Managerial Accounting Test

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TEST QUESTIONS:

Questions 1-3 refer to the following:

The following selected data for March were taken from Rubenstein Company's financial statements:

Cost of goods available for sale Manufacturing overhead
Cost of goods manufactured
Finished goods inventory ‑ ending
Direct materials used
Sales
Selling and administrative expenses
Direct labor
Work in process inventory ‑ beginning
$ 65,000
20,000
51,000
10,000
15,000
105,000
30,000
20,000
0

1.The gross margin was:

1.$55,000.
2.$54,000.
3.$50,000.
4.$40,000.

2.The beginning finished goods inventory was:

1.$24,000.
2.$ 9,000.
3.$10,000.
4.$14,000.

3.The ending work in process inventory was:

1.$ 4,000.
2.$ 8,000.
3.$10,000.
4.$0.

4.Farber Company uses a job order cost system. The information below is from the financial records of the company for last year:
Total manufacturing costs$2,500,000
Cost of goods manufactured$2,425,000
Predetermined overhead rate80% of direct labor cost

Applied overhead was 30% of total manufacturing costs. The Work in Process inventory at January 1 was 75% of the Work in Process inventory at December 31.
Farber Company's total direct labor cost was:

1.$750,000.
2.$600,000.
3.$900,000.
4.$937,500.

5.Dukes Company used a predetermined overhead rate this year of $2 per direct labor hour, based on an estimate of 20,000 direct labor hours to be worked during the year. Actual costs and activity during the year were:

Actual manufacturing overhead cost incurred$38,000
Actual direct labor hours worked18,500

The under‑ or overapplied overhead for the year was:

1.$1,000 underapplied.
2.$1,000 overapplied.
3.$3,000 underapplied.
4.$3,000 overapplied.

6.Krumbly Company uses the FIFO method in its process costing system. At the beginning of the month, Department D's work in process inventory contained 2,000 units. These units were fully complete with respect to materials and 40% complete with respect to conversion costs, with a total cost at that point of $3,600. During the month, conversion costs amounted to $8 per equivalent unit of production. If all 2,000 units are fully complete by the end of the month, their total cost by that time will be:

1.$19,600.
2.$10,000.
3.$13,200.
4.$9,000.

7.Details of the manufacturing activity in Amy Company's Assembly Department for the month of December are given below:

Number
of Units
Labor and Overhead
Percent Complete
Work in process inventory, Dec. 1
Started in assembly during the month
Work in process inventory, Dec. 31
10,000
80,000
15,000
70%

40%

All materials are added at the beginning of processing in the Assembly Department.

The equivalent units of production for labor and overhead for the month, using the FIFO method, are:

1.90,000.
2.70,000.
3.80,000.
4.74,000.

8.Lap Company uses the weighted‑average method in its process costing system. The beginning inventory in a particular department consisted of 80,000 units, 100% complete with respect to materials and 25% complete with respect to conversion costs. The total dollar value of this inventory was $226,000. During the month, 150,000 units were transferred out of the department. The costs per equivalent unit of production for the month were $2.00 for materials and $3.50 for conversion costs. The value of the units completed and transferred out of the department was:

1.$681,000.
2.$765,000.
3.$821,000.
4.$825,000.

9.Robin Company uses activity‑based costing to compute product costs for external reports. The company has three activity centers and applies overhead using predetermined overhead rates for each activity center. Estimated costs and activities for the current year are presented below for the three activity centers:

Estimated
OverheadExpected
CostActivity...
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