Reference no: EM13861880
1. During its first year of operations, Beta Company paid $51,640 for direct materials and $19,800 in wages for production workers. Lease payments and utilities on the production facilities amounted to $8,800. General, selling, and administrative expenses were $9,800. The company produced 6,800 units and sold 5,800 units for $16.80 a unit. The average cost to produce one unit is which of the following amounts? (Round your final answer to 2 decimal places.)
o $10.42
o $13.24
o $11.80
o $13.83
2. During its first year of operations, Farmer Company paid $26,640 for direct materials and $49,800 in wages for production workers. Lease payments, utility costs, and depreciation on factory equipment totaled $13,800. General, selling, and administrative expenses were $19,800. The average cost to produce one unit was $4.80. How many units were produced during the period?
o 20,050
o 18,800
o 22,925
o None of these.
3. During its first year of operations, Silverman Company paid $11,065 for direct materials and $11,200 for production workers' wages. Lease payments and utilities on the production facilities amounted to $10,200 while general, selling, and administrative expenses totaled $3,300. The company produced 7,550 units and sold 4,700 units at a price of $6.80 a unit.
What is Silverman's cost of goods sold for the year? (Do not round intermediate calculations.)
o $32,465
o $15,915
o $25,565
o $20,210
4. During its first year of operations, Silverman Company paid $15,085 for direct materials and $10,200 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,200 while general, selling, and administrative expenses totaled $4,700. The company produced 6,050 units and sold 3,700 units at a price of $8.20 a unit.
What is the amount of gross margin for the first year? (Do not round intermediate calculations.)
o $13,395
o $9,250
o $5,055
o $30,340
5. During its first year of operations, Silverman Company paid $10,000 for direct materials and $11,500 for production workers' wages. Lease payments and utilities on the production facilities amounted to $10,500 while general, selling, and administrative expenses totaled $3,000. The company produced 8,000 units and sold 5,000 units at a price of $6.50 a unit.
What is the amount of finished goods inventory on the balance sheet at year-end? (Do not round intermediate calculations.)
o $6,000
o $12,500
o $12,000
o $3,000
6. During its first year of operations, Silverman Company paid $12,240 for direct materials and $10,700 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,700 while general, selling, and administrative expenses totaled $3,800. The company produced 6,800 units and sold 4,200 units at a price of $7.30 a unit.
What was Silverman's net income for the first year in operation? (Do not round intermediate calculations.)
o $20,960
o $7,720
o $6,700
o $26,860
7. Ken believes his company's overhead costs are driven (affected) by the number of direct labor hours because the production process is very labor intensive. During the period, the company produced 4,700 units of Product A requiring a total of 770 labor hours and 2,200 units of Product B requiring a total of 170 labor hours. What allocation rate should be used if the company incurs overhead costs of $15,980?
o $17.00 per labor hour
o $2.32 per unit
o $20.75 per labor hour for Product A and $94 per labor hour for Product B
o None of these.
8. Abby believes her company's overhead costs are driven (affected) by the number of machine hours because the production process is heavily automated. During the period, the company produced 3,600 units of Product A requiring a total of 320 machine hours and 2,600 units of Product B requiring a total of 80 machine hours. What allocation rate should be used if the company incurs overhead costs of $18,400?
o $2.97 per machine hour
o $2.97 per unit
o $46 per unit
o $46 per machine hour
9. The following information relates to Betty's Manufacturing for 2013:
|
Raw materials used
|
$
|
9,200
|
|
Direct labor wages
|
|
29,200
|
|
Sales salaries and commissions
|
|
24,200
|
|
Depreciation on production equipment
|
|
1,920
|
|
Rent on manufacturing facilities
|
|
14,200
|
|
Packaging and shipping supplies
|
|
2,920
|
|
Sales revenue
|
|
156,400
|
|
Units produced and sold
|
|
9,200
|
|
Selling price per unit
|
$
|
17.00
|
Based on this information, what is the company's cost of goods sold for 2013? (Do not round intermediate calculations.)
o $81,640
o $115,080
o $41,320
o $57,440
10. The following information relates to Mystic Manufacturing's 2013 accounting period:
|
Raw materials used
|
$16,000
|
|
Direct labor wages
|
32,000
|
|
Sales salaries and commissions
|
24,000
|
|
Depreciation on production equipment
|
2,900
|
|
Rent on manufacturing facilities
|
3,900
|
|
Administrative supplies and utilities
|
4,000
|
|
Sales revenue
|
95,000
|
|
Units produced
|
3,000
|
|
Units of sold
|
3,000
|
Based on this information, what is the company's net income for 2013?
o $15,100
o $30,200
o $14,900
o $12,200
11. Royce Company manufactures chocolate bars. The following were among Royce's 2013 manufacturing costs:
|
Wages
|
|
|
|
Machine operators
|
$
|
280,000
|
|
Selling and administrative personnel
|
$
|
73,000
|
|
Materials used
|
|
|
|
Lubricant for oiling machinery
|
$
|
23,000
|
|
Cocoa, sugar and other raw materials
|
$
|
230,000
|
|
Packaging materials
|
$
|
170,000
|
12. Royce Company manufactures chocolate bars. The following were among Royce's 2013 manufacturing costs:
|
Wages
|
|
|
|
Machine operators
|
$
|
360,000
|
|
Selling and administrative personnel
|
$
|
81,000
|
|
Materials used
|
|
|
|
Lubricant for oiling machinery
|
$
|
31,000
|
|
Cocoa, sugar and other raw materials
|
$
|
310,000
|
|
Packaging materials
|
$
|
250,000
|
Royce's 2013 direct materials amounted to:
o $310,000
o $547,000
o $31,000
o $560,000
13. A company that incurred $1,200 in production costs reported cost of goods sold of $930 and selling costs of $230. Its ending finished goods inventory was $270.
o True
o False
14. A merchandising business paid $2,400 to purchase inventory and $350 to have the inventory delivered to its customers. Its product costs were $2,750.
o True
o False