ashworth college BU330 all online exams latest 2016 may.
ashworth college BU330 online exam 1 latest 2016 may.Part 1 of 1 – 90.0/ 100.0 PointsQuestion 1 of 205.0/ 5.0 PointsThe IMA issues which of the following certifications?A. CMAB. CIAC. CFPD. CPAQuestion 2 of 205.0/ 5.0 PointsCommunicating information fairly and objectively is an example of which ethical standard?A. CredibilityB. IntegrityC. CompetenceD. ConfidentialityQuestion 3 of 205.0/ 5.0 PointsThe person who is directly responsible for all financial functions is the:A. Treasurer.B. CEO.C. CFO.D. COO.Question 4 of 205.0/ 5.0 PointsRefusing gifts or favors that could be perceived to influence your actions is an example of which ethical standard?A. CredibilityB. IntegrityC. ConfidentialityD. CompetenceQuestion 5 of 205.0/ 5.0 PointsPorches, Inc., sells lawn furniture. Selected financial information for the most recent year follows.Beginning merchandise inventory on January 1 was $33,000.Ending merchandise inventory on December 31 was $35,000.Purchases during the year were $92,000.Selling and administrative expenses were $75,000.Sales for year were $262,000.What was the value of goods available for sale?A. $125,000B. $127,000C. $170,000D. $ 90,000Question 6 of 205.0/ 5.0 PointsInternal parties receive information about past performance from:A. audit reports.B. budget reports.C. planning reports.D. managerial accounting reports.Question 7 of 205.0/ 5.0 PointsThe costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered which part of the value chain?A. Customer serviceB. MarketingC. Research and developmentD. DesignQuestion 8 of 205.0/ 5.0 PointsWhich of the following types of companies has raw materials, work in process, and finished goods inventory?A. RetailersB. ManufacturersC. WholesalersD. Service companiesQuestion 9 of 205.0/ 5.0 Points__________ gathers, summarizes, and reports on the financial impact of changes to business operations.A. Managerial accountingB. PlanningC. DirectingD. ControllingQuestion 10 of 205.0/ 5.0 PointsEvaluating results against the plan is an example of which of the following management functions?A. PlanningB. ControllingC. AnalyzingD. DirectingQuestion 11 of 205.0/ 5.0 PointsA wave of accounting scandals around the turn of the 21st century prompted which of the following?A. XBRLB. IFRSC. SOXD. ISOQuestion 12 of 200.0/ 5.0 PointsCosts that remain the same among alternatives are:A. sunk costs.B. irrelevant costs.C. controllable costs.D. uncontrollable costs.Question 13 of 205.0/ 5.0 PointsWhich of the following people is most likely to use only financial accounting information?A. Vice president of plant operationsB. Product managerC. Plant managerD. Bank loan officerQuestion 14 of 205.0/ 5.0 PointsWhich of the following describes the way in which total fixed costs behave?A. They will decrease as production increases.B. They will decrease as production decreases.C. They will remain the same throughout production levels within the relevant range.D. They will increase as production decreases.Question 15 of 205.0/ 5.0 Points________ is the business philosophy and a strategy of manufacturing without waste.A. ISO 9001B. Lean thinkingC. TQMD. Thin manufacturingQuestion 16 of 205.0/ 5.0 PointsWhich of the following is NOT an example of an indirect cost incurred in manufacturing automobiles?A. Plant supervisor salaryB. Machinery depreciation in the factoryC. Plant utilitiesD. Cost of the automobile enginesQuestion 17 of 205.0/ 5.0 PointsWhich of the following costs could be found in work in process inventory for a candy bar manufacturer?A. Assembly worker wagesB. Utilities for administrative officesC. Depreciation on sales officeD. Customer order formsQuestion 18 of 200.0/ 5.0 PointsWinner’s Sporting Equipment manufactures sporting goods. Selected costs from the past year include the following.Plastics used to make products $151,000Heating and lighting costs for factory 65,000Factory janitor wages 67,000Costs of shipping to customers 11,000Lubricants used in factory equipment 2,000Lighting costs for sales office 20,000Depreciation on factory equipment 23,000Office supplies for sales office 6,000Insurance costs for factory 13,000Maintenance worker wages 99,000Freight-in (on plastics) 7,500Aluminum used to make products 175,000Assembly-line worker wages 142,000Salaries of salespeople 74,000Period costs for Winner’s Sporting Equipment totaled:A. $91,000.B. $37,000.C. $188,000.D. $111,000.Question 19 of 205.0/ 5.0 PointsLots of Stuff Company reports the following data for its first year of operation.Work in process inventory, beginning $0Work in process inventory, ending 140,000Direct materials used 110,000Direct Labor 115,000Manufacturing overhead 185,000Finished goods inventory, beginning 0Finished goods inventory, ending 90,000What are the total manufacturing costs?A. $455,000B. $410,000C. $750,000D. $520,000Question 20 of 205.0/ 5.0 PointsIndirect materials, indirect labor, and indirect manufacturing costs are what type of manufacturing cost?A. Direct laborB. Direct materialsC. Manufacturing overheadD. Prime costsashworth college BU330 online exam 1 latest 2016 may.Part 1 of 1 – 5.0/ 100.0 PointsQuestion 1 of 200.0/ 5.0 PointsWinner’s Sporting Equipment manufactures sporting goods. Selected costs from the past year include the following.Plastics used to make products $151,000Heating and lighting costs for factory 65,000Factory janitor wages 67,000Costs of shipping to customers 11,000Lubricants used in factory equipment 2,000Lighting costs for sales office 20,000Depreciation on factory equipment 23,000Office supplies for sales office 6,000Insurance costs for factory 13,000Maintenance worker wages 99,000Freight-in (on plastics) 7,500Aluminum used to make products 175,000Assembly-line worker wages 142,000Salaries of salespeople 74,000Period costs for Winner’s Sporting Equipment totaled:A. $91,000.B. $37,000.C. $188,000.D. $111,000.Question 2 of 205.0/ 5.0 PointsIndirect materials, indirect labor, and indirect manufacturing costs are what type of manufacturing cost?A. Direct laborB. Direct materialsC. Manufacturing overheadD. Prime costsQuestion 3 of 200.0/ 5.0 PointsLots of Stuff Company reports the following data for its first year of operation.Work in process inventory, beginning $0Work in process inventory, ending 140,000Direct materials used 110,000Direct Labor 115,000Manufacturing overhead 185,000Finished goods inventory, beginning 0Finished goods inventory, ending 90,000What are the total manufacturing costs?A. $455,000B. $410,000C. $750,000D. $520,000Question 4 of 200.0/ 5.0 PointsPorches, Inc., sells lawn furniture. Selected financial information for the most recent year follows.Beginning merchandise inventory on January 1 was $33,000.Ending merchandise inventory on December 31 was $35,000.Purchases during the year were $92,000.Selling and administrative expenses were $75,000.Sales for year were $262,000.What was the value of goods available for sale?A. $125,000B. $127,000C. $170,000D. $ 90,000Question 5 of 200.0/ 5.0 PointsThe person who is directly responsible for all financial functions is the:A. Treasurer.B. CEO.C. CFO.D. COO.Question 6 of 200.0/ 5.0 PointsThe IMA issues which of the following certifications?A. CMAB. CIAC. CFPD. CPAQuestion 7 of 200.0/ 5.0 PointsWhich of the following types of companies has raw materials, work in process, and finished goods inventory?A. RetailersB. ManufacturersC. WholesalersD. Service companiesQuestion 8 of 200.0/ 5.0 PointsWhich of the following describes the way in which total fixed costs behave?A. They will decrease as production increases.B. They will decrease as production decreases.C. They will remain the same throughout production levels within the relevant range.D. They will increase as production decreases.Question 9 of 200.0/ 5.0 PointsInternal parties receive information about past performance from:A. audit reports.B. budget reports.C. planning reports.D. managerial accounting reports.Question 10 of 200.0/ 5.0 PointsWhich of the following costs could be found in work in process inventory for a candy bar manufacturer?A. Assembly worker wagesB. Utilities for administrative officesC. Depreciation on sales officeD. Customer order formsQuestion 11 of 200.0/ 5.0 PointsA wave of accounting scandals around the turn of the 21st century prompted which of the following?A. XBRLB. IFRSC. SOXD. ISOQuestion 12 of 200.0/ 5.0 PointsWhich of the following people is most likely to use only financial accounting information?A. Vice president of plant operationsB. Product managerC. Plant managerD. Bank loan officerQuestion 13 of 200.0/ 5.0 PointsWhich of the following is NOT an example of an indirect cost incurred in manufacturing automobiles?A. Plant supervisor salaryB. Machinery depreciation in the factoryC. Plant utilitiesD. Cost of the automobile enginesQuestion 14 of 200.0/ 5.0 PointsCommunicating information fairly and objectively is an example of which ethical standard?A. CredibilityB. IntegrityC. CompetenceD. ConfidentialityQuestion 15 of 200.0/ 5.0 PointsCosts that remain the same among alternatives are:A. sunk costs.B. irrelevant costs.C. controllable costs.D. uncontrollable costs.Question 16 of 200.0/ 5.0 PointsEvaluating results against the plan is an example of which of the following management functions?A. PlanningB. ControllingC. AnalyzingD. DirectingQuestion 17 of 200.0/ 5.0 Points________ is the business philosophy and a strategy of manufacturing without waste.A. ISO 9001B. Lean thinkingC. TQMD. Thin manufacturingQuestion 18 of 200.0/ 5.0 Points__________ gathers, summarizes, and reports on the financial impact of changes to business operations.A. Managerial accountingB. PlanningC. DirectingD. ControllingQuestion 19 of 200.0/ 5.0 PointsRefusing gifts or favors that could be perceived to influence your actions is an example of which ethical standard?A. CredibilityB. IntegrityC. ConfidentialityD. CompetenceQuestion 20 of 200.0/ 5.0 PointsThe costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered which part of the value chain?A. Customer serviceB. MarketingC. Research and developmentD. Designashworth college BU330 online exam 2 latest 2016 may.Part 1 of 1 – 75.0/ 100.0 PointsQuestion 1 of 205.0/ 5.0 PointsWhich of these documents informs the storeroom to send specific materials to the factory floor?A. Receiving reportB. Bill of materialsC. Purchase orderD. Materials requisitionQuestion 2 of 205.0/ 5.0 PointsThe cost of downtime caused by quality problems with the raw materials would be classified as what type of cost?A. Prevention costB. Appraisal costC. External failure costD. Internal failure costQuestion 3 of 200.0/ 5.0 PointsThe predetermined indirect cost allocation rate is computed as:A. total estimated indirect costs / total estimated amount of the allocation base.B. total amount of the allocation base / total estimated indirect costs.C. total estimated indirect costs + total estimated amount of the allocation base.D. total amount of the allocation base – total estimated indirect costs.Question 4 of 205.0/ 5.0 PointsKramer Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table consists of 20 separate parts totaling $240 in direct materials, and each requires 5 hours of machine time to produce. Additional information follows.Activity Allocation Base Cost Allocation RateMaterials handling Number of parts $2.00 per partMachining Machine hours $2.75 per machine hourAssembling Number of parts $1.00 per partPackaging Number of finished units $3.00 per finished unitWhat is the cost of machining per coffee table?A. $15B. $21C. $13.75D. $55Question 5 of 200.0/ 5.0 PointsIf jobs have been under costed due to under allocation of manufacturing overhead, then cost of goods sold (COGS) is too low and which of the following corrections must be made?A. Decrease COGS for the amount of the under allocationB. Increase COGS for double the amount of the under allocationC. Decrease COGS for double the amount of the under allocationD. Increase COGS for the amount of the under allocationQuestion 6 of 205.0/ 5.0 PointsThe entry to record the purchase of raw materials on account using a job costing system would include a:A. credit to work-in-process inventory.B. debit to accounts payable.C. debit to work-in-process inventory.D. debit to raw materials inventory.Question 7 of 200.0/ 5.0 PointsWhich of the following is a result of cost distortion?A. Over costing of all productsB. Under costing of all productsC. Accurate costing of all productsD. Over costing of some products and under costing of other productsQuestion 8 of 205.0/ 5.0 PointsA(n) ________ is an estimated manufacturing overhead rate computed before the year begins.A. cost allocationB. cost driverC. predetermined manufacturing overhead rateD. actual manufacturing overhead rateQuestion 9 of 205.0/ 5.0 PointsThe first step in developing an ABC system is:A. calculate an activity cost allocation rate for each activity.B. allocate the costs to the cost object using the activity cost allocation rates.C. select an allocation base for each activity.D. identify the primary activities and estimate a total cost pool for each.Question 10 of 205.0/ 5.0 PointsWhich term listed below describes a system where companies purchase raw materials when needed in production and complete finished goods when needed by customers?A. Internal failure costsB. Backflush costingC. Just-in-timeD. External failure costsQuestion 11 of 205.0/ 5.0 PointsWhich term listed below describes costs incurred when the company fails to detect poor quality goods or services before delivery to the customer?A. Internal failure costsB. Value-added activityC. External failure costsD. Just-in-time productionQuestion 12 of 205.0/ 5.0 PointsA system that focuses on activities as the fundamental cost object and uses the costs for these activities to compile indirect costs of goods and services is:A. appraisal costs.B. value engineering.C. activity-based costing.D. prevention costs.Question 13 of 205.0/ 5.0 PointsVenus Crates manufactures custom crates for a variety of uses. The following data have been recorded for Job 551, which was recently completed. Direct materials used cost $7,200. There were 82 machine hours used on this job. The predetermined overhead rate is $30 per machine hour used. There were 175 direct labor hours worked on this job at a direct labor wage rate of $24 per hour. What is the total manufacturing cost of Job 551?A. $13,860B. $4,200C. $2,460D. $7,457Question 14 of 205.0/ 5.0 PointsWatson’s Computer Company uses ABC to account for its manufacturing process.Activities Indirect activity budget Allocation base (cost driver)Materials handling $52,000 Based on number of partsMachine setup 30,000 Based on number of setupsAssembling 9,750 Based on number of partsPackaging 15,300 Based on number of finished unitsWatson’s Computer Company expects to produce 2,250 computers. Watson’s Computer Company also expects to use 13,000 parts and have 20 setups. The allocation rate for materials handling will be:A. $4.B. $6.80.C. $23.11.D. $7.01.Question 15 of 205.0/ 5.0 PointsShowboat Corporation had actual manufacturing overhead costs for the most recent year of $29,500. Manufacturing overhead is allocated using a predetermined manufacturing overhead rate of $1.50 per direct labor hour. Direct labor cost is $19 per hour. At the end of the year, Cabaret Corporation found it had over allocated manufacturing overhead by $1,250. How much manufacturing overhead was allocated in total during the year?A. $28,250B. $29,500C. $30,750D. $1,250Question 16 of 205.0/ 5.0 PointsWhich of the following is a lean strategy?A. Group like machines together.B. Produce in smaller batches than a traditional system.C. Maintain a higher level of inventory than a traditional system.D. Lengthen setup times relative to a traditional system.Question 17 of 205.0/ 5.0 PointsIn job costing, the journal entry to record the use of direct materials on jobs is to debit work-in-process inventory and credit:A. raw materials inventory.B. finished goods inventory.C. manufacturing overhead.D. wages payable.Question 18 of 205.0/ 5.0 PointsService firms develop a predetermined rate for some costs. This rate is called the:A. labor rate.B. direct cost rate.C. indirect cost allocation rate.D. hourly cost rate.Question 19 of 200.0/ 5.0 PointsThe benefits of using the ABC costing system are higher if the company:A. has high indirect costs.B. produces many different products that use differing amounts of resources.C. has high indirect costs and produces many different products that use differing amounts of resources.D. produces only one product.Question 20 of 200.0/ 5.0 PointsHere are selected data for Sunny Sky Corporation.Beginning raw materials inventory $37,000 Beginning work-in-process inventory $62,200Beginning finished goods inventory 58,300 Cost of materials purchased 151,000Cost of direct materials requisitioned 91,300 Direct labor incurred 135,000Actual manufacturing overhead 160,000 Cost of goods manufactured 287,000Cost of goods sold 265,000 Manufacturing overhead rate (% of direct labor) 125%What is the ending work-in-process inventory balance?A. $161,500B. $170,250C. $211,200D. $229,950ashworth college BU330 online exam 2 latest 2016 may.Part 1 of 1 – 45.0/
100.0 Points
Question 1 of 20
5.0/ 5.0 Points
Venus Crates manufactures custom crates for a variety of
uses. The following data have been recorded for Job 551, which was recently
completed. Direct materials used cost $7,200. There were 82 machine hours used
on this job. The predetermined overhead rate is $30 per machine hour used.
There were 175 direct labor hours worked on this job at a direct labor wage
rate of $24 per hour. What is the total manufacturing cost of Job 551?
A. $13,860
B. $4,200
C. $2,460
D. $7,457
Question 2 of 20
0.0/ 5.0 Points
Which term listed below describes a system where companies
purchase raw materials when needed in production and complete finished goods
when needed by customers?
A. Internal failure
costs
B. Backflush costing
C. Just-in-time
D. External failure
costs
Question 3 of 20
0.0/ 5.0 Points
If jobs have been under costed due to under allocation of
manufacturing overhead, then cost of goods sold (COGS) is too low and which of
the following corrections must be made?
A. Decrease COGS for
the amount of the under allocation
B. Increase COGS for
double the amount of the under allocation
C. Decrease COGS for
double the amount of the under allocation
D. Increase COGS for
the amount of the under allocation
Question 4 of 20
5.0/ 5.0 Points
A system that focuses on activities as the fundamental cost
object and uses the costs for these activities to compile indirect costs of
goods and services is:
A. appraisal costs.
B. value
engineering.
C. activity-based
costing.
D. prevention costs.
Question 5 of 20
5.0/ 5.0 Points
Which of these documents informs the storeroom to send
specific materials to the factory floor?
A. Receiving report
B. Bill of materials
C. Purchase order
D. Materials
requisition
Question 6 of 20
0.0/ 5.0 Points
In job costing, the journal entry to record the use of
direct materials on jobs is to debit work-in-process inventory and credit:
A. raw materials
inventory.
B. finished goods
inventory.
C. manufacturing
overhead.
D. wages payable.
Question 7 of 20
0.0/ 5.0 Points
Here are selected data for Sunny Sky Corporation.
Beginning raw materials inventory $37,000 Beginning
work-in-process inventory $62,200
Beginning finished goods inventory 58,300 Cost of
materials purchased 151,000
Cost of direct materials requisitioned 91,300 Direct
labor incurred 135,000
Actual manufacturing overhead 160,000 Cost of
goods manufactured 287,000
Cost of goods sold 265,000 Manufacturing overhead rate (% of direct labor) 125%
What is the ending work-in-process inventory balance?
A. $161,500
B. $170,250
C. $211,200
D. $229,950
Question 8 of 20
5.0/ 5.0 Points
Service firms develop a predetermined rate for some costs.
This rate is called the:
A. labor rate.
B. direct cost rate.
C. indirect cost
allocation rate.
D. hourly cost rate.
Question 9 of 20
5.0/ 5.0 Points
Watson’s Computer Company uses ABC to account for its
manufacturing process.
Activities Indirect
activity budget Allocation base (cost
driver)
Materials handling
$52,000 Based on number of
parts
Machine setup 30,000 Based on number of setups
Assembling 9,750 Based on number of parts
Packaging 15,300 Based on number of finished units
Watson’s Computer Company expects to produce 2,250
computers. Watson’s Computer Company also expects to use 13,000 parts and have
20 setups. The allocation rate for materials handling will be:
A. $4.
B. $6.80.
C. $23.11.
D. $7.01.
Question 10 of 20
0.0/ 5.0 Points
Showboat Corporation had actual manufacturing overhead costs
for the most recent year of $29,500. Manufacturing overhead is allocated using
a predetermined manufacturing overhead rate of $1.50 per direct labor hour.
Direct labor cost is $19 per hour. At the end of the year, Cabaret Corporation
found it had over allocated manufacturing overhead by $1,250. How much
manufacturing overhead was allocated in total during the year?
A. $28,250
B. $29,500
C. $30,750
D. $1,250
Question 11 of 20
0.0/ 5.0 Points
The predetermined indirect cost allocation rate is computed
as:
A. total estimated
indirect costs / total estimated amount of the allocation base.
B. total amount of
the allocation base / total estimated indirect costs.
C. total estimated
indirect costs + total estimated amount of the allocation base.
D. total amount of
the allocation base – total estimated indirect costs.
Question 12 of 20
5.0/ 5.0 Points
Which of the following is a lean strategy?
A. Group like
machines together.
B. Produce in
smaller batches than a traditional system.
C. Maintain a higher
level of inventory than a traditional system.
D. Lengthen setup
times relative to a traditional system.
Question 13 of 20
0.0/ 5.0 Points
The first step in developing an ABC system is:
A. calculate an
activity cost allocation rate for each activity.
B. allocate the
costs to the cost object using the activity cost allocation rates.
C. select an
allocation base for each activity.
D. identify the
primary activities and estimate a total cost pool for each.
Question 14 of 20
5.0/ 5.0 Points
Kramer Company manufactures coffee tables and uses an
activity-based costing system to allocate all manufacturing conversion costs.
Each coffee table consists of 20 separate parts totaling $240 in direct
materials, and each requires 5 hours of machine time to produce. Additional
information follows.
Activity Allocation
Base Cost Allocation Rate
Materials handling Number
of parts $2.00 per part
Machining Machine
hours $2.75 per machine hour
Assembling Number
of parts $1.00 per part
Packaging Number
of finished units $3.00 per
finished unit
What is the cost of machining per coffee table?
A. $15
B. $21
C. $13.75
D. $55
Question 15 of 20
5.0/ 5.0 Points
The benefits of using the ABC costing system are higher if
the company:
A. has high indirect
costs.
B. produces many
different products that use differing amounts of resources.
C. has high indirect
costs and produces many different products that use differing amounts of
resources.
D. produces only one
product.
Question 16 of 20
5.0/ 5.0 Points
The entry to record the purchase of raw materials on account
using a job costing system would include a:
A. credit to
work-in-process inventory.
B. debit to accounts
payable.
C. debit to
work-in-process inventory.
D. debit to raw
materials inventory.
Question 17 of 20
0.0/ 5.0 Points
Which of the following is a result of cost distortion?
A. Over costing of
all products
B. Under costing of
all products
C. Accurate costing
of all products
D. Over costing of
some products and under costing of other products
Question 18 of 20
0.0/ 5.0 Points
The cost of downtime caused by quality problems with the raw
materials would be classified as what type of cost?
A. Prevention cost
B. Appraisal cost
C. External failure
cost
D. Internal failure
cost
Question 19 of 20
0.0/ 5.0 Points
A(n) ________ is an estimated manufacturing overhead rate
computed before the year begins.
A. cost allocation
B. cost driver
C. predetermined
manufacturing overhead rate
D. actual
manufacturing overhead rate
Question 20 of 20
0.0/ 5.0 Points
Which term listed below describes costs incurred when the
company fails to detect poor quality goods or services before delivery to the
customer?
A. Internal failure
costs
B. Value-added
activity
C. External failure
costs
D. Just-in-time
productionashworth college BU330 online exam 3 latest 2016 may.Part 1 of 1 – 75.0/
100.0 Points
Question 1 of 20
5.0/ 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 2 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 3 of 20
5.0/ 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 4 of 20
5.0/ 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 5 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 6 of 20
5.0/ 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 7 of 20
5.0/ 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 8 of 20
5.0/ 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 9 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 10 of 20
5.0/ 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 11 of 20
5.0/ 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 12 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 13 of 20
5.0/ 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 14 of 20
5.0/ 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
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
5.0/ 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 17 of 20
5.0/ 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 18 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 19 of 20
5.0/ 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 20 of 20
5.0/ 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
.784px;”=””>ashworth college BU330 online exam 3 latest 2016 may..784px;”=””>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