1.

C
2. D
3. C
4. B
5. C
6. C

7. $336

Raw Material, Beginning 75

Raw Materials Purchased (326 + 85 – 75) 336
Raw Materials Available for use 411
Less: Ending Raw Materials inventory ( 85)
Raw Materials used in Production $326

8. C

Direct Material 326 326

Direct Labor x $225
Manufacturing overhead x (.60) 135
Total Manufacturing Cost 686 $686

326 + x + x(.60) = 686 x (.60)

1.60 x = 360 226 x (.60)
1.60 = 1.60 135
x = 225

9. C

Beginning work in process inventor 80

Manufacturing cost 686
Total Work in Process for the Period 766
Less: Ending Work in Process (30)
Cost of Goods Manufactured $736

10. $716

Beginning Finished Goods Inventory 90

 Cost of G oods Manufactured
736
Total Goods Available for Sale 826
Ending Finished Goods (110)
Cost of Goods Sold $716

11. C
10,000 – ( x × 5) = 7,400
5 x = 2,700
5 = 5
x = 540

540 + 1,460 =$ 2,000

12. B

Fixed Manufacturing Overhead Cost 90,000 – 84,000 = 6,000

Increase in units in inventory 6,000 / 6 = 1,000
1,000 – 22,000 =$ 21,000

13. D

Unit cost produced 11

Less: Variable unit produced cost (6)

Unit Manufacturing overhead 5 per unit

cost

Divided to: fixed manufacturing overhead (3000)

Change in Inventory 600

Cost of Goods Sold Per Unit 9,000

Change in Inventory (600)

Unit Produced during the year $ 8,400

14. B

(1.75 + 1.25 + 0.50 + 0.60) – 9 = $4.9

 Sales 90,000 x 4.9 441,000

Less: Fixed Expense 100,000

Selling and Administrative Expense 70,000

Net Income $271,000

15. B

16. D

17. Sales (100K x 40) 4,000,000

Less: Variable Expense 1,600,000

Contribution Margin (4M x 60%) 2,400,000

Less: Fixed Expense 1,900,000

Net Income 500,000

18. B

Profit = (CM Ratio x Sales) – Fixed Expense

= ( x × 50,000) – 100,000
= 50,000x – 100,000
50,000 x = 100,000 50,000
50,000
x = .20/20%

19. A
20. D
21. D
22. A

23. B

Profit = (Sales – variable expense) – Fixed Expense

 10 x = ( x - .30x ) – 50,000
10x - .70 x = - 50,000
.60 x = -50,000
.60 .60
Sales = 83,333 / 2 per unit cost = catfish to be sold
= 41,667

24. A

Total Fixed Cost 150,000

Break-Even Point 1,000

Profit Before tax = 150+500 = 650

25. D

Sales 300,000
Increase in sales (300K x 20%) 60,000
360,000

Sales 360,000
Less: Variable Cost 240,000
Contribution Margin 120,000
Less: Fixed Cost 40,000
Profit 80,000