1) east bay fisheries inc. processes king salmon for various distributors. two
departments are involved processing and packaging. data relating to tons of king
salmon processed in the processing department during june 2013 are provided below:
total equivalent units for conversion under the weighted-average method are calculated
to be:
a.6,830 equivalent units
b.8,180 equivalent units
c.6,980 equivalent units
d.7,140 equivalent units
e.7,620 equivalent units
2) which of the following activities is a facility-level activity?
a.plant management salaries
b.depreciation on a highly specialized piece of production equipment
c.direct labor
d.product design
e.materials handling
3) the following data pertains to lam co.’s manufacturing operations:
additional information for the month of april:
overhead is applied at $12 per direct labor hour.
the term relevant range as used in cost accounting means the range over which:
a.costs may fluctuate
b.cost relationships are approximately linear
c.production may vary
d.relevant costs are incurred
4) beckner inc. is a job-order manufacturer. the company uses a predetermined
overhead rate based on direct labor hours to apply overhead to individual jobs. for the
current year, estimated direct labor hours are 133,000 and estimated factory overhead is
$784,700. the following information is for september. job x was completed during
september, while job y was started but not finished.
cost of goods manufactured for september is:
a.$105,600
b.$157,300
c.$169,400
d.$145,500
e.$210,700
5) johns company manufactures products r, s, and t from a joint process. the following
information is available:
assuming that joint product costs are allocated using the relative-sales-value at split-off
approach, what was the sales value at split-off for products r and s?
a.option a
b.option b
c.option c
d.option d
6) information pertaining to yekstop corp.’s sales revenue is presented below.
management estimates that 4% of credit sales are eventually uncollectible. of the
collectible credit sales, 65% are likely to be collected in the month of sale and the
remainder in the month following the sale. the company desires to begin each month
with an inventory equal to 75% of the sales projected for the month. all purchases of
inventory are on open account; 30% will be paid in the month of purchase, and the
remainder paid in the month following the month of purchase. the purchase costs are
approximately 60% of the selling prices.
budgeted cash payments in november for november inventory purchases by yekstop
corp. are:
a.$76,625
b.$94,905
c.$115,200
d.$161,280
e.$221,445
7) invoicing cost is an example of a:
a.customer unit-level cost
b.customer batch-level cost
c.customer-sustaining cost
d.distribution-channel cost
e.sales-level cost
8) 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 physical measure 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.$54,250
b.$757,800
c.$1,705,320
d.$49,200
e.$1,136,880
9) assume the following information pertaining to cub company:
total manufacturing cost is calculated to be:
a.$306,000
b.$26,000
c.$110,000
d.$331,000
e.$111,000
10) neary co. produces three products x, y, and z 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. last year all three products were processed beyond
split-off. joint production costs for the year were $80,000. sales values and costs needed
to evaluate neary’s production policy follow.
the amount of joint costs allocated to product x using the sales value at split-off method
is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and
round all dollar amounts to the nearest whole dollar):
a.$20.000
b.$32,444
c.$40,000
d.$17,677
e.$15,000
11) a cost is not relevant for decision making if it:
a.does not differ for each option available to the decision maker
b.changes from period to period
c.is a future cost
d.is a mixed cost
e.is a fixed cost
12) in the computation of manufacturing cost per equivalent unit, the weighted-average
method of process costing considers:
a.current costs only
b.current costs less cost of ending work-in-process inventory
c.current costs plus cost of beginning work-in-process inventory
d.current costs plus cost of ending work-in-process inventory
e.current costs less cost of beginning work-in-process inventory
13) the sales and cost data for two companies in the transportation industry are as
follows:
x company’s degree of operating leverage (dol) at the current sales volume level is
calculated to be:
a.4.00
b.5.00
c.7.00
d.6.00
e.3.00
14) many firms use which one of the following terms to indicate the use of job costing
in service industries?
a.actual costing
b.normal costing
c.project costing
d.industry costing
e.standard costing
15) the following data pertains to lam co.’s manufacturing operations:
additional information for the month of april:
overhead is applied at $12 per direct labor hour.
when cost relationships are linear, total variable costs will vary in proportion to changes
in:
a.direct labor hours
b.total material cost
c.total overhead cost
d.volume of production
e.machine hours
16) the balanced scorecard:
a.is not comprehensive, since it doesn’t include all the critical success factors which
contribute to competitive success
b.helps focus managers’ attention to bottom line profits
c.is forward looking, stressing nonfinancial measures that can lead to benefits in the
future
d.fails to reflect environmental and social effects of the firm’s operations
e.is heavily weighted toward the financial critical success factors
17) which of the following factors is least likely to be considered in preparing a sales
budget?
a.plant capacity
b.general economic and industry conditions
c.past sales volume
d.the cash budget
e.proposed selling expenses
18) the cost of unused capacity can be determined using abc costing for the purpose of:
a.determining more accurately the abc costs
b.helping managers plan the short and longer-term use of the operating resources
c.determining product profitability
d.completing an effective activity analysis
e.all of the above
19) departmental overhead rates are preferred over plantwide rates when
a.the plant makes a single product
b.the plant has a complex production process for a small number of products that go
through the same production processes
c.there are a number of different products in the plant which go through the same
processes
d.the products use different amounts of different processes in different departments
20) the strategy map is a tool that is used
a.as one of the key aspects of the contemporary management environment
b.to enhance the sustainability of the organization
c.to link the perspectives of the balanced scorecard
d.to organize the critical success factors of a company
e.to implement strategy