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Question(s) / Instruction(s):

A process cost system would be used for all of the following products except (Points : 2)

a)            chemicals.

b)            computer chips.

c)            motion pictures.

d)            soft drinks.

32. 3,000 units in a process that are 70% complete, are referred to as

a)            3,000 equivalent units of production.

b)            900 equivalent units of production.

c)            2,100 equivalent units of production.

d)            900 unequivalent units of production.

33. A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $100,000.  The number of units the company must sell to break even is

a)            50,000 units.

b)            20,000 units.

c)            200,000 units.

d)            33,333 units.

34. Sales are $250,000 and variable costs are $150,000.  What is the contribution margin ratio?

a)            67%.

b)            40%.

c)            60%.

 d)     Cannot be determined because amounts are not expressed per unit.

 

35. Within the relevant range, the variable cost per unit

a)            differs at each activity level.

b)            remains constant at each activity level.

c)            increases as production increases.

d)            decreases as production increases.

 

36. Gaultier Company had actual sales of $800,000, when break even sales were $600,000.  What is the margin of safety ratio?

a)            25%.

b)            33%.

c)            67%.

d)            75%.

37. The contribution margin ratio increases when

a)            fixed costs increase.

b)            fixed costs decrease.

c)            variable costs as a percentage of sales decrease.

d)            variable costs as a percentage of sales increase.

 

 

38. Dolce Company is planning to sell 400,000 hammers for $1.50 per unit.  The contribution margin ratio is 20%.  If Dolce will break even at this level of sales, what are the fixed costs?

a)            $120,000.

b)            $280,000.

c)            $400,000.

d)            $480,000.

 

 

39. A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no beginning work in process; 10,000 units were completed and transferred out, and there were 5,000 units in the ending work in process that were 40% complete.  During July $48,000 materials costs and $42,000 conversion costs were charged to the department.  The unit production costs for material and conversions costs for July were

a)            Materials, $3.20; Conversion, $2.80.

b)            Materials, $3.20; Conversion, $3.50.

c)            Materials, $4.00; Conversion, $2.80.

d)            Materials, $4.80; Conversion, $4.20.

 

40. A process began the month with 1,200 units in the beginning work in process and ended the month with 800 units in the ending work in process.  If 3,600 units were completed and transferred out of the process during the month, how many units were started into production during the month?

a)            3,200 units

b)            4,000 units

c)            3,600 units

d)            2,800 units

 

 

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