1. Under a job order costing system, the dollar amount of the entry involved in the transfer of goods from work in process to finished goods is the total of the costs charged to all jobs
A) started during the period.
B) completed and sold during the period.
C) completed during the period.
D) started and completed during the period.
2. The balance in the Work in Process Inventory account on April 1 was $27,600, and the balance on April 30 was $22,600. Costs incurred during the month were as follows: direct materials, $41,250; direct labor, $21,300; and overhead, $32,600. What amount was transferred to the Finished Goods Inventory account for April?
3. Actual overhead during the year was more than applied overhead. If the amount is immaterial, what is the journal entry to close the Overhead account for the difference?
Cost of Goods Sold XX
B) Cost of Goods Sold XX
C) Overhead XX
Finished Goods Inventory XX
D) Cost of Goods Sold XX
Finished Goods Inventory XX
4. Which of the following activities would be part of the value chain of a manufacturer?
A) Inventory control
B) Product engineering
C) Cost accounting
D) Materials storage
1. According to the just-in-time philosophy,
A) maintaining inventories wastes resources and frequently covers up poor work or other problems.
B) push-through manufacturing flows are the most efficient.
C) inventories of finished goods should always be available to meet customer demand.
D) long production runs and large production lot sizes take advantage of economies of scale.
2. Back flush costing aims at reducing waste in the
A) accounting system.
B) cost of goods sold.
C) storage of raw materials.
D) production process.
3. For work done during August, Printing Press Company incurred direct materials costs of $120,000 and conversion costs of $260,000. The company employs a just-in-time operating philosophy and back flush costing. At the end of August, it was determined that the Work in Process Inventory account had been assigned $1,080 of costs, and the ending balance of the Finished Goods Inventory account was $1,220. There were no beginning inventory balances. What was the ending balance of the Cost of Goods Sold account for August?
4. The typical relationship between variable costs and volume may be described best as follows:
A) Costs increase in an erratic, unpredictable fashion with changes in volume.
B) Costs stay fairly constant with changes in volume.
C) Costs increase with changes in volume up to a certain point and then remain constant.
D) Costs increase in direct proportion to increases in volume.
1. For work done during August, Printing Press Company incurred direct materials costs of $130,000 and conversion costs of $237,000. The company employs a just-in-time operating philosophy and back flush costing. At the end of August, it was determined that the Work in Process Inventory account had been assigned $1,000 of costs, and the ending balance of the Finished Goods Inventory account was $3,000. There were no beginning inventory balances. What is the Cost of Goods Sold account's ending balance for August?
2. Which of the following costs is a variable manufacturing cost?
A) Depreciation costs computed using the straight-line method
B) Factory rent
C) President's salary
D) Direct labor costs
3. Suppose a company rents a building for $250,000 a year for the purpose of manufacturing between 80,000 and 140,000 units (the relevant range of activity). The rental cost per unit of production will __________ as production levels increase.
A) behave in a nonlinear fashion
D) remain fixed
4. As production increases, what should you expect to happen to the fixed costs per unit?
C) Remain the same
D) Either increase or decrease, depending on the variable cost
1. Given the following cost and activity observations for Leno Enterprises' utilities, use the high-low method to calculate Leno's variable utilities cost per machine hour.
2. You have calculated, using the high-low method, a variable cost per machine hour of $0.80 for your production power costs. Power costs at 6,000 machine hours are $5,400; at 9,000 machine hours, they are $7,800. What are the total fixed costs that you would use to estimate production power costs for your company at any level within your relevant range?
3. Given the following cost and activity observations for Notwen Company's maintenance costs, use the high-low method to calculate Notwen's monthly fixed costs for maintenance.
4. Dapper Hat Makers is in the business of designing and producing specialty hats. The material used for derbies costs $4.50 per unit, and Dapper pays each of its two full-time employees $250 per week. If the employees make 50 derbies in one week, what is the fixed cost per derby? (Round to two decimal places where necessary.)
1. Which of the following is a fixed cost?
A) Direct materials
B) Personnel manager's salary
C) Operating supplies
D) Telephone expense
E) Direct labor
2. Retleb Manufacturing Company noticed that, during its busiest month of 20xx, maintenance costs totaled $15,400, resulting from the production of 32,000 units. During its slowest month, $12,600 in maintenance costs were incurred, resulting from the production of 24,000 units. Using the high-low method, what maintenance cost would the company expect to incur at a volume of 20,000 units?
3. During this past year, a small publishing company sold 60,000 copies of Super Travel paperbacks (its only product) at $5 per book; total fixed costs were $21,000; and total variable costs were $3 per book. What is this company's breakeven point in units?
A) 14,700 units
B) 10,500 units
C) 42,000 units
D) 21,000 units
4. How many total dollars of sales must BAC Company sell to break even if the selling price per unit is $8.50, variable costs are $4.00 per unit, and fixed costs are $9,000?
- 7 years ago
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