The following data (in thousands of dollars) have been taken
from the accounting records of TCorp for the just completed
year:
Administrative expenses $ 600
Direct labor 800
Finished goods inventory, beginning 480
Finished goods inventory, ending 640
Manufacturing overhead 920
Purchases of raw materials 480
Raw materials inventory, beginning 160
Raw materials inventory, ending 280
Sales 3,960
Selling expenses 560
Work in process inventory, beginning 280
Work in process inventory, ending 200
Answer the two questions below.
1)
What was the cost of the raw materials used in production during the year (in thousands of dollars)?
6.25 Points
480
360
640
920
2)
What was the cost of goods manufactured for the year (in thousands of dollars)?
6.25 Points
2360
2160
2560
1800
3)
In a job-order cost system, indirect labor costs would be recorded as a debit to:
6.25 Points
Raw Materials.
Manufacturing Overhead
Work in Process.
Finished Goods.
4)
In a job order cost system, the use of direct materials would be recorded as a debit to:
6.25 Points
Raw Materials inventory.
Manufacturing Overhead.
Work in Process inventory
Finished Goods inventory
5)
Fablethes manufactures a specialty line of silk-screened T-shirts. The company uses a job-order costing system. During May, the following costs were incurred on Job PS4: direct materials $27,400 and direct labor $9,600. In addition, selling and shipping costs of $14,000 were incurred on the job. Manufacturing overhead was applied at the rate of $25 per machine-hour and Job PS4 required 160 machine-hours. If Job PS4 consisted of 5,000 shirts, the cost of goods sold per shirt was:
6.25 Points
$8.20
$7.40
$25.00
$11.00
6)
All of the following are examples of product-level activities except:
6.25 Points
Human resource management
Parts administration
Advertising a product
Testing a prototype of a new product
7)
Angelina Company uses activity-based costing to determine the costs of its two products: A and B. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:
.................Cost........ProductA.........ProductB.........Total
Activity 1...$19,800......800.................300...........1,100
Activity 2....$16,000.....2,200............1,800...........4,000
Activity 3....$14,000........400...............300.............700
The activity rate under the activity-based costing system for Activity 3 is closest to:
6.25 Points
$4.00
$18.00
$20.00
$8.59
8)
In a process costing system, the journal entry used to record the transfer of units from Department A, a processing department, to Department B, the next processing department includes a debit to:
6.25 Points
Work in Process - Department A and a credit to Work in Process - Department B
Work in Process - Department B and a credit to Materials
Finished Goods and a credit to Work in Process - Department B.
Work in Process - Department B and a credit to Work in Process - Department A.
9)
Jess Company uses the weighted-average method in its process costing system. The following information pertains to Processing Department A for the month of April:
......................................Number of units........... Cost of materials
Beginning work in process.....60,000........................$20,000
Started in April......................160,000........................$54,000
Units completed..............170,000
Ending work in process......50,000
All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to:
6.25 Points
$1.48.
$0.44
$0.34.
$0.25
10)
Given the cost formula Y = $30,000 + $5X, total cost at an activity level of 16,000 units would be:
6.25 Points
$30,000
$46,000
$80,000
$110,000
11)
The following information has been provided by the Douglas Grocery Store for the first quarter of the year:
Sales.....................................................$700,000
Variable selling expense...........................70,000
Fixed selling expenses........................50,000
Cost of goods sold.............................320,000
Fixed administrative expenses.............110,000
Variable administrative expenses...........30,000
The gross margin of GAE Grocery Store for the first quarter is:
6.25 Points
$420,000
$440,000
$380,000.
$280,000
12)
The following information has been provided by the Douglas Grocery Store for the first quarter of the year:
Sales.....................................................$700,000
Variable selling expense...........................70,000
Fixed selling expenses........................50,000
Cost of goods sold.............................320,000
Fixed administrative expenses.............110,000
Variable administrative expenses...........30,000
The contribution margin of GAE Grocery Store for the first quarter is:
6.25 Points
$280,000.
$380,000
$600,000
$420,000
Saved
13)
Carrington Company produces a product that sells for $60. Variable manufacturing costs are $30 per unit. Fixed manufacturing costs are $10 per unit based on the current level of activity, and fixed selling and administrative costs are $8 per unit. A selling commission of 10% of the selling price is paid on each unit sold. The contribution margin per unit is:
6.25 Points
$24
$54
$30
$36
14)
DragonZone sells a single product. The product has a selling price of $50 per unit and variable expenses of 80% of sales. If the company's fixed expenses total $75,000 per year, then it will have a break-even of:
6.25 Points
$7,500
$1,875
$93,750
$375,000
15)
The following is Montague Corporation's contribution format income statement for last month:
Sales........................................$2,000,000
Less: variable expenses.................1,400,000
Contribution margin........................600,000
Less: fixed expenses........................360,000
Net income$ ..................................240,000
The company has no beginning or ending inventories. A total of 40,000 units were produced and sold last month. What is the company's contribution margin ratio?
6.25 Points
150%
70%
250%
30%
16)
The following is Montague Corporation's contribution format income statement for last month:
Sales........................................$2,000,000
Less: variable expenses.................1,400,000
Contribution margin........................600,000
Less: fixed expenses........................360,000
Net income$ ..................................240,000
The company has no beginning or ending inventories. A total of 40,000 units were produced and sold last month. (Note that this is the same data as provided in the previous question.) What is the company's break-even in units?
6.25 Points
24,000 units
0 units
36,000 units
40,000 units
As per student requirement Answer provided for two Questions.
(1) What was the cost of the raw materials used in production during the year (in thousands of dollars)?
Answer : 360
Explanation
| Beginning raw material | $ 160 |
| Add : Purchase of raw material | $ 480 |
| Less : Raw material ending | $ ( 280) |
| cost of the raw materials used in production | $ 360 |
(2) What was the cost of goods manufactured for the year (in thousands of dollars)?
Answer : 2160
| Schedule of cost of goods manufactured | |
| Direct material used | $ 360 |
| Direct Labor | $ 800 |
| Manufacturing overhead | $ 920 |
| Total Manufacturing cost | $ 2080 |
| Add - Beginning wip | $ 280 |
| Less - Ending Wip | $ ( 200) |
| Cost of goods manufactured | $ 2160 |
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