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:

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:

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:

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