1. Tulsa Company, (a merchandising Co.) has the following data pertaining to the year ended December 31, 2016: (CPA adapted)

Purchases	$	450,000
Beginning inventory		170,000
Ending inventory		210,000
Freight-in		50,000
Freight-out		75,000

What is the cost of goods sold for the year?

a.) $385,000

b.) $460,000

c.) $485,000

d.) $536,000

2. A company had beginning inventories as follows: Direct Materials, $300; Work-in-Process, $500; Finished Goods, $700. It had ending inventories as follows: Direct Materials, $400; Work-in-Process, $600; Finished Goods, $800. Material Purchases (net including freight) were $1,400, Direct Labor $1,500, and Manufacturing Overhead $1,600. What is the Cost of Goods Sold for the period?

a.) $4,100.

b.) $4,200.

c.) $4,300.

d.) $4,400.

3. Vegas Company has the following unit costs:

Variable manufacturing overhead	$	25
Direct materials		20
Direct labor		19
Fixed manufacturing overhead		12
Variable marketing and administrative		7

Vegas produced and sold 10,000 units. If the product sells for $100, what is the gross margin?

a.) $170,000

b.) $240,000

c.) $290,000

d.) $360,000

4. Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below.

Sales				$	1,500,000
Cost of sales:
Direct Material	$	250,000
Direct labor		150,000
Variable Overhead		75,000
Fixed Overhead		100,000			575,000
Gross Profit				$	925,000
Selling and G&A
Variable		200,000
Fixed		250,000			450,000
Operating Income				$	475,000

The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:

a.) $146,341.

b.) $636,364.

c.) $729,730.

d.) $181,818.

5. Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below.

Sales				$	3,500,000
Cost of sales:
Direct Material	$	500,000
Direct labor		250,000
Variable Overhead		275,000
Fixed Overhead		600,000			1,625,000
Gross Profit				$	1,875,000
Selling and General & Admin. Exp.
Variable		750,000
Fixed		250,000			1,000,000
Operating Income				$	875,000

The contribution margin ratio for the current year is:

a.) 53.6%.

b.) 49.3%.

c.) 46.4%.

d.) 25%.

6.

	Case (A)				Case (B)				Case (C)
Beginning Balance (BB)		64,800			$	59,840				?
Ending Balance (EB)		61,300				?				13,800
Transferred In (TI)		189,100				79,530				65,200
Transferred Out (TO)		?				76,420				67,300

For Case (B) above, what is the Ending Balance (EB)?

a.) $139,300.

b.) $136,260.

c.) $62,950.

d.) $56,730.

7.Fortify, Inc. uses a predetermined manufacturing overhead rate based on direct labor hours to apply its indirect product costs to jobs. The following information has been collected for the previous year:

Direct materials	$	150,000
Direct labor		200,000
Sales commissions		100,000
Indirect labor		50,000
Rent on office equipment		25,000
Depreciation factory building		75,000
Utilities factory		125,000

Fortify used 25,000 direct labor hours and 50,000 machine hours during the previous year. What is the predetermined overhead rate per direct labor hour?

a.) $24.00.

b.) $15.00.

c.) $14.00.

d.) $10.00.

8.The following direct labor information pertains to the manufacture of product Scour:

Time required to make one unit		2	direct labor hours
Number of direct workers		50
Number of productive hours per week, per worker		40
Weekly wages per worker	$	500
Workers benefits treated as direct labor costs		20	% of wages

What is the standard direct labor cost per unit of product Scour? (CPA adapted)

a.) $30.

b.) $24.

c.) $15.

d.) $12.

9. Morton Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $49,000 and at the end of the month was $45,000. The cost of goods manufactured for the month was $226,000. The actual manufacturing overhead cost incurred was $74,000 and the manufacturing overhead cost applied to Work in Process was $70,000. The adjusted cost of goods sold that would appear on the income statement for November is:

a.) $226,000.

b.) $230,000.

c.) $222,000.

d.) $234,000.

10.Pigot Corporation uses job costing and has two production departments, M and A. Budgeted manufacturing costs for the year are as follows:

	Dept. M			Dept. A
Direct materials	$	700,000		$	100,000
Direct labor		200,000			800,000
Factory overhead		600,000			400,000

The actual direct material and direct labor costs charged to Job. No. 432 during the year were as follows:

Direct material				$	25,000
Direct labor:
Department M	$	8,000
Department A		12,000			20,000

Pigot applies manufacturing overhead to production orders on the basis of direct labor cost using departmental rates predetermined at the beginning of the year based on the annual budget. The total cost associated with Job. No. 432 for the year should be:

a.) $50,000.

b.) $55,000.

c.) $65,000.

d.) $75,000.