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Study Resources (Accounting)

29) To follow is information about the units produced and total manufacturing costs for Darryl Rug Company for the past six months. Month Number of units produced Total manufacturing costs January 28,800 $21,500 February 31,200 $22,500 March 25,200 $19,500 April 26,400 $20,000 May 30,800 $23,000 June 29,000 $21,900 Darryl Rug Company uses the high-low method to estimate its costs. Answer the following questions: A.  What is the variable.
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21) Which of the following statements is TRUE with respect to variable costs per unit? A) They will decrease as production increases within the relevant range. B) They will increase as production decreases within the relevant range. C) They will remain the same as production levels change within the relevant range. D) They will.
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33) Gamma Lights Ltd. experienced the following activity in its Machining Department during June. Materials are added at the beginning of the machining process. Units: Work in process, June 1 (80% of the way through the process) 19,200 units Transferred in from the Casting Department during June 64,800 units Completed during June      ?     units Work.
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31) Total fixed costs for Excelsior Corporation are $600,000.  Total costs, both fixed and variable, are $750,000 if 125,000 units are produced.  The fixed cost per unit at 300,000 units would be: A) $6.00/unit. B) $0.50/unit. C) $4.80/unit. D) $2.00/unit. 32) Total fixed costs for Yellow Boats Inc. are $100,000.  Total costs, both fixed and.
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31) The entry to record the use of direct materials in production would include a: A) debit to WIP inventory. B) debit to raw materials inventory. C) debit to finished goods inventory. D) credit to finished goods inventory. 32) ABC produces ping-pong balls using a three-step process that includes molding, coloring and finishing.  Which of.
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38) Record the following process costing transactions in the general journal: a. Purchase of raw materials on account, $27,000 b. Requisition of direct materials to: Assembly Department, $12,000 Finishing Department, $8,000 c. Incurrence and payment of manufacturing labour, $32,500 d. Incurrence of manufacturing overhead costs: Property taxes–plant, $5,500 Utilities–plant, $13,500 Insurance–plant, $3,300 Depreciation–plant, $10,000 e. Assignment of conversion costs to the.
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21) Brooks Corporation has two sequential processing departments: Assembly then Shaping.  The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process. Beginning WIP inventory 6,000 units Transferred-in costs in beginning WIP inventory $108,000 Direct materials cost in beginning WIP inventory $26,500 Conversion costs in beginning WIP inventory $20,750 Units transferred-in 55,000 units Transferred-in costs $530,000 Units completed 50,000 Costs added: .
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17) Using account analysis, what type of cost is the purchase of a cup of coffee on the way to school? A) Fixed B) Mixed C) Step D) Variable 18) Using account analysis, what type of cost is a student activity pass that costs $50 plus $5.00 per event? A) Fixed B) Mixed C) Step D) Variable 19) Manufacturing overhead.
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41) Gourmet College has recently opened a restaurant as part of its hospitality major. The manager gathered the following data from the first five weeks of operations. Knowing you are currently taking a managerial accounting course he has asked that you analyze the data Week Number of customers per week Weekly total restaurant.
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10) A “perfect” straight line would render an R-square value of zero. 11) If the data points were randomly scattered, the R-square value would be closer to 1 than 0. 12) An R-square value over .80 generally indicates that the cost equation is very reliable for predicting costs at other volumes within.
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37) Record the following process costing transactions in the general journal: a. Purchase of raw materials on account, $18,000 b. Requisition of direct materials to: Assembly Department, $8,000 Finishing Department, $4,000 c. Incurrence and payment of manufacturing labour, $21,600 d. Incurrence of manufacturing overhead costs: Property taxes–plant, $3,800 Utilities–plant, $9,000 Insurance–plant, $2,200 Depreciation–plant, $6,800 e. Assignment of conversion costs to the.
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28) Stella Services has a customer website to take orders, answer customer questions, and address customer complaints.  The costs associated with this customer website over the past six months are listed below: Month Customer website costs Number of website hits January $15,000 9,000 February $15,400 9,200 March $16,000 10,200 April $15,950 9,700 May $14,500 8,200 June $14,800 8,800 Management at Stella Services believes that the customer website costs are a mixed cost.
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11) When calculating equivalent units in a second or later processing department, all physical units should be considered 50% complete with respect to transferred-in work and costs. 12) In a process costing system, the number of WIP inventories: A) equals the number of products produced. B) equals the number of production departments. C) equals.
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11) Managers often approximate curvilinear costs and step costs as mixed costs. 12) If production increases by 15%, how will total variable costs likely react? A) Increase by 7.5% B) Increase by 15% C) Decrease by 15% D) Remain the same 13) Which of the following would be considered a discretionary fixed cost? A) Property taxes and.
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58) Cute Wheels Cars produces custom wheels. The company's average cost per wheel is $189.50 when it produces 5,000 wheels per month. Required: 1. What is the total cost of producing 5,000 wheels? 2. If $500,000 of the total cost is fixed, what is the variable cost of producing each wheel? 3. What is.
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1) Total fixed costs change in response to changes in the volume of production. 2) Unit variable costs change as total production increases. 3) Mixed costs are part variable and part fixed. 4) Fixed costs per unit increase as production levels increase. 5) An expense such as advertising could be considered a discretionary fixed.
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20) When predicting costs at other volumes using a cost equation derived from either the high-low method or regression analysis, managers should consider: A) outliers. B) general inflation. C) seasonality. D) all of the above. 21) Your client's company wants to determine the relationship between its monthly operating costs and a potential cost driver. The.
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37) Gourmet College has recently opened a restaurant as part of its hospitality major. The manager gathered the following data from the first five weeks of operations. Knowing you are currently taking a managerial accounting course he has asked that you analyze the data Week Number of customers per week Weekly total restaurant.
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29) At Madson Distillery, direct materials are added at the beginning of the process and conversion costs are added               throughout the process.  Data for the finishing department follows: WIP, April 1 18,000 units Transferred-in costs in WIP, April 1 $96,200 Direct materials (100%) in WIP, April 1 $23,500 Conversion costs (65%) in WIP, April 1 $19,700 Units transferred-in 35,000 Transferred-in.
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30) The controller of Menno Corp presents you with the following observations in a general ledger account called Maintenance: Month Machine-hours Maintenance Costs Incurred January 6,000 $4,000 February 8,000 4,750 March 8,500 4,900 April 9,000 5,000 May 7,000 4,400 June 10,000 5,400 Using the high- low method, what would the variable maintenance cost per machine hour be? A) $0.35 B) $0.54 C) $1.50 D) $0.67 31) The controller of Menno Corp presents you with the following observations.
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51) Harbor Manufacturing is trying to predict the cost associated with producing its anchors.  At a production level of 4,000 anchors, Harbor Manufacturing's average cost per anchor is $50.00.   If $20,000 of the costs are fixed, and the plant manager uses the cost equation to predict total costs, her forecast.
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21) ABC produces ping-pong balls using a three-step sequential process that includes molding, coloring and finishing.  When the balls and associated costs are transferred from the molding process to the coloring process, which account is debited? A) WIP inventory-coloring B) WIP inventory-molding C) Raw materials inventory D) WIP inventory-finishing 22) ABC produces ping-pong balls using.
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31) Beta Tools Ltd. experienced the following activity in its Machining Department during April. Materials are added at the beginning of the machining process. Units: Work in process, April 1 (80% of the way through the process) 12,800 units Transferred in from the Casting Department during April 43,200 units Completed during April      ?     units Work.
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36) Selected financial data for Flash Corporation follows for a production level of 100,000 units: Total fixed costs $400,000 Total costs (fixed and variable) $500,000 A.  Calculate the variable cost per unit. B.  If Flash Corporation makes 80,000 units, calculate the fixed cost per unit. C.  If Flash Corporation makes 150,000 units, calculate the total variable.
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60) Travel Throne Inc produces after-market heated seats for motorcycles. The company's average cost per seat is $350.00 when it produces 6,000 seats per month. Required: 1. What is the total cost of producing 6,000 seats? 2. If $750,000 of the total cost is fixed, what is the variable cost of producing each.
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39) Record the following process costing transactions in the general journal: a. Purchase of raw materials on account, $36,000 b. Requisition of direct materials to: Assembly Department, $16,000 Finishing Department, $8,000 c. Incurrence and payment of manufacturing labour, $44,000 d. Incurrence of manufacturing overhead costs: Property taxes–plant, $7,200 Utilities–plant, $18,000 Insurance–plant, $4,500 Depreciation–plant, $13,500 e. Assignment of conversion costs to the.
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40) Record the following process costing transactions in the general journal: a. Purchase of raw materials on account, $72,000 b. Requisition of direct materials to: Assembly Department, $21,000 Finishing Department, $12,000 c. Incurrence and payment of manufacturing labour, $68,500 d. Incurrence of manufacturing overhead costs: Property taxes–plant, $16,000 Utilities–plant, $36,000 Insurance–plant, $8,500 Depreciation–plant, $27,500 e. Assignment of conversion costs to the.
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33) The controller of Menno Corp presents you with the following observations in a general ledger account called Maintenance: Month Machine-hours Maintenance Costs Incurred January 6,000 $4,000 February 8,000 4,750 March 8,500 4,900 April 9,000 5,000 May 7,000 4,400 June 10,000 5,400 Using the high-low method, what will the total monthly manufacturing costs be if the company produces 7,500 units? A) $2,625 B) $5,555 C) $4,525 D) $4,050 34) Gourmet College has recently opened a restaurant as.
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37) Bluetones Ltd. experienced the following activity in its Machining Department during June. Materials are added at the beginning of the machining process. Units: Work in process, June 1 (60% of the way through the process) 19,200 units Transferred in from the Casting Department during June 64,800 units Completed during June      ?     units Work in.
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57) The controller for Truman Canoes has gathered the following cost and activity level information: Average total cost per unit $300.00 Production level used to calculate average cost 2,000 Total fixed costs $100,000 A.  What is the total cost of producing 2,000 fiberglass canoes? B.  What is the variable cost of producing each.
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41) Feathered Nests produces decorative birdhouses. The company's average cost per unit is $20.00 when it produces 2,000 birdhouses. If $4,800 of the costs are fixed, and the plant manager uses the average cost per unit to predict total costs, his forecast for 2,200 birdhouses will be: A) $44,000. B) $43,520. C) $4,000. D).
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34) Sono Sounds Ltd. experienced the following activity in its Machining Department during April. Materials are added at the beginning of the machining process. Units: Work in process, April 1 (60% of the way through the process) 12,800 units Transferred in from the Casting Department during April 43,200 units Completed during April      ?     units Work.
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36) Bright Lights Ltd. experienced the following activity in its Machining Department during September. Materials are added at the beginning of the machining process. Units: Work in process, September 1 (60% of the way through the process) 9,600 units Transferred in from the Casting Department during September 32,400 units Completed during September      ?     units Work.
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30) Beta Tools Ltd. experienced the following activity in its Machining Department during November. Materials are added at the beginning of the machining process. Units: Work in process, November 1 (80% of the way through the process) 16,000 units Transferred in from the Casting Department during November 54,000 units Completed during November      ?     units Work in.
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62) The following data pertain to costs at Richardson Company: Total fixed costs $750,000 Total variable costs $110,000 Production level 40,000 units The variable cost per unit is: A) $2.75. B) $18.75. C) $21.50. D) $3.75. 63) The following data pertain to costs at Richardson Company: Total fixed costs $750,000 Total variable costs $110,000 Production level 40,000 units The average cost per unit is: A) $2.75. B).
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35) Broadline Ltd. experienced the following activity in its Machining Department during April. Materials are added at the beginning of the machining process. Units: Work in process, April 1 (60% of the way through the process) 12,800 units Transferred in from the Casting Department during April 43,200 units Completed during April      ?     units Work in.
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32) Gamma Lights Ltd. experienced the following activity in its Machining Department during September. Materials are added at the beginning of the machining process. Units: Work in process, September 1 (80% of the way through the process) 9,600 units Transferred in from the Casting Department during September 32,400 units Completed during September      ?     units Work.
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