Exam 2

ACC 202

Process Costing Weighted Average

Beginning goods in process inventory (March 31)

Units of product30,000 units

Percentage of completion Direct materials 100%

Percentage of completion Direct labor 65%

Direct materials costs$4,300

Direct labor costs $ 700

Factory overhead costs applied $ 920

Activities during the current period (April)

Units started this period 90,000 units

Units transferred out (completed)100,000 units

Direct materials costs$ 12,900

Direct labor costs$ 6,700

Factory overhead costs applied $ 7,680

Ending goods in process inventory (April 30)

Units of product 20,000

Percentage of completion Direct materials 100%

Percentage of completion Direct labor 25%

Process Cost Summary

Weighted Average

Cost Charged to Production

Costs of beginning goods in process

Direct Materials

Direct Labor

Factory Overhead

Costs incurred this period

Direct materials

Direct Labor

Factory Overhead

Total costs to account for

Unit Cost Information

Units to accounts for:Units accounted for:

Beginning goods in processCompleted and transferred out

Units started this periodEnding goods in process

Total units to account forTotal units accounted for

DirectDirect Factory

Equivalents Units of Production (EUP) MaterialsLaborOverhead

Units completed and transferred out

Units of ending goods in process

Direct materials

Direct labor

Factory overhead

Equivalent units of production

DirectDirect Factory

Cost per EUP MaterialsLabor Overhead

Costs of beginning goods in process

Costs incurred this period

Total costs

/EUP

Cost per EUP

Cost Assignment and Reconciliation

Costs transferred out (COGM)

Direct materials

Direct labor

Factory overhead

Costs of ending goods in process

Direct materials

Direct labor

Factory overhead

Total costs accounted for

1. What is the equivalent units of production for direct materials?

A. 105,000

B. 110,000

C. 115,000

D. 120,000

1. What is the equivalent units of production for direct labor?

A. 90,000

B. 95,000

C. 100,000

D. 105,000

1. What is the equivalent units of production for factory overhead?

A. 95,000

B. 100,000

C. 105,000

D. 110,000

1. What is the cost per equivalent unit of production (4 decimals) for direct materials?

A. .1267

B. .1433

C. .1742

D. .1944

1. What is the cost per equivalent unit of production (4 decimals) for direct labor?

2. .0705

B .1145

C. .1398

D. .1484

1. What is the cost per equivalent unit of production for factory overhead?

A. .0645

B. .0995

C. .0524

D. .0819

1. What is the cost of goods manufactured?

A. 26,890

B. 27,640

C. 29,570

D. 32,580

1. What is the cost of ending goods in process?

A. 3,115

B. 3,345

C. 3,628

D. 3,985

Measuring Cost Behavior

Month Setup Hours (X)Setup Costs (Y)

January 100 $1,000

February 200 1,250

March 300 2,250

April 400 2,500

May 500 3,750

1. What is the variable cost per unit (3 decimals) using the high-low method?

A. $6.875

B. $5.934

C. $7.875

D. $8.545

1. What is the fixed cost using the high-low method?

A. $215.55

B. $245.95

C. $275.25

D. $312.50

1. What is the total cost at a level of 750 setup hours using the high-low method?

A. $5,115.45

B. $5,468.75

C. $6,215.55

D. $6,935.85

1. What is the variable cost per unit using least-squares regression?

A. $4.50

B. $6.75

C. $7.25

D. $8.95

1. What is the fixed cost using least-squares regression?

A. $100

B. $105

C. $125

D. $135

1. What is the total cost at a level of 800 setup hours using least-squares regression?

A. $4,235

B. $4,765

C. $4,985

D. $5,525

Cost-Volume-Profit Analysis

Sport Caps Co. manufactures and sells caps for different sporting events. The fixed costs of operating the company are $160,000 per month, and the variable costs for caps are $7.50 per unit. The caps are sold for $10 per unit. The fixed costs provide a production capacity of up to 100,000 caps per month.

1. What is the contribution margin per cap?

A. $1.15

B. $1.50

C. $2.35

D. $2.50

1. What is the break-even point in terms of the number of caps produced and sold?

A. 75,000

B. 51,000

C. 55,000

D. 64,000

1. What is the amount of net income at 90,000 caps sold per month?

A. $65,000

B. $54,000

C. $72,000

D. $68,500

1. What is the contribution margin ratio?

A. .25

B. .17

C. .32

D. .45

1. What is the break-even point in terms of sales dollars?

A. $615,000

B. $640,000

C. $655,000

D. $675,000

1. What is the dollars of sales needed to provide $45,000 of after-tax income, assuming an income tax rate of 20%.

A. $825,000

B. $850,000

C. $865,000

D. $872,000

can anyone help me answer these questions?