Q1. Yumi Corporation uses the weighted average method in its process costing system. Data concerning the first product department for the most recent month are listed below:
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Beginning work in process inventory:
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Materials
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Conversion
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Units in beginning work in process inventory
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600 units
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Costs included
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$19,700
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$8,600
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Percent complete
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70%
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30%
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Units started into production during the month
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6,300 units
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Costs added during the month:
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$188,200
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$326,600
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Ending work-in-process inventory
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Units in ending work-in-process inventory
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1,500 units
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Percent complete
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60%
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20%
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The costs assigned to the units in ending work in process inventory from the first processing department according to the company's cost system is closest to:
A. $17,642
B. $29,700
C. $47,342
D. $118,065
E. None of the above
Q2. Kalman Company uses the weighted-average method in its process costing system. In their first processing department, the company worked on 54,000 equivalent units with respect to conversion costs in March. Additional information for March is:
Beginning inventory 8,000 units 60% complete
Started 58,000 units
Completed and transferred out 50,000 units
The % of completion of the ending inventory in work-in-process with respect to conversion cost is: (round to closest whole number)
A. 25%
B. 50%
C. 60%
D. 100%
E. None of the above
Q3. Regarding the production margins of the two products under the ABC system, which of the following statements is correct? (Choose the figures that are closest)
A. The product margin of the LoEnd product is lower than that of the HiEnd product by $ 118,000
B. The product margin of the LoEnd product is higher than that of the HiEnd product by $ 118,000
C. The product margin of the LoEnd product is lower than that of the HiEnd product by $ 133.000
D. The product margin of the LoEnd product is higher than that of the HiEnd product by $ 133.000
E. None of the above.
Q4. Fast Lab Supplies Company's Actual balance sheets are presented below:
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Statement of Financial Position As of October 31, 201X
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Cash
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$25,000
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Accounts Receivable (Net of allowance for uncollectible accounts)
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$70,000
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Inventory
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$79,625
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Property Plant Equipment (Net of $640,000 accumulated depreciation)
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$1,225,375
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Total Assets
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$1,400,000
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Accounts Payable
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$170,000
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Common Stock
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$1,050,000
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Retained Earnings
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$180,000
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Total Liabilities and Stockholder's Equity
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$1,400,000
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To prepare budgets, the budget officer gathered addition budget data:
- Sales are budgets at $350,000, $280,000, and $230,000, all on credit, for November, December & January respectively.
- The company will declare $15,000 dividend in November, which will be paid December.
- Collections are expected to be 55% in the month of sale 40% in the month following the sale and 5% uncollectible. Fast Lab Supplies recognizes bad debt expenses in the month sales are made
- The cost of goods sold is 65% of sales.
- The ending merchandise inventory should be 35% of the following month sales needs.
- Payment for merchandise purchase is expected to be 60% in the month of purchase with the remaining paid in the following month.
- Monthly selling and administrative expenses to be paid in cash are $32,000.
- Monthly depreciation is $18,000.
Fast Lab Supplies' retained earnings balance at the end of December would be (Assume the company pays no interest and income tax when answering this question):
A. $254.000
B. $269,000
C. $220.000
D. $55,000
E. None of the above
Q5. Ajesh Corporation uses a standard cost system with direct labor hours (DLHs) as the application base for fixed manufacturing overhead (FMOH). Information related to the past year is shown below:
Planned production in units - 800,000
Budgeted Standard DLHs - 200,000 (Denominator level of activity)
Fixed Pre-determined MOH rate - $8.80
Actual Production in Units - 803,500
Actual DLHs - 201,860
Actual Fixed MOH cost - $1,821,625
For the year, the FMOH Volume Variance was:
A. $ 61,625 Unfavorable
B. $53,925 Unfavorable
C. $ 16,368 Favorable
D. $ 7,700 Favorable
E. None of the above.
Q6. In its standard costing system, Zellers, Inc. uses machine hours (MHs) to apply fixed manufacturing overhead (FMOH). At the conclusion of the most recent year, the company reported actual FMOH of $1,104,182 resulting in the following variances:
Budget Variance - $20,818 Favorable
Volume Variance - $25,698 Unfavorable
If at the beginning of the year, Zellers budgeted at a denominator level of 750,000 MHs, the standard hours allowed for actual output for the year was closest to:
A. 732,210 MHs
B. 732,868 MHs
C. 767,132 MHs
D. 767,790 MHs
E. None of the above.
Q7. Results for Quann Company, which uses a standard costing system applying variable manufacturing overhead (VMOH) costs using direct labor hours (DLHs), are shown below:
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Budget
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Actual
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VMOH Cost
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$49,000
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$39,040
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Units of Production
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700
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630 Units
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VMOH Rate Variance
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$3,660 Favorable
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If there were 6,100 actual DLHs for the period and VMOH was under-applied by $5,060, Standard DLHs per Unit for the period was closest to:
A. 7.71 DLHs per unit
B. 9.00 DLHs per unit
C. 10.00 DLHs per unit
D. 12.07 DLHs per unit
E. None of the above