Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

29. If sales are $500,000, variable costs are $300,000, and fixed costs are $$240,000, what is the contribution margin ratio a) 40% b) 48% c)

image text in transcribed

29. If sales are $500,000, variable costs are $300,000, and fixed costs are $$240,000, what is the contribution margin ratio a) 40% b) 48% c) 52% d) 55% e) 60% 30. A company has the choice of either selling 500 defective units as scrap or rebuilding them. The company could sell the defective units as they are for $7.00 per unit. Alternatively, it could rebuild them with incremental costs of $2.00 per unit for materials, $3 per unit for labor, and $1 per unit for overhead, and then sell the rebuilt units for $15 each. What should the a) Sell the units as scrap b) Throw the units away c) It does not matter because both alternatives have the same result. d) Neither sell nor rebuild because both alternat tives produce a loss. Instead, the company should store the units permanently Rebuild the units e) 31. Which of the following may be part of a journal entry to increase cost a) Credit Cost of Goods Sold b) Debit Factory Overhead c) Debit Raw Materials d) Credit Finished Goods of goods sold? e) None of the above. 32. A sawmill bought a shipment of logs for $40,000. When cut, the logs produced 1 million board feet of lumber in the following grades: Type 1 -400,000 bd. ft. priced to sell at $0.12 per bd. ft. Type 2 -400,000 bd. ft. priced to sell at $0.06 per bd. ft. Type 3 - 200,000 bd. ft. priced to sell at $0.04 per bd. ft. How much cost should be allocated to Type 1 and Type 2, respectively? Iype 1 Iype 2 a) $16,000 $16,000 b) $24,000 $12,000 c) $40,000 $24,000 d) $13,333 e) $24,000 $4,444 $8,000 33. For which of the following businesses would the process cost system be most appropriate? a) Crude oil refinery b) Automobile repair shop c) d) e) Custom furniture manufacturer Commercial custom building contractor Both "c" and "d

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Version 3.0

Authors: Leah Kratz, Joe Ben Hoyle, C. J. Skender

3rd Edition

1453392904, 9781453392904

More Books

Students also viewed these Accounting questions