1. The fixed cost per unit:
will increase as activity increases.
will increase as activity decreases and will decrease as activity increases.
will decrease as activity increases.
will remain constant.
will increase as activity decreases.
[The following information applies to the questions displayed below.]
Finished goods inventory, January 1, 2011 $ 31,000
Finished goods inventory, December 31,
$ 25,800
2011
2. If the cost of goods manufactured for the year was $402,000, what was the
cost of goods sold for the year?
$412,400.
None of these.
$407,200.
$417,600.
$402,000.
3. If the cost of goods sold for the year was $431,000, what was the cost of
goods manufactured for the year?
$420,600.
$431,000.
$425,800.
$403,900.
None of these.
[The following information applies to the questions displayed below.]
Universal Manufacturing uses a weighted-average process-costing system. All
materials are introduced at the start of manufacturing, and conversion costs are
incurred evenly throughout the process. The company's beginning and ending
work-in-process inventories totaled 13,100 units and 22,800 units, respectively,
with the latter units being 2/3 complete at the end of the period. Universal started
35,600 units into production and completed 25,900 units. Manufacturing costs
follow.
Beginning work in process: Materials, $67,800; conversion cost, $158,000
Current costs: Materials, $211,000; conversion cost, $524,000
4. Universal's equivalent-unit cost for materials is:
$4.22.
$7.72.
, $5.72.
None of these.
$9.32.
5. Universal's equivalent-unit cost for conversion cost is:
$19.59.
None of these.
$12.30.
$16.59.
$23.79.
6. Which of the following is least likely to be classified as a batch-level activity in
an activity-based costing system?
Production setup.
Property taxes.
Shipping.
Quality assurance.
Receiving and inspection.
7. Aglow Company uses a process-cost system for its single product. Material A
is added at the beginning of the process; in contrast, material B is added when
the units are 50% complete. The firm's ending work-in-process inventory consists
of 4,000 units that are 75% complete. Which of the following correctly expresses
the equivalent units of production with respect to materials A and B in the ending
work-in-process inventory?
A, 4,000; B, 4,000.
A, 3,000; B, 3,000.
A, 4,000; B, 3,000.
A, 4,000; B, 0.
A, 3,000; B, 0.
8. A custom-home builder would likely utilize:
process costing.
mass customization.
process budgeting.
job-order costing.
joint costing.
9. Airstream builds recreational motor homes. All of the following activities add
value to the finished product except:
addition of exterior lights.
installation of carpet.
storage of the vehicle in the sales area.
assembly of the frame to the chassis.
final painting and polishing.
10. If a company sells goods that cost $41,000 for $54,800, the firm will:
reduce Finished-Goods Inventory by $54,800.
will increase as activity increases.
will increase as activity decreases and will decrease as activity increases.
will decrease as activity increases.
will remain constant.
will increase as activity decreases.
[The following information applies to the questions displayed below.]
Finished goods inventory, January 1, 2011 $ 31,000
Finished goods inventory, December 31,
$ 25,800
2011
2. If the cost of goods manufactured for the year was $402,000, what was the
cost of goods sold for the year?
$412,400.
None of these.
$407,200.
$417,600.
$402,000.
3. If the cost of goods sold for the year was $431,000, what was the cost of
goods manufactured for the year?
$420,600.
$431,000.
$425,800.
$403,900.
None of these.
[The following information applies to the questions displayed below.]
Universal Manufacturing uses a weighted-average process-costing system. All
materials are introduced at the start of manufacturing, and conversion costs are
incurred evenly throughout the process. The company's beginning and ending
work-in-process inventories totaled 13,100 units and 22,800 units, respectively,
with the latter units being 2/3 complete at the end of the period. Universal started
35,600 units into production and completed 25,900 units. Manufacturing costs
follow.
Beginning work in process: Materials, $67,800; conversion cost, $158,000
Current costs: Materials, $211,000; conversion cost, $524,000
4. Universal's equivalent-unit cost for materials is:
$4.22.
$7.72.
, $5.72.
None of these.
$9.32.
5. Universal's equivalent-unit cost for conversion cost is:
$19.59.
None of these.
$12.30.
$16.59.
$23.79.
6. Which of the following is least likely to be classified as a batch-level activity in
an activity-based costing system?
Production setup.
Property taxes.
Shipping.
Quality assurance.
Receiving and inspection.
7. Aglow Company uses a process-cost system for its single product. Material A
is added at the beginning of the process; in contrast, material B is added when
the units are 50% complete. The firm's ending work-in-process inventory consists
of 4,000 units that are 75% complete. Which of the following correctly expresses
the equivalent units of production with respect to materials A and B in the ending
work-in-process inventory?
A, 4,000; B, 4,000.
A, 3,000; B, 3,000.
A, 4,000; B, 3,000.
A, 4,000; B, 0.
A, 3,000; B, 0.
8. A custom-home builder would likely utilize:
process costing.
mass customization.
process budgeting.
job-order costing.
joint costing.
9. Airstream builds recreational motor homes. All of the following activities add
value to the finished product except:
addition of exterior lights.
installation of carpet.
storage of the vehicle in the sales area.
assembly of the frame to the chassis.
final painting and polishing.
10. If a company sells goods that cost $41,000 for $54,800, the firm will:
reduce Finished-Goods Inventory by $54,800.
