Reference no: EM13852375
1. Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $196,300; Factory Overhead, $187,900; and Selling Expenses, $45,290
$543,800
$187,900
$731,700
$384,200
2. Which of the following is an example of direct materials cost for an automobile manufacturer?
cost of oil lubricants for factory machinery
cost of wages of assembly worker
cost of interior upholstery
salary of production supervisor
3. A plant manager s salary is
an indirect cost
a direct cost
a direct cost and an indirect cost
a period cost
4. What term refers to the cost of changing direct materials into a finished manufactured product?
factory overhead cost
period cost
conversion cost
direct labor cost
5. Which of the following is not a prime cost?
plant janitor's wages
direct labor wages
machine operator wages
assembly line wages
6. An example of a period cost is
advertising expense
indirect materials
depreciation on factory equipment
property taxes on plant facilities
7. Direct labor and direct materials are
product costs and expensed when incurred
product costs and expensed when the goods are sold
period costs and expensed when incurred
period costs and expensed when the goods are sold
8. Which of the following are the two main types of cost accounting systems for manufacturing operations?
process cost and general accounting systems
process cost and replacement cost systems
job order and general accounting systems
job order cost and process cost systems
9. Given the following data:
Cost of materials used $45,000
Direct labor costs 48,000
Factory overhead 39,000
Work in process, beg. 28,000
Work in process, end. 18,000
Finished goods, beg. 28,000
Finished goods, end. 18,000
What is cost of goods sold?
$152,000
$142,000
$10,000
$128,000
10. The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is
$48 per machine hour
$62 per machine hour
$45 per machine hour
$50 per machine hour
11. The amount of time spent by an employee on an individual job are recorded on
pay stubs
in-and-out cards
time tickets
employees' earnings records
12. At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/under applied overhead into Cost of Goods Sold would cause net income to
increase by $1,700,000
decrease by $1,700,000
increase by $3,400,000
decrease by $3,400,000
13. The entry to record the flow of direct labor costs into production in a job order cost accounting system is
debit Factory Overhead, credit Work in Process
debit Finished Goods, credit Wages Payable
debit Work in Process, credit Wages Payable
debit Factory Overhead, credit Wages Payable
14. When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. A total of 1,000 units were produced at a per-unit cost of
$12,400
$1,240
$124
$12.40
15. Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is
Materials 165,000
Accounts Payable 165,000
Materials 190,000
Accounts Payable 190,000
Materials 190,000
Cash 190,000
Accounts Payable 190,000
Materials 190,000
16. The journal entry to record the transfer of 1,600 units of part number 1177 with a value of $2.50 each, to work in process is
Materials 4,000
Work in Process 4,000
Work in Process 4,000
Factory Overhead 4,000
Work in Process 4,000
Materials 4,000
Work in Proces 4,000
Cash 4,000
17. The three most common cost behavior classifications are
variable costs, product costs, and sunk costs
fixed costs, variable costs, and mixed costs
variable costs, period costs, and differential costs
variable costs, sunk costs, and opportunity costs
18. Costs that remain constant in total dollar amount as the level of activity changes are called
fixed costs
mixed costs
product costs
variable costs
19. Strait Co. manufactures office furniture. During the most productive month of the year, 3,000 desks were manufactured at a total cost of $59,000. In the month of lowest production the company made 1,125 desks at a cost of $38,000. Using the high-low method of cost estimation, total fixed costs are
$21,000
$25,400
$42,000
$13,000
20. If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is the contribution margin ratio?
45%
55%
62%
32%
21. A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000, variable costs were 40% of sales, and sales were $1,000,000. Operating profit was
$1,080,000
$420,000
$180,000
$980,000
22. If fixed costs are $250,000, the unit selling price is $125, and the unit variable costs are $73, what is the break-even sales (units)?
3,425 units
2,381 units
2,000 units
4,808 units
23. Johnson's Plumbing's fixed costs are $700,000 and the unit contribution margin is $17. What amount of units must be sold in order to realize an operating income of $100,000?
5,000
41,176
47,059
58,882
24. If Kaden Company's fixed costs are $46,800, the unit selling price is $42, and the unit variable costs are $24. What is the break-even sale (units)?
2,400
1,950
1,114
2,600