1.

Concam Inc. manufactures television sets. Last month, direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, manufacturing overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets and sold 5,000 sets during the month. There were no beginning or ending work-in-process inventories.

What was the per-unit conversion cost?

A) $260.00

B) $156.25

C) $218.75

D) $250.00

2.

The following six months of data were collected on the number of machine hours operated and utility costs incurred in a factory:

Month July August September October November December

Machine Hours 4,975 5,130 3,100 3,170 3,755 4,320

Utility Costs $26,860 26,400 21,500 20,140 24,780 25,840

Which of the following would be the correct set of high and low months to be used by the high-low method?

A) High: August, Low: October

B) High: August, Low: September

C) High: July, Low: October

D) High: July, Low: September

3.

Mathematically, total manufacturing costs would be the sum of:

A) prime costs and conversion costs.

B) direct labor and prime costs.

C) manufacturing overhead and conversion costs.

D) direct materials and conversion costs.

4.

The cost of raw materials will be expensed in a manufacturing companys income statement when:

A) the materials are used up in production.

B) the related products are sold.

C) the materials are purchased.

D) the related products are completed.