1. Yummy Tummy Desserts has 3,000 quarts of ice cream in WIPInventory, with all materials already added. What are equivalentunits in ending WIP Inventory for materials if the ice cream is 67%through the process?
990 3,000 0 2,010
2. How do fixed costs react in total and on a per unitbasis?
Fixed costs increase in total asproduction increases and remain constant on a per unit basis. Fixed costs remain constant intotal and on a per unit basis as production increases. Fixed costs remain constant intotal and decrease per unit as production increases. Fixed costs increase in total and on a per-unit basis.
3. Sykes Company has sales revenue of $585,700. Cost of goodssold before adjustment is $335,900. The company's actualmanufacturing overhead is $91,900 while allocated manufacturingoverhead is $105,300. What is the actual gross profit?
$263,200 $249,800 $157,900 $236,400
4. Baxter Company produces Frisbees using athree-step sequential process that includes molding, coloring, andfinishing. At what stage would the sets be allocated ManufacturingOverhead?
When the Frisbees are in WIPInventory-Coloring When the Frisbees are in WIPInventory-Finishing When the Frisbees are in WIPInventory-Molding All of the above
5. Which method are managers using when they use their judgmentto classify costs as variable, fixed, or mixed?
Low-high method Regression analysis Account analysis High-low method
6. Which of the following is not a way in which management canuse job cost information?
Determining the balance in rawmaterials inventory Preparing the financialstatements Assessing and comparing theprofitability of each product type Using the cost information in determining the bid price forcustom orders
7. Which of the following is not a way in which management canuse job cost information?
Determining the balance in rawmaterials inventory Preparing the financialstatements Assessing and comparing theprofitability of each product type Using the cost information in determining the bid price forcustom orders
8. Tall Timbers reports the following data for its first year ofoperation:
Work in process inventory, beginning
$ 0
Work in process inventory, ending
$50,200
Manufacturing overhead
$25,400
Direct materials used
$7,700
Direct Labor
$60,000
Finished goods inventory, beginning
$ 0
Finished goods inventory, ending
$20,000
Cost of goods manufactured
$42,900
What is the cost of goods sold?
$22,900 $76,000 $73,100 $42,900
9.
A deodorant manufacturer offers the following information:
WIP Inventory, January 1 0 units
Units started 33,600 units
Units completed and transferred out 11,200 units
WIP Inventory, December 31 22,400 units
Direct materials $276,480
Direct labor $585,000
Manufacturing Overhead $328,920
The units in ending WIP Inventory were 60% complete formaterials and 40% complete for conversion costs.
On December 31, what are the total equivalent units for directmaterials?
47,040 33,600 20,160 24,640
10. How is the cost of indirect materials used in the factoryrecorded?
Credit to Raw Materials Inventoryaccount Credit to Manufacturing Overheadaccount Credit to Direct Materials Expenseaccount Credit to Work-in-Process Inventory account
11. XYZ uses job costing. Actual manufacturing overhead for theperiod is $20,300 while allocated manufacturing overhead is$18,200. What entry will close the manufacturing overheadbalance?
Debit the Cost of Goods Soldaccount and credit the Finished Goods Inventory account for$2,100. Debit the Manufacturing Overheadaccount and credit the Work-in-Process account for $2,100. Debit the Cost of Goods Soldaccount and credit the Manufacturing Overhead account for$2,100. Debit the Manufacturing Overheadaccount and credit the Cost of Goods Sold account for $2,100.
1. Yummy Tummy Desserts has 3,000 quarts of ice cream in WIPInventory, with all materials already added. What are equivalentunits in ending WIP Inventory for materials if the ice cream is 67%through the process?
990 | |
3,000 | |
0 | |
2,010 |
2. How do fixed costs react in total and on a per unitbasis?
Fixed costs increase in total asproduction increases and remain constant on a per unit basis. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed costs remain constant intotal and on a per unit basis as production increases. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed costs remain constant intotal and decrease per unit as production increases. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed costs increase in total and on a per-unit basis. 3. Sykes Company has sales revenue of $585,700. Cost of goodssold before adjustment is $335,900. The company's actualmanufacturing overhead is $91,900 while allocated manufacturingoverhead is $105,300. What is the actual gross profit?
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