1) the following information was taken from the accounting records of elliott
manufacturing corp. unfortunately, some of the data were destroyed by a computer
malfunction.
cost of goods manufactured is calculated to be:
a.$32,000
b.$30,000
c.$33,000
d.$38,000
e.$27,000
2) ardel co. budgeted to sell 200,000 units of zbox in september. production of one unit
of zbox required two pounds of aluminum and five pounds of steel powder. the
beginning inventory and the desired ending inventory in units are:
how many units of zbox are to be manufactured by adel co. during september?
a.150,000
b.189,000
c.200,000
d.201,000
e.202,000
3) from the industries listed below, which one is most likely to use process costing in
accounting for production costs?
a.printing shop
b.accounting firm
c.electrical contractor
d.steel mill
e.automobile repair shop
4) marin products produces three products dbb-1, dbb-2, and dbb-3 from a joint
process. each product may be sold at the split-off point or processed further. additional
processing requires no special facilities, and production costs of further processing are
entirely variable and traceable to the products involved. key information about marin’s
production, sales, and costs follows.
the amount of joint costs allocated to product dbb-3 using the net realizable value
method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%,
and round all dollar amounts to the nearest whole dollar):
a.$2,009,160
b.$286,500
c.$881,640
d.$667,345
e.$709,200
5) which of the following cost pools are used to classify costs under activity-based
costing?
a.option a
b.option b
c.option c
d.option d
e.option e
6) which of the following perspectives of a balanced scorecard would most likely be the
ultimate target in a strategy map for a public company?
a.learning and innovation
b.internal processes
c.financial performance
d.customer service
e.employees and community
7) pasternik company produces and sells two products, alpha and zeta. the following
information is available relating to its setup activities:
with a volume-based costing system that applies overhead based on direct labor hours,
the setup cost portion of overhead for each unit is (rounded to the nearest cent):
a.option a
b.option b
c.option c
d.option d
e.option e
8) on march 1, portland company had 20,000 units of work in process in department a,
which were 100% complete as to material costs and 40% complete as to conversion
costs. during march, 150,000 units were started in department a and 160,000 units were
completed and transferred to department b. work in process on march 31 was 100%
complete as to material costs and 50% complete as to conversion costs. by what amount
would the equivalent units for conversion costs for the month of march differ if the fifo
method were used instead of the weighted-average method?
a.10,000 decrease
b.8,000 decrease
c.6,000 decrease
d.5,000 decrease
e.4,000 decrease
9) an activity that is performed for each unit of production is a(n):
a.product-level activity
b.facility-level activity
c.unit-level activity
d.performance-level activity
e.batch-level activity
10) wild west fashion expects the total costs of goods sold to be $30,000 in november
and $60,000 in december for one of its young adult suits. management also wants to
have on hand at the end of each month 10 percent of the expected total cost of sales for
the following month. what dollar amount of suits should be purchased in november?
a.$26,000
b.$27,000
c.$33,000
d.$36,000
e.$60,000
11) doanne food processing expects to have 36,000 pounds of raw materials inventory
on hand on march 31, the end of the current year. the company budgets the following
production (in units) for the first four months of the coming year:
at the end of each month the firm desires its ending raw material inventory to be 10% of
the next month’s production needs. a finished unit requires three pounds of raw
materials.
doanne’s budgeted purchases (in pounds) for raw materials during june should be:
a.414,000
b.420,000
c.426,000
d.456,000
e.498,000
12) boone co.’s sales, based on past experience, are 20% cash sales and 80% credit
sales. credit sales are typically collected as follows: 40% in the month of sale, 50% in
the month after the sale, and 10% in the second month. on december 31, the accounts
receivable balance is $54,000, of which $12,000 is from november sales. total sales for
january and february are budgeted to be $100,000 and $120,000, respectively.
what are boone co.’s budgeted cash receipts for february?
a.$85,400
b.$95,000
c.$106,600
d.$109,400
e.$112,900