1. Valley Manufacturing Corporation's beginning work in process inventory consisted of 15,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion cost. The total cost in the beginning inventory was $40,000. During the month, 60,000 units were transferred out. The equivalent unit cost was computed to be $2 for materials and #3.1 for conversion costs under the weighted-average method. Given this Information, the total cost of the units completed and transferred out was:?
- 289,500
- 231,600
- 259,500
- 306,000
2. Arizaga Corporation manufactures canoes in two departments, fabrication and waterproofing. In the fabrication department, fiberglass panels are attached to a canoe-shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arizaga uses a weighted-average process cost system to collect costs in both departments. All materials in fabrication department are added at the beginning of the production process. On July 1, the fabrication department had 470 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 690 canoes in process that were 30% complete with respect to conversion cost. July, the Fabrication department completed 8,200 canoes and transferred them to the Waterproofing department.
What are the Fabrication department's equivalent units related to conversion costs for July?
|
3. Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 730 units. The costs and percentage completion of these units in beginning inventory were:
|
|
Cost
|
Percent Complete
|
|
Materials costs
|
$8,200
|
75%
|
|
Conversion costs
|
$7,200
|
25%
|
|
A total of 8,400 units were started and 7,750 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
|
|
Materials costs
|
$138,200
|
|
Conversion costs
|
$324,200
|
|
The ending inventory was 90% complete with respect to materials and 75% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
|
|
The cost per equivalent unit for materials for the month in the first processing department is closest to:
|
|
$16.28
|
|
$15.37
|
|
$16.04
|
|
$15.14
|
|
4. Spartan Systems reported total sales of $370,000, at a price of $25 and per unit variable expenses of $16, for the sales of their single product.
|
|
Total
|
Per Unit
|
|
Sales
|
$370,000
|
$25
|
|
Variable expenses
|
203,500
|
16
|
|
Contribution margin
|
166,500
|
$9
|
|
Fixed expenses
|
114,000
|
|
|
Net operating income
|
$52,500
|
|
What is the amount of contribution margin if sales volume increases by 30%?
|
$166,500
|
|
$68,250
|
|
$216,450
|
|
$36,750
|
5. Arthur corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $248,400 and the variable expenses are 45% of sales. Given this information, the actual profit is:
- 66,240
- 45,540
- 12,420
- 34,155
6. Darwin Inc., sells a particular textbook for $37. Variable expenses are $27 per book. At the current volume of 48,000 books sold per year the company is just breaking even. Given these data the annual fixed expenses associated with the textbook total:
- 480,000
- 1,776,000
- 2,256,000
- 1,296,000