Acct212 Exam #1 - Multiple Choice Acct212 Exam #1 - Multiple Choice QUESTIONS At a sales volume of 41,000 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volumn total $561,700 The endine balance in the Work in Process inventory account is: $162,000 B! $220,000 C) $200,000 D) $181,000 25 points To the nearest whole dollar, what should be the total sales commissions at a sales volume of 38,800 units? (Assume that this sales volume is within the relevant range.) (Round intermediate calculations ta 2 decimal places.) A A) $551,700 $ BI $593,549 C $631,560 D) $543,080 25 points QUESTIONS Carrington Corporation produces canned vegetable soup. The company uses the weighted average method in its process costing system. The company sold 300,000 units in January. Data concerning inventories follow: Nana 75.000 units QUESTION 4 Bendel Inc. has an operating leverage of 7.3. If the company's sales increase by 3*, Its net operating income should increase by about: 1) 243.3% BI 7.3% C) 21.9% D) 30% 2.5 points Inventory at January 1: Work in process Finished goods Inventory at January 31: Work in process 175% complete with respect to conversion costs) Finished goods 60,000 units 24,000 units QUESTIONS Callee Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year. What were the equivalent units for conversion costs for January? A) 285,000 units. BI 309,000 units CI 303,000 units D) 300,000 units 2.5 points Beginning inventorius Raw materials $ 40,000 Wark in process $ 19,000 Estimated total manufacturing overhead at the beginning of the year Estimated direct labor-hours at the beginning of the year QUESTION Dukes Corporation used a predetermined overhead rate this year of $2 per direct lahor haur, based on an estimate of 20,000 direct labor hours to be worked during the year. Actual costs and activity during the year were: $ 595,000 35,000 direct labar-hours 38,000 Results of onerations: Actual manufacturing overhead cast incurred Actual direct labor-hours worked $ 18,5001 Raw materials purchased on account Raw materials (all direct requisitioned for use in production Direct labor cost Actual direct laber-hours Manufacturing overhead: Indirect labor cast Other manufacturing overhead costs incurred Cost of coods manufactured $ 423,000 $ 420,000 $ 641,000 23.000 direct labor-hours The overapplied or underapplied manufacturing for the year was: A) $3,000 underapplied BI $3,000 overapplied CI $1,000 uverapplied D) $1,000 underapplied 2.5 paints $ $ $ 143,000 531,000 1,441,000 Acct217 Exam 11 - Multiple Choice Acct212 Exam 41 - Multiple Choice QUESTIONS Factory security and assembly activities at an appliance manufacturing plant would be best classified as unit-level, batch-level, product-level, or organization Sustaining activities? QUESTION 11 In a job-order costing system, indirect labor cost is usually recorded as a debit to: a A) A Finished Goods BU Cast of Goods Sald. CI Work in Process D) Manufacturing Overhead Control 25 points A) Security Assembly Product Unit B! Security Assembly Batch Batch CI Security Assembly Organization Product D) Security Assembly Oreanization Unit 2.5 points QUESTION 12 In the cost reconciliation raport under the weighted average method, tha "Casts to be accounted for section contains which of the following items? A) Cost of encing finished goods Inventory BI Cast of units transferred out CI Cast of ending work in process inventory ) Cast of beginning work in process inventory 25 points QUESTION 12 Lagle Corporation has provided the following information: QUESTION Ceba Corporation uses the FIFO method in its process costing system. The Grinding Department started the fronth with 17,000 units in its beginning work in process invenitury that were 60% cuirplete with respect to conversion costs. An additional 60,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 20,000 units were completed in the Grinding Department and transferred to the next processing department. There were 7,000 units in the ending work in process inventory of the Grinding Department that were 10% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Grinding Department for the month? 60,500 BI 70,700 C 70,000 50,000 2.5 points Cost per Unit Cast per Period Direct materials S Direct labar $ Variable manufacturing overhead S Fixed manufacturing overhead $ Sales commissions $ Variable administrative expense $ s Fixed selling and administrative experse 4.55 3.30 1.25 11,000 1.30 0.35 s 4200 QUESTION 10 Goodman Corporation has sales of 3,000 units at $80 per unit. Variable costs are 35% of the sales price. If tatal fixed costs are $66,000, the degree of operating leverage is: A) 173 RI 0.79 CI 2.67 093 2.5 points For financial reporting purposes, the total amount of period costs incurred to sell 5000 units is clasest to: A) $4200 BI $8250 $12,450 D) $11,000 25 points Acct212 Exam #1 - Multiple Choice QUESTION 1 A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3120 and is paid at the beginning of the first year. Ninety percent of the premium applies to manufacturing operations and ten percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage? Product Period A) $3120 $0 B) $2808 $312 C) $1872 $208 D) $936 $104 2.5 points QUESTION 2 Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 90 Units in beginning inventory Units produced Units sold Units in ending inventory 3,400 3,000 400 21 38 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ $ $ $ 6 4 $ $ 54,400 3,000 What is the net operating income for the month under variable costing? A) $12,000 B) $(20,400) C) $6,400 D) $5,600 2.5 points Acct212 Exam #1 - Multiple Choice Acct212 Exam #1 - Multiple Choice QUESTIONS At a sales volume of 41,000 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volumn total $561,700 The endine balance in the Work in Process inventory account is: $162,000 B! $220,000 C) $200,000 D) $181,000 25 points To the nearest whole dollar, what should be the total sales commissions at a sales volume of 38,800 units? (Assume that this sales volume is within the relevant range.) (Round intermediate calculations ta 2 decimal places.) A A) $551,700 $ BI $593,549 C $631,560 D) $543,080 25 points QUESTIONS Carrington Corporation produces canned vegetable soup. The company uses the weighted average method in its process costing system. The company sold 300,000 units in January. Data concerning inventories follow: Nana 75.000 units QUESTION 4 Bendel Inc. has an operating leverage of 7.3. If the company's sales increase by 3*, Its net operating income should increase by about: 1) 243.3% BI 7.3% C) 21.9% D) 30% 2.5 points Inventory at January 1: Work in process Finished goods Inventory at January 31: Work in process 175% complete with respect to conversion costs) Finished goods 60,000 units 24,000 units QUESTIONS Callee Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year. What were the equivalent units for conversion costs for January? A) 285,000 units. BI 309,000 units CI 303,000 units D) 300,000 units 2.5 points Beginning inventorius Raw materials $ 40,000 Wark in process $ 19,000 Estimated total manufacturing overhead at the beginning of the year Estimated direct labor-hours at the beginning of the year QUESTION Dukes Corporation used a predetermined overhead rate this year of $2 per direct lahor haur, based on an estimate of 20,000 direct labor hours to be worked during the year. Actual costs and activity during the year were: $ 595,000 35,000 direct labar-hours 38,000 Results of onerations: Actual manufacturing overhead cast incurred Actual direct labor-hours worked $ 18,5001 Raw materials purchased on account Raw materials (all direct requisitioned for use in production Direct labor cost Actual direct laber-hours Manufacturing overhead: Indirect labor cast Other manufacturing overhead costs incurred Cost of coods manufactured $ 423,000 $ 420,000 $ 641,000 23.000 direct labor-hours The overapplied or underapplied manufacturing for the year was: A) $3,000 underapplied BI $3,000 overapplied CI $1,000 uverapplied D) $1,000 underapplied 2.5 paints $ $ $ 143,000 531,000 1,441,000 Acct217 Exam 11 - Multiple Choice Acct212 Exam 41 - Multiple Choice QUESTIONS Factory security and assembly activities at an appliance manufacturing plant would be best classified as unit-level, batch-level, product-level, or organization Sustaining activities? QUESTION 11 In a job-order costing system, indirect labor cost is usually recorded as a debit to: a A) A Finished Goods BU Cast of Goods Sald. CI Work in Process D) Manufacturing Overhead Control 25 points A) Security Assembly Product Unit B! Security Assembly Batch Batch CI Security Assembly Organization Product D) Security Assembly Oreanization Unit 2.5 points QUESTION 12 In the cost reconciliation raport under the weighted average method, tha "Casts to be accounted for section contains which of the following items? A) Cost of encing finished goods Inventory BI Cast of units transferred out CI Cast of ending work in process inventory ) Cast of beginning work in process inventory 25 points QUESTION 12 Lagle Corporation has provided the following information: QUESTION Ceba Corporation uses the FIFO method in its process costing system. The Grinding Department started the fronth with 17,000 units in its beginning work in process invenitury that were 60% cuirplete with respect to conversion costs. An additional 60,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 20,000 units were completed in the Grinding Department and transferred to the next processing department. There were 7,000 units in the ending work in process inventory of the Grinding Department that were 10% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Grinding Department for the month? 60,500 BI 70,700 C 70,000 50,000 2.5 points Cost per Unit Cast per Period Direct materials S Direct labar $ Variable manufacturing overhead S Fixed manufacturing overhead $ Sales commissions $ Variable administrative expense $ s Fixed selling and administrative experse 4.55 3.30 1.25 11,000 1.30 0.35 s 4200 QUESTION 10 Goodman Corporation has sales of 3,000 units at $80 per unit. Variable costs are 35% of the sales price. If tatal fixed costs are $66,000, the degree of operating leverage is: A) 173 RI 0.79 CI 2.67 093 2.5 points For financial reporting purposes, the total amount of period costs incurred to sell 5000 units is clasest to: A) $4200 BI $8250 $12,450 D) $11,000 25 points Acct212 Exam #1 - Multiple Choice QUESTION 1 A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3120 and is paid at the beginning of the first year. Ninety percent of the premium applies to manufacturing operations and ten percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage? Product Period A) $3120 $0 B) $2808 $312 C) $1872 $208 D) $936 $104 2.5 points QUESTION 2 Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 90 Units in beginning inventory Units produced Units sold Units in ending inventory 3,400 3,000 400 21 38 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ $ $ $ 6 4 $ $ 54,400 3,000 What is the net operating income for the month under variable costing? A) $12,000 B) $(20,400) C) $6,400 D) $5,600 2.5 points