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Cost_Accounting_MCQ_Calculation_REAL
Exam Questions and Detailed Answers
Bundle_2025.
A+ Real Exam Questions with Explained
solution
, 2
Cost_Accounting_MCQ_Calculation_REAL Exam Questions and Detailed
Answers Bundle_2025.
1. What is the equivalent unit cost of conversion using the weighted-average method if
425,000 units were completed, 50,000 units are in ending WIP at 50% conversion, and
total conversion costs are $4,625,000?
A. $10.28
B. $12.50
C. $10.28
D. $13.21
The answer is $10.28
Explanation:
Let’s break it down like baking cookies!
● Step 1: Find total equivalent units for conversion.
○ Completed units: 425,000 (100% done)
○ Ending WIP: 50,000 × 50% = 25,000 equivalent units
○ Total equivalent units = 425,000 + 25,000 = 450,000
● Step 2: Divide total conversion cost by equivalent units.
○ $4,625,000 ÷ 450,000 = $10.28 per unit
Think of it as dividing the total frosting ($4.625M) evenly over 450,000
cupcakes. Easy, right?
2. Equipment costs $240,000, has no salvage value, and is depreciated straight-line over 3
years. After one year, the useful life is revised to 5 years total. What is the depreciation
expense for year two?
A. $30,000
B. $48,000
C. $50,000
D. $40,000
The answer is $40,000
, 3
Explanation:
Imagine using a toy for 3 years, but then realizing it’ll actually last 5!
● Step 1: Original depreciation = $240,000 ÷ 3 = $80,000/year
● Step 2: After 1 year, book value = $240,000 – $80,000 = $160,000
● Step 3: New remaining life = 5 – 1 = 4 years
● Step 4: New depreciation = $160,000 ÷ 4 = $40,000
You’re just spreading the rest of the cost ($160K) evenly over the next 4 years!
3. A company has fixed costs of $150,000 and sells products at $25 each. Variable cost per
unit is $10. How many units must they sell to break even?
A. 10,000
B. 15,000
C. 5,000
D. 10,000
The answer is 10,000
Explanation:
Let’s say each item you sell earns $15 toward paying bills (selling price $25 – cost $10).
● Step 1: Contribution margin per unit = $25 – $10 = $15
● Step 2: Break-even units = $150,000 ÷ $15 = 10,000 units
You need to sell 10,000 things just to cover rent and bills—then you start making profit!
Great! Let’s continue with your Stuvia-ready Cost Accounting bundle in the exact
format you've requested.
4. A company incurred $480,000 in total costs to produce 30,000 units. Fixed costs totaled
$150,000. What is the variable cost per unit?
A. $11
B. $11
C. $13
D. $15
The answer is $11
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Explanation:
Think of the total cost like a pizza made of two parts: fixed and variable.
● Step 1: Total variable cost = Total cost – Fixed cost = $480,000 – $150,000 = $330,000
● Step 2: Variable cost per unit = $330,000 ÷ 30,000 = $11
You’re just finding out how much it costs to make each unit beyond the fixed base.
5. The sales price per unit is $60, variable cost is $40, and fixed cost is $80,000. How many
units must be sold to earn a $40,000 profit?
A. 6,000
B. 5,000
C. 4,000
D. 3,000
The answer is 6,000
Explanation:
This is like setting a savings goal. First, find the money made per unit:
● Step 1: Contribution margin = $60 – $40 = $20
● Step 2: Break-even = ($80,000 + $40,000) ÷ $20 = $120,000 ÷ $20 = 6,000 units
Sell 6,000 items and you’ll hit your $40K profit after covering all costs.
6. A job order cost sheet shows $12,000 in direct materials, $6,000 in direct labor, and
$9,000 in applied overhead. What is the total job cost?
A. $25,000
B. $27,000
C. $21,000
D. $30,000
The answer is $27,000
Explanation:
This is a simple total: just add the parts!
● Step 1: Direct materials = $12,000
Cost_Accounting_MCQ_Calculation_REAL
Exam Questions and Detailed Answers
Bundle_2025.
A+ Real Exam Questions with Explained
solution
, 2
Cost_Accounting_MCQ_Calculation_REAL Exam Questions and Detailed
Answers Bundle_2025.
1. What is the equivalent unit cost of conversion using the weighted-average method if
425,000 units were completed, 50,000 units are in ending WIP at 50% conversion, and
total conversion costs are $4,625,000?
A. $10.28
B. $12.50
C. $10.28
D. $13.21
The answer is $10.28
Explanation:
Let’s break it down like baking cookies!
● Step 1: Find total equivalent units for conversion.
○ Completed units: 425,000 (100% done)
○ Ending WIP: 50,000 × 50% = 25,000 equivalent units
○ Total equivalent units = 425,000 + 25,000 = 450,000
● Step 2: Divide total conversion cost by equivalent units.
○ $4,625,000 ÷ 450,000 = $10.28 per unit
Think of it as dividing the total frosting ($4.625M) evenly over 450,000
cupcakes. Easy, right?
2. Equipment costs $240,000, has no salvage value, and is depreciated straight-line over 3
years. After one year, the useful life is revised to 5 years total. What is the depreciation
expense for year two?
A. $30,000
B. $48,000
C. $50,000
D. $40,000
The answer is $40,000
, 3
Explanation:
Imagine using a toy for 3 years, but then realizing it’ll actually last 5!
● Step 1: Original depreciation = $240,000 ÷ 3 = $80,000/year
● Step 2: After 1 year, book value = $240,000 – $80,000 = $160,000
● Step 3: New remaining life = 5 – 1 = 4 years
● Step 4: New depreciation = $160,000 ÷ 4 = $40,000
You’re just spreading the rest of the cost ($160K) evenly over the next 4 years!
3. A company has fixed costs of $150,000 and sells products at $25 each. Variable cost per
unit is $10. How many units must they sell to break even?
A. 10,000
B. 15,000
C. 5,000
D. 10,000
The answer is 10,000
Explanation:
Let’s say each item you sell earns $15 toward paying bills (selling price $25 – cost $10).
● Step 1: Contribution margin per unit = $25 – $10 = $15
● Step 2: Break-even units = $150,000 ÷ $15 = 10,000 units
You need to sell 10,000 things just to cover rent and bills—then you start making profit!
Great! Let’s continue with your Stuvia-ready Cost Accounting bundle in the exact
format you've requested.
4. A company incurred $480,000 in total costs to produce 30,000 units. Fixed costs totaled
$150,000. What is the variable cost per unit?
A. $11
B. $11
C. $13
D. $15
The answer is $11
, 4
Explanation:
Think of the total cost like a pizza made of two parts: fixed and variable.
● Step 1: Total variable cost = Total cost – Fixed cost = $480,000 – $150,000 = $330,000
● Step 2: Variable cost per unit = $330,000 ÷ 30,000 = $11
You’re just finding out how much it costs to make each unit beyond the fixed base.
5. The sales price per unit is $60, variable cost is $40, and fixed cost is $80,000. How many
units must be sold to earn a $40,000 profit?
A. 6,000
B. 5,000
C. 4,000
D. 3,000
The answer is 6,000
Explanation:
This is like setting a savings goal. First, find the money made per unit:
● Step 1: Contribution margin = $60 – $40 = $20
● Step 2: Break-even = ($80,000 + $40,000) ÷ $20 = $120,000 ÷ $20 = 6,000 units
Sell 6,000 items and you’ll hit your $40K profit after covering all costs.
6. A job order cost sheet shows $12,000 in direct materials, $6,000 in direct labor, and
$9,000 in applied overhead. What is the total job cost?
A. $25,000
B. $27,000
C. $21,000
D. $30,000
The answer is $27,000
Explanation:
This is a simple total: just add the parts!
● Step 1: Direct materials = $12,000
