High-low method, break-even point, sales mix and break-even analysis, operating leverage, bedgeted income statement and balance sheet
Top of Form
1: For problem PE 20-6A, the cost of completed and transferred-out production is:
a. $25,269 b. $24,269 c. $23,269 d. None of the above
2: For problem PE 20-6A, the ending inventory in process is:
a. $765 b. $775 c. $785 d. $795
3: For problem PE 20-7A, the journal entry to record (2) conversion costs is:
a. (Debit) Work in Process—Filling $18,400; (Credit) Factory Overhead—Filling $2,160; (Credit) Wages Payable $2,374 b. (Debit) Factory Overhead—Filling $4,534; (Credit) Work in process Factory Overhead—Filling $2,160; (Credit) Wages Payable $6,900 c. (Debit) Wages Payable $8,794; (Credit) Factory Overhead—Filling $6,900; (Credit) Work in Process $2,374 d. None of the above
4: For problem PE 20-7A, part b, the balance of Work in Process is:
a. $745 b. $735 c. $725 d. $765
5: For problem PE 21-2A, part a, the contribution margin ratio is:
a. 10% b. 25% c. 30% d. 45%
6: For problem PE 21-2A, part b, the unit contribution margin ratio is:
a. $9.00 b. $15.00 c. $11.00 d. $12.00
7: For problem PE 21-2A, part c, the income from operations is:
a. $20,000 b. $40,000 c. $60,000 d. $80,000
8: For problem PE 21-3A, part a, the break-even point in sales units is:
a. 800 b. 2,500 c. 1,000 d. 900
9: For problem PE 21-3A, part b, the break-even point if the selling price were increased to $65 per unit is:
a. 765 b. 2,500 c. 625 d. 2,300
10: For problem PE 21-4A, part a, the break-even point in sales units is:
a. 1,500 b. 2,500 c. 1,300 d. 1,200
11: For problem PE 21-4A, part b, the break-even point in sales units if the company desires a target profit of $15,000 is:
a. 3,500 b. 1,600 c. 3,300 d. 2,300
12: For problem PE 21-5A the total break-even point in units is:
a. 8,000 b. 20,875 c. 21,875 d. 22,875
13: For problem PE 21-6A the operating leverage is:
a. 2.8 b. 1.9 c. 2.2 d. 1.6
14: For problem PE 21-7A the margin of safety is:
a. 10% b. 14% c. 18% d. 24%
15: For problem PR 22-5A, part 1, net income is:
a. $45,800 b. $44,800 c. $43,800 d. $42,800
16: For problem PR 22-5A, part 2, Total liabilities and stockholders' equity is:
a. $561,800 b. $563,800 c. $565,800 d. $567,800
17: For problem PR 22-5A, part 2, the ending Balance, December 31, 2013 is:
a. $294,800 b. $284,800 c. $292,800 d. $272,800
18: Cost behavior refers to the methods used to estimate costs for use in managerial decision making.
a. True b. False
19: Cost behavior refers to the manner in which a cost changes as the related activity changes.
a. True b. False
20: The fixed cost per unit varies with changes in the level of activity.
a. True b. False
21: A production supervisor's salary that does not vary with the number of units produced is an example of a fixed cost.
a. True b. False
22: Direct materials cost that varies with the number of units produced is an example of a fixed cost of production.
a. True b. False
23: A formal written statement of management's plans for the future, expressed in financial terms, is called a budget.
a. True b. False
24: Budgets are normally used only by profit-making businesses.
a. True b. False
25: The objectives of budgeting are (1) establishing specific goals for future operations, (2) executing plans to achieve the goals, and (3) periodically comparing actual results with these goals.
a. True b. False
26: When budget goals are set too tight, the budget becomes less effective as a tool for planning and controlling operations.
a. True b. False
27: Process cost systems use job order cost cards to accumulate cost data.
a. True b. False
28: Both process and job order cost systems maintain perpetual inventory accounts with subsidiary ledgers.
a. True b. False
29: If the principal products of a manufacturing process are identical, a process cost system is more appropriate than a job order cost system.
a. True b. False
30: If the products of a manufacturing process are produced to customer specifications, a process cost system is more appropriate than a job order cost system.
a. True b. False
Bottom of Form