Department B had 3,000 units in Work in Process that were 25%...

Department B had 3,000 units in Work in Process that were 25% completed at the beginning of the period at a cost of $12,500. 13,700 units were started during the period. 15,000 units were completed during the period, and 1,700 units were 80% completed at the end of the period. All materials are added at the beginning of the process. Material cost was $15,400, direct labor was $32,450, and factory overhead was $18,710.The number of equivalent units of production for the period for conversion if the weighted average method is used to cost inventories was

 

Question 1 options:

	15,000
	16,360
	1,700
	13,700

 

Question 2 (5 points)

 

 

 

 

 

 

 

 

 

Dorchester Company, on March 1, 2021 has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. On March 1, Dorchester started into production 18,500 units. At the end of the month there were 12,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 50% complete with respect to conversion. For the month of March the following costs were incurred and recorded in the WIP:

            Direct Material                      $31,000

            Direct Labor                              17,000

            Factory Overhead                    15,000

Dorchester uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion for the month of March. Round answer to closest cent.

 

Your Answer:

Question 2 options:

Answer

 

Question 3 (5 points)

 

 

 

 

 

 

 

 

 

Under which inventory costing method could increases or decreases in income from operations be misinterpreted to be the result of operating efficiencies or inefficiencies?

 

Question 3 options:

	only variable costing
	only absorption costing
	both variable and absorption costing
	neither variable nor absorption costing

 

Question 4 (5 points)

 

 

 

 

 

 

 

 

 

During March 2021, Virginia Bay Corporation recorded $275,000 of costs related to factory overhead.  Virginia Bay's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $283,000 would be incurred, and 7,600 direct labor hours would be worked.  During March, 11,000 hours were actually worked. Use this information to determine the standard overhead rate.  Round to closest cent.

 

Your Answer:

Question 4 options:

Answer

 

Question 5 (5 points)

 

 

 

 

 

 

 

 

 

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, the total fixed costs are

 

Question 5 options:

	$21,000
	$25,400
	$42,000
	$13,000

 

Question 6 (5 points)

 

 

 

 

 

 

 

 

 

The quantity factor tells us how much additional revenue changed for the additional quantity sold at the planned price. The price factor tells us how much revenue changed on actual total sales due to the price being different than planned.

Edna's Chocolates had planned to sell chocolate-covered strawberries for $3.00 each. Due to various factors, the actual price was $2.75. Edna's was able to sell 1,000 more strawberries than the anticipated 4,000. What is (1) the quantity factor and (2) the price factor for sales?

 

Question 6 options:

	(1) $3,000, (2) $(1,250)
	(1) $3,000, (2) $(3,000)
	(1) $1,250, (2) $3,000
	(1) $(4,000) (2) $(3,000)

 

Question 7 (5 points)

 

 

 

 

 

 

 

 

 

If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is the contribution margin ratio?

 

Question 7 options:

	45%
	55%
	62%
	32%

 

Question 8 (5 points)

 

 

 

 

 

 

 

 

 

If the contribution margin ratio for France Company is 45%, sales were $425,000, and the fixed costs were $100,000, what was the income from operations?

 

Question 8 options:

	$233,750
	$91,250
	$191,250
	$133,750

 

Question 9 (5 points)

 

 

 

 

 

 

 

 

 

Baltimore Manufacturing had a Work in Process balance of $83,000 on January 1, 2020. The year end balance of Work in Process was $92,000 and the Cost of Goods Manufactured was $600,000. Use this information to determine the total manufacturing costs incurred during the fiscal year 2020. Round to a whole number (no cents).

 

Your Answer:

Question 9 options:

Answer

 

Question 10 (5 points)

 

 

 

 

 

 

 

 

 

The contribution margin ratio is computed as:

 

Question 10 options:

	sales divided by contribution margin
	contribution margin divided by sales dollars
	contribution margin divided by cost of sales
	contribution margin divided by variable cost of sales

 

Question 11 (5 points)

 

 

 

 

 

 

 

 

 

The contribution margin ratio is

 

Question 11 options:

	the same as the variable cost ratio
	the same as profit
	the portion of equity contributed by the stockholders
	the same as the profit-volume ratio

 

Question 12 (5 points)

 

 

 

 

 

 

 

 

 

All of the following are characteristics of a process cost system except

 

Question 12 options:

	the system may use several work in process inventory accounts
	manufacturing costs are grouped by department rather than by jobs
	the system accumulates costs per job
	the system emphasizes time periods rather than the time it takes to complete a job

 

Question 13 (5 points)

 

 

 

 

 

 

 

 

 

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?

 

Question 13 options:

	5,000
	41,176
	47,059
	58,882

 

Question 14 (5 points)

 

 

 

 

 

 

 

 

 

March 1, 2020, Dorchester Company's beginning work in process inventory had 7,000 units. This is its only production department. Beginning WIP units were 50% complete as to conversion costs. Dorchester introduces direct materials at the beginning of the production process.  During March, all beginning WIP was completed and an additional 19,500 units were started and completed. Dorchester also started but did not complete 9,500 units.  These units remained in ending WIP inventory and were 40% complete as to conversion costs. Dorchester uses the weighted average method. Use this information to determine for March 2020 the equivalent units of production for conversion costs. Round to whole number (no cents).

 

Your Answer:

Question 14 options:

Answer

 

Question 15 (5 points)

 

 

 

 

 

 

 

 

 

During FY 2020 Bay Manufacturing had total manufacturing costs are $448,000. Their cost of goods manufactured for the year was $473,000.  The January 1, 2021 balance of Work-in-Process Inventory is $52,000. Use this information to determine the dollar amount of the FY 2020 beginning Work-in-Process Inventory. Round to a whole number (no cents).

 

Your Answer:

Question 15 options:

Answer

 

Question 16 (5 points)

 

 

 

 

 

 

 

 

 

Match each business that follows to the type of costing system (a or b) it would typically use.

 

Question 16 options:

12 Movie studio   12 Gasoline refinery   12 Home construction   12 Paper manufacturer   12 Flour mill

1. Job order costing   2. Process costing

 

Question 17 (5 points)

 

 

 

 

 

 

 

 

 

Match the following terms (a-e) with their definitions.

 

Question 17 options:

12345 Plots only the difference between total sales and total costs   12345 Indicates the possible decrease in sales that may occur before operating loss results   12345 The relative distribution of sales among products sold by a company   12345 Contribution margin divided by income from operations   12345 Graphically shows costs, sales, and operating profit or loss at various levels of units sold

1. Profit-volume chart   2. Cost-volume-profit chart   3. Sales mix   4. Operating leverage   5. Margin of safety

 

Question 18 (5 points)

 

 

 

 

 

 

 

 

 

Harley Company has sales of $500,000, variable costs are 75% of sales, and operating income is $40,000. What is Harley's operating leverage?

 

Question 18 options:

	0.0
	1.2
	1.3
	3.1

 

Question 19 (5 points)

 

 

 

 

 

 

 

 

 

Which of the following causes the difference between the planned and actual contribution margin?

 

Question 19 options:

	an increase or decrease in the amount of sales
	an increase in the amount of variable costs and expenses
	a decrease in the amount of variable costs and expenses
	all of the above

 

Question 20 (5 points)

 

 

 

 

 

 

 

 

 

Annapolis Clothing Company manufactures quality boating attire.  The following selected financial information for the fiscal year 2020 is provided:

Item	Amount
Sales	$200,000
Cost of Goods Manufactured	56,000
Direct Material Purchased	80,000
Factory Overhead	20,000
Work in Process - January 1	60,000
Work in Process - December 31	30,000
Direct Material - December 31	20,000
Finished Goods Inventory - December 31	30,000
Net Income	30,000
Direct Materials used	60,000
Cost of Goods Sold	67,000

Use this information to determine the dollar amount of Annapolis Clothing's Finished Goods Inventory for January 1, 2020. Round to a whole number (no cents).

 

Your Answer:

Question 20 options:

Answer