The following data (in thousands of dollars) have been taken from the accounting records of TCorp for the just completed year: Administrative expenses $ 600 Direct labor 800 Finished goods inventory, beginning 480 Finished goods inventory, ending 640 Manufacturing overhead 920 Purchases of raw materials 480 Raw materials inventory, beginning 160 Raw materials inventory, ending 280 Sales 3,960 Selling expenses 560 Work in process inventory, beginning 280 Work in process inventory, ending 200 Answer the two questions below.

1)

What was the cost of the raw materials used in production during the year (in thousands of dollars)?

6.25 Points

• 480

• 360

• 640

• 920

2)

What was the cost of goods manufactured for the year (in thousands of dollars)?

6.25 Points

• 2360

• 2160

• 2560

• 1800

3)

In a job-order cost system, indirect labor costs would be recorded as a debit to:

6.25 Points

• Raw Materials.

• Manufacturing Overhead

• Work in Process.

• Finished Goods.

4)

In a job order cost system, the use of direct materials would be recorded as a debit to:

6.25 Points

• Raw Materials inventory.

• Manufacturing Overhead.

• Work in Process inventory

• Finished Goods inventory

5)

Fablethes manufactures a specialty line of silk-screened T-shirts. The company uses a job-order costing system. During May, the following costs were incurred on Job PS4: direct materials $27,400 and direct labor $9,600. In addition, selling and shipping costs of $14,000 were incurred on the job. Manufacturing overhead was applied at the rate of $25 per machine-hour and Job PS4 required 160 machine-hours. If Job PS4 consisted of 5,000 shirts, the cost of goods sold per shirt was:

6.25 Points

• $8.20

• $7.40

• $25.00

• $11.00

6)

All of the following are examples of product-level activities except:

6.25 Points

• Human resource management

• Parts administration

• Advertising a product

• Testing a prototype of a new product

7)

Angelina Company uses activity-based costing to determine the costs of its two products: A and B. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:

.................Cost........ProductA.........ProductB.........Total

Activity 1...$19,800......800.................300...........1,100

Activity 2....$16,000.....2,200............1,800...........4,000

Activity 3....$14,000........400...............300.............700

The activity rate under the activity-based costing system for Activity 3 is closest to:

6.25 Points

• $4.00

• $18.00

• $20.00

• $8.59

8)

In a process costing system, the journal entry used to record the transfer of units from Department A, a processing department, to Department B, the next processing department includes a debit to:

6.25 Points

• Work in Process - Department A and a credit to Work in Process - Department B

• Work in Process - Department B and a credit to Materials

• Finished Goods and a credit to Work in Process - Department B.

• Work in Process - Department B and a credit to Work in Process - Department A.

9)

Jess Company uses the weighted-average method in its process costing system. The following information pertains to Processing Department A for the month of April:

......................................Number of units........... Cost of materials

Beginning work in process.....60,000........................$20,000

Started in April......................160,000........................$54,000

Units completed..............170,000

Ending work in process......50,000

All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to:

6.25 Points

• $1.48.

• $0.44

• $0.34.

• $0.25

10)

Given the cost formula Y = $30,000 + $5X, total cost at an activity level of 16,000 units would be:

6.25 Points

• $30,000

• $46,000

• $80,000

• $110,000

11)

The following information has been provided by the Douglas Grocery Store for the first quarter of the year:

Sales.....................................................$700,000

Variable selling expense...........................70,000

Fixed selling expenses........................50,000

Cost of goods sold.............................320,000

Fixed administrative expenses.............110,000

Variable administrative expenses...........30,000

The gross margin of GAE Grocery Store for the first quarter is:

6.25 Points

• $420,000

• $440,000

• $380,000.

• $280,000

12)

The following information has been provided by the Douglas Grocery Store for the first quarter of the year:

Sales.....................................................$700,000

Variable selling expense...........................70,000

Fixed selling expenses........................50,000

Cost of goods sold.............................320,000

Fixed administrative expenses.............110,000

Variable administrative expenses...........30,000

The contribution margin of GAE Grocery Store for the first quarter is:

6.25 Points

• $280,000.

• $380,000

• $600,000

• $420,000

Saved

13)

Carrington Company produces a product that sells for $60. Variable manufacturing costs are $30 per unit. Fixed manufacturing costs are $10 per unit based on the current level of activity, and fixed selling and administrative costs are $8 per unit. A selling commission of 10% of the selling price is paid on each unit sold. The contribution margin per unit is:

6.25 Points

• $24

• $54

• $30

• $36

14)

DragonZone sells a single product. The product has a selling price of $50 per unit and variable expenses of 80% of sales. If the company's fixed expenses total $75,000 per year, then it will have a break-even of:

6.25 Points

• $7,500

• $1,875

• $93,750

• $375,000

15)

The following is Montague Corporation's contribution format income statement for last month:

Sales........................................$2,000,000

Less: variable expenses.................1,400,000

Contribution margin........................600,000

Less: fixed expenses........................360,000

Net income$ ..................................240,000

The company has no beginning or ending inventories. A total of 40,000 units were produced and sold last month. What is the company's contribution margin ratio?

6.25 Points

• 150%

• 70%

• 250%

• 30%

16)

The following is Montague Corporation's contribution format income statement for last month:

Sales........................................$2,000,000

Less: variable expenses.................1,400,000

Contribution margin........................600,000

Less: fixed expenses........................360,000

Net income$ ..................................240,000

The company has no beginning or ending inventories. A total of 40,000 units were produced and sold last month. (Note that this is the same data as provided in the previous question.) What is the company's break-even in units?

6.25 Points

• 24,000 units

• 0 units

• 36,000 units

• 40,000 units