One of our clients ordered Job #101 on October 1. As of October 31, the job was not finished. $5,000 of direct materials has been requisitioned, and we used $4,000 worth of direct labor. Our company applies factory overhead at the end of each month at a rate of 200% of direct labor costs.

In November, we added $2,000 in direct materials and $1,000 in direct labor, and we completed the job on November 15. What is the balance in our work in process inventory account related to Job #101 on October 31?

$9,000

$12,000

$22,000

$17,000

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Question 19

1pts

A chocolate manufacturer production department has the following information available:

UnitsPercent complete with respect to Direct MaterialPercent complete with respect to Conversion costsBeginning work in process inventory5,00070%70%Units transferred to next department30,000100%100%Ending work in process inventory4,00080%80%

Calculate the equivalent units of production for the month with respect to directmaterials assuming the company uses the weighted-average method.

36,700 units

38,200 units

33,500 units

33,200 units

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Question 20

1pts

During December, the production department of a manufacturer had the following information available:

Beginning Inventory10,000 unitsUnits Started and Completed190,000 unitsEnding Inventory20,000 units

The ending inventory was 100% complete with respect to materials and 80% complete with respect to conversion costs. Compute the number of equivalent units with respect to direct labor for the month of December using the weighted average method.

206,000 units

216,000 units

214,000 units

220,000 units

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Question 21

1pts

Our company sells baseball bats. Each baseball bat sells for $80, our fixed costs are $8,500, and our variable costs are $30 per baseball bat. How many baseball bats must we sell to break even?

77

283

78

170

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Question 22

1pts

Our company sells baseball bats. Each baseball bat sells for $120, our fixed costs are $10,000, and our variable costs are $40 per baseball bat. How many baseball bats must we sell to earn a profit of $45,000?

344

688

687

1,375

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Question 23

2pts

This table shows our company's total costs for utilities and total machine hours used for manufacturing equipment over the last four months:

MonthTotal Machine HoursTotal Utilities CostsSeptember2,200$1,010October1,700$900November1,800$930December1,850$950

Using the high-low method, calculate the estimated utilities cost per machine hour.

[ Select ]

["

$0.17

", "

$0.22

", "

$5.80

", "

$2.63

"]

Using the high-low method, calculate the estimated fixed cost.

[ Select ]

["

$374

", "

$484

", "

$526

", "

$633

"]

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Question 24

1pts

Our company's forecasted sales are $254,000, and the breakeven sales are $212,000. What is the margin of safety?

$466,000

$(466,000)

$(42,000)

$42,000

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Question 25

1pts

This table shows the budgeted sales information for our company for January, February, and March of the current year:

MonthBudgeted Unit SalesBudgeted Sales PriceJanuary500$60February450$62March520$63

What are the budgeted sales in total dollars for March?

$27,900

$30,000

$32,760

$90,660

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Question 26

1pts

This table shows the budgeted sales information for our company for January, February, March, April, and May of the current year:

MonthBudgeted Unit SalesJanuary500February450March520April550May480

Company policy calls for a given quarter's ending finished goods inventory to equal 70%of the next month's expected unit sales. What is the estimated beginning finished goods inventory for February?

315 units

336 units

364 units

385 units

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Question 27

1pts

Our company has provided the following information related to our master budget for the current year:

QuarterBudgeted Production in UnitsQuarter 115,000Quarter 214,500Quarter 314,000Quarter 416,000

Our direct labor requirement is 5 hours per unit, and our direct labor rate per hour is $45 for the entire year. What is our total budgeted direct labor cost in dollars for Quarter 1?

$130,500

$3,262,500

$3,375,000

$135,000

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Question 28

1pts

Our company has provided the following information related to our master budget for the current year:

QuarterBudgeted Production in UnitsQuarter 115,000Quarter 214,500Quarter 314,000Quarter 416,000

Our product's manufacturing cost is $100per unit, including per-unit costs of

• $40for materials,
• $50for direct labor, and
• $10for variable overhead.

Annual fixed overhead, incurred evenly throughout the year, consists of

• depreciation on production equipment, $25,000;
• factory utilities, $10,000; and
• other factory overhead, $5,000.

What is the budgeted total factory overhead for Quarter 1?

$155,000

$160,000

$185,000

$190,000

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Question 29

1pts

This table shows the budgeted sales information for our company for the current year:

QuarterBudgeted Unit SalesQuarter 112,000Quarter 214,000Quarter 313,000Quarter 415,000

Our product's manufacturing cost is $105per unit, including per-unit costs of

• $40for materials,
• $50for direct labor,
• $10for variable overhead, and
• $5 for fixed costs.

What is our budgeted cost of goods sold for Quarter 1?

$1,470,000

$1,400,000

$1,260,000

$1,200,000

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Question 30

1pts

Our company's flexible budget for 24,000 units of production showed

• sales, $120,000;
• variable costs, $84,000; and
• fixed costs, $30,000.

What are the sales in dollars expected if our company produces and sells 25,000 units?

$127,500

$125,000

$122,500

$117,500

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Question 31

1pts

Our company's flexible budget for 24,000 units of production showed

• sales, $120,000;
• variable costs, $84,000; and
• fixed costs, $30,000.

What is the net income expected if our company produces and sells 25,000 units?

$6,000

$6,250

$6,750

$7,500

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Question 32

4pts

These questions are based on the following information provided by our company:

Investment center sales$65,000Investment center income$4,000Investment center average invested assets$75,000Target income on investment assets8%

What is the investment center's return on investment (ROI)?

[ Select ]

["

9.4%

", "

6.2%

", "

8.7%

", "

5.3%

"]

What is the investment center's residual income?

[ Select ]

["

$0

", "

$2,200

", "

$(2,000)

", "

$2,000

"]

What is the investment center's profit margin?

[ Select ]

["

9.4%

", "

6.2%

", "

8.7%

", "

5.3%

"]

What is the investment center's investment turnover?

[ Select ]

["

0.94

", "

0.53

", "

0.62

", "

0.87

"]

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Question 33

1pts

Our company manufactures and sells clocks for $60 each. We have receivedan offer of $42 per clock on a one-time order of 3,000 clocks. The manufacturing costsper clock total $52 per unit and consists of variable costs of $43 and fixed costs of $9per clock.

Assume that our company has excess capacity that can be used tomanufacture the 3,000 clocks. We can also assume that the special order will notadversely affect regular sales. What is the change in operating income that would resultfrom accepting the special order?

increase of $3,000

decrease of $3,000

increase of $30,000

decrease of $30,000

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Question 34

1pts

Our company produces 50,000 digital cameras per month. Each camera includes a component that we currently make in house. The variable costs to make the component are $2.40 per unit, and the fixed costs for the company are $200,000 per month.

We have been approached by a manufacturer that can supply the component with acceptable quality standards for $2.50 each. The fixed costs are unavoidable, and we would have no other use for the facilities currently employed in making the component. What is the effect on operating income if our company decides to outsource?

We would save $200,000 per month.

We would save $5,000 per month.

We would lose $5,000 per month.

There would be no effect on operating income.

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Question 35

1pts

Our company produces baseballs. Each baseball could be sold at the split-off point or processed further. If we process further, we would add the autograph of a Major League Baseball player. Sales price for 1,000 baseballs at the split-off point would be $12,000. If we add a player's autograph, the sales value would increase by $35,000. We would incur an additional cost of $40,000 for the player's autograph. Based on this information, what should we do?

Add the autograph because we would make an additional $23,000.

Add the autograph because we would make an additional $5,000.

Do not add the autograph because we would lose $40,000.

Do not add the autograph because we would lose $5,000.

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Question 36

1pts

Our company has two product lines: treadmills and bicycles. This table shows the income statement data for the most recent year:

TreadmillsBicyclesTotalSales Revenue$700,000$500,000$1,200,000Variable Costs$(350,000)$(450,000)$(800,000)Contribution Margin$350,000$50,000$400,000Fixed Costs$(90,000)$(70,000)$(160,000)Operating Income (Loss)$260,000$(20,000)$240,000

What effect would dropping the bicycle line have on our operating income? Assume that fixed costs remain unchanged and that there would be no adverse effect on other sales.

Operating income will decrease by $20,000.

Operating income will decrease by $50,000.

Operating income will increase by $20,000.

Operating income will increase by $50,000.