Question 1 (5 points)

Super Discounter Inc. is a merchandizer who had inventory at the beginning of the year of $620,000. They made purchases of $2,450,000 and had returns and allowances on purchases of $75,000. Ending inventory was $780,000. What was the goods available for sale?

Your Answer:

Question 1 options:

Answer

Question 2 (5 points)

March 1, 2020, Dorchester Company's beginning work in process inventory had 8,000 units. This is its only production department. Beginning WIP units were 50% complete as to conversion costs. Dorchester introduces direct materials at the beginning of the production process. During March, all beginning WIP was completed and an additional 13,500 units were started and completed. Dorchester also started but did not complete 8,500 units. These units remained in ending WIP inventory and were 60% complete as to conversion costs. Dorchester uses the weighted average method. Use this information to determine for March 2020 the equivalent units of production for conversion costs. Round to whole number (no cents).

Your Answer:

Question 2 options:

Answer

Question 3 (5 points)

Which of the following is part of factory overhead?

Question 3 options:

	sales commissions
	cleaning supplies for machinery
	parts inventory
	wages for supervisor of assembly department

Question 4 (5 points)

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If job number 117 incurs 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

Question 4 options:

	$2,300
	$23,000
	$95,000
	$21,850

Question 5 (5 points)

Dorchester Company, on March 1, 2021 has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. On March 1, Dorchester started into production 16,500 units. At the end of the month there were 10,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 60% complete with respect to conversion. For the month of March the following costs were incurred and recorded in the WIP:

Direct Material $21,000

Direct Labor 17,000

Factory Overhead 25,000

Dorchester uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion for the month of March. Round answer to closest cent.

Your Answer:

Question 5 options:

Answer

Question 6 (5 points)

Harley Company has sales of $500,000, variable costs are 75% of sales, and operating income is $40,000. What is Harley's operating leverage?

Question 6 options:

	0.0
	1.2
	1.3
	3.1

Question 7 (5 points)

Strait Co. manufactures office furniture. During the most productive month of the year, 3,000 desks were manufactured at a total cost of $59,000. In the month of lowest production the company made 1,125 desks at a cost of $38,000. Using the high-low method of cost estimation, the total fixed costs are

Question 7 options:

	$21,000
	$25,400
	$42,000
	$13,000

Question 8 (5 points)

Match each business that follows to the type of costing system (a or b) it would typically use.

Question 8 options:

12	Gasoline refinery
12	Paper manufacturer
12	Home construction
12	Movie studio
12	Flour mill

1.	Job order costing
2.	Process costing

Question 9 (5 points)

Job order costing and process costing are

Question 9 options:

	cost flow systems
	inventory tracking systems
	pricing systems
	cost accounting systems

Question 10 (5 points)

Managers used managerial information for all of the following except

Question 10 options:

	to evaluate the company's stock performance
	to support long-term planning decisions
	to determine the cost of manufacturing a product
	to analyze the performance of a company's operations

Question 11 (5 points)

Under which inventory costing method could increases or decreases in income from operations be misinterpreted to be the result of operating efficiencies or inefficiencies?

Question 11 options:

	only variable costing
	only absorption costing
	both variable and absorption costing
	neither variable nor absorption costing

Question 12 (5 points)

The quantity factor tells us how much additional revenue changed for the additional quantity sold at the planned price. The price factor tells us how much revenue changed on actual total sales due to the price being different than planned.

Edna's Chocolates had planned to sell chocolate-covered strawberries for $3.00 each. Due to various factors, the actual price was $2.75. Edna's was able to sell 1,000 more strawberries than the anticipated 4,000. What is (1) the quantity factor and (2) the price factor for sales?

Question 12 options:

	(1) $3,000, (2) $(1,250)
	(1) $3,000, (2) $(3,000)
	(1) $1,250, (2) $3,000
	(1) $(4,000) (2) $(3,000)

Question 13 (5 points)

The assembly department had beginning work in process of 17,000 units, ending work in process of 21,000 units and units transferred out of 66,000 units. What was the number of units started or transferred in?

Your Answer:

Question 13 options:

Answer

Question 14 (5 points)

All of the following are characteristics of a process cost system except

Question 14 options:

	the system may use several work in process inventory accounts
	manufacturing costs are grouped by department rather than by jobs
	the system accumulates costs per job
	the system emphasizes time periods rather than the time it takes to complete a job

Question 15 (5 points)

Department B had 3,000 units in Work in Process that were 25% completed at the beginning of the period at a cost of $12,500. 13,700 units were started during the period. 15,000 units were completed during the period, and 1,700 units were 80% completed at the end of the period. All materials are added at the beginning of the process. Material cost was $15,400, direct labor was $32,450, and factory overhead was $18,710.The number of equivalent units of production for the period for conversion if the weighted average method is used to cost inventories was

Question 15 options:

	15,000
	16,360
	1,700
	13,700

Question 16 (5 points)

During March 2021, Virginia Bay Corporation recorded $275,000 of costs related to factory overhead. Virginia Bay's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $260,000 would be incurred, and 6,900 direct labor hours would be worked. During March, 11,000 hours were actually worked. Use this information to determine the standard overhead rate. Round to closest cent.

Your Answer:

Question 16 options:

Answer

Question 17 (5 points)

Annapolis Clothing Company manufactures quality boating attire. The following selected financial information for the fiscal year 2020 is provided:

Item	Amount
Sales	$200,000
Cost of Goods Manufactured	46,000
Direct Material Purchased	80,000
Factory Overhead	20,000
Work in Process - January 1	60,000
Work in Process - December 31	30,000
Direct Material - December 31	20,000
Finished Goods Inventory - December 31	59,000
Net Income	30,000
Direct Materials used	60,000
Cost of Goods Sold	64,000

Use this information to determine the dollar amount of Annapolis Clothing's Finished Goods Inventory for January 1, 2020. Round to a whole number (no cents).

Your Answer:

Question 17 options:

Answer

Question 18 (5 points)

Baltimore Manufacturing had a Work in Process balance of $69,000 on January 1, 2020. The year end balance of Work in Process was $98,000 and the Cost of Goods Manufactured was $500,000. Use this information to determine the total manufacturing costs incurred during the fiscal year 2020. Round to a whole number (no cents).

Your Answer:

Question 18 options:

Answer

Question 19 (5 points)

During FY 2020 Bay Manufacturing had total manufacturing costs are $406,000. Their cost of goods manufactured for the year was $443,000. The January 1, 2021 balance of Work-in-Process Inventory is $47,000. Use this information to determine the dollar amount of the FY 2020 beginning Work-in-Process Inventory. Round to a whole number (no cents).

Your Answer:

Question 19 options:

Answer

Question 20 (5 points)

The contribution margin ratio is computed as:

Question 20 options:

	sales divided by contribution margin
	contribution margin divided by sales dollars
	contribution margin divided by cost of sales
	contribution margin divided by variable cost of sales