Selected financial information for Brookeville Manufacturing is presented in the following table (000s omitted).

Sales revenue	$4,800
Purchases of direct materials	$480
Direct labo	$500
Manufacturing overhead	$710
Operating expenses	$650
Beginning raw materials inventory	$220
Ending raw materials inventory	$180
Beginning work in process inventory	$400
Ending work in process inventory	$430
Beginning finished goods inventory	$300
Ending finished goods inventory	$240

What was the operating income?

	$2,390
	$4,800
	$3,010
	$4,150

Question

12 of 30

The cost of indirect materials used in production is credited to the

	Raw Materials Inventory account.
	Work-in-Process Inventory account.
	Finished Goods Inventory account.
	Manufacturing Overhead account.

Question

The following information is provided by Zander Corporation:

WIP inventory, January 1	0 units
Units started	12,800
Units completed and transferred out	8,500
WIP Inventory, December 31	4,300
Direct materials	$28,200
Direct labor	$18,000
Manufacturing Overhead	$7,500

The units in ending WIP inventory were 74% complete for materials and 45% complete for conversion costs.

What are the total equivalent units for direct materials?

	12,800
	3,182
	11,682
	4,300

Question

During a period, 46,200 units were completed and 4,700 units were in ending WIP inventory. Ending WIP was 50% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

	25,450
	48,550
	50,900
	516,200

Question

A shampoo manufacturer offers the following information:

WIP inventory, January 1	0 units
Units started	33,600 units
Units completed and transferred out	13,200 units
WIP inventory, December 31	20,400 units
Direct materials	$284,480
Direct labor	$579,000
Manufacturing overhead	$334,920

The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs.

On December 31, what is the total cost of units completed and transferred?

	$1,198,400
	$712,800
	$564,795
	$470,800

Question

Which of the following product costing systems is normally used to assign costs to goods that are mass-produced?

	Job costing
	Fixed costing
	Process costing
	LIFO costing

Question

Assume that materials are added at the beginning of the process and conversion costs are added uniformly.

Work in process, beginning
Number of units	17,000
Transferred-in costs	$94,000
Direct materials (100%)	$22,500
Conversion costs (75%)	$25,400
Units transferred in
Number of units	51,500
Transferred-in costs	$640,500
Units completed	37,000
Costs during the period
Direct materials	$155,475
Conversion costs	$213,225
Work in process, ending
Number of units	31,500
(100% complete for materials and 35% complete for conversion)

At period end, what would be the total equivalent units for direct materials?

	37,000
	68,500
	54,000
	34,500

Question

18 of 30

The Jones Corporation uses a process system. During the current period, 3,000 units were started and 2,100 units were completed and transferred out. Ending units were 60% complete for materials and 35% complete for conversion costs. Direct materials costs added were $35,405 and conversion costs added were $25,870. There was no beginning WIP inventory, and conversion costs are added evenly throughout the process. At the end of the period, the cost per equivalent unit for conversion costs would be closest to

	$13.41.
	$10.71.
	$16.86.
	$12.32.

Question

Federer Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year:

Estimated direct labor cost	$500,400
Actual direct labor cost	$465,900
Estimated manufacturing overhead costs	$426,000
Actual manufacturing overhead costs	$351,000
Estimated direct labor hours	$250,700
Actual direct labor hours	$233,000

If Federer Company uses direct labor cost as the allocation base, what would the predetermined manufacturing overhead rate be?

	85%
	70%
	91%
	75%

Question

In the equation y = $11.75x + $550, "x" represents

	total fixed costs.
	number of units produced.
	total costs.
	none of the above.