Multiple Choice Questions
1. Ginger Company's product has a contribution margin per unit of $11.25 and a contribution margin ratio of 22.5%. What is the selling price of the product?
A. $5.
B. $20.
C. $30.
D. $40.
E. $50.
2. Using the information below for Talking Toys, Inc., determine cost of goods manufactured for the year:
Direct material used .......... $12,500
Goods in process, January 1 ....... 50,000
Goods in process, December 31...... 37,000
Total Factory overhead......... 5,500
Direct labor used ............ 26,500
A. $13,000.B. $44,500.C. $57,500.D. $94,500.E. $52,000.
3. Calculate the cost of goods sold using the following information:
Direct material ............ $298,500
Direct labor .............. 132,000
Factory overhead costs ......... 264,000
General and administrative expenses.... 85,500
Selling expenses ............. 48,800
Goods in process, inventory, January 1... 118,500
Goods in process, inventory, December 31. 125,900
Finished goods inventory, January 1.... 232,100
Finished goods inventory, December 31 .. 238,700
A. $680,500.
B. $701,900.
C. $687,100.
D. $674,600.
E. $772,600.
4. Refer to the following selected financial information from Fennie's, LLC. Compute the company's accounts receivable turnover for Year 2.

A. 8.32.B. 8.62.C. 8.94.D. 5.78.E. 7.90.
5. Using the information below, calculate the cost of goods manufactured for the period.
Beginning Direct Materials ........... $25,000
Ending Direct Materials ............ $30,000
Beginning Goods in Process ........... $55,000
Ending Goods in Process ............. $64,000
Beginning Finished Goods ............. $80,000
Ending Finished Goods ............. $67,000
Cost of Goods Sold for the period ......... $540,000
Sales revenues for the period ........... $1,254,000
Operating expenses for the period ......... $232,000
A. $553,000.B. $536,000.C. $549,000.D. $527,000.E. $525,000.
6. A company manufactures and sells a product for $120 per unit. The company's fixed costs are $68,760, and its variable costs are $90 per unit. The company's break-even point in units is: A. 2,292.
B. 573.C. 764.D. 327.E. 840.
7. Ivan Company has a goal of earning $70,000 after-tax income. Ivan would need to pay $20,000 of income taxes at the target level of income. The contribution margin ratio is 30%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $36,000? A. $23,333.B. $36,000.C. $300,000.D. $353,333.E. $420,000.
8. During a recent fiscal year, Dawson Company reported pretax income of $125,000, a contribution margin ratio of 25% and total contribution margin of $400,000. Total variable costs must have been: 
A. $1,100,000.B. $1,200,000.C. $500,000.D. $1,600,000.E. $2,100,000.
9. Refer to the following selected financial information from Fennie's, LLC. Compute the company's inventory turnover for Year2.

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Year 2 Year Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets Accounts payable Net sales Cost of goods sold $37.500 90,000 85,500 121,000 12,100 388,000 113.400 711,000 390,000 $32.250 60.000 79.500 125,000 9.700 338.000 107.800 676,000 375.000