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Question;TCO A) Direct;material cost is a part of;Conversion Cost YES.... Prime Cost NO.;Conversion Cost NO.... Prime Cost YES.;Conversion Cost YES.... Prime Cost YES.;Conversion Cost NO.... Prime Cost NO.;Question 2. Question;(TCO A) The costs of;staffing and operating the accounting department at Central Hospital would be;considered by the Department of Surgery to be;direct costs.;sunk costs.;incremental costs.;CORRECT None of the above;Question 3. Question;(TCO A) Property;taxes on a company's factory building would be classified as a(n);sunk cost.;opportunity cost.;period cost.;variable cost.;manufacturing cost.;Question 4. Question;(TCO A) Within the relevant range, variable costs can be;expected to;vary in total in direct proportion to changes;in the activity level.;remain constant in total as the activity level;changes.;increase on a per-unit basis as the activity;level increases.;increase on a per-unit basis as the activity;level decreases.;None of the above;Question 5. Question;(TCO F) When;manufacturing overhead is applied to production, it is added to;the Cost of Goods Sold account.;the Raw Materials account.;the Direct Labor account.;Question 6. Question;(TCO F) Which of the following statements about the;process-costing system is incorrect?;In a process-costing system, each processing;department has a work-in-process account.;In a process-costing system, equivalent units;are separately computed for materials and for conversion costs.;In a process-costing system, overhead can be;under- or overapplied just as in job-order costing.;In a process-costing system, materials costs;are traced to units of products.;Question 7. Question;(TCO F) Equivalent;units for a process costing system using the FIFO method would be equal to;units completed during the period, plus equivalent units in the ending;work-in-process inventory.;units started and completed during the period;plus equivalent units in the ending work-in-process inventory.;units completed during the period and;transferred out.;units started and completed during the period;plus equivalent units in the ending work-in-process inventory, plus work needed;to complete units in the beginning work-in-process inventory.;Question 8. Question;(TCO B) The;contribution margin ratio always decreases when the;break-even point increases.;break-even point decreases.;variable expenses as a percentage of net sales;increase.;variable expenses as a percentage of net sales;decrease.;Question 9. Question;(TCO B) Which of the;following would not affect the break-even point?;Number of units sold;Variable expense per unit;Total fixed expenses;Selling price per unit;Question 10. Question;(TCO E) In an income statement prepared using the variable;costing method, fixed manufacturing overhead would;not be used.;be used in the computation of the contribution;margin.;be used in the computation of net operating;income but not in the computation of the contribution margin.;be treated the same as variable manufacturing;overhead.TCO A) The following data (in thousands of dollars) have;been taken from the accounting records of Larden Corporation for the;just-completed year. Sales $950 Purchases of raw;materials $170 Direct labor $210 Manufacturing;overhead$220 Administrative;expenses $180 Selling expenses $140 Raw materials;inventory, beginning $70 Raw materials;inventory, ending $80 Work-in-process;inventory, beginning $30 Work-in-process;inventory, ending $20 Finished goods;inventory, beginning $100 Finished goods;inventory, ending $70Required: Prepare a Schedule of Cost of Goods Manufactured;statement in the text box below. Question 2. Question;(TCO F) The Colorado Company manufactures a product that;goes through three processing departments. Information relating to activity in;the first department during June is given below.;Percentage Completed;Units Materials ConversionWork in process, June 1;80,000 65% 45%Work in process, Jun 30;65,000 75% 65%The department started 325,000 units into production during;the month and transferred 340,000 completed units to the next department.Required: Compute the equivalent units of production for the;first department for June, assuming that the company uses the weighted-average;method of accounting for units and costs. Question 3. Question;(TCO B) Drake Company's income statement for the most recent;year appears below.Sales (45,000 units);$1,350,000Less: variable expenses 750,000Contribution margin;600,000Less: fixed expenses;375,000Net operating income;$225,000Required:a. Calculate the unit contribution margin.b. Calculate the break-even point in dollars.c. If the company desires a net operating income of;$290,000, how many units must it sell? Question 4. Question;(TCO E) Maffei Company, which has only one product, has;provided the following data concerning its most recent month of operations: Selling price $;175 Units in beginning inventory;0Units produced 9,500Units sold 8,000Units in ending Inventory;1,500 Variable costs per unit;Direct materials $;55Direct labor $;38Variable manufacturing overhead $;2Variable selling and admin;$;10 Fixed costs: Fixed manufacturing overhead;$ 300,000Fixed selling and admin;$;125,000Required:a. What is the unit product cost for the month under;variable costing?b. What is the unit product cost for the month under;absorption costing?c. Prepare an income statement for the month using the;variable costing method.d. Prepare an income statement for the month using the;absorption costing method.;="msonormal">


Paper#40733 | Written in 18-Jul-2015

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