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1. Rally Synthesis Inc. manufactures and sells 100 bottles per day. Fixed costs are $22,000 and the variable costs for manufacturing 100 bottles are $30,000. Each bottle is sold for $1,200. How would the daily profit be affected if the daily volume of sales drop by 10%?

A) profits are reduced by $9,000

B) profits are reduced by $3,000

C) profits are reduced by $12,000

D) profits are reduced by $59,000

2. The East Company manufactures several different products. Unit costs associated with Product ORD105 are as follows:

Direct materials $54

Direct manufacturing labor 8

Variable manufacturing overhead 11

Fixed manufacturing overhead 25

Sales commissions (2% of sales) 5

Administrative salaries 12

Total $115

What is the percentage of the total fixed costs per unit associated with Product ORD105 with respect to total cost?

A) 37%

B) 32%

C) 15%

D) 26%

3. When 25,000 units are produced, fixed costs are $21.00 per unit. Therefore, when 20,000 units are produced, fixed costs will ________.

A) increase to $26.25 per unit

B) remain at $21.00 per unit

C) decrease to $16.80 per unit

D) total $420,000

4. Pederson Company reported the following:

Manufacturing costs $360,000

Units manufactured 9,000

Units sold 7,500 units sold for $90 per unit

Beginning inventory 1,000 units

What is the manufacturing cost for the ending finished goods inventory?

A) $100,000

B) $60,000

C) $744,000

D) $54,000

5. Denver City Manufacturing currently produces 2,000 glasses per month. The following per unit data apply for sales to regular customers and is based on 1,000 units produced.

Direct materials $200

Direct manufacturing labor 40

Variable manufacturing overhead 70

Fixed manufacturing overhead 50

Total manufacturing costs $360

The plant has capacity for 3,000 glasses. Plant supervisor's salary is $15,000.

Required:

a. What is the total cost of producing 2,000 glasses?

b. What is the total cost of producing 1,600 glasses?

c. What is the per unit cost when producing 1,500 glasses?

6. The following information pertains to Alleigh's Mannequins:

Manufacturing costs $2,170,000

Units manufactured 31,000

Units sold 28,500 units sold for $90 per unit

Beginning inventory 0 units

What is the amount of gross margin?

A) $1,995,000

B) $2,170,000

C) $2,565,000

D) $570,000

7. The American West Company manufactures several different products. Unit costs associated with Product ORD210 are as follows:

Direct materials $90

Direct manufacturing labor 24

Variable manufacturing overhead 20

Fixed manufacturing overhead 10

Sales commissions (2% of sales) 18

Administrative salaries 38

Total $200

What are the inventoriable costs per unit associated with Product ORD210?

A) $134

B) $124

C) $144

D) $114

8. All Rite Manufacturing reported the following:

Revenue	$460,000
Beginning inventory of direct materials, January 1, 2015	26,000
Purchases of direct materials	156,000
Ending inventory of direct materials, December 31, 2015	14,000
Direct manufacturing labor	30,000
Indirect manufacturing costs	41,000
Beginning inventory of finished goods, January 1, 2015	46,000
Cost of goods manufactured	239,000
Ending inventory of finished goods, December 31, 2015	45,000
Operating costs	150,000

What is Leslie's cost of goods sold?

A) $390,000

B) $240,000

C) $239,000

D) $389,000

9. Millworks Company manufactured 100,000 units in 2018 and reported the following costs:

Sandpaper $ 32,000 Leasing costs-plant $ 384,000

Materials handling 320,000 Depreciation-equipment 224,000

Coolants & lubricants 22,400 Property taxes-equipment 32,000

Indirect manufacturing labor 275,200 Fire insurance-equipment 16,000

Direct manufacturing labor 2,176,000 Direct material purchases 3,140,000

Direct materials, 1/1/18 348,000 Direct materials, 12/31/18 280,000

Finished goods, 1/1/18 672,000 Sales revenue 12,800,000

Finished goods, 12/31/18 1,280,000 Sales commissions 640,000

Work-in-process, 1/1/18 96,000 Sales salaries 576,000

Work-in-process, 12/31/18 64,000 Advertising costs 480,000

Administration costs 800,000

Required:

a. What is the amount of direct materials used during 2018?

b. What manufacturing costs were added to WIP during 2018?

c. What is cost of goods manufactured for 2018?

d. What is cost of goods sold for 2018?

10. What is the cost of goods manufactured for 2018?

Beginning finished good, 1/1/2018 $47,000

Ending finished goods, 12/31/2018 36,000

Cost of goods sold 259,000

Sales revenue 488,000

Operating expenses 110,000

A) $248,000

B) $369,000

C) $270,000

D) $259,000