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Answer the following question using the information below. Pederson Company reported the following: Manufacturing costs $2,000,000 Units manufactured 50,000 Units sold 47,000 units sold for $75 per unit Beginning inventory 0 units 29) What is the average manufacturing cost per unit? A) $40.00 B) $42.55 C) $75.50 D) $35.00 E) $42.25 30) What is the amount of gross margin? A) $1,750,000 B) $3,525,000 C) $3,405,000.
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63)  Evans Inc., had the following activities during 2015: Direct materials: Beginning inventory$40,000 Purchases123,200 Ending inventory20,800 Direct manufacturing labour32,000 Manufacturing overhead24,000 Beginning work-in-process inventory1,600 Ending work-in-process inventory8,000 Beginning finished goods inventory48,000 Ending finished goods inventory32,000 Required: a.What is the cost of direct materials used during 2015? b.What is cost of goods manufactured for 2015? c.What is cost of goods sold for 2015? Assume that Evans.
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21) Larry's Appliance Shop operates retail stores that sell appliances. The cost objects are the individual sales of a given type of appliance and sales support. For refrigerators in July, the following costs were recorded: Professional sales staff commissions $84,000 Amortization on office space4,000 Selling supplies 6,400 Office staff expenses  24,800 Customer relations 8,600 Training.
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  4.1   Describe the building-block concepts of costing systems. 1) Cost assignment includes cost allocation for indirect costs and direct costs. 2) Cost pools are defined as groupings of individual cost items which can range from broad, company-wide categories to very narrow categories. 3) A cost allocation base is only financial in nature, and.
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20) Karen's Klothes sells blouses for women and girls. The average selling price and variable cost for each product are as follows: Women: Selling Price $18.00Girls: Selling Price $15.00 Women: Variable Cost $12.75Girls: Variable Cost $10.50 Fixed costs are $30,000 and cannot be separated evenly between the two products. Required: a.What is the break-even point.
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3.3   Distinguish among contribution, gross, operating, and net income margins, and apply the CVP model to calculate target net income. 1) An increase in the tax rate will increase the break-even point. 2) When making net income evaluations, CVP calculations for target income must be stated in terms of target operating.
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22) Yurus Manufacturing Company produces two products, X and Y. The following information is presented for both products: XY Selling price per unit$36$24 Variable cost per unit 2812 Total fixed costs are $234,000. Required: a.Calculate the contribution margin for each product. b.Calculate break-even point in units of both X and Y if the sales mix is 3.
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61) Farley Muffler Inc. received the following monthly report from its newly hired accountant, who quit after only a week on the job. Farley Muffler Inc. Cost of Goods Sold Schedule Finished Goods Inventory (beginning)$15,000 Work-in-Process Inventory (beginning)   3,000 Total$18,000 Current Manufacturing Costs:   Salaries and wages: Direct manufacturing labour$5,000 Indirect manufacturing labour2,000 Sales salaries4,000 Administrative 3,000$14,000 Other: Manufacturing supplies$1,500 Manufacturing amortization3,500 Insurance on showroom1,000 Miscellaneous.
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67) Manitoba Industries Inc. had the following account balances at the end of the current year: Direct materials:      Beginning inventory $13,000      Purchases ?      Ending inventory 17,000 Direct manufacturing labour ? Manufacturing overhead 28,000 Cost of goods manufactured 210,000 Beginning work-in-process inventory 11,000 Ending finished goods inventory 17,000 Beginning finished goods inventory ? Ending work-in-process inventory ? Manufacturing costs incurred 213,000 Cost of goods sold 215,000 Total manufacturing costs to account for 224,000 Direct materials used 118,000 Required: Determine.
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Use the information below to answer the following question(s). Montreal Industries Inc. had the following activities during the year: Direct materials:      Beginning inventory $50,000      Purchases 154,000      Ending inventory 26,000 Direct manufacturing labour 40,000 Manufacturing overhead 30,000 Ending work-in-process inventory 10,000 Beginning work-in-process inventory 2,000 Ending finished goods inventory 40,000 Beginning finished goods inventory 60,000 20) What is Montreal's cost of direct materials used during the year? A) $204,000 B) $178,000 C).
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28) Big Ben Golf Accessories makes novelty electronic equipment for golf enthusiasts. One of their most popular accessories is the "Putting Magician." This electronic device analyses puts and provides instruction on the direction and pace of a put. Although not allowed under the rules amateur golfers have purchased or received.
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38) Which of the following formulas determine cost of goods sold in a manufacturing entity? A) Beginning work-in-process inventory + Cost of goods manufactured - Ending work-in-process inventory = Cost of goods sold B) Beginning work-in-process inventory + Cost of goods manufactured + Ending work-in-process inventory = Cost of goods.
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11) Inventoriable costs for merchandising companies are held in the work-in-process account. Use the information below to answer the following question(s). Consider the following data of the Vancouver Company for the year 2016: Sandpaper-Plant $10,000 Leasing costs - plant $120,000 Materials handling-Plant 100,000 Amortization- equip. 70,000 Coolants-Plant 7,000 Property taxes - equip. 10,000 Indirect manufacturing labour 86,000 Fire insurance - equip. 5,000 Direct manufacturing labour 680,000 Direct material purchases 980,000 Direct materials, 1/1/2016 120,000 Direct.
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11) Transferring costs from indirect cost pools to cost objects is called A) cost allocation. B) cost control. C) cost pool. D) cost factoring. E) cost processing. 12) A factor used to systematically link an indirect cost to a cost object is called A) a cost allocation base. B) a cost pool. C) cost assignment. D) a traceable cost. E) a.
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11) What is the dollar amount of sales required for Brian to earn an after-tax profit of $7,000 if fixed costs are $10,000? A) $17,000 B) $50,000 C) $70,588 D) $85,000 E) $100,000 Answer the following question(s) using the information below. Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000, variable.
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4.2   Distinguish job costing from process costing. 1) A job costing system assigns costs to a distinct unit or set of units of a product or service. 2) A process costing system assigns costs to groups of similar units during a specified time period and then computes the average unit cost. 3) Process.
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33) Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The variable cost of each battery is $20 and monthly fixed manufacturing costs total $10,000. Other monthly fixed costs of the company total $8,000. Required: a.What is the breakeven point in batteries? b.What is the margin of.
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30) Query Company sells pillows for $25.00 each. The manufacturing cost, all variable, is $10 per pillow. The company is planning on renting an exhibition booth at the annual crafts and art convention. The convention coordinator allows three options for each participating company. They are: 1.paying a fixed booth fee of.
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4.3   Describe the approaches to evaluating and implementing job costing systems. 1) Actual costing systems are commonly found in practice because the indirect cost information is readily available. 2) Actual costing allocates indirect costs based on the predetermined indirect-cost rates multiplied by the actual quantities of the cost-allocation bases. 3) In the five-step.
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Use the information below to answer the following question(s). Big Sports University is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet: 1.Foothills Country Club a.Fixed rental cost of $600 b.plus $15.00 per person for food. 2.Downhill Country Club a.Fixed rental cost of $1,080 b.It.
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24) Mount Carmel Company sells only two products, Product A and Product B. Product A Product B Total Selling price $40 $50 Variable cost per unit $24 $40 Total fixed costs $840,000 Mount Carmel sells two units of Product A for each unit it sells of Product B. Mount Carmel faces a tax rate of 30%. Required: a.What is the breakeven point in.
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Answer the following question(s) using the information below. The West Company manufactures several different products. Unit costs associated with Product ORD203 are as follows: Direct materials $40 Direct manufacturing labour 8 Variable manufacturing overhead 12 Fixed manufacturing overhead 23 Sales commissions (2% of sales) 6 Administrative salaries     9        Total $98 48) What are the variable costs per unit associated with Product ORD203? A) $60.
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56) Macadamia Co. produced and sold 40,000 units last year. Per unit revenue and costs were as follows: Revenues $120.00 Cost of Goods Sold: Direct Materials $15.00 Direct Labour 20.00 Variable Manufacturing Overhead 10.00 Fixed Manufacturing Overhead   6.00 Total Cost of Goods Sold   51.00 Gross Margin $69.00 Selling and Administrative Costs: Sales Commissions (10% of Sales) $12.00 Administrative Salaries    5.00 Total Selling and Administrative   17.00 Operating Income <Loss> $52.00 The Fixed.
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2.4   Apply cost information to produce a GAAP-compliant income statement showing proper cost of goods sold and a balance sheet showing proper inventory valuation. 1) Manufacturing-sector companies purchase materials and other resources for conversion into various finished goods. 2) Manufacturing firms have three types of inventory: direct materials, work in process, and.
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8) To smooth seasonal fluctuating levels of output, separate indirect-cost rates should be calculated for each month. 9) A job cost record (or job cost sheet) is a document where the costs are recorded and accumulated. 10) Place the following steps in the order suggested by the seven steps used to.
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11) The agency supervisor of a non-profit organization wants to know how many individuals may receive financial assistance during the year. The organization has fixed costs of $600,000. They aid the unemployed by supplementing their incomes by $8,000 annually, while they seek new employment skills. The budgeted appropriation for the.
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32) Snowmobile Inc. manufactures two colours of snowmobiles: White and Black. Marketing believes that it can sell between 12,000 and 18,000 of either product during the upcoming year. Due to the overall economic slowdown, the company is preparing to produce only one model for next year. The following information has.
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59) Eschliman Manufacturing Company had the following account balances for the quarter ending September 30, unless otherwise noted: Amortization of manufacturing equipment$88,000 Amortization of office equipment41,200 Direct manufacturing labour160,000 Direct materials used126,000 Finished goods inventory (July 1)180,000 Finished goods inventory (September 30)170,000 General office expenses101,800 Indirect manufacturing labour62,000 Indirect materials used28,000 Marketing distribution costs10,000 Miscellaneous plant overhead45,000 Plant utilities30,800 Property taxes on plant.
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11) A profit-volume graph shows the impact on operating income from changes in the output level. 12) The contribution margin method of CVP analysis uses the equation: break-even units = unit contribution margin/fixed costs. 13) The contribution margin method can be used to verify a break-even calculation. 14) The total costs line.
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37) Freddie's company has mostly fixed costs and Valerie's company has mostly variable costs. Which company has the greatest risk of a net loss? Explain why. 3.5   Analyze the implications of uncertainty on decision models. 1) A probability distribution describes the likelihood of each of the mutually exclusive and collectively exhaustive set.
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65) Helmer Sporting Goods Company manufactured 100,000 units in 2015 and reported the following costs: Sandpaper$32,000Leasing costs-plant$384,000 Materials handling320,000Amortization-equipment224,000 Coolants & lubricants22,400Property taxes-equipment32,000 Indirect manufacturing labour275,200Fire insurance-equipment16,000 Direct manufacturing labour2,176,000Direct material purchases3,136,000 Direct materials, 1/1/15384,000Direct materials, 12/31/15275,200 Finished goods, 1/1/15672,000Sales revenue12,800,000 Finished goods, 12/31/151,280,000Sales commissions640,000 Work-in-process, 1/1/1596,000Sales salaries576,000 Work-in-process, 12/31/1564,000Advertising costs480,000 Administration costs800,000 Required: a.What is the cost of direct materials used during.
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16) Black Pearl, Inc., sells a single product. The company's most recent income statement is given below. Sales$50,000 Less variable expenses(30,000) Contribution margin20,000 Less fixed expenses(12,500) Net income$ 7,500   Required: a.Contribution margin ratio is________ % b.Breakeven point in total sales dollars is$ ________ c.To achieve $40,000 in net income, sales must total$ ________ d.If sales increase by $50,000,.
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  3.1   Identify the essential elements of cost-volume-profit analysis and calculate the break-even point (BEP). 1) The contribution margin is computed by deducting all costs which vary on the basis of an output-related cost driver from revenues. 2) To perform cost-volume-profit analysis, a company must be able to separate costs into fixed and.
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2.5   Explain cost identification, classification, and management systems and their use within the decision framework. 1) Product costs are the sum of the costs assigned to a product for a specific purpose. 2) For purposes of calculating inventory costs under GAAP, only production costs can be used. 3) Overtime premium is normally considered.
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3.6   Interpret the results of CVP analysis in complex strategic, multi-product, and multiple cost driver situations. 1) The relative combination of quantities of products or services that constitute total revenues are called the sales target. 2) The key to applying CVP analysis in non-profit and service organizations is to measure their output. 3).
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Answer the following question(s) using the information below. Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet: OPTION 1:Crestview Country Club a. Fixed rental cost of $1,000 b. $12 per person for food OPTION 2:Tallgrass Country Club a. Fixed rental cost.
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Each of the following items pertains to one of these companies: Bedell Electronics (a manufacturing company), Gregory Food Retailers (a merchandising company), and Larson Real Estate (a service sector company). Match each item with either an inventoriable cost or a period cost. A) period B) inventoriable 70) salary of Bedell Electronics president Diff: 2   .
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13) Berhannan's Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500. Required: a.What is the contribution margin per phone? b.What is the break-even point in phones? c.How many phones.
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21) Sales total $200,000 when variable costs total $150,000 and fixed costs total $30,000. The break-even point in sales dollars is A) $200,000. B) $120,000. C) $40,000. D) $30,000. E) $180,000. 22) Cost-volume profit is used to analyze A) the behaviour of some costs and revenues as changes occur in the output level. B) the.
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