online exam

Question 1 of 20
0.0/ 5.0 Points
In process costing, ________ is/are found by taking the
number of partially completed physical units and multiplying it by the
percentage of the process completed.
A. cost of goods
sold
B. equivalent units
C. fixed
manufacturing overhead costs
D. conversion costs

Question 2 of 20
0.0/ 5.0 Points
Which of the following is unique to a process costing
system?
A. Work is not
started on a product until an order is received.
B. Direct materials,
direct labor, and manufacturing overhead are assigned to the first department
only.
C. Costs for each
process stay with that process until the goods are moved to finished goods.
D. Each process has
its own WIP account.

Question 3 of 20
5.0/ 5.0 Points
At Hodgson Corporation, direct materials are added at the
beginning of the process, and conversion costs are uniformly applied. Other
details include the following.

Beginning WIP direct materials $32,000
Beginning WIP conversion costs $20,250
Costs of materials added $384,100
Costs of conversion added $271,125
WIP beginning (50% for conversion) 19,200 units
Units started 119,500
units
Units completed and transferred out 115,700 units
WIP ending (60% for conversion) 23,000 units
What are the total equivalent units for conversion costs?
A. 127,200
B. 125,300
C. 129,500
D. 138,700

Question 4 of 20
0.0/ 5.0 Points
Fixed costs that are the result of previous management
decisions that current managers have no control over in the short run are
called ________ fixed costs.
A. discretionary
B. committed
C. standard
D. past

Question 5 of 20
0.0/ 5.0 Points
The contribution margin is equal to:
A. sales minus cost
of goods sold.
B. sales minus
operating expenses.
C. sales minus fixed
expenses.
D. sales minus
variable expenses.

Question 6 of 20
0.0/ 5.0 Points
On a traditional income statement, sales revenue less cost
of goods sold equals:
A. gross profit.
B. contribution
margin.
C. operating income.

D. operating
expenses.

Question 7 of 20
0.0/ 5.0 Points
When units are moved from one processing department to the
next, the cost associated with those units must also be moved from one WIP
account to the next. What are these costs called?
A. Transported costs

B. Transmitted costs

C. Transferred costs

D. Conveyed costs

Question 8 of 20
0.0/ 5.0 Points
Fun Stuff Manufacturing produces Frisbees using a three-step
process that includes molding, coloring, and finishing. Which of the following
accounts is debited for conversion costs?
A. WIP
inventory-finishing
B. Finished goods
inventory
C. Raw materials
inventory
D. Cost of goods
sold

Question 9 of 20
0.0/ 5.0 Points
Total fixed costs for Purple Figs Company are $52,000. Total
costs, both fixed and variable, are $160,000 if 80,000 units are produced. The
fixed cost per unit at 80,000 units would be:
A. $1.35/unit.
B. $0.65/unit.
C. $2.00/unit.
D. $2.65/unit.

Question 10 of 20
0.0/ 5.0 Points
The use of either absorption or variable costing will make
little difference in companies:
A. using
just-in-time inventory methods.
B. with large
inventories.
C. with high fixed
costs.
D. with high variable
costs.

Question 11 of 20
0.0/ 5.0 Points
When predicting costs at other volumes using a cost equation
derived from either the high-low method or regression analysis, managers should
consider:
A. outliers.
B. general
inflation.
C. seasonality.
D. All of the above

Question 12 of 20
0.0/ 5.0 Points
Sugartown Corporation has total sales revenues of $930,000.
If its total fixed costs are $182,000 and its total variable costs are
$267,000, then the total contribution margin is:
A. total revenue
minus total fixed costs.
B. total revenue
minus total variable costs.
C. total variable
costs minus total fixed costs.
D. equal to
operating income.

Question 13 of 20
0.0/ 5.0 Points
The Jones Corporation uses a process system. During the
current period, 2,500 units were started and 1,100 units were completed and
transferred out. Ending units were 60% complete for materials and 45% complete
for conversion costs. Direct materials costs added were $35,405 and conversion
costs added were $32,870. There was no beginning WIP inventory and conversion
costs are added evenly throughout the process. At the end of the period, what
are the total equivalent units for conversion costs?
A. 1,940
B. 1,400
C. 1,100
D. 1,730

Question 14 of 20
0.0/ 5.0 Points
When absorption costing is used and management bonuses are
related to operating income, managers are more likely to:
A. decrease
inventory levels.
B. increase
inventory levels.
C. keep inventory
levels consistent.
D. steal from the
company.

Question 15 of 20
0.0/ 5.0 Points
The representation for fixed cost per unit of activity is:
A. vx divided by v.
B. vx divided by y.
C. y divided by x.
D. f divided by x.

Question 16 of 20
0.0/ 5.0 Points
Which of the following does NOT appear on an income
statement prepared using variable costing?
A. Fixed production
costs
B. Contribution
margin
C. Gross margin
D. Variable
production costs

Question 17 of 20
0.0/ 5.0 Points
The following information is provided by Adametz Company.

WIP inventory, January 1 0
units
Units started 7,500
Units completed and transferred out 3,300
WIP inventory, December 31 4,200
Direct materials $15,500
Direct labor $18,400
Manufacturing overhead $9,000
The units in ending WIP inventory were 90% complete for
materials and 50% complete for conversion costs. At the end of the year, what
are the equivalent units for conversion costs?
A. 3,750
B. 3,300
C. 5,400
D. 2,100

Question 18 of 20
0.0/ 5.0 Points
The first step of the 5-step process costing procedure is.
A. compute output in
terms of equivalent units.
B. summarize total
costs to account for.
C. compute the cost
per equivalent unit.
D. summarize the
flow of physical units.

Question 19 of 20
0.0/ 5.0 Points
A company manufactures mirrors. Last month’s costs were as
follows.

Direct materials $90,000
Direct labor 144,000
Manufacturing overhead 158,000
What were the conversion costs for the month?
A. $302,000
B. $392,000
C. $234,000
D. $90,000

Question 20 of 20
0.0/ 5.0 Points
Fun Stuff Manufacturing produces ping pong balls using a
three-step sequential process that includes molding, coloring, and finishing.
When the balls and associated costs are transferred from the coloring process
to the finishing process, which account is credited?
A. WIP
inventory-coloring
B. WIP
inventory-molding
C. Raw materials
inventory
D. WIP
inventory-finishing