Name: __________________________ Date: _____________
1. Super-Tech Industries had the following department information about physical units and percentage of completion:
Work in process, June 1 (75%)
Completed and transferred out
Work in process, June 30 (50%)
If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during June?
2. A department had the following information for the month: Total materials costs
Conversion cost per unit
Total manufacturing cost per unit
What are the equivalent units of production for materials?
D) Cannot be determined
3. In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 80,000 units were transferred into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for conversion costs for June were
A) 80,000 equivalent units.
B) 94,000 equivalent units.
C) 90,000 equivalent units.
D) 100,000 equivalent units.
4. In applying the high-low method, what is the fixed cost? Month
5. Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?
6. Dunbar Manufacturing's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $44,000. If sales are expected to increase $80,000, by how much will the company's net income increase? A) $36,000
7. A division sold 100,000 calculators during 2013:
Total variable costs
How much is the contribution margin per unit?
8. In 2012, Teller Company sold 3,000 units at $400 each. Variable expenses were $280 per unit, and fixed expenses were $180,000. The same selling price, variable expenses, and fixed expenses are expected for 2013. What is Teller's break-even point in sales dollars for 2013?
9. For Wilder Corporation, sales is $1,200,000 (6,000 units), fixed expenses are $360,000, and the contribution margin per unit is $80. What is the margin of safety in dollars? A) $60,000
10. In 2012, Raleigh sold 1,000 units at $500 each, and earned net income of $50,000. Variable expenses were $300 per unit, and fixed expenses were $150,000. The same selling price is expected for 2013. Raleigh's variable cost per unit will rise by 10% in 2013 due to increasing material costs, so they are tentatively planning to cut fixed costs by $15,000. How many units must Raleigh sell in 2013 to maintain the same income level as 2012?
11. Capitol Manufacturing sells 3,000 units of Product A annually, and 7,000 units of Product B annually. The sales mix for Product A is
D) Cannot determine from information given.
12. Swanson Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Swanson incurs $4,440,000 in...
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