1. Yummy Tummy Desserts has 3,000 quarts of ice cream in WIP Inventory, with all materials already added. What are equivalent units in ending WIP Inventory for materials if the ice cream is 67% through the process?

	990
	3,000
	0
	2,010

2. How do fixed costs react in total and on a per unit basis?

Fixed costs increase in total as production increases and remain constant on a per unit basis.

Fixed costs remain constant in total and on a per unit basis as production increases.

Fixed costs remain constant in total and decrease per unit as production increases.

Fixed costs increase in total and on a per-unit basis.

3. Sykes Company has sales revenue of $585,700. Cost of goods sold before adjustment is $335,900. The company's actual manufacturing overhead is $91,900 while allocated manufacturing overhead is $105,300. What is the actual gross profit?

$263,200

$249,800

$157,900

$236,400

4. Baxter Company produces Frisbees using a three-step sequential process that includes molding, coloring, and finishing. At what stage would the sets be allocated Manufacturing Overhead?

When the Frisbees are in WIP Inventory-Coloring

When the Frisbees are in WIP Inventory-Finishing

When the Frisbees are in WIP Inventory-Molding

All of the above

5. Which method are managers using when they use their judgment to classify costs as variable, fixed, or mixed?

Low-high method

Regression analysis

Account analysis

High-low method

6. Which of the following is not a way in which management can use job cost information?

Determining the balance in raw materials inventory

Preparing the financial statements

Assessing and comparing the profitability of each product type

Using the cost information in determining the bid price for custom orders

7. Which of the following is not a way in which management can use job cost information?

Determining the balance in raw materials inventory

Preparing the financial statements

Assessing and comparing the profitability of each product type

Using the cost information in determining the bid price for custom orders

8. Tall Timbers reports the following data for its first year of operation:

Work in process inventory, beginning	$ 0
Work in process inventory, ending	$50,200
Manufacturing overhead	$25,400
Direct materials used	$7,700
Direct Labor	$60,000
Finished goods inventory, beginning	$ 0
Finished goods inventory, ending	$20,000
Cost of goods manufactured	$42,900

What is the cost of goods sold?

$22,900

$76,000

$73,100

$42,900

9.

A deodorant manufacturer offers the following information:

WIP Inventory, January 1	0 units
Units started	33,600 units
Units completed and transferred out	11,200 units
WIP Inventory, December 31	22,400 units
Direct materials	$276,480
Direct labor	$585,000
Manufacturing Overhead	$328,920

The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs.

On December 31, what are the total equivalent units for direct materials?

47,040

33,600

20,160

24,640

10. How is the cost of indirect materials used in the factory recorded?

Credit to Raw Materials Inventory account

Credit to Manufacturing Overhead account

Credit to Direct Materials Expense account

Credit to Work-in-Process Inventory account

11. XYZ uses job costing. Actual manufacturing overhead for the period is $20,300 while allocated manufacturing overhead is $18,200. What entry will close the manufacturing overhead balance?

	Debit the Cost of Goods Sold account and credit the Finished Goods Inventory account for $2,100.
	Debit the Manufacturing Overhead account and credit the Work-in-Process account for $2,100.
	Debit the Cost of Goods Sold account and credit the Manufacturing Overhead account for $2,100.
	Debit the Manufacturing Overhead account and credit the Cost of Goods Sold account for $2,100.