Archives: Quiz

1) Chown Corporation, which has only one product, has provided the following data concerning its most recent month of operations: The total gross margin for the month under the absorption costing approach is: A.$196,800 B.$179,400 C.$390,000 D.$7,800 2) The net […]

1) Gambino Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $138.80 per unit. The best estimate of the total […]

1) Compound K52E is a raw material used to make Pinkos Corporation’s major product. The standard cost of compound K52E is $46.00 per ounce and the standard quantity is 5.0 ounces per unit of output. Data concerning the compound for […]

1) Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed […]

1) Groeneweg Corporation has provided the following data: Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $9.45 per share. The company’s dividend payout ratio for Year […]

1) Yoder Corporation uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month: How much cost, in total, was assigned to the ending work in process […]

1) Given the following data: Return on investment (ROI) would be: A.5% B.12% C.25% D.60% 2) Qart Corporation uses the FIFO method in its process costing system. Operating data for the Cutting Department for the month of March appear below: […]

1) The company’s dividend yield ratio is closest to: A.1.7% B.17.1% C.1.3% D.26.3% 2) A customer has requested that Gamba Corporation fill a special order for 3,000 units of product Q41 for $25.00 a unit. While the product would be […]

1) Apex Corporation has two service departments and two operating departments. The costs of the Personnel department (a service department) are allocated to other departments on the basis of the number of employees in the other departments. Departments and number […]

1) (Ignore income taxes in this problem) The management of Favreau Corporation is considering the purchase of a machine that would cost $310,464 and would have a useful life of 5 years. The machine would have no salvage value. The […]

1) Jui Corporation’s Maintenance Department provides services to the company’s two operating divisions–the Paints Division and the Stains Division. The variable costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments. The […]

1) The following information was obtained from the records of the first processing department of Bapst Corporation for the month of May. The company uses the FIFO method in its process costing system. All materials are added at the beginning […]

1) Tulip Midwifery’s cost formula for its wages and salaries is $2,420 per month plus $388 per birth. For the month of January, the company planned for activity of 119 births, but the actual level of activity was 123 births. […]

1) In making the decision to invest in the model 230 machine, the opportunity cost was: A) $278,000 B) $305,000 C) $207,000 D) $266,000 2) Which of the following is classified as a direct labor cost? Wages of assembly-line workers […]

1) Salley Corporation produces and sells a single product. Data concerning that product appear below: Fixed expenses are $1,133,000 per month. The company is currently selling 9,000 units per month. Management is considering using a new component that would increase […]

1) Yankee Corporation manufactures a single product. The company has the following cost structure: Last year, 4,000 units were produced and 3,500 units were sold. There were no beginning inventories. Under absorption costing, the cost of goods sold for the […]

1) The data given below are from the accounting records of the Kuhn Corporation: Based on this information, the net cash provided by operating activities using the indirect method would be: A.$55,000 B.$58,000 C.$50,000 D.$60,000 2) ( The management of […]

1) Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 700 units for regular customers. The minimum acceptable price per […]

1) Division X makes a part that it sells to customers outside of the company. Data concerning this part appear below: Division Y of the same company would like to use the part manufactured by Division X in one of […]

1) Mars Corporation has provided the following data for Year 2: The company’s total stockholders’ equity at the end of Year 2 amounted to $1,095,000 and at the end of Year 1 to $1,060,000. The company’s return on equity for […]

1) Smee Inc. produces and sells a single product. The selling price of the product is $130.00 per unit and its variable cost is $52.00 per unit. The fixed expense is $281,580 per month. The break-even in monthly dollar sales […]

1) Linscott Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 5,400 units, but its actual level of activity was 5,380 […]

1) Acklac Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were: A total […]

1) The company has received a special, one-time-only order for 300 units of component D53. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the […]

1) The net operating income for March was: A) $130,000 B) $134,000 C) $43,000 D) $47,000 2) At a break-even point of 800 units sold, White Corporation’s variable expenses are $8,000 and its fixed expenses are $4,000. What will the […]

1) Compute the amount of raw materials used during August if $25,000 of raw materials were purchased during the month and the inventories were as follows: A.$16,000 B.$19,000 C.$23,000 D.$27,000 2) Schweinert Corporation manufactures a single product. The following data […]

1) The Millard Corporation has two service departments and two operating departments. The following data are available for a recent period: Millard makes no distinction between fixed and variable costs. Costs of Service Department A are allocated on the basis […]

1) Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment of 36%. The company’s net operating income for the year was: A.$144,000 B.$120,000 C.$80,000 D.$60,000 2) The company’s average collection period (age […]

1) Coderre Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 7,800 units, but its actual level of activity was 7,780 […]

1) Able Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company’s first processing department for a recent month. Required: a. Determine the equivalent units of production. b. Determine the costs […]

1) Ragins Corporation produces a single product and has the following cost structure: The absorption costing unit product cost is: A.$219 per unit B.$154 per unit C.$159 per unit D.$252 per unit 2) Liscomb Tech is a for-profit vocational school. […]

1) Harry has just inherited $300,000. Harry has decided to quit his job and go to school full time for the next five years by living off this inheritance. Harry will invest the $300,000 in a money market account that […]

1) Falmouth Corporation’s debt to equity ratio is 0.6. Current liabilities are $120,000, long term liabilities are $360,000, and working capital is $140,000. Total assets of the corporation must be: A.$600,000 B.$1,200,000 C.$800,000 D.$1,280,000 2) The following accounts are from […]

1) Using the high-low method, the estimate of the variable component of electrical cost per machine-hour is closest to: A) $0.12 B) $20.38 C) $7.98 D) $3.97 2) Weston Corporation is considering eliminating a department that has a contribution margin […]

1) Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: At Adi, 30% of raw materials purchases are normally paid for in the month of purchase. The remaining 70% is paid […]

1) Pardoe, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: During […]

1) Upchurch Corporation produces and sells a single product. Data concerning that product appear below: Assume the company’s target profit is $14,000. The dollar sales to attain that target profit is closest to: A.$326,180 B.$593,248 C.$494,212 D.$959,353 2) Rieben Corporation […]

1) Crumbley Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Fixed expenses for the entire company were $42,760. Required: a. Determine the overall break-even point for the company in total sales […]

1) Delvin Corporation, 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 variable costing? A.$42,000 B.$49,200 C.$35,700 D.$7,200 2) Romasanta Corporation manufactures […]

1) Manico Corporation produces three products — X, Y, & Z — with the following characteristics: The company has only 2,000 machine-hours available each month. If demand exceeds the company’s capacity, in what sequence should orders be filled if the […]

1) A company’s current ratio and an acid-test ratio are both greater than 1. Payment of an account payable would: A.increase the current ratio but the acid-test ratio would not be affected. B.increase the acid-test ratio but the current ratio […]

1) If Madison has a limit of 10,000 direct labor hours but no limit on machine hours, then the ranking of the products from the most profitable to the least profitable use of the constrained resource is: A.A, B, C […]

1) A cement manufacturer has supplied the following data: The company’s contribution margin ratio is closest to: A.40.0% B.50.0% C.60.0% D.10.7% 2) Akey Hospital bases its budgets on patient-visits. The hospital’s static budget for March appears below: The total overhead […]

1) Carson Corporation uses the FIFO method in its process costing system. The Assembly Department started the month with 6,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. An additional 74,000 […]

1) Hoppy Corporation compares monthly operating results to a static budget prepared at the beginning of the month. When the actual level of activity is less than budgeted, which of the following would be true? A.Variable costs would show favorable […]

1) Mars Corporation has provided the following data for Year 2: The company’s total stockholders’ equity at the end of Year 2 amounted to $1,095,000 and at the end of Year 1 to $1,060,000. The company’s return on equity for […]

1) Feiler Corporation has total current assets of $483,000, total current liabilities of $347,000, total stockholders’ equity of $1,057,000, total net plant and equipment of $1,031,000, total assets of $1,514,000, and total liabilities of $457,000. The company’s current ratio is […]

1) The predetermined overhead rate under the traditional costing system is closest to: Adams Corporation makes two products: Product A and Product B. Annual production and sales are 500 units of Product A and 900 units of Product B. The […]

1) The actual manufacturing overhead incurred at Fraze Corporation during November was $79,000, while the manufacturing overhead applied to Work in Process was $65,000. The Corporation’s Cost of Goods Sold was $385,000 prior to closing out its Manufacturing Overhead account. […]

1) If the company bases its predetermined overhead rate on capacity, the predetermined overhead rate is closest to: The management of Wray Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The […]