materials, and direct labor. d. work in process, direct labor, and manufacturing overhead. In a
process cost system, equivalent units of production are the a. work done on physical units
expressed in fully completed units. b. units that are transferred to the next processing
department. c. units completed and transferred to finished goods. d. units that are incomplete at
the end of a period. 3. 4. Use the following information for questions 5 and 6. In the month of
November, a department had 500 units in the beginning work in process inventory that were
60% complete. These units had $8,000 of materials cost and $6,000 of conversion costs.
Materials are added at the beginning of the process and conversion costs are added uniformly
throughout the process. During November, 10,000 units were completed and transferred to the
finished goods inventory and there were 2,000 units that were 25% complete in the ending work
in process inventory on November 30. During November, manufacturing costs charged to the
department were: Materials $184,000; Conversion costs $204,000. 5. The cost assigned to the
units transferred to finished goods during November was a. $360,000. b. $362,000. c. $376,000.
d. $358,000. 6. The cost assigned to the units in the ending work in process inventory on
November 30 was a. $72,000. b. $42,000. c. $32,000. d. $58,000. An appropriate cost driver for
ordering and receiving materials cost is the a. direct labor hours. b. machine hours. c. number of
parts. d. number of purchases orders. Benefits of activity-based costing include all of the
following except a. more accurate product costing. b. fewer cost pools used to assign overhead
costs to products. c. enhanced control over overhead costs. d. better management decisions.
An example of a value-added activity in a manufacturing operation is a. machine repair. b.
inventory control. c. engineering design. d. building maintenance. Assigning manufacturing
costs to work in process results in credits to all of the following accounts except a. Factory
Labor. b. Manufacturing Overhead. c. Raw Materials Inventory. d. Work in Process Inventory.
Juniper, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of
$74,400 and sales for the current year of $100,000. How much is Juniper s break even point? a.
4,600 units b. $25,600 c. 6,200 units d. 2,133 units Homer Company s variable costs are 30% of
sales. The company is contemplating an advertising campaign that will cost $22,000. If sales
are expected to increase $40,000, by how much will the company's net income increase? a.
$18,000 b. $6,000 c. $12,000 d. $13,000 Twix Company sells two products, beer and wine.
Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27
percent 7. 8. 9. 10. 11. 12. 13. contribution margin and wine has a 25 percent contribution
margin. If other factors are equal, which product should Twix push to customers? a. Beer b.
Wine c. Selling either results in the same additional income for the company d. It should sell an