Acc. Test Three review

if fixed costs are 720,000 and variable costs are 60% of sales, what is the break-even point in sales dollar?

1,800,000

if fixed costs are 1,200,000, the unit selling price is 240, and the unit variable costs are 110, what is the amount of sales in units required to realize an operating income of 200,000?

10,769

if fixed costs are 290,000, the unit selling price is 140, and the unit variable costs are 82, what are the break-even sales in units?

5,000

Department M had 800 units 70% completed in process at the beginning of June, 6,000 units completed during June, and 500 units 50% completed at the end of June. using the first in first out method of inventory costing, what was the number of equivalent units of production for conservation cost for the period?

5,690

Identify which company would likely use a job order costing system

Apparel manufacturer, guitar manufacturer Similar products, custom products, unique goods

During the period, labor costs incurred on account amounted to 195,000, including 160,000 for production orders and 35,000for actual general factory use. factory overhead applied to production was 32,000. the entry to record the actual factory overhead costs incurred on account is?

Dr- FO 35,000 CR- A/P 35,000

During the period, labor costs incurred on account amounted to 195,000, including 165,000 for production orders and 30,000 for general factory use. in addition, factory overhead applied to production was 32,000. The entry to record the direct labor costs is?

Dr- WIP 165,000 Cr- Wages payable 165,000

Identify the two main types of cost accounting for a manufacturing operation.

Job order cost process cost systems

Identify the correct flow of manufacturing costs through the three inventory assets accounts and into cost of goods sold

Materials inv. --->WIP --->Finished goods --> CMS

The Thomlin company forecasts that total overhead for the current year will be 18,480,000 with 280,000 total machine hours. Year to date, the actual overhead is 15,800,000 and the actual machine hours are 360,000 hours. The predetermined overhead rate based on machine hours is?

Total est. FO/ Total base $66/MH

What are the three most common cost behavior classification?

Variable cost, fixed cost, mixed cost

what manufacturing cost categories added together are known as conservation cost?

Direct Labor + Factory overhead

A firm operated at 80% of capacity for the past year, during which fixed costs were 400,000, variable costs were 35% of sales, and sales were 1,200,000. operating profit was?

sales-vc=cm-fc=proft $380,000

Identify the journal entry to record the transfer of costs from finished goods to cost of goods sold?

Dr- CGS/ CMS Cr- FG

When Job 117 was completed, direct materials totaled 6,100; Direct labor, 3,200; and factory overhead, 3,400. A total of 1000 units were produced . calculate the per-unit cost for job 117?

$12.70/per unit

Identify the journal entry to record the flow of direct materials into production.

DR- WIP CR - Materials

zeke company sells 28,000 units at 26 per unit, and fixed costs are 75,000. the contribution margin ratio and the unit contribution margin are?

$14 54%

How does lean manufacturing improve quality and eliminate time?

Combining work functions into work centers cross training employees

identify a company that would use a process cost system

Continuous production process flow manufacturing homogenous like products example- Milk, Nails, candy

Identify the journal entries to record the cost and sale of a finished good on account?

Cost: DR- CGS/CMS CR- Finished goods Sale: DR- A/R CR- Sales

In the manufacture of 6,000 units of a product, direct materials cost incurred was 181,600, direct labor cost incurred was 72,000, and applied FO was 49,200. what is the toal conservation cost?

DL+FO 121,200

Miller inc. has fixed costs of 200,000, the unit selling price is 30, and the unit variable costs are 15. what are the old and new break-even sales if the unit selling price increases by 4

Old: 13,333 New: 10,526

mixed cost

combination of FC and VC

The Thomlin company forecasts that total overhead for the current year will be $15,000,000 with 300,00 total machine hours. year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. if the thomlin company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time, the overhead (under or over applied) is?

over applied FO of 500,000

Identify the journal entry to transfer completed production costs from department A to Department B

dr- WIP dept. B Cr- WIP Dept. A

True/false question regarding the understanding and definition of variable costs

fixed on a per unit basis. It varies in total depending on level of activity of production.

Variable cost

fixed on per unit bases

Fixed cost

fixed, never changes, fixed in total

Spice Inc.'s variable costs as a percentage of sales are 70%; current sales are 600,000; and, fixed costs are 120,000. how much will operating income change if sales increase by 30,000?

increase of 9,000