equivalent units C) fixed Manufacturing Overhead costs D) conversion costs

B) equivalent units

The management strategy designed to eliminate waste is called a(n) A) traditional thinking. B) lean thinking. C) activity-based costing.D) full costing

B) lean thinking.

The cost of testing incoming raw materials from a supplier would be classified as a(n) ________ cost.A) appraisal B) prevention C) internal failure D) external failure

B) prevention

Doggie Pals produces 110,000 dog collars each month that give off a fresh scent to keep your dog smelling clean between baths. Total manufacturing costs are $200,000. Of this amount, $100,000 are variable costs. What are the total production costs when 125,000 collars are produced? (Assume both production levels are in the same relevant range.) A) $313,636 B) $13,636 C) $213,636 D) $113,636

C) $213,636

In the equation y =$7.20x +$250,250, A) $250,250 are the total variable costs .B) $250,250 are the total costs. C) $250,250 are the total fixed costs. D) $250,250 are the total overhead costs.

C) $250,250 are the total fixed costs

When preparing a scatterplot, how should the data be graphed? A) Volume data on the y-axis B) Cost data on the x-axis C) Cost data on the y-axis D) Volume data on the z-axis

C) Cost data on the y-axis

Which term listed below describes a system where companies purchase raw materials when needed in production and complete finished goods when needed by customers? A) Internal failure costs B) Backflush costing C) Just-in-time D) External failure costs

C) Just-in-time

Which of the following product costing systems is normally used to assign costs to goods that are mass-produced goods? A) Fixed costing B) Job costing C) Process costing D) LIFO costing

C) Process costing

When units are moved from one processing department to the next, the cost associated with those units must also be moved from one WIP account to the next. What are these costs called? A) Transported costs B) Transmitted costs C) Transferred costs D) Conveyed costs

C) Transferred costs

Which of the following is an example of a cost item that should be classified as an external failure cost? A) Tooling changes B) Cost of a lost unit C) Warranty claims D) Cost to redesign product

C) Warranty claims

The journal entry a company would make under process costing to transfer direct materials into the Assembly Department would be A) Raw Materials Inventory XXX Work in Process Inventory - Assembly XXX B) Finished Goods Inventory XXX Work in Process Inventory - Assembly XXX C) Work in Process Inventory - Assembly XXX Raw Materials Inventory XXX D) Finished Goods Inventory XXX Raw Materials Inventory XXX

C) Work in Process Inventory - Assembly XXX Raw Materials Inventory XXX

Flying High Manufacturing produces frisbees using a three-step process that includes molding, coloring, and finishing. Requisition of materials to molding includes an A) debit to Raw Materials Inventory. B) debit to Manufacturing Overhead. C) credit to Raw Materials Inventory .D) credit to Finished Goods Inventory.

C) credit to Raw Materials Inventory

Flying High Manufacturing produces frisbees using a three-step sequential process that includesmolding, coloring and finishing. When the frisbees and associated costs are transferred out of the coloring process and into the finishing process, the journal entry would include a A) debit to WIP Inventory-Coloring and a credit to WIP Inventory-Finishing. B) debit to Finished Goods Inventory and a credit to WIP Inventory-Coloring. C) debit to WIP Inventory-Finishing and a credit to WIP Inventory-Coloring. D) debit to WIP Inventory-Coloring and a credit to Finished Goods Inventory

C) debit to WIP Inventory-Finishing and a credit to WIP Inventory-Coloring.

The benefits of using the ABC costing system are higher if the company A) has high indirect costs. B) produces many different products that use differing amounts of resources. C) has high indirect costs and produces many different products that use differing amounts of resources. D) produces only one product.

C) has high indirect costs and produces many different products that use differing amounts of resources.

Which of the following condition(s) favors using departmental overhead rates in place of a plantwide overhead rate? A) Different departments incur different amounts and types of manufacturing overhead. B) Different jobs or products use the departments to a different extent. C) Both of the above. D) Neither of the above.

C. both of the above

Using factory utilities would most likely be classified as a ________ cost. A) unit-level B) batch-level C) facility-level D) product-level

C. facility-level

Stanley's Bicycles store buys bicycles on average for $600 and sells them on average for $780. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1600 a month rent for his store and also pays $5000 a month to his staff in addition to the commissions. Stanley sold 140bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his operating income? A) $10,560 B) $109,200 C) $100,380 D) $2220

D) $2220

Hyper Color Company manufactures widgets. The following data is related to sales and productionof the widgets for last year. Selling price per unit $130 Variable manufacturing costs per unit $61 Variable selling and administrative expenses per unit $10 Fixed manufacturing overhead (in total) $35,000 Fixed selling and administrative expenses (in total) $8000 Units produced during the year 1700 Units sold during year 1400 Using absorption costing, what is gross profit for last month? (Round any intermediary calculationsto the nearest whole dollar.) A) $296,800 B) $182,000 C) $2,265,200 D) $67,200

D) $67,200

Hyper Color Company manufactures widgets. The following data is related to sales and productionof the widgets for last year. Selling price per unit $160 Variable manufacturing costs per unit $62 Variable selling and administrative expenses per unit $5 Fixed manufacturing overhead (in total) $33,000 Fixed selling and administrative expenses (in total) $8000 Units produced during the year 1800 Units sold during year 900 Using variable costing, what is the contribution margin for last year?A) $204,300 B) $55,800 C) $144,000 D) $83,700

D) $83,700

The five steps of the process costing procedure are scrambled below: 1. Assign total costs to units completed and to units in ending WIP inventory. 2. Summarize total costs to account for. 3. Compute the cost per equivalent unit. 4. Summarize the flow of physical units. 5. Compute output in terms of equivalent units. The correct order for these steps is: A) 3, 1, 4, 2, 5. B) 5, 3, 1, 4, 2. C) 2, 4, 5, 1, 3. D) 4, 5, 2, 3, 1.

D) 4, 5, 2, 3, 1.

Which type of costing system is the only acceptable costing system for external financial reporting? A) Prime costing B) Out-of-pocket costing C) Variable costing D) Absorption costing

D) Absorption costing

Non-value added activities are A) also called waste activities. B) activities that neither enhance the customer's image of the product or service nor provide a competitive advantage. C) activities that could be reduced or removed from the process with no ill effect on the end product or service. D) All of the above.

D) All of the above.

Which of the following is not a step of the 5-step process costing procedure? A) Compute output in terms of equivalent units B) Summarize total costs to account for C) Summarize the flow of physical units D) Compute total manufacturing overhead estimated

D) Compute total manufacturing overhead estimated

Process costing would likely be used by which of the following? A) Clear Channel Advertising B) PIP Printing C) DBA Management Consultants D) PepsiCo

D) PepsiCo

On a regression analysis output generated with Excel, a regression equation's "goodness of fit" is represented by the A) intercept coefficient. B) x variable 1 coefficient. C) residual. D) R-square

D) R-square

Blossom Company has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process. Beginning WIP Inventory 9,000 units Transferred-in costs in beginning WIP Inventory $91,000 Direct materials costs in beginning WIP Inventory. $25,600 Conversion costs in beginning WIP Inventory $23,750Units transferred-in 47,000 units Transferred-in costs $640,000 Units completed 43,000 Costs added: materials $155,040 Costs added: conversion $230,710 Ending WIP Inventory 13,000 units (50% complete for materials and 40% complete for conversion) What would have been the journal entry to record the transfer of product from the assembly department to the Shaping Department? A) WIP—Assembly (Dr); WIP—Shaping (Cr) 640,000 B) WIP—Shaping (Dr); WIP—Assembly (Cr) 731,000 C) WIP—Assembly (Dr); WIP—Shaping (Cr) 731,000 D) WIP—Shaping (Dr); WIP—Assembly (Cr) 640,000

D) WIP—Shaping (Dr); WIP—Assembly (Cr) 640,000

When predicting costs at other volumes using a cost equation derived from either the high-low method or regression analysis, managers should consider A) outliers. B) general inflation. C) seasonality. D) all of the above.

D) all of the above.

Absorption costing is required to be used for A) federal income tax reports. B) external financial reports, but not income taxes. C) neither external financial reports nor income tax reports. D) both external financial reports and income tax reports

D) both external financial reports and income tax reports

Which of the following is a result of cost distortion? A) Overcosting of all products B) Undercosting of all products C) Accurate costing of all products D) Overcosting of some products and undercosting of other products

D. overcosting of some products and undercoating of other products

Research and development would most likely be classified as a ________ cost. A) unit-level B) batch-level C) facility-level D) product-level

D. product-level

Beaver Company manufactures coffee tables and uses an activity-based costing system. Each coffee table consists of 30 separate parts totaling $210 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $3.00 per part Machining Machine hours. $3.50 per machine hour Assembling Number of parts $1.00 per part Packaging Number of finished units $6.00 per finished unit What is the cost of materials handling per coffee table? A) $90 B) $30 C) $13 D) $12

Number of parts x cost allocation rate 30 x 3= 90 Answer: A 90

Yummy Tummy Desserts has 3100 quarts of ice cream in WIP Inventory, with all materialsalready added. What are equivalent units in ending WIP Inventory for materials if the ice cream is 67% through the process? A) 3100 B) 2077 C) 1023 D) 0

Number of physical units x percent of completion = 3,100 x 100% = 3100 A

Beaver Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table consists of 20 separate parts totaling $220 in direct materials, and requires 7.0 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling. Number of parts. $2.00 per part Machining Machine hours. $3.10 per machine hour Assembling Number of parts $1.00 per part Packaging Number of finished units $4.00 per finished unit What is the total manufacturing cost per coffee table? A) $305.70 B) $85.70 C) $301.70 D) $62.00

Total MC= DM + DL+ MOH MOH costs: materials handling= 2 x 20=40 machining= 3.10x7= 21.70 assembling= 1x20= 20 packaging= 4x1= 4 = 220 + 85.70 = 305.70 Answer: A

At Trapeze Corporation, direct materials are added at the beginning of the process and conversionscosts are uniformly applied. Other details include: WIP beginning (50% for conversion) 25,200 units Units started 126,500 units Units completed and transferred out 110,700 units WIP ending (60% for conversion) 41,000 units Beginning WIP direct materials $35,000 Beginning WIP conversion costs $22,500 Costs of materials added $384,100 Costs of conversion added $271,125 What are the total equivalent units for conversion costs? A) 123,300 B) 151,700 C) 131,200 D) 135,300

wip t out 110,000 end wip 41,000 EU DM. Con 110700 110700 41000 41000 x 60%= 24600 135300 D) 135,300

What are the ending inventory equivalent units for materials if 15,600 units are completed and transferred out and 4800 remain in ending WIP at 35% complete? A) 3780 B) 4800 C) 1680 D) 5460

wip t out 15,600 (100%) end wip 4800 (35%) EU DM Con 15600. 15600 4800 x 35%. 4800 x 35% C) 1680

In a department, 28,000 units are completed and transferred out and 14,400 remain in ending WIP at 85% complete. If an equivalent unit costs $8.00 for direct materials, what is the value of materials transferred out? A) $97,920 B) $108,800 C) $115,200 D) $224,000

wip t out 28000 end wip 14400 EU DM. 28000 x 8 = 224000 D) $224,000

Assume that 9200 units were in beginning WIP Inventory, 35,500 were started, 35,000 were completed, and 9700 were in ending WIP inventory. Direct materials are added at the beginning of the process. What are the total equivalent units for direct materials? A) 44,700 B) 45,200 C) 44,200 D) 35,500

wip beg wip. t out 9200 35000 started end wip 35500 9700 EU DM. Con 35000 + 9700 = 44700 A) 44,700

At Trapeze Corporation, direct materials are added at the beginning of the process and conversion costs are uniformly applied. Other details include: WIP beginning (50% for conversion) 27,200 units Units started 122,500 units Units completed and transferred out 116,700 units WIP ending (60% for conversion) 33,000 units Beginning WIP direct materials $35,000 Beginning WIP conversion costs $22,500 Costs of materials added $384,100 Costs of conversion added $271,125 What are the total equivalent units for direct materials? A) 149,700 B) 136,500 C) 143,900 D) 155,500

wip beg. t-out 116700 end wip 33,000 EU DM. Con 116700 + 33000 = 149700 A) 149,700

Sea Side Enterprises is trying to predict the cost associated with producing its anchors. At aproduction level of 5300 anchors, Sea Side Enterprises' average cost per anchor is $57. What is the total cost of producing 5300 anchors? A) $302,100 B) $5357 C) $57 D) $114

y= 57 * 5300 = 302,100 A

At Dwight Incorporated, total fixed and variable costs are $410,000 at a production level of 120,000 units. The company has total fixed costs of $245,000. The fixed cost per unit at a production level of200,000 units is A) $3.42 B) $2.04 C) $1.67 D) $1.23

y= f/x = 245,000/200,000 = 1.23 D

Great Calls has a special plan offer this month. There is a $6.00 per month charge each month andcalls anywhere in the United States are $0.04 per minute. What would the monthly cost be if you typically talk for 550 minutes per month? A) $6.00 B) $16.00 C) $22.00 D) $28.00

y=vx + f = 0.04 * 550 + 6 = 28 D

Sea Side Enterprises is trying to predict the cost associated with producing its anchors. At a production level of 5100 anchors, Sea Side Enterprises' average cost per anchor is $53 If $17,000 of the total costs are fixed, what is the variable cost of producing each anchor?A) $3.33 B) $49.67 C) $320.75 D) $53.00

y=vx +f 53/anchors * 5100 anchors= = 273,300 (total mixed costs) 273,300 = v * 5100 + 17000 = 49.67 B

George Company has a relevant range of 150,000 units to 400,000 units. The company has total fixedcosts of $527,000. Total fixed and variable costs are $622,500 at a production level of 176,000 units. The variable cost per unit at 350,000 units is A) $2.99 B) $0.27 C) $0.54 D) $3.54

y=vx+f 622500= v * 350000 + 527000 = 0.54 C

Regis Corporation wants to know how closely its current cost driver is correlated with its monthlyoperating costs. The managerial accountant runs a regression analysis using a statistical softwareprogram and produces the following data: Intercept Coefficient = 12,200,567 X Variable 1 Coefficient = 95.65 R-square = 0.8574 What is the Regis Corporation's monthly cost equation? A) y = $95.65x + $8,574 B) y = $95.65x + $12,200,567 C) y = $12,200,567x + $8,574 D) y = $0.8574x + $12,200,567

y=vx+f y=95.65x + 12,200,567 Answer: B