1) data concerning plaxco corporation’s single product appear below:
assume the company’s monthly target profit is $12,000. the dollar sales to attain that
target profit is closest to:
a.$941,500
b.$754,166
c.$451,920
d.$869,077
2) an opportunity cost is:
a.the difference in total costs which results from selecting one alternative instead of
another
b.the benefit forgone by selecting one alternative instead of another
c.a cost which may be saved by not adopting an alternative
d.a cost which may be shifted to the future with little or no effect on current operations
3) prater company has provided the following data:
the best estimate of the company’s total fixed selling and administrative expense per
year is:
a.$188,000
b.$72,000
c.$200,000
d.$212,000
4) gladstone footwear corporation’s flexible budget cost formula for supplies, a variable
cost, is $2.83 per unit of output. the company’s flexible budget performance report for
last month showed a $9,555 unfavorable spending variance for supplies. during that
month, 19,500 units were produced. budgeted activity for the month had been 19,300
units. the actual cost per unit for indirect materials must have been closest to:
a.$3.32
b.$3.81
c.$2.83
d.$3.85
5) the clark company makes a single product and uses standard costing. some data
concerning this product for the month of may follow:
the actual direct labor rate for may in dollars per hour was closest to:
a.$12.50
b.$12.00
c.$11.75
d.$11.50
6) abdol company, which has only one product, has provided the following data
concerning its most recent month of operations:
what is the total period cost for the month under the absorption costing approach?
a.$32,500
b.$71,500
c.$302,500
d.$231,000
7) reifsnyder corporation keeps careful track of the time required to fill orders. the times
recorded for a particular order appear below:
the manufacturing cycle efficiency (mce) was closest to:
a.0.73
b.0.06
c.0.15
d.0.02
8) the morgan company uses the weighted-average method in its process costing
system. for a particular department, the company had 54,000 equivalent units with
respect to conversion costs in march. there were 7,500 units in the department’s
beginning work in process inventory, two thirds complete with respect to conversion
costs. during march, 52,500 units were started and 50,000 were completed and
transferred out of the department. the ending work in process inventory in the
department:
a.consisted of 5,000 units
b.consisted of 2,500 units
c.was 65% complete with respect to conversion costs
d.was 40% complete with respect to conversion costs
9) fab manufacturing corporation manufactures and sells stainless steel coffee mugs.
expected mug sales at fab (in units) for the next three months are as follows:
fab likes to maintain a finished goods inventory equal to 30% of the next month’s
estimated sales. how many mugs should fab plan on producing during the month of
november?
a.23,200 mugs
b.26,800 mugs
c.25,900 mugs
d.34,300 mugs
10) luc corporation manufactures and sells a single product. the company uses units as
the measure of activity in its budgets and performance reports. during february, the
company budgeted for 5,000 units, but its actual level of activity was 4,950 units. the
company has provided the following data concerning the formulas used in its budgeting
and its actual results for february:
the selling and administrative expenses in the planning budget for february would be
closest to:
a.$30,490
b.$30,495
c.$30,500
d.$30,190
11) hackney company, which has only one product, has provided the following data
concerning its most recent month of operations:
what is the unit product cost for the month under variable costing?
a.$92
b.$107
c.$100
d.$85
12) niglio inc. has provided the following data for the month of december. there were
no beginning inventories; consequently, the direct materials, direct labor, and
manufacturing overhead applied listed below are all for the current month.
manufacturing overhead for the month was underapplied by $10,000.
the company allocates any underapplied or overapplied overhead among work in
process, finished goods, and cost of goods sold at the end of the month on the basis of
the overhead applied during the month in those accounts.
the finished goods inventory at the end of december after allocation of any underapplied
or overapplied overhead for the month is closest to:
a.$56,950
b.$51,750
c.$51,691
d.$57,009
13) epstein inc. uses the fifo method in its process costing system. the following data
concern the operations of the company’s first processing department for a recent month.
required:
using the fifo method:
a. determine the equivalent units of production for materials and conversion costs.
b. determine the cost per equivalent unit for materials and conversion costs.
c. determine the cost of ending work in process inventory.
d. determine the cost of units transferred out of the department during the month.
14) belegorsk corporation uses a weighted-average process costing system to collect
costs related to production in its milling department. the following information relates
to milling department production for august:
what are the milling department’s equivalent units related to conversion costs for
august?
a.43,800
b.44,200
c.44,700
d.48,300
15) on december 1, catherman corporation had $21,000 of raw materials on hand.
during the month, the company purchased an additional $61,000 of raw materials.
during december, $70,000 of raw materials were requisitioned from the storeroom for
use in production. the debits to the raw materials account for the month of december
total:
a.$82,000
b.$70,000
c.$61,000
d.$21,000
16) strei corporation’s comparative balance sheet appears below:
the company’s net income (loss) for the year was ($6,000) and its cash dividends were
$4,000. the total dollar amount of all of the items that would be classified as sources
when compiling a simplified statement of cash flows is:
a.$4,000
b.$38,000
c.$34,000
d.$28,000
17) maverick company had the following transactions last year:
the cost of goods manufactured was:
a.$366,000
b.$420,000
c.$385,000
d.$310,000
18) last year, twins company reported $750,000 in sales (25,000 units) and a net
operating income of $25,000. at the break-even point, the company’s total contribution
margin equals $500,000. based on this information, the company’s:
a.contribution margin ratio is 40%
b.break-even point is 24,000 unit
c.variable expense per unit is $9
d.variable expenses are 60% of sales