34 -

When is the cost of manufacturing equipment recognized as an expense?

The following costs related to Summertime Company for a relevant range of up to 20,000 units annually: Variable Costs: Direct materials$5.00 Direct labor1.50 Manufacturing Overhead2.50 Selling and administrative3.00 Fixed Costs: Manufacturing overhead$20,000 Selling and Administrative10,000 The selling price per unit of product is $15.00. At a sales volume of 15,000 units, what is the total cost for Summertime Company?

	$155,000
	$195,000
	$200,000
	$210,000

When equipment depreciation is recorded

When inventory processing is completed and finished goods are recorded

When finished goods inventory is sold

None of the above

35 - Partially completed goods that are in the process of being converted into a finish product are defined as:

Work-in-process inventories

Conversion inventories

Raw materials inventories

Operational inventories

36 _______________ are the net cash inflows that could be obtained if the resources committed to one action were used in the most desirable other alternative.

	Gross profits
	Outlay costs
	Opportunity costs
	Net contributions

37 - Peoria Corporation reported the following on their contribution format income statement: Sales (12,000 units)$350,000 Less: variable expenses 200,000 Contribution margin$150,000 Less: fixed expenses 125,000 39 -Net operating income$ 25,000 What is the unit contribution margin?

$35.00

$20.00

$12.50

$13.50

38 - Which of the following can be considered to be unethical behavior?

	Assigning direct labor costs to Contract A and Contract B using different rates for different employees
	Assigning different direct material costs to Contract A and Contract B based on usage
	Assigning overhead costs to Contract A based on labor hours and Contract B based on machine hours
	Assigning costs of Contract A to Contract B to avoid an unfavorable performance report on Contract A