Ans Doc279Y

CLICK HERE TO DOWNLOAD THIS ANSWER INSTANTLY

1) For which of the following businesses would a process cost system be appropriate?
a. Auto repair service
b. Paint manufacturer
c. Specialty printer
d. Custom furniture manufacturer
2) In a process cost system, the amount of work in process inventory is valued by:
a. finding the sum of all open job costs
b. allocating departmental costs between completed and partially completed units
c. multiplying units in ending inventory by the direct materials cost per unit
d. all of the above
3) In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following entries?
a. Debit Work in Process–Dept. B; credit Work in Process–Dept. A.
b. Debit Work in Process–Dept. B; credit Finished Goods–Dept.A.
c. Debit Work in Process–Dept. B; credit Cost of Goods Sold–Dept. A.
d. Debit Finished Goods; credit Work in Process–Dept. B.
4) The four steps necessary to determine the cost of goods completed and the ending inventory valuation in a process cost system are:
1. allocate costs to transferred and partially completed units
2. determine the units to be assigned costs
3. determine the cost per equivalent unit
4. calculate equivalent units of production
The correct ordering of the steps is:
a. 2,4,3,1
b. 4,2,3,1
c. 2,3,4,1
d. 2,3,1,4
5) If Department H had 500 units, 60% completed, in process at the beginning of the period, 6,000 units were completed during the period, and 600 units were 30% completed at the end of the period, what was the number of equivalent units of production for the period if the first-in, first-out method is used to cost inventories?
a. 7,100
b. 5,980
c. 6,380
d. 5,880
Department A had 4,000 units in work in process that were 75% completed as to labor and overhead at the beginning of the period, 30,000 units of direct materials were added during the period, 32,000 units were completed during the period, and 2,000 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories.
6.The number of equivalent units of production for conversion costs for the period was:
a. 31,800
b. 29,800
c. 33,800
d. 32,000
7. The number of equivalent units of production for material costs for the period was:
a. 31,800
b. 29,800
c. 30,000
d. 32,000
8. The number of units that could have been completed within a given accounting period is the definition of
a. units started and completed.
b. equivalent units.
c. conversion costs.
d. ending work in process.
9. A form prepared periodically for each processing department summarizing (1) the units for which the department is accountable and the units to be assigned costs and (2) the costs charged to the department and the allocation of these costs is termed a:
a. factory overhead production report
b. manufacturing cost report
c. process cost report
d. cost of production report
10. Just-in-time processing is a business philosophy that focuses on reducing time and cost and eliminating poor quality. This is accomplished in manufacturing and non-manufacturing processes by:
a. moving a product from process to process as each function is completed
b. combining processing functions into work centers and cross-training workers to perform more than one function
c. having production supervisors attempt to enter enough materials into manufacturing to keep all manufacturing departments operating
d. having workers typically perform one function on a continuous basis
11. Cost behavior refers to the manner in which:
a. a cost changes as the related activity changes
b. a cost is allocated to products
c. a cost is used in setting selling prices
d. a cost is estimated
12. Costs that remain constant in total dollar amount as the level of activity changes are called:
a. fixed costs
b. mixed costs
c. opportunity costs
d. variable costs
13. Which of the graphs in Figure 20-1 illustrates the behavior of a total fixed cost?
a. Graph 2
b. Graph 3
c. Graph 4
d. Graph 1
14. Which of the graphs in Figure 20-1 illustrates the behavior of a total variable cost?
a. Graph 2
b. Graph 3
c. Graph 4
d. Graph 1
15. Which of the graphs in Figure 20-1 illustrates the nature of a mixed cost?
a. Graph 2
b. Graph 3
c. Graph 4
d. Graph 1
16. Contribution margin is:
a. the excess of sales revenue over variable cost
b. another term for volume in the “cost-volume-profit” analysis
c. profit
d. the same as sales revenue
17. The contribution margin ratio is:
a. the same as the variable cost ratio
b. the same as profit
c. the portion of equity contributed by the stockholders
d. the same as the profit-volume ratio
18. Bailey Company sells 25,000 units at $15 per unit. Variable costs are $8 per unit, and fixed costs are $35,000. The contribution margin ratio and the unit contribution margin, (rounding to two decimal points) are:
a. 47% and $7 per unit
b. 53% and $7 per unit
c. 47% and $8 per unit
d. 53% and $8 per unit
19. If fixed costs are $250,000, the unit selling price is $105, and the unit variable costs are $65, what is the break-even sales (units)?
a. 3,846 units
b. 2,381 units
c. 10,000 units
d. 6,250 units
20. If fixed costs are $1,400,000, the unit selling price is $220, and the unit variable costs are $120, what is the amount of sales required to realize an operating income of $200,000?
a. 14,000 units
b. 12,000 units
c. 16,000 units
d. 13,333 units