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Question;23. The number of equivalent units produced with respect to direct materials costs is:a. 51,000b. 50,000c. 47,000d. 56,000Department J had no work in process at the beginning of the period, 18,000 units were completed during the period, 2,000 units were 30% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period (Assuming the company uses FIFO and rounds average cost per unit to two decimal places):Direct materials (20,000 at $5) $ 100,000Direct labor 142,300Factory overhead 57,20024. Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the departmental work in process inventory at the end of the period?a. $90,000b. $283,140c. $199,500d. $16,43825. Which of the following statements is correct concerning variable and fixed costs?a. Both costs are constant when considered on a per unit basis.b. Variable costs vary in total and fixed costs are constant on a per unit basis.c. Fixed costs are constant in total and variable costs are constant on a per unit basis.d. Variable costs are constant in total and fixed costs are constant on a per unit basis.26. If fixed costs are $750,000 and variable costs are 60% of sales, what is the break-even point (dollars)?a. $1,875,000b. $300,000c. $2,500,000d. $1,250,00027. When a business sells more than one product at varying selling prices, the business's break-even point can be determined as long as the number of products does not exceed:a. twob. threec. fifteend. there is no limit28. If variable selling and administrative expenses totaled $120,000 for the year (80,000 units at $1.50 each) and the planned variable selling and administrative expenses totaled $120,900 (78,000 units at $1.55 each), the effect of the unit cost factor on the change in variable selling and administrative expenses is:a. $900 decreaseb. $3,100 decreasec. $4,000 decreased. $3,100 increase29. A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed:a. flexible budgetingb. continuous budgetingc. zero-based budgetingd. master budgetingThe Cardinal Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were: January - 200,000 units, February - 180,000 units, March - 210,000 units, and April - 230,000 units. The Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following months sales.30. What would be the budgeted production for March?a. 256,000b. 206,000c. 214,000d. 298,000Problems31. The Cake Factory has the following information for the month of March. Prepare a schedule of cost of goods manufactured. (6 points)Purchases $85,000Materials inventory, March 1 6,000Materials inventory, March 31 7,000Direct labor 25,000Factory overhead 34,000Work in process, March 1 17,000Work in process, March 31 18,500Finished goods inventory, March 1 21,000Finished goods inventory, March 31 23,000Sales 235,000Sales and administrative expenses 78,00032. A summary of the time tickets for August follows:Description Amount Description AmountJob No. 321 $11,000 Job No. 342 $8,300Job No. 329 8,200 Job No. 346 5,700Job No. 336 2,000 Indirect labor 5,000Present the journal entries to record (a) the labor cost incurred and (b) the application of factory overhead to production for August. The factory overhead rate is 70% of direct labor cost. (5 points)33. The cost of direct materials transferred into the Bottling Department of the Desert Springs Water Company is $27,225. The conversion cost for the period in the Bottling Department is $7,596. The total equivalent units for direct materials and conversion are 60,500 and 63,300 respectively. Determine the direct materials and conversion cost per equivalent unit. (6 points)34. Barrack Inc. manufactures laser printers within a relevant range of production of 50,000 to 70,000 printers per year. The following partially completed manufacturing cost schedule has been prepared: (15 points)Number of Printers Produced70,000 90,000 100,000Total costs: Total variable costs $350,000 (d) (j)Total fixed costs 630,000 (e) (k)Total costs $980,000 (f) (l)Cost per unit: Variable cost per unit (a) (g) (m)Fixed cost per unit (b) (h) (n)Total cost per unit (c) (i) (o)35. On August 31, the end of the first year of operations, during which 18,000 units were manufactured and 13,500 units were sold, Finberg Inc. prepared the following income statement based on the variable costing concept:Finberg Inc.Income StatementFor Year Ended August 31, 20--Sales $297,000Variable cost of goods sold: Variable cost of goods manufactured $279,000 Less ending inventory 67,500 Variable cost of goods sold 211,500Manufacturing margin $ 85,500Variable selling and administrative expenses 40,500Contribution margin $ 45,000Fixed costs: Fixed manufacturing costs $ 12,000 Fixed selling and administrative expenses 10,800 22,800Income from operations $ 22,200========Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. (8 points)

 

Paper#44023 | Written in 18-Jul-2015

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