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 120000
How much is Wasson’s total cost of work in process for the year?
a608000
b863000
c860000
d898000
2.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?
a780000
b790000
c770000
d800000
3.Using the following information, compute the direct materials used
Raw materials inventory, Jan.1 $20000
Raw materials inventory, Dec.31 40000
Work in process, Jan.1 18000
Work in process, Dec.31 12000
Finished goods, Jan.1 40000
Finished goods, Dec.31 32000
Raw materials purchases(NNN) NNN-NNNN
Direct labor 560000
Factory utilities 150000
Indirect labor 50000
Factory depreciation 400000
Operating expenses 420000
a1460000
b1420000
c1400000
d1380000
4.Assuming that the cost of goods manufactured is $2960000 compute the cost of goods sold using the following information
Raw materials inventory, Jan.1 $30000
Raw materials inventory, Dec.31 60000
Work in process, Jan.1 27000
Work in process, Dec.31 18000
Finished goods, Jan.1 60000
Finished goods, Dec.31 48000
Raw materials purchases(NNN) NNN-NNNN
Direct labor 690000
Factory utilities 225000
Indirect labor 75000
Factory depreciation 500000
Operating expenses 630000
a2969000
b2912000
c2948000
d2972000
5.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 provided
b416000
c416000
d184000
6.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 620000
b605000 590000
c605000 620000
d620000 635000
7.Gulick Company developed the following data for the current year:
Beginning work in process inventory $160,000
Direct materials used 96,000
Actual overhead 192,000
Overhead applied 144,000
Cost of goods manufactured 176,000
Total manufacturing costs 480,000
7-1 Gulick Company’s direct labor cost for the year is
a.48,000
b.240,000
c.144,000
d.192,000
7-2 Gulick Company’s ending work in process inventory is
a.464,000
b.320,000
c.304,000
d.144,000
8.Hayward Manufacturing Company eveloped the following data:
Beginning work in process inventory 450000
Direct materials used 350000
Actual overhead 550000
Overhead applied 400000
Cost of goods manufactured 600000
Ending work in process 750000
Hayward Manufacturing Company’s total manufacturing costs for the period is
a950,000
b900,000
c650,000
d.cannot be determined from the data provided
9.Greer Company developed the following data for the current year:
Beginning work in process inventory $102000
Direct materials used 156,000
Actual overhead 132,000
Overhead applied 138,000
Cost of goods manufactured 675,000
Total manufacturing costs 642,000
9-1 How much is Greer Company’s direct labor cost for the year?
a.381,000
b.450,000
c.348,000
d.246,000
9-2 How much is Greer Company’s ending work in process inventory for the year?
a.69,000
b.363,000
c.63,000
d.279,000
10.Chmelar Manucfacturing Company developed the following data:
Beginning work in process inventory $80,000
Direct materials used 480,000
Actual overhead 560,000
Overhead applied 540,000
Cost of goods manufactured 1,280,000
Ending work in process 60,000
How much are total manufacturing cost for the period?
a.1,580,000
b.1,260,000
c.1,100,000
d.1,220,000
11.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.$3.30
b.3.75
c.4.20
d.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.?
a1,500,000
b2,000,000
c1,606,000
d1,365,000
13.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?
a455,000
b500,000
c320,000
d200,000
14.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?
a5.00
b5.27
c20.00
d4.69
15.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 are
a.200,000
b.170,000
c.150,000
d.180,000

16.The total costs accounted for in production cost report equal the
a.cost of units completed and transferred out only
b.cost of units started into production
c.cost of units completed and transferred out plus the cost of ending work in process
d.cost of beginning work in process plus the cost of units completed and transferred out
17.In a production cost report,which one of the following sections is not shown under costs?
a.Unit costs
b.Costs to be accounted for
c.Costs during the period
d.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 1,000,000
Packaging 200,000 1,000,000
Testing 2,000 400,000
Production information for the two products is as follows:
(Department) (Oil Expected Use of Driver) (Sludge Expected Use of Driver)
Processing 300 500
Packaging 120,000 80,000
Testing 160,000 400
18-1 The amount of overhead assigned to Oil is:
a1,200,000
b1,295,000
c1,105,000
d920,000
18-2 The amount of overhead assigned to Sludge is
a1,200,000
b1,105,000
c1,295,000
d920,000
19.Which of the following statements is false?
a.ABC can weaken control over overhead costs
b.Under ABC,companies can trace many overhead costs directly to activities
c.ABC allows some indirect costs to be identified as direct costs
d.managers become more aware of their responsibility to control the activities that generated costs
20.Which of the following is a value-added activity?
a.Inventory storage
b.Machining
c.Building maintenance
d.Bookkeeping
21.Which of the following is value-added activity?
a.Inventroy control
b.Inspections
c.Packaging
d.Repair of machines
22.Which of the following is a non-value-added activity?
a.Inventory control
b.Machining
c.Assembly
d.Painting
23.Which of the following is a non-value-added activity?
a.painting
b.Finishing
c.Packaging
d.Building maintenance
24.A non-value-added activity in service enterprise is
a.providing legal research
b.delivering packages
c.consulting
d.bookkeeping
25.A division sold 100,000 calculators during 2013:
Sales 2,000,000
Variable Costs:
Materials 380,000
Order processing 150,000
Billing labor 110,000
Selling expenses 60,000
Total variable costs 700,000
Fixed costs 1,000,000
How much is the contribution margin per unit?
a.2
b.7
c.17
d.13
26.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?
a87
b23
c32
d Not enough information
27.The following information is available for Wade Corp:
Sales 550,000
Total fixed expenses 150,000
Cost of goods sold 390,000
Total variable expenses 360,000
A CVP income statement would report
a.gross profit of 160,000
b.contribution margin of 400,000
c.gross profit of 190,000
d.contribution margin of 190,000

28.Which is the true statement?
a.In a CVP income Statement, costs and expenses are classified only by function
b.The CVP income statement is prepared for both internal and external use
c.The CVp income statement shows contribution margin instead of gross profit
d.In a traditional income statement,costs and expenses are classified as either variable or fixed
29.Variable costs are 60% of the unit selling price.
The contribution margin ratio is 40%
The contribution margin per unit is $500
The fixed costs are $300,000
Which of the following does not express the break-even point?
a.300,000+.60X=X
b.300,000+.40X=X
c.300,000/$500=X
d.300,000/.40=X
30.A CVP graph does not include a
a.variable cost line
b.fixed cost line
c.sales line
d.total cost line
31.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.24,546
b.30,000
c.38,334
d.42,188
31-2 What is Boswell’s contribution margin ratio?
a.68%
b.45
c.32
d.55
32.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 is
a21,000
b20,800
c20,600
d16,800
33.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.120,000
b.225,000
c.270,000
d.360,000
34.What is the key factor in determining sales mix if company has limited resources?
a.Contribution margin per unit of limited resource
b.The amount of fixed costs per unit
c.Total contribution margin
d.The cost of limited resources
35. (Oven Hours Required) (Contribution Margin Per Unit)
Muffins 0.2 $3
Coffee Cakes 0.3 $4
The company has oven capacity of 1,200hours.How much will contribution margin be if it produces only the most profitable product?
a.12,000
b.16,000
c.18,000
d.24,000
36.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 B
a.$10 $6
b.$10 $6.66
c.$8 $6
d.$8 $6.66
37.Reducing reliance on human workers and instead investing heavily in computers and online technology will
a.reduce fixed costs and increase variable costs
b.reduce variable costs and increase fixed costs
c.have no effect on the relative proportion of fixed and variable costs
d.make the company less susceptible to economic swings
38.Cost structure refers to the relative proportion of
a.selling expenses versus adminstrative expenses
b.selling and administrative expenses versus costs of goos sold
c.contribution margin versus sales
d.none of the above
39.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 is
a1.22
b1.47
c1.20
d6.00
39-2)margin of safety ratio is
a .08
b .17
c .20
d .83
40.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 sales
b.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 rapidly
d.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 decrease
42.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 is
a26,400
b31,200
c32,800
d37,600
42-2)Income under variable costing for 2013 is
a6,400
b11,200
c12,800
d17,600
42-3)Income under variable costing for 2014 is
a26,400
b31,200
c32,800
d37,600
42-4)For the 3years 2012-14
a.absorption costing income exceeds variable costing income by 8,000
b.absorption costing income equals variable costing income
c.variable costing income exceeds absorption costing income by 8,000
d.absorption costing income may be greater than,equal to,or less than variable costing income,depending on the situation