Wasson Company reported the following year-end information

1.Wasson Company reported the following year-end information:Beginning work in process inventory$35000 Beginning raw materials inventory18000 Ending work in process inventory 38000 Ending raw materials inventory 15000 Raw materials purchased 56000 Direct labor180000 Manufacturing overhead 120000How much is Wasson’s total cost of work in process for the year?a608000b863000c860000d8980002.Edmiston Company reported the following year-end information:beginning work in process inventory $80000;cost of goods manufactured 780000;beginning finished goods inventory 50000;ending work in process inventory 70,000;and ending finished goods inventory 40000. How much is Edmiston’s cost of goods sold for the year?a780000b790000c770000d8000003.Using the following information, compute the direct materials usedRaw materials inventory, Jan.1 $20000Raw materials inventory, Dec.31 40000Work in process, Jan.1 18000Work in process, Dec.31 12000Finished goods, Jan.1 40000Finished goods, Dec.31 32000Raw materials purchases(NNN) NNN-NNNNDirect labor 560000Factory utilities 150000Indirect labor 50000Factory depreciation 400000Operating expenses 420000a1460000b1420000c1400000d13800004.Assuming that the cost of goods manufactured is $2960000 compute the cost of goods sold using the following informationRaw materials inventory, Jan.1 $30000Raw materials inventory, Dec.31 60000Work in process, Jan.1 27000Work in process, Dec.31 18000Finished goods, Jan.1 60000Finished goods, Dec.31 48000Raw materials purchases(NNN) NNN-NNNNDirect labor 690000Factory utilities 225000Indirect labor 75000Factory depreciation 500000Operating expenses 630000a2969000b2912000c2948000d29720005.Samson Company reported total manufaturing costs of $300000,manufacturing overhead totaling $52000 and direct materials totaling $64000. How much is direct labor cost?a.Cannot be determined from the information providedb416000c416000d1840006.Given the following data for Mehring Company,compute (A) total manufacturing costs and (B) cost of goods manufactured:Direct materials used $230000 Beginning work in process 30000 Direct labor 150000 Ending work in process 15000 Manufacturing overhead 225000 Beginning finished goods 38000 Operating expenses 263000 Ending finished goods 23000 (A) (B)a$590000 620000b605000 590000c605000 620000d620000 6350007.Gulick Company developed the following data for the current year:Beginning work in process inventory $160,000Direct materials used 96,000Actual overhead 192,000Overhead applied 144,000Cost of goods manufactured 176,000Total manufacturing costs 480,0007-1 Gulick Company’s direct labor cost for the year isa.48,000b.240,000c.144,000d.192,0007-2 Gulick Company’s ending work in process inventory isa.464,000b.320,000c.304,000d.144,0008.Hayward Manufacturing Company eveloped the following data:Beginning work in process inventory 450000Direct materials used 350000Actual overhead 550000Overhead applied 400000Cost of goods manufactured 600000Ending work in process 750000Hayward Manufacturing Company’s total manufacturing costs for the period isa950,000b900,000c650,000d.cannot be determined from the data provided9.Greer Company developed the following data for the current year:Beginning work in process inventory $102000Direct materials used 156,000Actual overhead 132,000Overhead applied 138,000Cost of goods manufactured 675,000Total manufacturing costs 642,0009-1 How much is Greer Company’s direct labor cost for the year?a.381,000b.450,000c.348,000d.246,0009-2 How much is Greer Company’s ending work in process inventory for the year?a.69,000b.363,000c.63,000d.279,00010.Chmelar Manucfacturing Company developed the following data:Beginning work in process inventory $80,000Direct materials used 480,000Actual overhead 560,000Overhead applied 540,000Cost of goods manufactured 1,280,000Ending work in process 60,000How much are total manufacturing cost for the period?a.1,580,000b.1,260,000c.1,100,000d.1,220,00011.Maisley Company decided to analyze certain costs for June of the current year.Units started into production equaled 28,000 and ending work in process equaled 4,000.With no beginning work in process inventory,how much is the conversion cost per unit if ending work in process was 25% complete and total conversion costs equaled 105,000?a.$3.30b.3.75c.4.20d.2.10

12.materials costs of 800,000 and conversion costs of 1,020,000 were charged to a processing department in the month of Sep. Materials are added at the beginning of the process,while conversion costs are incurred uniformly throughout the process.There were no units in beginning work in process,20,000 units were started into production in Sep. and there were 5,000 units in ending work in process that were 40%complete at the end of Sep.What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in Sep.?a1,500,000b2,000,000c1,606,000d1,365,00013.Materials costs of 800,000and conversion costs of 1,020,000were charged to processing department in the month of Sep. Materials are added at the beginning of the process,while conversion costs are incurred uniformly throughout the process.There were no units in beginning work in process, 20,000units were started into production in Sep. and there were 5,000units in ending work in process that were 40%complete at the end of Sep.What was the total amount of manufacturing costs assigned to the 5,000 units in the ending work in process?a455,000b500,000c320,000d200,00014.Mayer Company has recently tried to improve it’s analysis for its manufacturing process.Units started into production equaled 18,000 and ending work in process equaled 1,200units.Mayer had no beginning work in process inventory.Conversion costs are applied equally throughout production,and materials are applied at the beginning of the process.How much is the materials cost per unit if ending work in process was 25%completed and total materials costs equaled 90,000?a5.00b5.27c20.00d4.6915.For the Assembly Department,unit materials cost is $8 and unit conversion cost is $12.If there are 10,000units in ending work in process 75% complete as to converstion costs, the costs to be assigned to the inventory area.200,000b.170,000c.150,000d.180,000

16.The total costs accounted for in production cost report equal thea.cost of units completed and transferred out onlyb.cost of units started into productionc.cost of units completed and transferred out plus the cost of ending work in processd.cost of beginning work in process plus the cost of units completed and transferred out17.In a production cost report,which one of the following sections is not shown under costs?a.Unit costsb.Costs to be accounted forc.Costs during the periodd.Units accounted for

18.A company incurs 2,400,000 of overhead each year in three departments:Processing,Packaging,and Testing.The company performs 800 processing transactions,200,000 packaging transactions, and 2,000 tests per year in producing 400,000 drums of Oil and 600,000 drums of Sludge.The following data are available:(Department) (Expected Use of Driver) (Cost)Processing 800 1,000,000Packaging 200,000 1,000,000Testing 2,000 400,000Production information for the two products is as follows:(Department) (Oil Expected Use of Driver) (Sludge Expected Use of Driver)Processing 300 500Packaging 120,000 80,000Testing 160,000 40018-1 The amount of overhead assigned to Oil is:a1,200,000b1,295,000c1,105,000d920,00018-2 The amount of overhead assigned to Sludge isa1,200,000b1,105,000c1,295,000d920,00019.Which of the following statements is false?a.ABC can weaken control over overhead costsb.Under ABC,companies can trace many overhead costs directly to activitiesc.ABC allows some indirect costs to be identified as direct costsd.managers become more aware of their responsibility to control the activities that generated costs20.Which of the following is a value-added activity?a.Inventory storageb.Machiningc.Building maintenanced.Bookkeeping21.Which of the following is value-added activity?a.Inventroy controlb.Inspectionsc.Packagingd.Repair of machines22.Which of the following is a non-value-added activity?a.Inventory controlb.Machiningc.Assemblyd.Painting23.Which of the following is a non-value-added activity?a.paintingb.Finishingc.Packagingd.Building maintenance24.A non-value-added activity in service enterprise isa.providing legal researchb.delivering packagesc.consultingd.bookkeeping25.A division sold 100,000 calculators during 2013:Sales 2,000,000Variable Costs:Materials 380,000Order processing 150,000Billing labor 110,000Selling expenses 60,000Total variable costs 700,000Fixed costs 1,000,000How much is the contribution margin per unit?a.2b.7c.17d.1326.At the break-even point of 2,000units, variable costs are 110,000 and fixed costs are 64,000.How much is the selling price per unit?a87b23c32d Not enough information27.The following information is available for Wade Corp:Sales 550,000Total fixed expenses 150,000Cost of goods sold 390,000Total variable expenses 360,000A CVP income statement would reporta.gross profit of 160,000b.contribution margin of 400,000c.gross profit of 190,000d.contribution margin of 190,000

28.Which is the true statement?a.In a CVP income Statement, costs and expenses are classified only by functionb.The CVP income statement is prepared for both internal and external usec.The CVp income statement shows contribution margin instead of gross profitd.In a traditional income statement,costs and expenses are classified as either variable or fixed29.Variable costs are 60% of the unit selling price.The contribution margin ratio is 40%The contribution margin per unit is $500The fixed costs are $300,000Which of the following does not express the break-even point?a.300,000+.60X=Xb.300,000+.40X=Xc.300,000/$500=Xd.300,000/.40=X30.A CVP graph does not include aa.variable cost lineb.fixed cost linec.sales lined.total cost line31.Boswell company reported the following information for the current year:Sales(50,000 units)$1,000,000, direct materials and direct labor 500,000, other variable costs 50,000, and fixed costs 270,000.31-1 What is Boswell’s break-even point in units?a.24,546b.30,000c.38,334d.42,18831-2 What is Boswell’s contribution margin ratio?a.68%b.45c.32d.5532.Walters Corporation sells radios for %50 per unit.The fixed costs are 420,000 and the variable costs are 60% of the selling price.As a result of new automated equipment,it is anticipated that fixed costs will increase by 100,000 and variable costs will be 50% of the selling price.The new break-even point in units isa21,000b20,800c20,600d16,80033.Cunningham,Inc. sells MP3 players for $60 each.Variable costs are $40 per unit, and fixed costs total $90,000.What sales are needed by Cunningham to break even?a.120,000b.225,000c.270,000d.360,00034.What is the key factor in determining sales mix if company has limited resources?a.Contribution margin per unit of limited resourceb.The amount of fixed costs per unitc.Total contribution margind.The cost of limited resources35. (Oven Hours Required) (Contribution Margin Per Unit)Muffins 0.2 $3Coffee Cakes 0.3 $4The company has oven capacity of 1,200hours.How much will contribution margin be if it produces only the most profitable product?a.12,000b.16,000c.18,000d.24,00036.Curtis Corporation’s contribution margin is $20 per unit for Product A and $24 for Product B.Product A requires 2 machine hours and Product B requires 4 machine hours.How much is the contribution margin per unit of limited resource of reach product? A Ba.$10 $6b.$10 $6.66c.$8 $6d.$8 $6.6637.Reducing reliance on human workers and instead investing heavily in computers and online technology willa.reduce fixed costs and increase variable costsb.reduce variable costs and increase fixed costsc.have no effect on the relative proportion of fixed and variable costsd.make the company less susceptible to economic swings38.Cost structure refers to the relative proportion ofa.selling expenses versus adminstrative expensesb.selling and administrative expenses versus costs of goos soldc.contribution margin versus salesd.none of the above39.Mercantile Corporation has sales of 2,000,000,variable costs of 1,100,000,and fixed costs of 750,000.39-1)mercantile’s degree of operating leverage isa1.22b1.47c1.20d6.0039-2)margin of safety ratio isa .08b .17c .20d .8340.Which of the following statements is not true?a.Operating leverage refers to the extent to which company’s net income reacts to given change in salesb.Companies that have higher fixed costs relative to variable costs have higher operating leverage.c.when a company’s sales revenue is increasing,high operating leverage is good b/c it means profits will increase rapidlyd.When a company’s sales revenue is decreasing,high operating leverage is good b/c it means profits will decrease at slower pace than revenues decrease42.Nielson Corp.sells its product for 8,800per unit.Variable costs per unit are:manufacturing,$4,800and selling and administrative,$100.Fixed costs are:24,000 manufacturing overhead,and 32,000selling and administrative.There was no beginning inventory at 1/1/12.Production was 20 units per year in 2012-14.Sales was 20units in 2012,16units in 2013, and 24units in 2014.42-1)Income under absorption costing for 2014 isa26,400b31,200c32,800d37,60042-2)Income under variable costing for 2013 isa6,400b11,200c12,800d17,60042-3)Income under variable costing for 2014 isa26,400b31,200c32,800d37,60042-4)For the 3years 2012-14a.absorption costing income exceeds variable costing income by 8,000b.absorption costing income equals variable costing incomec.variable costing income exceeds absorption costing income by 8,000d.absorption costing income may be greater than,equal to,or less than variable costing income,depending on the situation