Question 1 1 pts lf work in process inventory has decreased, which...

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Question 1 1 pts lf work in process inventory has decreased, which of the following is always true? O total manufacturing costs are more than cost of goods manufactured O total manufacturing costs are less than cost of goods manufactured O cost of goods sold is more than costs of goods manufactured O cost of goods sold is less than costs of goods manufactured Question 2 1 pts Cost of goods sold is equal to cost of goods manufactured O plus the decrease in work in process inventory O minus the decrease in work in process inventory O plus the increase in fmished goods inventory O minus the increase in fmished goods inventory Question 3 1 pts Which two types of costs behave in a like fashion and look similarly when plotted on a graph? O total fixed and total variable O total fixed and unit variable O total variable and unit fixed O unit variable and unit fixed Question 4 1 pts lf the selling price per unit decreases and total fixed expenses increase while the variable costs per unit increase O the break-even point increases O the break-even point is unchanged O the break-even point decreases O the effect on the break-even point can1t be determined in this situation Question 5 1 pts lf the selling price per unit increases and total ñxed expenses decrease while the variable costs per unit increase O the break-even point increases O the break-even point is unchanged O the break-even point decreases O the effect on the break-even point can't be determined in this situation Question 6 1 pts The most accurate year-end treatment of overapplied factory overhead is to: O increase Cost of Goods Sold O increase Cost of Goods Sold and appropriate inventory accounts O decrease Cost of Goods Sold O decrease Cost of Goods Sold and appropriate inventory accounts Question 7 1 pts A job order cost system uses a predetermined factory overhead rate based on expected volume and expected fixed costs. At the end of the year, underapplied overhead might be explained by which of the following situations? Actual Volume Actual Fixed Costs A. Greater than expected Greater than expected B. Greater than expected Less than expected c. Less than expected Greater than expected D. Less than expected Less than expected o A o B o e o D Question 8 Which element canstitutes the difference between the absarptian methad and direct ar variable methad af inventary casting? O Direct materials O Direct labor O Variable overhead O Fixed overhead Question 9 When comparing absarptian casting with direct casting, which af the follawing statements is nat true? O absorption casting enables managers to increase profits in the short run by increasing inventaries. O when sales vol u me is more than production volume , direct casting will result in higher profit. O a manager who is evaluated based on absorption casting operating profit would be tempted to increase production at the end of a period in arder to get a more favorable review. 1 pts 1 pts O under direct casting, profit is less than under absorption casting if more items are sold than produced Question 10 1 pts Which of the following is true with respect to budgeting? O Credit sales = Collections - increase in A/R O Credit sales = Collections + decrease in A/ R O Sales = Production + decrease in inventory O Production = Sales + decrease in inventory Question 11 1 pts Which of the following sequences of preparing budget schedules is most appropriate (logical)? O Sales, production , usage, purchases O Raw materials purchases, production , usage, cash O Cash, balance sheet, income statement , production O Sales, raw materials purchases, production, usage Question 12 1 pts When a multiproduct plant operates at full capacity , quite often decisions must be made as to which products to emphasize. These decisions are frequently made with a short- run focus. Managers should always select products with the O highest sales price / unit O highest individual contribution margin/ unit O highest contribution margin/ unit of constraining resource O lowest contribution margin/ unit of constraining resource Question 13 1 pts Which of the following is always true with regard to the net present value (NPV) approach? O lf a project is found to be acceptable under the NPV approach, it would also be acceptable under the interna! rate of return (IRR) approach O The NPV and the IRR approaches will always rank projects in the same arder O lf a project is found to be acceptable under the NPV approach , it would also be acceptable under the payback approach O The NPV and payback approaches will always rank projects in the same arder Question 14 1 pts Depreciation is incorporated in the discounted cash flow analysis of an investment proposal becauseit O is a cost of operations that cannot be avoided O reduces the cash outlay for income taxes O is an explicit cash inflow O results in an annual cash outflow Question 15 1 pts The Net Present Value (NPV) method and the Interna! Rate of Return (IRR) model are used to analyze capital expenditures. The IRR model, as contrasted with the NPV model: O is considered inferior because it fails to calculate a compounded interest rate O is a discounted cash flow model while the NPV model is not O almost always gives a different decision than does the NPV method as to the acceptability of a given proposal O assumes that the rate of return on the reinvestment of the cash proceeds is at the indicated rate of return of the project analyzed rather than at the cost of capital Question 16 1 pts Total production costs for Masters, lnc., are budgeted at $280 ,000 for 50,000 units of budgeted output and at $342 ,500 for 60,000 units of budgeted output. Because of the need for additional facilities , budgeted fíxed costs for 60,000 units are 25 percent more than budgeted fíxed costs for 50,000 units. How much is Masters' budgeted variable cost per unit of output? O $3.00 O $4.00 O $5.00 O $6.00 Question 17 Use the following data for questions 17-21: Raw materials purchased $265 ,000 Direct labor 300,000 Actual factory overhead Applied factory overhead 198,000 200,000 Inventaries Beginning Raw materials $50,000 Work -in-process $75 ,000 Finished goods $40 ,000 Prime costs are: O $498,000 O $560,000 O $565,000 O $570,000 Ending $45 ,000 $90 ,000 $25 ,000 1 pts Question 18 Conversion costs are: O $498 ,000 O $500 ,000 O $565 ,000 O $570 ,000 Question 19 Cost of goods manufactured are: O $753 ,000 O $755 ,000 O $768 ,000 O $770 ,000 1 pts 1 pts Question 20 Cost of goods sold (before closing overapplied overhead) is O identical to total manufacturing costs O less than materials used O less than cost of goods manufactured O more than total manufacturing costs Question 21 Cost of goods sold (after closing overapplied overhead) is: O $768,000 O $770,000 O $772 ,000 O $798,000 1 pts 1 pts Question 22 Dark Company uses a normal casting system. Dark's costs during January were Factory overhead applied Cost of goods manufactured Factory overhead incurred $379 ,500 $977 ,500 $395 ,600 1 pts Finished goods inventory was $358,000 on January 1 and $409,400 on January 31 . lf Dark doses overapplied or underapplied overhead cost to goods sold every month , what is the adjusted cost of goods sold for January? O $910 ,800 O $942 ,200 O $972 ,900 O $993 ,600 Question 23 1 pts U sells two products: Heels and Hoos. Heels sell for $5 each and have variable costs of $3 each. Hoos sell for $10 each and have variable costs of $6 each. The sales mix is 40% Heels and 60% Hoos. lf total fixed costs for U are $598,000 , how many Hoos must be sold at the break-even point? O 37,375 O 74,750 O 78,000 O 112,125 Question 24 Assume the following for the Dunst Company: Sales (10,000 units) Fixed expenses Break-even point $400,000 $105,000 $350,000 1 pts lf sales price increased 10% and variable expenses increased $2.00 per unit, which of the following is true? O The new break-even point is $330,000 O The new selling price is $36.00 per unit O The new variable expenses are $26.00 per unit O The new break-even point is 9,000 units Question 25 1 pts Fixed costs to be incurred are $900 ,000 for the production of 60,000 units or less and $1,500 ,000 for more than 60,000 units. The contribution margin ratio is 30% for the first 60,000 units, and this must be the first batch produced . lt increases to 40% far units in excess of 60,000. The product will sell for $40 per unit. How many units must be sold to earn a profit of $420 ,000? O 110 ,000 O 115 ,714 O 124 ,286 O 135 ,000 Question 26 1 pts The following information pertains to Harrison's cost-volume-profit relationships: Breakeven point in units sold 2,000 Variable costs per unit $500 Total fixed costs $150 ,000 What will be contributed to profit before income taxes by the 2,001st unit sold? O $75 O $150 O $500 O $575 Question 27 1 pts Total fixed costs are $281 ,688. Selling price per unit is $52. Variable cost per unit is $41 . How many units must be sold to obtain $77,000 of after-tax profit if taxes are 30%? O 32,608 units O 35,583 units O 35,608 units O 46,583 units Question 28 1 pts In 20X4, Margan Carparatian had incame af $60 ,000 using direct casting. Beginning and ending inventaries were 3,000 and 8,000 units, respectively. The fixed manufacturing averhead cast was $4.00 per unit. What was the net incame using absarptian casting? O $40,000 O $48,000 O $72,000 O $80,000 Question 29 1 pts In 20XS, Brittany Corporation had income of $80,000 using direct costing. Beginning and ending inventaries were 13,000 and 8,000 units, respectively. The fixed manufacturing averhead cast was $4.00 per unit. What was the net incame using absorptian costing? O $60,000 O $68,000 O $92,000 O $100 ,000 Question 30 1 pts In 20X6 , Joe's income under absorption casting was $3,600 higher than under direct casting . The company sold 20 ,000 units during the year. Variable costs were $19 per unit , of which $1 was variable selling expense. The remainder was for direct materials, direct labor, and variable manufacturing overhead. The production cost was $21 per unit under absorption casting. How many units did Joe produce in 20X6? O 18,800 O 19,100 O 20 ,900 O 21 ,200 Question 31 1 pts Use the following data for questions 31-34 : Love Company 's actual casting records for the year ended December 31 are shown below . There was no finished goods inventory at January 1, and there were no work-in-process inventaries at the beginning and end of the year. Net sales $ 1,600,000 Cost of goods manufactured: Variable $ 630,000 Operating expenses: Units manufactured Units sold Fixed $ 315,000 Variable $ 98 ,000 Fixed $ 130 ,000 70,000 60 ,000 Under absorption costing, what is the product cost per unit? O $9.00 O $10.40 O $13.50 O $15.75

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