1. Davis Company manufacturers desks. The beginning balance of Raw Material Inventory was $4,500; raw material
purchases of $29,600 were made during the month. At month end, $7,700 of raw material was on hand. Raw material
used during the month was _______.
2. Urban Company manufacturers tables. If raw material used was $80,000 and Raw Material Inventory at the
beginning and end of the period, respectively, was $17,000 and $21,000, what was amount of raw material was
3. Reno Corporation uses a predetermined overhead application rate of $.30 per direct labor hour. During the year it
incurred $345,000 dollars of actual overhead, but it planned to incur $360,000 of overhead. The company applied
$363,000 of overhead during the year. How many direct labor hours did the company plan to incur?
4. Aztec Company is relocating its facilities. The company estimates that it will take three trucks to move office
contents. If the per truck rental charge is $1,000 plus 25 cents per mile, what is the expected cost to move 800 miles?
5. Dixie Company uses a weighted average process costing system. Material is added at the start of production. Dixie
Company started 13,000 units into production and had 4,500 units in process at the start of the period that were 60
percent complete as to conversion costs. If Dixie transferred out 11,750 units, how many units were in ending Work in
6. One unit requires 2 direct labor hours to produce. Standard variable overhead per unit is $1.25 and standard fixed
overhead per unit is $1.75. If 330 units were produced this month, what total amount of overhead is applied to the
7. Alpha, Beta, and Epsilon Companies Below are income statements that apply to three companies: Alpha, Beta,
and Epsilon: Alpha Co. Beta Co. Epsilon Co. Sales $100 $100 $100 Variable costs (10) (20) (30) Contribution margin
$ 90 $ 80 $ 70 Fixed costs (30) (20) (10) Profit before taxes $ 60 $ 60 $ 60 Refer to Alpha, Beta, and Epsilon
Companies. At sales of $100, which firm has the highest margin of safety?
8. Courtney Company manufactures products A and B from a joint process. Sales value at split-off was $700,000 for
10,000 units of A, and $300,000 for 15,000 units of B. Using the sales value at split-off approach, joint costs properly
allocated to A were $140,000. Total joint costs were ______.
9. Precious Jewels Corporation produces quality jewelry items for various retailers. For the coming year, it has