Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
1) A manufacturer of premium wire strippers has supplied the following data:
The company's margin of safety in units is closest to:
A.135,429 units
B.16,923 units
C.223,333 units
D.320,317 units
2) LFM Corporation makes and sells a product called Product WZ. Each unit of Product
WZ requires 3.5 hours of direct labor at the rate of $16.00 per direct labor-hour.
Management would like you to prepare a Direct Labor Budget for June.
The company plans to sell 31,000 units of Product WZ in June. The finished goods
inventories on June 1 and June 30 are budgeted to be 100 and 600 units, respectively.
Budgeted direct labor costs for June would be:
A.$1,764,000
B.$504,000
C.$1,708,000
D.$1,736,000
3) Guo Corporation uses the weighted-average method in its process costing system.
This month, the beginning inventory in the first processing department consisted of 500
units. The costs and percentage completion of these units in beginning inventory were:
A total of 9,700 units were started and 9,100 units were transferred to the second
processing department during the month. The following costs were incurred in the first
processing department during the month:
The ending inventory was 85% complete with respect to materials and 75% complete
with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all
cases, select the answer that is the closest to the answer you computed. To reduce
rounding error, carry out all computations to at least three decimal places.
The cost per equivalent unit for conversion costs for the first department for the month
is closest to:
A.$37.11
B.$38.14
C.$40.05
D.$37.92
4) The total cash flow net of income taxes in year 3 is:
A.$70,000
B.$137,000
C.$37,000
D.$67,000
Depreciation expense = (Original cost - Salvage value) / Useful life
= ($240,000 - $0) / 4 years = $60,000 per year
5) The company's net profit margin percentage for Year 2 is closest to:
A.37.3%
B.2.6%
C.1.4%
D.0.9%
6) The company's equity multiplier at the end of Year 2 is closest to:
A.0.70
B.1.43
C.2.34
D.0.43
7) The net cash provided by (used in) financing activities for the year was:
A.$10
B.$5
C.$(12)
D.$17
8) Last year, Walters Corporation's variable costing net operating income was $60,800
and its inventory decreased by 200 units. Fixed manufacturing overhead cost was $3
per unit for both units in beginning and in ending inventory. What was the absorption
costing net operating income last year?
A.$60,800
B.$60,200
C.$600
D.$61,400
9) The income tax expense in year 3 is:
A.$6,000
B.$15,000
C.$9,000
D.$36,000
10) Based solely on the information above, the net cash provided by (used in) financing
activities on the statement of cash flows would be:
A.$(70,000)
B.$70,000
C.$(130,000)
D.$130,000
11) Prime cost was:
A) $150,000
B) $190,000
C) $350,000
D) $415,000
12) The adjusted cost of goods sold that appears on the income statement for August is:
A.$229,000
B.$211,000
C.$209,000
D.$247,000
Overhead over or underapplied
13) The company's return on total assets for Year 2 is closest to:
A.2.75%
B.1.64%
C.1.65%
D.2.76%
14) Gordy Corporation's management has found that every 3% increase in the selling
price of one of the company's products leads to a 6% decrease in the product's total unit
sales. The product's absorption costing unit product cost is $22.00. The variable
production cost of the product is $6.80 per unit and the variable selling and
administrative cost is $2.40 per unit.
According to the formula in the text, the product's profit-maximizing price is closest to:
A.$17.77
B.$31.39
C.$17.61
D.$42.12
