 Question 1

0.1 out of 0.1 points

If the beginning Work-in-Process inventory is zero, first-in, first-out (FIFO) and weighted-average
process costing will assign the same amount to the units transferred out.

 Question 2
0.1 out of 0.1 points
In the weighted-average approach, the number of physical units transferred out  cannot be greater
than the equivalent number of units produced during the period.

 Question 3
0.1 out of 0.1 points
In general, the ending Work-in-Process Inventory value computed using first-in, first-out (FIFO) will be
the same as the ending value computed using weighted-average process costing.

 Question 4
0.1 out of 0.1 points
In a weighted-average process costing system, the costs in the beginning Work-in-Process Inventory
are  not used to compute the costs transferred-out.

 Question 5
0.1 out of 0.1 points
Madison Corporation's production cycle starts in the Processing Department. The following
information is available for April:

  Units
Work-in-process, April 1 (25% complete) 40,000
Total units in process during April 280,000
Work-in-process, April 30 (60% complete) 25,000
Materials are added at the beginning of the process in the Processing Department. What are the
equivalent units of production for the month of April, assuming Madison uses the weighted-average
method?

  Materials Conversion Costs

A. 240,000 260,000
B. 255,000 235,000
 C. 280,000 270,000
D. 315,000 285,000

 Question 6
0.1 out of 0.1 points
A process costing system:

 Question 7
0.1 out of 0.1 points
Phantom Company has beginning and ending Work-in-Process Inventories that are 45% and 10%
complete, respectively. Materials are added at the beginning of the process. If first-in, first-out (FIFO)
process costing is used, the total equivalent units for materials will equal the number of units:

 Question 8
0.1 out of 0.1 points
The following information pertains to Oklahoma Co.'s Tulsa Division for the month of April: 

  Units Materials
Beginning Work-in-Process   15,000  $ 5,500 
Started in April   40,000  $ 18,000 
Units completed   42,500      
Ending Work-in-Process   12,500      
All materials are added at the beginning of the process. Using the weighted-average method, the cost
per equivalent unit of materials is: (CPA adapted)  (Round your answer to 2 decimal places.)

 Question 9
0 out of 0.1 points
The debits to Work-in-Process for Department #2 for the month of April of the current year, together
with information concerning production, are presented below. All direct materials come from
Department #1. The units completed include the 1,200 in process at the beginning of the period.
Department #2 uses FIFO costing.

WORK-IN-PROCESS - DEPARTMENT #2
1,200 units, ¼ completed $1,200Product X, 6,200 units ????
From Dept. 1, 6,000 units 3,600    
Direct Labor 8,000    
Factory OH 4,800    
1,000 units, ½ complete ????    
The unit cost of Product X started and completed in the current period is:

 Question 10
0.1 out of 0.1 points
Materials are added at the beginning of a process in a process costing system. The beginning Work-
in-Process Inventory was 30% complete as to conversion costs. Using first-in, first-out (FIFO) process
costing, the total equivalent units for materials are:

 Question 11
0.1 out of 0.1 points
Under which of the following conditions will the FIFO method produce the same cost of goods
manufactured as the weighted-average method?
 Question 12
0 out of 0.1 points
The debits to Work-in-Process for Department #2 for the month of April of the current year, together
with information concerning production, are presented below. All direct materials come from
Department #1. The units completed include the 1,200 in process at the beginning of the period.
Department #2 uses FIFO costing.

WORK-IN-PROCESS - DEPARTMENT #2
1,200 units, ¼ completed $1,200Product X, 6,200 units ????
From Dept. 1, 6,000 units 3,600    
Direct Labor 8,000    
Factory OH 4,800    
1,000 units, ½ complete ????    
The cost of the ending Work-in-Process Inventory is:

 Question 13
0.2 out of 0.2 points
In August, one of the processing departments at Tsuzuki Corporation had beginning work in process
inventory of $24,000 and ending work in process inventory of $13,000. During the month, $283,000 of
costs were added to production.

In the department's cost reconciliation report for August, the cost of units transferred out of the
department would be:

 Question 14
0 out of 0.2 points
Lucas Corporation uses the weighted-average method in its process costing system. Data concerning
the first processing department for the most recent month are listed below:

       
Beginning work in process inventory:      
Units in beginning work in process inventory   900  
Materials costs $ 9,600  
Conversion costs $ 7,700 
Percent complete with respect to materials   60 %
Percent complete with respect to conversion   45 %
Units started into production during the month   8,100  
Units transferred to the next department during the month   6,900  
Materials costs added during the month $ 115,800  
Conversion costs added during the month $ 120,500  
Ending work in process inventory:      
Units in ending work in process inventory   2,100  
Percent complete with respect to materials   75%
Percent complete with respect to conversion   20%
 

What are the equivalent units for materials for the month in the first processing department?

 Question 15
0.2 out of 0.2 points
 Nabais Corporation uses the weighted-average method in its process costing system. Operating data
for the Lubricating Department for the month of October appear below:

Percent
Complete with
  Units  
Respect to
Conversion
Beginning work in process inventory   3,300       80%
Transferred in from the prior department during October   30,700          
Completed and transferred to the next department during
  32,200         
October
Ending work in process inventory   1,800       60%
 

What were the equivalent units for conversion costs in the Lubricating Department for October?

 Question 16
0.2 out of 0.2 points
Assume there was no beginning work in process inventory and the ending work in process inventory
is 70% complete with respect to conversion costs. Under the weighted-average method, the number
of equivalent units of production with respect to conversion costs would be:

 Question 1
0.1 out of 0.1 points
Luxus, Inc. employs 45 sales personnel to market its line of luxury automobiles. The average car sells
for $23,000, and a 6% commission is paid to the salesperson. Luxus, Inc. is considering a change to
the commission arrangement where the company would pay each salesperson a salary of $2,000 per
month plus a commission of 2% of the sales made by that salesperson. The amount of total monthly
car sales at which Luxus, Inc. would be indifferent as to which plan to select is:

 Question 2
0.1 out of 0.1 points
You have been provided with the following information:
   Per Unit   Total
Sales $ 15   $ 45,000
Less variable expenses   9     27,000
Contribution margin $ 6     18,000
Less fixed expenses         12,000
Operating profit       $ 6,000
If unit sales decrease by 10%, how much will fixed costs have to be reduced by to maintain the
current operating profit?

 Question 3
0 out of 0.1 points
An increase in an organization's tax rate will cause an increase in its break-even point.

 Question 4
0.1 out of 0.1 points
If the fixed costs are $2,400, targeted operating profits is $1,200, selling price per unit is $2, and the
contribution margin ratio is 40%, then the required sales volume is 9,000 units.

 Question 5
0.1 out of 0.1 points
The following costs have been estimated based on sales of 30,000 units:

Percent That Is
   
Total Annual Costs Variable
Direct materials $ 300,000   100%
Direct labor   250,000   100%
Manufacturing overhead   250,000   50%
Selling and administrative   150,000   25%
What selling price (rounded to two decimal places) will yield a contribution margin of 40%?

 Question 6
0.1 out of 0.1 points
Jilk Inc.'s contribution margin ratio is 61% and its fixed monthly expenses are $50,000. Assuming that
the fixed monthly expenses do not change, what is the best estimate of the company's net operating
income in a month when sales are $142,000?

 Question 7
0 out of 0.1 points
Kuzio Corporation produces and sells a single product. Data concerning that product appear below:

  Per Unit Percent of Sales

Selling price $ 140     100%
Variable expenses   84     60%
Contribution margin $ 56     40%

The company is currently selling 5300 units per month. Fixed expenses are $185,000 per month. The
marketing manager believes that a $5300 increase in the monthly advertising budget would result in a
200 unit increase in monthly sales. What should be the overall effect on the company's monthly net
operating income of this change?

 Question 8
0 out of 0.1 points
 Artis Sales has two store locations. Store A has fixed costs of $125,000 per month and a variable cost
ratio of 60%. Store B has fixed costs of $200,000 per month and a variable cost ratio of 30%. What is
the break-even sales volume for Store A?

 Question 9
0.1 out of 0.1 points
Awtis Corporation has a margin of safety percentage of 25% based on its actual sales. The break-
even point is $330,000 and the variable expenses are 45% of sales. Given this information, the actual
profit is:

 Question 10
0.1 out of 0.1 points
Both total revenues (TR) and total costs (TC) are likely to be affected by changes in the output.

 Question 11
0.1 out of 0.1 points
Microsoft Excel® is ideally suited for analyzing alternative CVP scenarios using its "What-If Analysis"
function.

 Question 12
0 out of 0.1 points
Eastwick produces and sells three products. Last month's results are as follows:

  P1   P2   P3
Revenues $ 100,000   $ 200,000   $ 200,000
Variable costs   40,000     140,000     80,000
Fixed costs total $200,000. What sales volume would generate an operating profit of $150,000?
(Assume the current product mix.)

 Question 13
0 out of 0.1 points
Eastwick produces and sells three products. Last month's results are as follows:

  P1   P2   P3
Revenues $ 100,000   $ 200,000   $ 200,000
Variable costs   40,000     140,000     80,000
Fixed costs total $200,000. What is Eastwick's margin of safety? (Assume the current product mix.)

 Question 14
0.1 out of 0.1 points
Sorin Inc., a company that produces and sells a single product, has provided its contribution format
income statement for January.

     
Sales (3400 units) $ 88,400
Variable expenses   43,316
Contribution margin   45,084
Fixed expenses   33,400
Net operating income $ 11,684

If the company sells 3800 units, its total contribution margin should be closest to: (Do not round
 intermediate calculations.)

 Question 15
0.1 out of 0.1 points
Cubie Corporation has provided the following data concerning its only product:

 
Selling price $ 112per unit
Current sales   11,100units
Break-even sales   8103units

What is the margin of safety in dollars?

 Question 16
0.1 out of 0.1 points
The amount by which a company's sales can decline before losses are incurred is called the:

 Question 17
0.1 out of 0.1 points
Gena Manufacturing Company has a fixed cost of $225,000 for the production of tubes. Estimated
sales are 150,000 units. A before tax profit of $125,000 is desired by the controller. If the tubes sell for
$5 each, what unit contribution margin is required to attain the profit target?

 Question 18
0.1 out of 0.1 points
If the fixed costs are $2,400, targeted before-tax operating profit is $1,200, tax rate is 25%, selling
price per unit is $2, and contribution margin ratio is 40%, then the sales volume is 9,000 units.

 Question 19
0.1 out of 0.1 points
Which of the following would  not cause the break-even point to change?

 Question 20
0.1 out of 0.1 points
A company's break-even point will  not be increased by: