Cost Accounting Test 2

1. (1) A department had 22,500 units that were 15% complete in beginning Goods in Process Inventory. During the current period 108,000 units were transferred in. Ending Goods in Process Inventory was 27,000 units that were 80% complete. Assume this company uses the weighted-average method of process costing and direct material is added uniformly throughout the process. What are the equivalent units produced with respect to direct material? 125,100 85,500 121,725 63,900 103,500 2. (1) A department had 14,000 units that were 20% complete in beginning Goods in Process Inventory. During the current period 67,200 units were transferred in. Ending Goods in Process Inventory was 16,800 units that were 70% complete. Assume this company uses the FIFO method of process costing and direct material is added uniformly throughout the process. What are the equivalent units produced with respect to direct material? 73,360 53,200 41,440 76,160 64,400 3. (1) A company's beginning work in process inventory consisted of 40,000 units that were 1/5 complete with respect to direct labor. These beginning units were completed and another 210,000 units were started during the current period. Of those started, 120,000 were finished and the remaining 90,000 were one-third complete at the end of the period. Using the weighted-average method, the equivalent units of production were: 152,000 120,000 178,000 182,000 190,000 4. (1) At the beginning of the recent period, there were 1,740 units of product in a department, one-third completed. These units were finished and an additional 8,500 units were started and completed during the period. 1,080 units were still in process at the end of the period, one-fourth completed. Using the FIFO valuation method, the equivalent units produced by the department were: 10,240 units. 9,930 units. 10,160 units. 12,750 units. 11,320 units. 5. (1) At the beginning of the recent period, there were 2,220 units of product in a department, one-third completed. These units were finished and an additional 10,500 units were started and completed during the period. 1,240 units were still in process at the end of the period, one-fourth completed. Using the weighted-average valuation method, the equivalent units produced by the department were: 13,030 units. 12,480 units. 15,750 units. 13,960 units. 12,290 units. 6. (1) During a period, Department A finished and transferred 88,000 units to Department B. Of the 88,000 units, 17,600 were one-fifth complete with respect to direct labor at the beginning of the period and 58,500 were started and completed during the period. Also, during the period, 19,500 units were started but brought only to a stage of being three-fifths completed. Using the FIFO inventory valuation method, the number of equivalent units produced by Department A during the period was: 84,280 units. 72,580 units. 99,700 units. 88,000 units. 91,520 units. 7. (1) A company uses a process cost accounting system. Its Sewing Department's beginning inventory consisted of 62,500 units (1/4 complete with respect to direct labor and overhead). The Sewing Department started and finished 150,000 units this period. Its ending inventory consists of 50,000 units (1/4 complete with respect to direct labor and overhead). All direct materials are added at the beginning of the process. Under FIFO what are the equivalent units of production for the Sewing Department for direct materials and for direct labor and overhead, respectively? 200,000; 209,375 200,000; 203,125 209,375; 209,375 262,500; 225,000 262,500; 150,000 8. (1) A department had 1,700 units which were 30% complete in beginning Goods in Process Inventory. During the current period, 18,000 units were transferred out. Ending Goods in Process Inventory was 2,120 units which were 30% complete. Using the FIFO method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process? 18,636 17,490 18,126 19,912 20,120 9. (1) A department had 115 units which were 20% complete in beginning Goods in Process Inventory. During the current period, 127 units were transferred out. Ending Goods in Process Inventory was 130 units which were 20% complete. Using the FIFO method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process? rev: 11_14_2013_QC_40404 127 130 150 153 257 10. (1) K Company estimates that overhead costs for the next year will be $3,335,000 for indirect labor and $850,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 90,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate? $0.21 per direct labor hour. $46.50 per direct labor hour. $0.11 per direct labor hour. $37.06 per direct labor hour. $9.44 per direct labor hour. 11. (1) A company estimates that overhead costs for the next year will be $10,482,000 for indirect labor and $654,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 600,000 machine hours are planned for this next year, what is the company's plantwide overhead rate? (Round to two decimal places) $1.09 per machine hour. $17.47 per machine hour. $0.06 per machine hour. $18.56 per machine hour. $.92 per machine hour. 12. (1) The following data relates to Lead Company's estimated amounts for next year. Estimated: Department 1 Department 2   Manufacturing overhead costs $2,043,000   $3,657,000     Direct hours     760,000 DLH   980,000 DLH     Machine hours 111,000 MH     43,000 MH     What is the company's plantwide overhead rate if direct labor hours are the allocation base? (Round to two decimal places) $3.57 per direct labor hour. $2.346 per direct labor hour. $3.73 per direct labor hour. $2.69 per direct labor hour. $3.28 per direct labor hour. 13. (1) The following data relates to All-Out Company's estimated amounts for next year.   Estimated: Department 1 Department 2   Manufacturing overhead costs $200,000   $900,000     Direct hours     610,000 DLH   830,000 DLH     Machine hours 1,500 MH     4,000 MH   What is the company's plantwide overhead rate if machine hours are the allocation base? (Round to two decimal places.) $1.08 per MH $1.08 per MH $163.64 per MH $133.33 per MH $200.00 per MH 14. (1) The following data relates to Tier One Company's estimated amounts for next year. Estimated: Department 1 Department 2   Manufacturing overhead costs $130,000   $353,000     Direct hours     470,000 DLH   680,000 DLH     Machine hours 780,000 MH     1,040,000 MH   What is the company's plantwide overhead rate if direct labor hours are the allocation base? (Round to two decimal places.)    $0.41 per DLH $0.42 per DLH $0.34 per DLH $0.52 per DLH $1.15 per DLH 15. (1) Lake Prairie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 50,000 units are expected to be produced taking 0.80 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts? Estimated: Department 1 Department 2   Manufacturing overhead costs $6,688,000   $3,078,000     Direct hours     700,000 DLH   750,000 DLH     Machine hours 420,000 MH     340,000 MH   $10.28 per unit $12.85 per unit $2.82 per unit $4.10 per unit $15.92 per unit 16. (1) Rain Maker Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 374,000 units are expected to be produced taking .80 direct-labor hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?     Estimated: Department1 Department2 Manufacturing overhead costs $5,130,000   $980,000   Direct labor hours 216,000 DLH   160,000 DLH   Machine hours 66,000 MH   19,000 MH   $16.25 per unit $13.00 per unit $14.40 per unit $4.90 per unit $4.38 per unit 17. (1) A company allocates $8.00 overhead to each unit produced. The company uses a plantwide overhead rate with direct labor hours as the allocation base. Given the amounts below, how many direct labor hours does the company expect in department 2?    Estimated: Department1 Department2 Manufacturing overhead costs $89,958   $65,172   Direct labor hours 6,870 DLH   ? DLH   Machine hours 1,350 MH   1,450 MH   12,521 DLH 6,870 DLH 3,435 DLH 6,091 DLH 19,391 DLH 18. (1) Heritage Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table:       Molding Finishing   Direct labor hours 68,500 DLH   166,000 DLH     Machine hours 101,000 MH   84,750 MH        Heritage Industries uses departmental overhead rates and is planning on a $1.5 per direct labor hour overhead rate for the finishing department. Compute the estimated manufacturing overhead cost for the finishing department given the information shown in the table. $102,750 $151,500 $249,000 $127,125 $278,625 19. (1) A company uses activity-based costing to determine the costs of its three products: A, B and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:        Budgeted Activity   Activity Cost Pool Budgeted Cost Product A Product B Product C   Activity 1 $247,500   11,000   14,000   30,000     Activity 2 $200,000   12,000   25,000   13,000     Activity 3 $149,850   3,500   2,000   2,600         How much overhead will be assigned to Product B using activity-based costing? $200,000 $235,100 $162,250 $597,350 $247,500 20. (1) A product sells for $175 per unit, and its variable costs per unit are $95. The fixed costs are $431,500. If the firm wants to earn $32,500 pretax income, how many units must be sold? 4,581 5,800 5,394 4,988 406 21. (1) Ivan Company has a goal of earning $170,000 after-tax income. Ivan would need to pay $30,000 of income taxes at the target level of income. The contribution margin ratio is 40%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $116,000? $5,000 $790,000 $7,150 $4,250 $116,000 22. (1) Willco Inc. manufactures electronic parts. They are analyzing their monthly maintenance costs to determine the best way to budget these costs in the future. They have collected the following data for the last six months: Month Machine Hours Maintenance Costs   January $70,500   $143,000     February 94,000   173,500     March 87,000   151,400     April 85,800   161,000     May 98,800   173,000     June 82,250   139,200   Using the high-low method and the Willco data above, what is the approximate fixed cost component of the monthly maintenance costs? (Round your intermediate calculations to 3 decimal places.) $68,272 $51,488 $72,168 $82,808 $84,270 23. (1) A product sells for $440 per unit, and its variable costs per unit are $370. The fixed costs are $672,000. What is the break-even point in dollar sales? (Round "Contribution margin ratio" to a whole percentage.) $9,600 $4,200,000 $1,527 $672,000 $799,135 24. (1) A company manufactures and sells a product for $127 per unit. The company's fixed costs are $1,103,256 and its variable costs are $43 per unit. The company's break-even point in units is: 13,134 6,490 25,657 8,687 84 25. (1) A company manufactures and sells a product for $600 per unit. The company's fixed costs are $41,490, and its variable costs are $510 per unit. The company's break-even point in dollars is: rev: 12_03_2013_QC_41989 $48,812 $1,383 $207,450 $276,600 $209,540 26. (1) The Haskins Company manufactures and sells radios. Each radio sells for $73.25 and the variable cost per unit is $38.75. Haskin's total fixed costs are $68,000.00, and budgeted sales are 44,000.00 units. What is the contribution margin per unit? $1,518,000 $73.25 $38.75 $1.73 $34.50 27. (1) At Flint Company's break-even point of 36,000 units, fixed costs are $1,260,000, and variable costs are $3,780,000 in total. The unit sales price is: $105 $70 $140 $35 $175 28. (1) Jet Company's break-even point is 4,750 units. The company's fixed costs are $180,000, and its total variable costs are $40,875. The unit sales price is: $46 $9 $95 $42 $38 29. (1) Assume Moe's Southwest Grill has a break-even point of 34,800 units. At this point, total sales are $7,200,000 and total variable costs are $5,520,000. Compute total fixed costs at the break-even point. $1,680,000 $7,200,000 $5,520,000 $12,720,000 $48