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Study Resources (Accounting)

223) Satellite Manufacturing is a company that manufactures satellite parts. The two departments in the company include the Placement Department and the Organization Department. The managerial accountant assigned total costs to units completed and to units in ending Work In Process Inventory and reported the following information: Which of the following.
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31) For most businesses, annual straight line depreciation expense on the company's building is what type of cost? A) Variable B) Mixed C) Fixed D) Step 32) Total fixed costs for Taylor Incorporated are $240,000. Total costs, including both fixed and variable, are $500,000 if 125,000 units are produced. The variable cost per unit is A).
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260) Which of the following does not appear on an income statement prepared using variable costing? A) Fixed production costs B) Contribution margin C) Gross margin D) Variable production costs 261) Schrute Farm Sales buys portable generators for $450 and sells them for $720. He pays a sales commission of 5% of sales revenue.
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220) Traditional income statements do not distinguish fixed operating costs from variable operating costs. 221) U.S. GAAP requires companies to use absorption costing for external reporting purposes. 222) Contribution margin income statements organize costs by behavior. 223) When a merchandiser prepares a contribution margin income statement, Cost of Goods Sold is always.
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130) Manufacturing overhead (consisting of costs like factory rent, factory utilities, factory maintenance, and other similar costs) is usually what type of cost? A) Variable B) Fixed C) Step D) Mixed 131) Which method are managers using when they use their judgment to classify costs as variable, fixed, or mixed? A) High-low method B) Account analysis C) Regression.
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156) The Jones Corporation uses a process system. During the current period, 2,500 units were started and 1,100 units were completed and transferred out. Ending units were 60% complete for materials and 45% complete for conversion costs. Direct materials costs added were $35,405 and conversion costs added were $32,870. There.
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203) When units are sold, Finished Goods Inventory is credited. 204) When units are sold, Cost of Goods Sold is debited. 205) When the units are sold, Cost of Goods Sold is credited. 206) Fun Stuff Manufacturing produces ping pong balls using a three-step sequential process that includes molding, coloring and finishing. When.
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270) Jeans's Fitness Club provides monthly memberships as well as personal training sessions. The personal trainers earn 50% of the revenue for all personal training sessions. The Fitness Club also sells nutrition products. Jeans's general ledger accounts indicate the following for the year. The front desk staff wages expense remains.
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290) The HF Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year. Selling price per unit $8.00 Variable manufacturing costs per unit $1.83 Variable selling and administrative expenses per unit $4.45 Fixed manufacturing overhead (in total) $75,000 Fixed selling and administrative expenses (in total) $80,000 Units produced.
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171) The managerial accountant at Flat Screen Manufacturing reported that the organization contains an automated production line to manufacture and produce its products for consumers to enjoy in the marketplace. The managerial accountant reported that the company uses the high-low method to estimate the costs in the new budget. The.
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179) The R-squared statistic determined by regression analysis is sometimes referred to as the "goodness-of-fit" statistic. 180) The cost equation determined by regression analysis is usually more accurate than the line determined by the high-low method. 181) In a regression output, the "intercept coefficient" represents the fixed cost component of a.
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150) Tasty Treats is a snow cone stand near the local park. To plan for the future, Tasty Treats wants to determine its cost behavior patterns. It has the following information available about its operating costs and the number of snow cones served. Month Number of snow cones Total operating costs January 6,400 $5,980 February 7,000 $6,400 March 6,200 $5,840 April 6,900 $6,330 May 7,600 $6,820 June 7,250 $6,575 The variable cost.
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136) At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: Beginning WIP direct materials $32,000 Beginning WIP conversion costs $20,250 Costs of materials added $384,100 Costs of conversion added $271,125 WIP beginning (50% for conversion) 19,200 units Units started 119,500 units Units completed and transferred out 115,700 units WIP ending (60%.
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85) Best Birdies produces ornate birdcages. The company's average cost per unit is $18.00 at a production level of 2,200 birdcages. What is the total cost of producing 2,200 birdcages? A) $39,600 B) $18.00 C) $2,218 D) $122 86) Best Birdies produces ornate birdcages. The company's average cost per unit is $18.00 when it produces.
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210) The managerial accountant at the Bookcase Factory prefers regression analysis to the high-low method because it is a more accurate method. The managerial accountant uses regression output and analyzes the following data to predict future costs: y =$250x + $625 where, y = total monthly utility cost x = number of guests What is.
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250) How is operating income affected if the number of units sold exceeds the number of units produced? A) Operating income would be higher under a variable costing income statement. B) Operating income would be lower under a variable costing income statement. C) Operating income would be higher under an absorption costing income.
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243) The managerial accountant at Duck Manufacturing reported the following information: Units: Beginning WIP 54,500 75% for materials 45% for conversion Transferred-in 225,000 Completed 232,000 Ending WIP 60% for materials 20% for conversion 47,500 Costs: Beginning WIP Direct materials $67,500 Conversion 145,400 Transferred-in 99,000 Transferred-in from department 1 $1,550,050 Direct materials added 909,375 Conversion added 542,875 The cost of ending WIP is closest to A) $133,950. B) $593,750. C) $311,900. D) $414,200. 244) Materials are.
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233) Product cost reports are done only for the final department in process costing. 234) When calculating equivalent units in a second or later processing department, all physical units should be considered 100% complete with respect to transferred-in work and costs. 235) When calculating equivalent units in a second or later processing.
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126) At Sunrise Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: WIP beginning (50% for conversion) 19,200 units Units started 120,500 units Units completed and transferred out 116,700 units WIP ending (60% for conversion) 23,000 units Beginning WIP direct materials $35,000 Beginning WIP conversion costs $22,500 Costs of materials added $384,100 Costs.
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166) A shampoo manufacturer offers the following information: WIP Inventory, January 1 0 units Units started 25,600 units Units completed and transferred out 19,200 units WIP Inventory, December 31 6,400 units Direct materials $276,480 Direct labor $585,000 Manufacturing Overhead $328,920 The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs. On December 31, what are the total equivalent units.
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41) Selected financial data for Spark Enterprises follows for a production level of 120,000 units: Total fixed costs $300,000 Total costs (fixed and variable) $450,000 a.Calculate the variable cost per unit. b.If Flash Corporation makes 75,000 units, calculate the fixed cost per unit. c.If Flash Corporation makes 160,000 units, calculate the total variable costs. d.If Flash Corporation.
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116) Which item would appear last on a production cost report? A) Cost of goods finished for the month B) Total costs accounted for C) Beginning WIP Inventory, if any D) Ending WIP Inventory, if any 117) On a production cost report, the following cost(s) would appear A) beginning work in process. B) costs added during.
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189) The output from regression analysis generated in Excel gives us all of the following information except A) intercept coefficient. B) highest and lowest data points × variable 1 coefficient. C) R-square. D) x variable 1 coefficient. 190) On a regression analysis output generated with Excel, a regression equation's variable cost per unit is represented.
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230) Under variable costing, fixed manufacturing overhead is expensed immediately as a period cost. 231) Under variable costing, fixed manufacturing costs are treated as inventoriable product costs. 232) Under variable costing, all nonmanufacturing costs are treated as inventoriable product costs. 233) If inventory has grown, operating income will be higher.
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241) On a contribution margin income statement, sales revenue less variable expenses equals A) operating expenses. B) gross profit. C) operating income. D) contribution margin. 242) On a traditional income statement, all manufacturing-related costs, whether fixed or variable, are listed A) above the gross profit line. B) above the contribution margin line. C) below the operating income line. D).
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169) McCartney Services has a customer Web site to take orders, answer customer questions, and address customer complaints. The costs associated with this customer Web site over the past six months are listed below: Month Customer Web site costs Number of Web site hits January $8,960 11,600 February $8,762 11,270 March $9,032 11,720 April $8,942 11,570 May $8,420 10,700 June $8,492 10,820 Management at McCartney Services believes that the customer Web site.
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213) Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. The purchase of materials includes a A) debit to WIP Inventory-Molding. B) debit to Raw Materials Inventory. C) credit to Manufacturing Overhead. D) credit to Raw Materials Inventory. 214) Fun Stuff Manufacturing produces frisbees using a three-step process that.
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105) At Dwight Incorporated, total fixed and variable costs are $400,000 at a production level of 100,000 units. The company has total fixed costs of $225,000. The variable cost per unit at 150,000 units is A) $1.75. B) $2.25. C) $4.00. D) $1.17. 106) Answer the following questions: a.What is a cost equation? b.If a company has.
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183) The managerial accountant at Coastal Edge Manufacturing reported the following data: The managerial accountant is required to determine the total cost per equivalent unit at Coastal Edge Manufacturing. What were the (a) the total direct material cost per unit; (b) the conversion cost per unit; and, (c) total per unit.
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253) Martinson Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The following data represents data in the Finishing Department:FinishingDepartment WIP, April 1 12,000 units Transferred-in costs in WIP, April 1 $79,940 Direct materials (100%) in WIP, April 1 $24,420 Conversion costs (75%) in WIP, April 1 $23,400 Units transferred-in 47,000 Transferred-in costs.
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1) The contribution margin per unit is how much profit each unit contributes after fixed costs are considered. 2) CVP stands for Company-Volume-Profit. 3) CVP assumes that inventory levels will not change. 4) When using the contribution margin ratio, managers project operating income based upon sales units. 5) A product's contribution margin per unit.
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55) If production increases by 30%, how will total variable costs likely react? A) Increase by 15% B) Decrease by 30% C) Increase by 30% D) Remain the same 56) Which of the following would be considered a discretionary fixed cost? A) Property taxes and insurance B) Advertising C) Employees wages D) Depreciation 57) Which of the following would be.
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293) The following data is related to sales and production of the Tauro Corporation for last year. Selling price per unit $60.00 Variable manufacturing cost per unit $25.00 Variable selling and administrative expense per unit $6.00 Fixed manufacturing overhead (in total) $50,000 Fixed selling and administrative expenses (in total) $8,000 Units produced during year 10,000 Units sold during year 8,000 Units in beginning inventory 0 Units.
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